Let’s ask a question. What are the factors that drive the demand and supply of designer handbags? Did you know, for example, that the sale of designer handbags remained intact even during the recession of 2008? This happened because these bags are mainly bought by wealthy people. In a way, this means that luxury handbag sales are less likely to decline because of the global recession and more so because of preferences.

Exquisite handbags have been a growing trend for a long time. But apart from the core economy, sales of exquisite bags fluctuate due to various market-oriented factors and changes in consumer behavior.

Let’s take a look at some of these factors.

  • Fast Forward Fashion: Nowadays, fashion trends come and go in a matter of days. There are new styles of luxury bags every season. In many ways, globalization has further accelerated the trend cycle for lifestyle products. Changing fashion trends in staples such as luxury handbags greatly affect sales.
  • Consumer tastes and preferences: The sales of any product largely depend on the tastes and preferences of the target consumers. The bag has to be unique to be considered by the ultra-rich.
  • Microeconomics behind raw materials: The unbleached fabrics with which the bags are made have a characteristic colour, texture and feel. It is those basic ingredients that arouse the buyer’s interest. There is also a change in the demand for these materials as a shopper chooses a designer bag. That change is reflected in the overall sales of the product.
  • Prices: The price of a product plays a crucial and strategic role in creating demand and generating sales. This is the case with luxury handbags. Pricing is often used as a tool to target different income classes in society. Excessive prices can negatively affect sales in lower income groups. Low-priced products may be labeled as not exclusive enough by higher-income consumers. Design houses are looking to target the upper middle class and wealthy people, so don’t expect the price of these bags to drop. There are some variations and they are caused by the increased number of buyers buying products from wholesale designer handbag websites. These sites market and sell wholesale designer handbags at discounted prices.
  • Availability: If the supply is insufficient to meet the demand for a particular product, it is bound to reduce sales. The availability of luxury handbags is a very important factor in finding the best buy. Consumers tend to choose a substitute product in case it is not available.

The above factors are important as the buyer plans and pursues the execution of certain price targets in terms of exquisite bags.

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