Let’s ask a question. What are the factors that lead to the demand and supply of designer handbags? Did you know for instance, that the sale of designer bags remained intact even during the recession in 2008? This happened because these bags are mostly bought by affluent people. In a way, this means that luxury handbag sales are less likely to go down by worldwide recession and more by preferences.
Exquisite handbags have been a growing trend for a long time. But other than the core economics, sales of exquisite bags fluctuate due to several market oriented factors and consumer’s behavioral shifts.
Let us take a look at a few of these factors.
- Fast Forward Fashion: Today, fashion trends come and go in a matter of days. There are new luxury bag styles every season. In many ways, globalization has hurried the trending cycle of lifestyle products even more. Changing fashion trends in commodities like luxury bags affect sales considerably.
- Consumer’s tastes and preferences: Sales of any commodity is by large dependent on the tastes and preferences of the target consumers. The handbag has to be unique for it to be considered by the ultra-rich.
- Microeconomics behind raw materials: The raw fabrics out of which handbags are made, have a distinctive color, texture and feel. It is those basic ingredients that sparks the buyer’s interest. There is also a change in demand of these materials while a buyer is choosing a designer bag. That change reflects in the overall sales of the product.
- Pricing: Pricing of a product plays a very crucial and strategic role in creating demand as well as generating sales. So is the case with luxury bags. Often, pricing is used as a tool to target different income class of the society. Over pricing can adversely affect sales in the lower-income groups. Under priced products can be tagged as not exclusive enough by the higher income consumers. Designer houses are looking to concentrate on the higher middle class and rich people – so do not expect the price of these bags to come down. There are some variations and those are caused by the increased number of shoppers who are buying products from wholesale designer handbag websites. These sites market and sell wholesale designer handbags at discounted prices.
- Availability: If supply is insufficient to meet the demand of a particular product, it is bound to pull the sales down. The availability of luxury handbags is a very important factor to find the best buy. Consumers tend to pick a substitute product in case of unavailability.
The above factors are important while the buyer plans and seeks execution of certain price targets in terms of exquisite handbags.