The world of luxury leather goods is undergoing a transformation, moving away from flashy logos and vibrant colors. Leading luxury brands have recognized the growing demand for understatement and discretion in their handbag collections, embracing what is known as “quiet luxury” or “silent luxury.” This shift in approach is in line with the rising trend of minimalism among consumers, particularly in light of the global economic uncertainty.
Neutral shades, especially black, have made a notable comeback in the offerings of many luxury labels. Prada and Gucci, for example, are opting for black, along with other subdued tones like grey, beige, brown, and white. Even Jacquemus, renowned for its playful and vibrant designs, has joined this movement towards more neutral hues. However, lighter colors still have a place in the industry, with pink and blue accounting for a significant percentage of Jacquemus’ collection.
Data from Retviews, a leading fashion analytics company, underscores the significance of accessories in the European luxury market. For Gucci, accessories make up 35% of their product range, while Bottega Veneta holds a 21% share and Hermès leads the pack with a substantial 57% share. Luxury brands strategically curate their e-commerce platforms to showcase only a selection of their leather goods, emphasizing exclusivity. Hermès, for instance, focuses on its iconic Birkin handbag to create allure and desirability.
In terms of pricing, luxury handbags typically command prices above €1,000, with an average range between €2,000 and €2,500. However, Hermès sets itself apart by pricing 58% of its range above €3,500. On the other end of the spectrum, Prada offers more “affordable” options, with a range of handbags priced between €500 and €1,500. The success of Prada’s Re-Edition 2005 model, crafted from recycled nylon fabric, can be attributed to its pricing strategy, as it attracts a new segment of price-conscious customers.
What is interesting to note is the upward trajectory of prices for certain handbag models. For example, the price of Prada’s Re-Edition 2005 Re-Nylon increased by 32% between May 2021 and March 2023, accompanied by an expanded range of colors. This surge in price reflects the growing demand and popularity of the model. A similar trend can be observed for Bottega Veneta’s Teen Jodie handbag, which experienced a 32% price increase.
Furthermore, the emphasis on understatement is evident in the higher prices commanded by logo-less handbags compared to those with visible branding. This pricing strategy caters to a more discerning and exclusive audience, appealing to their preference for subtlety.
Overall, the shift towards understated luxury in the realm of leather goods reflects the growing desire for minimalism and discretion among consumers. Luxury brands are successfully adapting to this trend by offering neutral hues, strategic pricing, and a focus on exclusivity in their handbag collections. This ensures that they resonate with the evolving tastes and preferences of discerning customers.
Useful links:
1. [Retviews](https://www.retviews.com/)
2. [Hermès Birkin handbag](https://www.hermes.com/us/en/birkin/bags/)
