Prices for handbags are rising rapidly. Who buys them? | BoF Insights

Brands have been steadily raising the prices of their designer handbags for years, long before recent record inflation. The average price of a women’s designer bag in the U.S. has risen about 27 percent since 2019, according to research by Edited, cited in the BoF Insights report “A new era of designer handbags.”

Versace is the latest luxury entrant to announce a price hike on its bags, which currently retail for between $1,000 and $3,000. John Idol, chief executive of Capri Holdings, Versace’s parent company, told an industry conference earlier this month that the increase had brought Versace’s prices better in line with those of competitors. Capri also said price increases are expected at two other subsidiaries, Michael Kors and Jimmy Choo.

How do these rising prices match consumer budgets? The June 2022 BoF Insights US survey sheds light on this question. The average price of $2,475 for a designer handbag is nearly 2.5 times what the average US consumer says their budget will allow, but still within the budget of about 60 percent of the wealthy US surveyed.

Designer handbags are not available to all consumers, but some are happy to stretch their limited budget to make these expensive purchases.

For more similar insights, see the in-depth analysis published by BoF Insights — at designer handbags, resale, digital fashion, supply chainand sustainability.

BoF Insights is The Business of Fashion’s new data and analysis think tank, arming fashion and luxury executives with the business intelligence they need to make better strategic decisions. Drawing on unparalleled industry access and knowledge, BoF Insights provides companies with in-depth research and analysis, executive briefings and training, and tailored consulting services designed to support clients in answering their most important business questions and solving their most pressing challenges. Interested in working with BoF Insights? Reach out to insights@businessoffashion.com.

A new era of designer handbags

https://www.businessoffashion.com/reports/luxury/handbag-prices-increase-bof-insights-chart-versace-capri-holdings-michael-kors-jimmy-choo/ Prices for handbags are rising rapidly. Who buys them? | BoF Insights

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