Not clutch: Competition from e-tailers will pressure demand for industry products

The Handbag, Luggage and Accessory Stores industry in Canada comprises establishments that primarily retail luggage, handbags and a variety of accessory products for men and women. Over the five years to 2018, the industry has experienced tepid performance in response to rising competition from external competitors. Consumers have increasingly shifted to e-tailers, siphoning dollars away from brick-and-mortar retailers. As a result of increasing external competition and lower industry demand, some operators have been forced to consolidate or exit the industry entirely. Over the five years to 2023, IBISWorld expects that the same drivers will continue to negatively affect the more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies

Industry Threats & Opportunities

  • The industry experienced tepid performance due to rising competition from external competitors
  • A depreciating Canadian dollar has decreased consumer propensity to travel
  • As Canadians travel more, they will need to purchase industry products
  • Industry Report - Industry SWOT Analysis Chapter

    The Handbag, Luggage and Accessory Stores industry in Canada has entered the declining stage of its life cycle. Over the 10 years to 2023, industry value added (IVA), which measures an industry's contribution to the economy, is forecast to decline at an annualized rate of 0.8%. Comparatively, overall GDP is anticipated to grow at an annualized rate of 1.9% during the same period. Contracting IVA amid a growing economy is highly indicative of an industry in its declining life cycle stage, reflecting its falling contribution to the overall economy. Moreover, declining industry participation, despite solid demand for industry products, makes it clear that the industry is losing its place in the modern economy and is in the declining stage of its life cycle...purchase to read more.

    Additional Insights for the Handbag, Luggage & Accessory Stores Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Handbag, Luggage & Accessory Stores Industry are

  • Attractive product presentation
  • Proximity to key markets
  • Maintenance of excellent customer relations
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Number of fixed broadband connections in the Handbag, Luggage & Accessory Stores industry impact industry performance..

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    What's in this report

    What is the Handbag, Luggage & Accessory Stores Industry?

    This industry includes specialty retailers that predominantly sell handbags, luggage, briefcases and clothing accessories such as hats, wallets and neckwear. While some establishments may also sell apparel or footwear, such sales are not included in this industry.

    Industry Products
  • Luggage, suitcases and briefcases
  • Women's accessories
  • Men's accessories
  • Costume jewellery
  • Industry Activities
  • Selling handbags
  • Selling leather accessories
  • Selling travel bags and luggage
  • Selling wallets and gloves
  • Selling briefcases
  • Selling trunks
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Number of fixed broadband connections
  • Number of households earning $100K or more
  • International trips by Canadian residents

  • Current Performance
  • External competition
  • Overall retail environment
  • Industry exits and consolidation
  • Chart: Revenue Growth

  • Industry Outlook
  • Luxury losses
  • Competition and closures
  • Retail trends
  • Table: Handbag, Luggage & Accessory Stores Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Handbag, Luggage & Accessory Stores Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers in Canada

  • Key Selling Industries
  • Clothing & Clothing Accessories Wholesaling in Canada
  • Manufacturing In Canada

  • Products & Services
  • Women's accessories
  • Luggage, suitcases and briefcases
  • Men's accessories
  • Costume jewellery
  • Other
  • Chart: Handbag, Luggage & Accessory Stores Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Highest income quintile
  • Fourth-income quintile
  • Third-income quintile
  • Second-income quintile
  • Lowest income quintile
  • Chart: Major Market Segmentation for the Handbag, Luggage & Accessory Stores Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Handbag, Luggage & Accessory Stores

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Handbag, Luggage & Accessory Stores Industry

  • Industry Globalization
    Bentley Leathers Inc., Michael Kors Holdings Limited,
  • Table: Bentley Leathers Inc. - financial performance
  • Table: Michael Kors Holdings Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Handbag, Luggage & Accessory Stores Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Handbag, Luggage & Accessory Stores Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • International trips by Canadian residents (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Aspirational Shopper
  • Shoppers who aspire to purchase high-end luxury goods, but limit their budget to about $300.00, thereby purchasing small-ticket items like purses and accessories.
  • Lipstick Effect
  • A theory proposed by Leonard Lauder, of Estee Lauder, which states that consumers will purchase lower-cost luxuries rather than higher-priced luxuries in times of economic uncertainty.
  • Outsourcing
  • Subcontracting process where manufacturing is conducted by a third-party company, either locally or internationally.
  • What Our Customers Say

    Why buy this report?

    The Handbag, Luggage & Accessory Stores market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Handbag, Luggage & Accessory Stores:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Handbag, Luggage & Accessory Stores market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Handbag, Luggage & Accessory Stores, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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