Luxury handbags have always been a major financial asset to the success of designer brands, but in 2008 a prediction that handbags would soon meet their demise has finally become true. This is especially accurate in the US, handbag sales have declined 7 percent year-over-year to July 2019. Don't get me wrong, It bags are still a major market in the luxury industry but in the UK sales have declined 24 percent and 33 percent in the US, in the last year, per Edited.
In this case, the blame is placed on social media, especially Instragam because social media exposes customers to trends so quickly, excitement is extinguished before momentum is gained and big sales can be made. In the 90s, Fendi released the Baguette and the launch of this product ensued buzzed for many years and maintained significant profit. The iconic handbag is still sold today, with variations, but with the lack of social media presence, it was able to live on throughout decades without the pressure of quickly rise and dying trends. In today's world for a brand to remain in the spotlight, they must gain internet virality and retain popularity.
A recent trend that has taken the fashion world by storm is the introduction of mini bags, and this trend was ruled by brands such as Jacquemus, Chloe, and Bottega Venetta. These brands are producing handbags that are more affordable while preserving the It factor and beauty of luxury. With the brand Jacquemus, the purchasing of their handbags satisfy Instagram users. Although brands such as Gucci, Saint Laurent, Hermes, and other luxury brands still provide consumers with the traditional label, people have been more enticed towards that are trendy and cheaper.
As said earlier, many brands rely on handbag sales. The chart below shows the major designer brands and how important the sales of handbags are.
It is proven that iconic, classic It bags still retain 80% of their value when put up for resale, but luxury brands cannot keep producing the same products, new trends need to be made, and the designer brands they need to develop new, fresh ideas to keep up their handbag sales.
When it comes to social media and the growth of luxury brands following, it is a science on how to preserve the classic look while developing new ideas to reach a new market. After looking at multiple articles about "Instagram killing the It bag", I do believe that with the constantly changing environment of social media and consumers’ desire to acquire the new best thing, it can be said that Instagram has contributed to the decrease in handbag sales. As a consumer, I find that the classics are vital pieces to have in one’s closet, but after purchasing the only classic handbag from that brand, it is all you need. But, with the upcoming brands such as Jacquemus and Chloe, they are creating a more competitive field for luxury sales, and iconic designer brands need to step up their game.
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