Let’s ask a question. What are the factors that lead to 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 because of preference.
Exquisite handbags have been a growing trend for a long time. But apart from the core economy, the sales of exquisite handbags fluctuate due to various market-oriented factors and changes in consumer behavior.
Let’s take a look at some of these factors.
- Fast forward mode: Today, 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 like luxury handbags affect sales considerably.
- 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 raw fabrics with which the bags are made have a characteristic colour, texture and feel. It is those basic ingredients that arouse the interest of the buyer. 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. Such is the case with luxury handbags. Pricing is often used as a tool to target different income classes of 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 larger number of buyers buying products from wholesale designer handbags 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 while the buyer plans and seeks the execution of certain price objectives in terms of exquisite handbags.