Feel the Heat
Opportunity: Handbags
Holding a hot handbag is in. Handbag sales rose 18 percent to $6.1 billion between 2004 and 2006, according to market research firm Mintel. But don't market solely to grown women: "Companies are targeting younger girls, [as] they tend to bring their consumer habits into adulthood," says Kat Fay, a senior analyst at Mintel. "If you get them when they're younger and they develop a taste for slightly higher-end purses, they're not likely to reverse the trend and start buying cheaply made bags after that." Handbags priced between $150 and $200 are an affordable luxury for many women and young girls, who are helping drive the market.
Mary Frances Shaffer's embellished handbags, priced between $180 and $300, give women the chance to shine like stars Jennifer Aniston and Eva Longoria--both fans of Mary Frances Accessories in Lafayette, California. Her line of whimsical, beaded handbags is sold in boutiques nationwide, pushing annual sales past $9 million. Women love to express themselves with their handbags, says Shaffer, 48. "We're at a time right now when women really like to play."
Get a handle on your own handbag business with these pointers: - Create your own look. Women buy handbags to express their unique style, so let that be your license to create a signature look for your line. "Create something special," Shaffer says. "[Try not] to look like someone else. What turns you on--go with that. Be you in it."
- Monitor fashion trends closely. Shaffer watches all the fashion and accessory trends and what's going on in the industry in general--she even watches European trends. She's then able to interpret and design based on her own sensibilities.
- Market to all possible demographics. Look at all the women who could be interested in your bag. Shaffer brought her handbags not only to retailers like Dillards and Macy's, but also to boutiques and resort and vacation areas. Wealthy consumers can easily afford her $180 to $300 bags, but other demographics can purchase them, too. "If you don't have as much disposable income, you can stretch up and get my bag, so it's attainable," she says. "I don't want to be in the most high end, and I don't want to be in the low end."
- Look for ways to expand your brand. Once you find your niche, don't be afraid to explore other possible design categories. Shaffer has made her name in beaded bags, but she's also expanded into leather bags, as well as day and street bags. She says, "[It's] kind of the bag that can be your best friend, but still with the Mary Frances look."
- Be ready for market fluctuations. While the handbag market is growing, the whims of fashion can always cause fluctuations in popularity. Beaded bags exploded in 2005, for example, and sales for Mary Frances Accessories boomed that year, too. Business returned to more normal levels the following year and taught Shaffer the importance of being prepared for expansion and contraction in the fashion accessories business.
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