Luxury Handbags Are Selling Well In BRICs Countries

According to a recent report by Technavio luxury handbags are selling well in BRICs countries. In economic terms, BRICs is an acronym which is used in economics to group Brazil, Russia, India and China. These countries are sometimes referred to as the "Big Four" because they are all at a similar stage of newly advanced economic development.  A related acronym, BRICS also includes South Africa.  

The reason that the market for luxury handbag has grown in BRIC countries is that there is an ever increasing spending power and a growing internet presence in these regions. The internet has the capability of raising brand awareness and gives access to a people who would otherwise not had the ability to obtain these items. This in turn has led to a strong e-commerce market and a rapid growth in the sales of luxury handbags.

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Another factor is that there is an upsurge in retail stores making the products more reachable and the demand for brands is on the increase because of it. The occurrence of strategically located brand stores promotes brand awareness and increases online sales.

Socially, there has been a growth in the middle-class populations of the BRIC countries, resulting in more consumers with a disposable income to spend on products such as luxury handbags. Women account for about 50% of the population in the BRIC countries, and they are entering the workforce at greater rates and wanting more and more material luxuries.

Luxury handbags are in high demand with brands such as Louis Vuitton, Chanel, Dolce & Gabbana, Prada and Gucci top of the popularity stakes. For example, Chanel and Gucci are particularly popular in Russia, whereas Louis Vuitton is favored by wealthy Chinese consumers. Shoulder bags are the most popular style selling at present, with brands like Chanel, Louis Vuitton, Burberry and Michael Kors making the most out of this profitable market.

The growth in sales is predicted to last because the populations of these BRIC countries are becoming more urbanized and western fashion trends are more in demand. “The growing participation of women in the workforce, increasing infrastructure development, rising urbanization and the growing influence of western lifestyles will continue driving growth of the market in the region,” said Sriram Mohan, industry manager, Technavio, Bangalore, India. “Technavio estimates the market to grow at a compound annual growth rate of 7.41 percent during 2015-2019.” Technavio’s Luxury Handbags Market in BRIC 2015-2019

The sale of luxury handbags in the BRIC countries may reach up to 16 million by 2019. In the past five years the market has already grown at a compound annual growth rate of 6.66 per cent from approximately 8 million to about 11 million.