When the news of a financial recession hit the United States (and the world) a few years ago, some business owners may have been concerned about their ability to sell goods. This was true of many types of businesses from local supermarkets to outlet stores in malls. However, one type of business owner seems to be experiencing a boom in sales, regardless of the overall economy – sellers of wholesale handbags and fashion accessories.
As a story from Reuters says, despite the overall slump in economic prosperity, many are still buying luxury handbags from top of the line French designers:
“French luxury goods maker Hermes sees no sign yet of affluent buyers tightening their purse strings in spite of a somber global economic outlook, the head of the brand said on Sunday at Paris Fashion Week. The luxury goods industry continues to grow at a solid pace thanks to tourist buyers in Europe and strong appetite in emerging markets, while more affordable products such as L’Oreal and Clarins cosmetics have felt a slowdown.”
At prices of 10,000 Euros for some of its handbags, Hermes indicates that this trend of sales is true of not only other big name designers, but also those in the western handbag business. This news comes as unexpected to many, especially since analysts expected the Asian markets (which are crucial to the growth of fashion houses) to be light on spending for fashion accessories. This was the same for other brands outside of Hermes:
“Like other big luxury brands such as Louis Vuitton and Dior, which are part of LVMH, and Chanel, Hermes makes the bulk of its sales from leather goods and holds a show for its ready-to-wear collection at Paris Fashion Week twice a year.”
What do you think? Are you still buying western style handbags in this economy? How soon after a new bag is released do you go out of get it?
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