In recent years, due to increases in disposable income and purchasing power, China’swomen’s handbag market has enjoyed steady growth. The revenue of China’s women’s handbag marketincreased from approximately CNY 90.9 billion in 2012 to approximately CNY 150.4 billion in2016, at a CAGR of approximately 13.4%.
The distribution channels of women’s handbags in Chinatraditionally include department stores, hypermarket & supermarket and specialty store retailing.With the proliferation of e-commerce in recent years, online retailing has been established as an important alternative to sales channel. In particular, it reaches and captures the consumer group in remote areassuch as the second- or third-tier cities and counties where such physical retail points mentioned abovedoes not have their presence.
Related report:
Luggage and Bag Manufacturing Industry Overview in China, 2011-2020
In the future, China’s women’s handbag market is estimated to grow at a CAGR of approximately 7.8% from 2016 to 2021. Moreover, the middle-end women’s handbag market islikely to experience the fastest growth with a CAGR of approximately 10.6% from 2016 to 2021.
Although low-end segment dominated in 2012, the middle-end onesurpassed itsleading position in 2016, becoming the most significant sub-sector within the women’s handbagmarket in China in 2016. It has also experienced a relatively higher growth rate at a CAGR ofapproximately 14.6% from 2012 to 2016. It is mainly attributed to the consumption upgrade as aresult of the rise in the per capita income of Chinese residents, shifting spending pattern from costawareness (i.e. price) to quality and design.
The high-end market also exhibited slightly lower growth rate at approximately 14.4% from2012 to 2016. Through a series of advertising and promotion activities, these high-end brands wereable to enlarge their market shares along with such consumption upgrade for more affluent spendinggroup. These two segments, middle-end and high-end, are expected to continue to foster in the nearfuture.