Is Your Handbag Healthy?

There are three things to look out for in a handbag  which can affect your health

1) Some leathers can be toxic due to the type of tanning process used  - Check why in my blog 

2) You can harbor toxic bacteria in your bag  - Check what bugs could be in your purse 

3) You bag can cause you back pain - check why here 

Will China’s E-commerce Law Changes Make Luxury Handbags More Expensive?

There have been changes to e-commerce laws in China which mean that any Chinese buying goods on line will now face import duties. But will these changes affect the cost of luxury handbags and other items bought on line. Will these products now be subject to these duties? Since 8 April, 2016, goods that are purchased and sold online through free-trade areas will be subject to new duties. The new laws are not a ‘crackdown’ but are actually closing a loophole in existing regulations. Import duties will now be applied to goods shipped through free-trade areas such as Australia and NZ.

But, the description of the new rules as “e-commerce” laws is not quite true. First of all, they are not laws, they are regulations. Furthermore, the new regulations are essentially the application of duties that were up to that time waived or reduced for goods that went through China’s free-trade areas. These new rules are meant to make China’s tax regime more consistent, and are not aimed at increasing protection for the domestic Chinese market.

Previously, some parts of China had lower duties than other parts of China and this was unsustainable. It led to business loopholes that were taken advantage of by shrewd Chinese buyers and service providers. Hence, some type of rule change was inevitable.

The upshot of these import duties will be that Chinese consumers will have to pay additional costs for goods such as luxury handbags and other items if they purchase online from free-trade partners. The most imported products bought on line in China are luxury handbags, clothes, and shoes. But also popular products sold on line in China are food, milk powder, vitamins and drugs. In fact, the Chinese market for high-end, reliable, clean food and herbal products is huge and will continue to grow as China’s middle- and upper-class consumption spending grows.

Several Chinese e-commerce or duty-free services companies are not sure about how the regulations will be applied, so they have removed products from their symbolic online shelves, until future duties to be applied are more clear.   Yet, Murray Goulburn, a major dairy co-operative, has a pointed out that the new regulations are just the latest in a series of measures aimed at regulating China’s booming e-commerce market. They don’t think the new regulations will change its overall business, and said that they had anticipated the new rules “for some time”.

In September last year, the State Council, China’s cabinet, announced that it would be more rigorously implementing the 2010 Customs and Duties Law. This announcement made many e-commerce sites in China (or e-commerce services providers who supply Chinese customers) cautious about stocking foreign products.   

Imported products will probably always be more expensive to Chinese customers than domestic alternatives, as China’s cost of production is much lower. It is thought that there will be a 10-20% increase in the price of imported goods, as suggested in the new regulations.  It is unlikely to put off Chinese shoppers from buying a guaranteed clean and reliable product. Due to a number of deaths from tainted milk powder, Chinese consumers are not likely to trust Chinese dairy products for many years. Chinese buyer think that foreign products are cleaner and greener, and the many food safety scandals in China, makes it improbable that Chinese customers will switch to domestic alternatives, no matter the price rise.

But will the added costs of buying a luxury handbag deter Chines buyers? In a previous blog “The New Chinese Middle Class See LuxuryHandbags As A Status Symbol”, 

I reported that the Chinese people have a huge desire for luxury goods and the appeal of luxury brands is very strong. And it is not just Chinese women who are passionate. Chinese men are obsessed with luxury handbags as well. Men are in hot pursuit of luxury handbags like Gucci, Hermes, Burberry, Prada, Coach, Louis Vuitton. In fact, men are said to account for 45% of China's $1.2bn luxury handbag market.  Luxury handbags are thought of as status symbols. It is estimated that more than half of the world’s brand spending will come from Chinese shoppers this year.

The majority of these luxury handbags and other goods are not bought in China, but overseas. The main reason why Chinese buy in a foreign country is the price. China has traditionally had high import tariffs and consumption taxes, as well as higher pricing strategies which can can raise the price of luxury handbags in China by 50%. According to LVMH, a French luxury conglomerate, a Louis Vuitton handbag costs 30% more in Beijing than in Paris.

So the Chinese travel overseas to purchase their dream luxury handbags. Actually, for around 80% of Chinese travellers, shopping is a central part of their travel plans. For those who cannot travel purchasing online has been their next option.

China has, in truth, topped the U.S. to become the number one e-commerce market. Its middle class purchase a wide range of products online ranging from baby formula, health foods, vitamins, milk powder, skin care products, Purina for their dogs, as well brand items such as luxury handbags. China's shoppers have grown more savvy and are now looking to buy top quality brands. And they are not worried about the 2-3 week delivery time when they buy on-line. In fact, they prefer the wait because it offers some confirmation the products are really are from overseas and are therefore genuine.

But it is this market that the Chinese taxman has been missing out on, so it is no wonder the regulators have moved in to close the loopholes. There has also been an official clampdown on corruption and extravagant gifting which has affected the import market.

Even so the new Chinese middle classes still see branded goods such as luxury handbags as a status symbol, and brand names such as Gucci and Rolex continue to be popular search terms on Chinese blogging sites. The Chinese shopping binge looks set to last, and China's Ministry of Commerce expects that China’s profitable cross-border trade to become a US $1 trillion market this year. Whether these changes to the e-commerce rules regarding import duties will affect these estimates is yet to be demonstrated.

Check out my luxury Italian Leather briefcases 

Designer Handbags Are Seen As A Status Symbol In China.

When I owned a café in the QVB in Sydney, it was located directly opposite the Coach store. During the Boxing Day sales there was always a line up outside the shop, similar to this image. Customers waiting eagerly to get their hands on bargain designer handbags.  I have to say that at least 80% of these potential customers were of Chinese decent. Coach is actually the 4th most popular brand of designer handbags in China in term of sales.

 Buy Coach on line

Any luxury retailer will now tell you that their most valuable customers are from China. The post 2008 years have not been the easiest for luxury brands, but China's addiction to luxury goods has made up for the slowing down of European sales. Most of the Chinese population have only just recently started making enough money to survive and to splurge on luxury items was once unheard of. However, the new Chinese middle class has grown enormously over the past couple of decades and the number of millionaires is soaring.

Buy Designer Handbags Online

The Chinese people now seek social-status signals such as branded goods, luxury items and designer handbags.  Travel abroad is high on many of the people's wish-lists, but for about 80% of Chinese travellers, shopping is a crucial part of their travel plans. They are happy to spend hours of valuable tourist time queuing for expensive bags and other luxury items. In Britain, alone, it is reported that they spend nearly £1,700 ($2,800) per person per trip which is three times the market average. And much of it is spent on retail shopping -  Chinese tourists have no problem buying Prada designer handbags by day but sleeping in two-star hotels by night.

The main reason why the Chinese prefer to buy abroad is price. China has heavy import tariffs and consumption taxes, as well as higher pricing strategies. This can increase the prices of luxury goods in China by 50%. According to LVMH, a French luxury conglomerate, a Louis Vuitton handbag costs 30% more in Beijing than in Paris.

The second major reason that the Chinese prefer European or American stores over their own is the guarantee of authenticity.   They feel more secure that they are not buying fakes. Many Chinese consumers prefer buying products from outside their home country because they're seen as less likely to be counterfeit. And they're not bothered by the two- to three-week delivery time if they buy on-line. In fact, they like the wait because it provides some confirmation the goods really are from overseas.

The Chinese also shop abroad for the “experience” and the stories they can tell afterwards.  Bragging rights are a crucial reason to buy abroad. Chinese people love to show that they have been abroad, so a “Made in Italy” is much more of a status symbol than “Made in China”. Bragging also takes the form of giving expensive luxury goods as presents. Successful men and women simply cannot return home without a sizable excess-luggage bill!

 The Chinese people have a huge demand for luxury goods and the lure of luxury brands is very strong. And it is not just Chinese women who are addicted. Chinese men also love their designer handbags and are in are in hot pursuit of top brand-name bags like Gucci, Hermes, Burberry, Prada, Coach, Louis Vuitton. In fact, men are said to account for 45% of China's $1.2 bn luxury handbag market.  They serve as status symbols, 

Buy Man Bags Online 

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China is now the world's second-biggest economy, and it’s 1.36 billion people are the biggest market for everything from cars to shoes to smartphones and especially for designer handbags. In recent years there has been a huge change in the Chinese market. China is now full of globalized shoppers who took more than 100 million trips out of the mainland last year.  

In fact, in 2013, Chinese people bought an estimated 47% of the world's luxury goods, and mainly in countries, located nearby. By some estimates, more than half of the world’s luxury spending will come from Chinese pockets this year. The Chinese taxman, however, is missing out because nearly 33% of luxury products bought by Chinese are purchased outside the country. And the silly thing is that most of these products are actually made in China.

And the boon is not just the Chinese spending so much on luxury goods abroad. They are also spending online. China has over taken the U.S. to become the number one e-commerce market. Its middle class buys a wide range of products online ranging from baby formula, health foods, vitamins, milk powder, skin care products, Purina for their dogs and as well they splurge luxury items such as designer handbags. China's consumers have gotten savvier and are now looking to buy top quality brands.

In short, the Chinese market is now a more mature market with the new middle class having a lot of disposable income at their fingertips. Of course the huge multinationals have loved the size of this market and have profited from it. 

However, China's boom years symbolized by double digit growth could not continue forever.  The Chinese economy has definitely slowed down over the past year and this has affected the luxury market to a certain degree. There has also been an official crackdown on corruption and lavish gifting which has affected the luxury market. No longer will you see plane-loads full of $800 bottles of wine.  But the new Chinese middle classes still see luxury goods as a way to show they have made it and brand names such as Dior and Rolex remain popular search terms on Chinese blogging sites. The Chinese shopping-spree looks set to continue, and China's Ministry of Commerce expects China’s lucrative cross-border trade to become a US$1 trillion market this year.

 The psychology behind why the Chinese love luxury items so much is possibly linked more to aspiration and the images of wealth, sophistication and civility that brands from fashion-houses like LVMH represent. French and Italian fashion-houses permit the Chinese customers to enter into a world of elegance and opulence, allowing them to escape from grimy city-life, smog and poverty

  

The Chinese President, Xi Jinping, has adopted a phrase for what's happening: the "new normal.

In some cases, of course, China's government has put a chill on foreign businesses. It built a Great Firewall that blocks most people in the mainland from accessing Facebook, Twitter and Google search, allowing local internet companies to thrive. And now local brands are making gains as their quality and marketing improves.

 The growth in online retailing into China has been a boon for countries such as Australia, New Zealand and the USA. But if you intend to export to china make sure you pass through official - "sunshine" - channels into China, rather than the murky so-called grey channels, often via Hong Kong, that are sometimes used. Supportive policies from the Chinese Government are helping stoke growth in cross border e-commerce, providing ways to avoid the dubious grey channels through Hong Kong.

When I was in Guangzhou just over a year ago, the brand stores were not flamboyantly displayed, but were found among the regular market stores The majority of stores sold cheap China made goods. When I did decide to but one of the designer handbags on sale, the merchant got out his calculator are started tapping away. He came up with a price more expensive than if I had purchased the same bag in Sydney, and no proof it was authentic.  Better to buy your designer  handbags online at www.largepurseshop.com

Why Women Love Luxury Handbags

  

There is no doubting the fact that women love luxury handbags. If you read any purse blogs or comments on purse forums you will see that some women are actually obsessed with them. Some women own a huge variety of luxury handbags which collectively may be worth many thousands of dollars. Social media and Dr Google are full images of the well-to-do, celebrities and royals who carry a different bag with each outfit – they have luxury handbags to match each color and style of their outfits.

 Get your luxury handbags at The Large Purse Shop - Great prices!

For the rich and famous, including celebrities and royals it is easy to possess a collection of luxury handbags. But what about the typical working woman or the stay at home mum. How can she pay such excessive prices to realise her dream of owning that latest style? The reality is that most bag-loving women will go without other things in order to satisfy her need for a new bag.

What sacrifices would you have to make to meet the expense of that elegant Hermes Birkin which recently sold at auction for over $200,000?  Made of exquisite pink crocodile decorated with 18 carat gold hardware and genuine diamonds? The run-of-the-mill Hermes will set you back about $8000 and even then, you may have to be on a waiting list to get it!

These days you probably could not get luxury handbags for much under $500. Most of the more exclusive brands will be well over $1000. So the average Jo Blog has to save up for a long just to come up with the money needed for one of these expensive bags.

Luxury handbags are the ultimate 21st-century object of desire, not just for the well-to-do, celebrities and royals, but also for working women from all walks of life as well. In this day and age, women of all ages tend to spend more on a handbag than a holiday, jewelry or even a car - and they hope that everyone else will notice their new acquisition.

Clothes commonly take second place to this most looked-for accessory. For example, an ad made in 2007 featured Kate Moss starring in a Longchamp's bag campaign She lay naked on a beach with nothing on except for her Longchamp handbag. The message this ad revealed was clear: clothes are redundant - it's all about the luxury handbag.

So why do women find luxury handbags so desirable? It is to a certain extent because they have become a distinguishing fashion statement depicting a woman's wealth and status. They also indicate how fashion aware a woman is, and proves her position and earning power. It is also due to the escalating popularity of large purses, which over the past 100 years, has mimicked the growing social independence of their women.

In previous eras, a woman's role was mostly domestic and she would keep her personal items in a purse tucked into the folds of her skirt or in a small handbag she carried discretely. But as women started venturing from the home, both for leisure and work, larger purses became a convenient way of carrying their belongings and daily needs. Eleanor Roosevelt is recognised as starting the trend of carrying large purses as a customary fashion.

At the time when rail and sea travel became more accessible, there was a growing demand for fashionable luggage such as suitcases, dressing cases, hat and shoe boxes. Styles developed and the modern leather handbag was born.

It is not surprising then that many of today's luxurious handbag design houses, such as Louis Vuitton, Gucci, Prada and Hermes, originated in the late 19th and early 20th centuries, as travel became more accessible to everyone. As women achieved more financial independence, the handbag industry prospered out of all proportion to its humble beginnings.

The fact that the right handbag can make us feel goes far deeper than just being a vehicle to carry our possessions. Both revealing and concealing, it also represents a feeling that deeply private to its owner. This feeling arises from the fact that the handbag was first designed as a silk purse or pocket worn close to the body for safe keeping.  At that time, pockets were seen as being underwear – a secret place hidden beneath lavish material and assessable only by an intimate slit in the skirt.

These intimate undertones lingered on when the first luxury handbags were worn in the late 18th century. Called reticules, they were superbly embroidered, pouches with handles in damask, satin or velvet. Women used them to carry cosmetics, a fan for flirtation, smelling salts and carte de visite, all without compromising the slim-line fit of the Empire-line dresses which were Vat the time.

To begin with, the idea of a woman displaying her personal belongings in a visible pocket was as outrageous as if she had taken off her knickers and waved them in the air. As a result of this defiance of common decency, reticules were labelled "ridicules" by those unready for change.

Because of the intimacy associated with them, luxury handbags were seen as sexual items.  The expression "old bag" was used to describe a woman who was passed her sexual best and grumpy women who display no emotion or compassion are still called that today.

In our time, luxury handbags still have their sex appeal because they are very closely associated with all of our most intimate possessions. A large purse is our survival kit for daily life. It carries all our personal needs from a mobile phone, tampons, make-up, money and keys, to hair straighteners, laptops, I-phones, chewing gum, condoms to a change of clothes. Consequently, its curiousness remains intact. Most men find the details of what a woman has in her handbag excitingly inconceivable and would never dare to invade its privacy.

Most women feel naked without their luxury handbags. Your bag rather than your clothes makes you stand out from the crowd. Even when your outfit is drab and outdated a good-looking bag makes you look and feel good.

Because of this, the handbag industry has seen incredible growth in the past few decades. By mid-2000's sales of bags were growing at twice the rate of clothes. Now the big fashion houses make millions of dollars a year from the sale of luxury handbags alone.

So what are the features that make luxury handbags desirable? The first thing is that it must have an outstanding design. It has to be instantly recognized as a prominent brand such as Fendi, Gucci, Chanel, Hermes, Louis Vuitton or from other established fashion houses. Most fashion houses have their signature designs and this too helps in appreciation of the brand itself.

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Another important feature for a luxury bag is glamour and appeal. Typically this comes from the link between a particular brand and a celebrity - such as the famous Hermes Kelly bag. Originally produced in 1935, it was not until 1956 that the bag's status shot to worldwide bestseller status. And this occurred because the newlywed, Princess Grace of Monaco, was photographed for the cover of Time magazine shielding her pregnant belly with a classic Hermes bag. The handbag in question subsequently became known as the Kelly in her honour. Fashion commentators at the time were quite adamant about the association of bag and star: Carrying a Kelly bag became synonymous with class and old money.

Another example occurred In 1994 when the Lady Dior became a sensation after Princess Diana took to wearing it around town after she separated from Prince Charles. This handbag is a seductive combination of briefcase and handbag which has distinctive gold charms. It depicted a thoughtful woman who was nonetheless glamorous and sophisticated. These days, social media can promote the status and demand for a particular bag just by been photographed on the arm of a style icon, celebrity or royal like Princess Kate Middleton.  

Shrewd marketing definitely also plays an important part in creating a must-have bag. While celebrities may always be able to get their hands on the latest luxury handbags, for the woman in the street it's much more difficult, irrespective of how much money they are ready to spend. The fact that many high-status bags are unobtainable makes it more looked-for. Some luxury handbags have waiting lists extending up to three years. The Hermes Birkin is in this category.

Women's natural competitiveness is cunningly managed by the top bag designers. For example. In 2005, Alexander McQueen inspired customer demand to a fever when he publicized the launch of his new designer bag. He specified that it was a limited edition with only 200 ever to be produced, and so it became the ultimate fashion trophy, selling out before a waiting list was even compiled. This bag was called the Novak after Kim Novak, the legendary blonde actress who starred in Alfred Hitchcock's 1958 masterpiece Vertigo. Prices started at £550 and went up to a whopping £6,000 for the deluxe crocodile version.

It seems a price tag does not prevent luxury handbags from selling well. In fact, fashion houses believe that high price tags seem to add more desire to own it. There seems to be an endless willingness to splash out on designer bags.

Luxury handbags will last a lifetime if cared for properly. Some of these styles may come and go, some retain their value and some increase in value. But it is only a handful of them that have the mystic qualities to become iconic. To become iconic, a bag is not just exceptionally well designed but it also surpasses the time in which it was fashioned.

Luxury handbags which have received the right to be called iconic are the Hermes Kelly, the Fendi Baguette, the Marc Jacobs's Stam, the YSL Muse and the Mulberry Roxanne. All of these bags share a clear, clean line; nothing fussy or over-designed, with a combination of functionality and luxury. An iconic bag owes its status to the finest traditions of pedigree, quality and craftsmanship to look as good years later as it did the day it was born. And, for a true bag lover, that is worth more than price.

The Most Expensive Handbag In The World - Or NOT ?

  

I read recently in the Daily Mail UK that Christies Auction House in Hong Kong sold the most expensive handbag ever sold. The bag was a Hermes Birkin, in pink crocodile skin and was bought by an anonymous buyer at auction.  When the final hammer went down at 1.72 million Hong Kong dollars which is equivalent to UK £150,000, or US $228,480, it was reported to be the most expensive handbag ever sold.   However i think the Wall Street Journal has clarified the situation by reporting it is the most expensive handbag sold at auction.

The Daily Mail UK reported that the cost of this record setting Birkin bag broke the previous world record, set in 2011, for the world's most expensive handbag. The previous record holder, which was sold for £133,500 (USA $202,585) at auction, in the USA, was held by another Hermes Birkin, but in red crocodile skin. This probably also relates to the most expensive handbag sold at auction.

Because  this report conflicts with research I have completed. I believed that the world's most expensive handbag, as listed in the Guinness Book of Records, was the Mouawad’s 1001 Nights Diamond Purse which is worth an astounding US $3.8 million. I will discuss this super valuable bag in another blog. It is quite a different bag to the Birkin.

So did the Daily Mail get it wrong? It seems so. I think they meant to say the most expensive handbag sold at auction.  I will devote this blog to discussing the world's most expensive handbag as identified by the Daily Mail UK because it is a bag more appropriate for day to day wear.

But just to put it into perspective, you could buy an Aston Martin DB9 Volante with the same amount of money that this Birkin, a record making expensive handbag costs. Or even put a deposit on a house. But the Daily Mail also reported that Christies have another Birkin on their books, a sexy black leather number, which may sell for even more and beat this record price.

So what makes this expensive handbag so valued?

This astoundingly expensive handbag is a Birkin Bag designed by Hermes. It is made in bright fuchsia-pink luxury crocodile skin and features beautiful 18 karat gold detailing and is covered in genuine diamonds. The Birkin bag, which was first designed in 1984 by Hermes, a French fashion house, was named after the actress Jane Birkin, is seen as a fashion classic.

The story has it that the Birkin was created after the Hermes CEO, Jean Louis Dumas, sat next to Jane Birkin on a Paris to London flight. The actress expressed her frustration about the difficulty in finding a leather weekend bag.  She outlined what her ideal bag would be like. Soon after, the bag she described was born as the Birkin. Hermés now count many of the world's wealthiest women as fans.

The Hermes brand is famous for its extravagant leather accessories and the Birkin has become one of the most sought-after handbags of all time. The Birkin Bag is known for having a price tag in the thousands of dollars. There is a waiting list for a Birkin which can be several years long.  Hermes is eminent for its perfect finish and the best quality materials used.  Hermès never uses  assembly lines with but uses one crafts-person to make each bag at a time, hand-stitching each piece to create the immaculately finished product.

Unfortunately the high-end luggage and accessories produced by Hermés isn't really within every fashionista's price range.  A Hermes Birkin bag can have a price tag of upwards of £8,000 (USA$ 12185).  But while a Birkin bag may be worth as much as a small car, it is seen by the fashion industry as an 'investment' piece – an expensive handbag yes, but one that will remain in style for years, if not decades. And at the same time go up in value. The Birkin has proof of this - waiting lists of up to three years and the highest two sales records for the "most expensive bag" being attributed to a Hermes Birkin bag.

We don't know the identity of the new owner of this most expensive handbag, but we do recognize that both Kim Kardashian and Heidi Klum are the proud owners of pink Hermes Birkin bags which are similar to the record breaking one described here. Don't they look really great and make such a bold statement? They certainly stand out.

Victoria Beckham is reported to owning as many as 100 bags, which together are estimated to be worth £1,500,000 (USA $2,284,800). Khloe Kardashian has one in just about every color of the rainbow. Recently she showed off her latest acquisition which features the Monopoly mascot on the front, holding a large bag of money, surrounded by paper bills with the sides splattered with orange, pink and dark red dots of paint. 

I am not convinced that the pink Birkin bag reported in the Daily Mail UK is the most expensive handbag in the world, but do believe that the Wall St Journal report is correct - it is the most expensive handbag sold at auction.  Check out my next blog when I disclose ten bags which may be more valuable than this record setting expensive handbag reported by the Daily Mail UK.

I you want a great new bag but simply cannot afford a very expensive bag then check out the great bags on my site at the Large Purse Shop.

Some Luxury Handbag Retailers Have Cut Costs and Reduced Discounts

The Business of Fashion has reported that some luxury handbag retailers have cut costs and reduced discounts in order to cope with slow-moving sales. But the outcome has been good with some companies such as Michael Kors, Kate Spade, and Coach    all topping analysts’ earnings estimates for the past quarter. To protect their brands and margins, these companies have reduced discounts, added new products as well as slashing costs.

Michael Kors Chief Executive Officer John Idol reports that growth of the once hot luxury handbag segment in North America has slowed to low single digits but that young customers are still buying handbags and leather goods, but styles have shifted to lower-priced large wallets and small cross-body bags.

“There’s been this myth that no one is buying a luxury handbag anymore, but really it’s a change in trend away from the big totes everyone was buying a few years ago to smaller bags that don’t cost as much,” said Dorothy Lakner, a New York-based analyst at Topeka Capital Markets.

Because the number of people looking for a luxury handbag at North American department stores is reduced and subsequent sales are low, there were higher levels of leftover Kate Spade, Coach and Michael Kors handbags that needed to be sold off at discounted prices to make way for newer goods.

“You have to make products scarcer and have less inventory left over at the end of the year so you can get full price,” Lakner said. “Michael Kors is really pulling back on inventory in the department store channel. Similarly, Coach is reducing the number of discount events.

Luxury handbag sales have been boosted by international expansion but a strong U.S. dollar has hurt tourism sales domestically and taken a bite out of profits earned abroad. “You have to focus on newness in products and keep inventories tight,” Lakner said.

Even after a restructuring, Kate Spade’s luxury handbag sales still make up about 70 percent of its revenue, according to data compiled by Bloomberg. Since 2013, the New York-based company has sold the Lucky and Juicy Couture brands and streamlined its corporate operations. In 2014, it began a complete overhaul of management with renewed focus on e-commerce, which now accounts for 20 percent of luxury handbag sales. The retailer is also expanding into home goods, rolling out a 325-piece home-furnishings category last month.

The move to streamline expenses may be paying off. While Kate Spade’s $275 million in net sales in the third quarter fell short of the $281.2 million analysts expected, the company recorded profit excluding some items of 6 cents a share, topping the 4 cents analysts forecast.

Michael Kors posted profit in the second quarter through Sept. 26 of $1.01 a share. That topped the 89 cents a share analysts predicted. Still, the London-based company forecast third-quarter revenue of $1.33 billion to $1.35 billion, falling short of the $1.4 billion analysts projected.

Results were similar at Coach, which said last week that profit excluding some items last quarter was 41 cents a share, exceeding analysts’ estimates by a penny. The New York-based retailer posted sales of $1.03 billion, missing analysts’ projections of $1.04 billion.

While all three companies say they’re pulling back on discounts, they’re also looking to categories other than luxury handbag sales to drive growth. Coach agreed to buy designer shoe brand Stuart Weitzman in January for $574 million to diversify its selection. It also hosted its first women’s runway fashion show this fall. Kate Spade introduced a home goods line last month, while Michael Kors is expanding its licensing agreements into watches, accessories and eye wear.

The luxury handbag makers could follow the example of how fellow luxury handbag retailer used restructuring and cost-cutting to boost performance. One of the original lifestyle companies, Ralph Lauren, announced a restructuring effort in May that will save $110 million annually when it’s completed in 2017.

Increased efficiency helped Ralph Lauren post earnings last quarter of $2.13 a share, excluding some items. That surpassed the $1.73 a share analysts had estimated. Still, comparable sales declined 6 percent, Ralph Lauren said in a statement Thursday. That’s more than the 3.8 percent decrease analysts had forecast.

But you don't have to own an expensive luxury handbag – there are bags available that look more expensive than they are. If you have champagne taste but not the budget to match, The Large Purse Shop has a range of affordable bags which manage to look like a luxury handbag and look like they cost way more than what they actually do. They'll all make you look like a million bucks for two to three figures. We're especially fond of Italian leather; isn't it lovely?

Italian Handbags Have A Long And Rich History

Quality handcrafted Italian handbags have a long and rich history, have been much admired for centuries. During the twelfth century, Italian handbags were used by royalty and those in high society. The Parisian court sourced its bags and purses principally from the skilful artisans in Italy. Documents still exist which confirm very extravagant and luxurious purses were sourced from Italy. These incredible bags were embellished with gold, precious stones, enamels and silver. Many ancient examples are on show in museums in Europe.

The bag-making industry in Italy can be traced back to the twelfth century. Ancient records of different guilds for arts and crafts include:

·         Arti Minori (the lesser crafts)

·         Cuoiai e Galigai (leatherworker)

·         Arte dei Lavoratori del Cuoio (Leatherworkers’ Guild).

·         Correggiai (military leatherworkers)

·         Sellai (saddlers)

·         Calzolai (shoemakers).

Some of the finest tanneries in Italy were established in this very early period. Cow and buffalo were the most common hides used but more refined skins such as chamois and calf skin also found.

Practically every city in Italy had its own quarter of bag-makers; Tuscany, Venice, Pistoia, Siena and Pisa all had craftsmen who made the best Italian handbags.  The craftsmen who created these excellent Italian handbags were called bolzieri.

The cities who housed these craftsmen flourished. Every city in Italy where trade and commerce have flourished have had their own quarter or street of bag-makers (Via dei Borsai). The extraordinary artisans who worked there gave Italian handbags, made in Italy, such a respectable reputation which has lasting throughout time.

One city that was particularly famed for their exceptional Italian handbags was Venice. Venice was an industrial city and its highly skilled artisans made bags of all shapes and sizes, planned for countless uses, made in leather or in rich cloth such as  velvet, damask and silk; adorned with jewels, pearls, embroidery, lace etc.

The first bags were developed to hold money securely and were undoubtedly made of leather (the word for handbags, borsai, derives from the Greek byrsa which means leather). The bags of this period were called scarselle and were worn around the neck or at the waist. Many scarselle were lavishly ornamented and it is these that made the craftsmen in Italy very famous.

 The bisacce were also popular at this time and were used for travel. Knitted bags   were also used in the medieval period and were often embroidered with the family crest or had the professional guild’s coat of arms inscribed on them.

The Renaissance era of the sixteenth century brought about a worldwide trade in bags. Bags from both Italy and France became popular especially from the cities of Florence, Paris, Venice, Tuscany and Ferrara. The Italian handbags of this period   were well bedecked with ribbons, fringes, lace, bows and precious stones; and a trend were often made from more extravagant materials such as velvet, brocade, and satin etc. but leather was still used a great deal.

The style of Italian handbags started to change and the most popular type of bags included: the cartella  - an improvement on the medieval scarsella because it was more spacious and had a knife pocket;  the brachetta -  a bag worn by men, as a codpiece over their pants, where there was room to keep money and a handkerchief; the borsa da matrimonio - a bag filled with money as a wedding gift to the bride and groom

Another type of bag which became popular during the fifteenth century, especially in Venice was the manicotti or the muff. This was a forerunner of contemporary Italian handbags. The manicotti was cylindrical in shape, and was lined with fur. It was used to keep hands and arms warm. It had inside pockets to hold small objects and money.

In the later part of the eighteenth century, bags began to lose popularity and were used less often. It was not until after the French Revolution, that resurgence in popularity occurred. The barilotti, bags worn on the arm, became the popular style. These bags were similar to the manicotti, the Italian handbags popular in fifteenth century Venice.

With the rise of the bourgeois in the eighteenth and nineteenth centuries, Europe saw   a new demand for Italian handbags with high society women wanting better and more extravagant purses.

By the end of the nineteenth century, Italian handbags were well entrenched in the fashion scene.  Bags were now seen as an everyday item worn not only as a fashion symbol and a sign of wealth, but as functional pieces. The design of bags became more practical, more comfortable and roomier; and could be made in leather or fabric, and were elaborately decorated and very elegant.

At the end of the First World War, the fashion industry took on a whole new significance and was blooming. The first fashion houses of the world were established and thanks to names like Gucci and Gherardini Italian handbags became bigger and better.  Bags now complemented other fashion accessories and were designed to be worn for specific occasions and different times of day.

Pochettes became the popular style of the day and the muff came back into fashion, made in either velvet or pony-skin.  However due to the war, there was a shortage of materials and a drive to find alternative materials to make bags from was led by the artisans in Italy. Fashionable Italian handbags started to be made from imitation alternatives through to precious materials. Materials such as imitation leather, dentice (a type of sea bream), rospo (toad), hemp, linen and silk were all being used in the manufacture of Italian handbags. Metallic hardware and decorations, snap fasteners and zips were used to embellish the design.

After the Second World War, Italian handbags were in even more demand.  As technology and transport grew, Italian handbags became more accessible worldwide.  Made in Italy, is among the most sought after fashion labels.

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The leather traditions used to make Italian handbags have stood the test of time and are prospering still. The mysteries that marks Italian handbags as different have been handed down from generation to generation within families. This handover of skills from father to son helps to retain the old traditions that this craft offers.

Fashions and tastes might have changed during the course of the centuries but the refined workmanship and techniques that go into making quality Italian handbags remain the same. Craftsmen in Italy work as a team - one personally cuts out the leather, others colour it, and yet others stitch it to produce the most amazing Italian handbags which last a lifetime.

I love my Italian handbags. This tradition full of history and mystique is why made in Italy bags are so loved and desired. To see my lovely range of Italian Handbags click here.

Is The Luxury Designer Handbag Market Over-Crowded?

The sales of fashion accessories have increased substantially during the past decade. Fashion accessories now make up approximately 30% of world-wide sales in the luxury-market. This is up from 18% in 2003. The bulk of this growth can be attributed to the sale of the luxury designer handbag. So what mega-brands are selling the best and why has the luxury designer handbag market grown so much in later years? Statistics publicized by Exane BNP Paribas account for mega-brands such as Louis Vuitton, Gucci, Prada, Chanel, Hermes, Coach and Burberry. But all other brands are reported as a broad group under “others”. This “other” group took a larger market share, growing from a 38% share of the market in 2004 to a 41% in 2013. This is due in part to other high end brands entering the luxury designer handbag market.

1)     Luxury Designer Handbag are Seen as a Status Symbol.

Bags are an affordable status symbol.Women and now also men are judged by the quality of her handbags. For both men and women, a luxury designer handbag can be mixed and matched with other trendy fashion accessories and to a wide variety of events. Fashion accessories such as a luxury designer handbag can dress up or dress down an outfit.

2)     A Luxury Designer Handbag Has Become More Accessible & More Affordable

For brand-names, the retailing of a luxury designer handbag offers clever retail economics. The sales of bags result in high sales productivity as well as selling at full retail price in their branded stores. Brand stores are usually located in larger cities such as London, Rome, New York, Paris, Milan and Sydney and thus have restricted convenience to those who live outside the cities. Through the arrival of the internet, the acquirement of a luxury designer handbag has been expanded. People can purchase over the internet from anywhere in the world, with their purchase delivered to their door. Consumers look for bargains when they purchase online, specifically on sites such as E-Bay and Amazon. This has had the effect of driving down prices.

3)     The Luxury Designer Handbag Market Has Become Much Talked About

The dawn of social media brought about a transformation in the way fashion trends are set for both men and women. A new release of a luxury designer handbag is talked about on sites such as Facebook, Twitter and Pinterest. The dress code of celebrities and royals has become a day-to-day topic of conversation on sites such as Facebook, Twitter and Pinterest. Many bloggers and fashionistas put their personal fashion views across online using blogs and forums. More and more people are up-to-date with the latest fashion trends and what is new and where to get it. I follow the Business of Fashion, Purse Blogs, Purse Stories and the Large Purse Shop Blogs. Fashion information is freely available on these sites.

4)     Third world Market Places Such As China Have Expanded

Third World Market places such as China have opened up to the call for the sale of a branded luxury designer handbag. This has occurred due to the growing middle class in these countries with a higher disposable income. They are particularly fashion aware and see these branded bags as a status symbol. I saw evidence of this when I recently visited Guangzhou. Branded stores were located throughout the city in glamorous shopping centres scattered among the busy traditional Chinese marketplaces.

5)     More High End Brands Now Produce A Luxury Designer Handbag

The market selling a luxury designer handbag is becoming more and more over-crowded, as high-end fashion houses such as Dior and Saint Laurent have expanded into the fashion accessories market. In fact the Prada set up a new brand called Miu Miu which produces a luxury designer bag range aimed at celebrities and a younger audience. This has led to more and more availability and choice for branded bags.

6)     Medium to Lower End Fashion Brands are Challenging the Mega-brands

Other emerging fashion brands such as Zara, Michael Kors, Kate Spade, Oroton, Tory Burch, and many others are challenging the luxurydesigner handbag market. The bags produced by these companies are just as smart and classy but the price tag is usually much less making them more affordable. To match this challenge, some of the Mega-brands have produced what I would call a second tier of luxury designer handbag which they also retail at a lesser price. The lower priced bags are still sought after by fashion conscious consumers.

6)     Generation Y Has A Bigger Disposable Income

Generation Y who have grown up with computers, cell phones and technology are often seen as self-entitled, overly precocious, demanding and just plain rude. They change their jobs readily and spend money more easily. I have 4 generation Y children who love to shop online, and do not blink an eye to pay the price of a new luxury designer handbag. Although they do their research first in order to get the best bargain. Unlike their baby boomer parents who were more frugal and were taught to save rather than to spend.

Exane BNP Paribas Infographic | Source: Exane BNP Paribas

7) Has the Luxury Designer Handbag Market Become Over Crowded?

To offset the mounting pressure of the ambitious new brands, some of the mega-brands increased their entry-level price points to highlight the exclusivity and desirability of their own landmark luxury designer handbag. Unfortunately this back fired a little because although they experienced a rise in exclusivity, it was accompanied by a reduction in sales revenue. Consumers who are spoilt for choice in an over-crowded market, have little loyalty and alter from one design to another. This is particularly apparent in the Chinese market.

It seems apparent that the mega-brands have increased their entry-level price points, but abandoned the market range below $500, and prefer to focus on the $500 to $2,000 price range. The median price of a luxury designer handbag is now around $1,500. Some fashion houses have designed innovative more extravagant models priced above $3,000 so as to retain exclusivity at the higher end of the market. Some of the high end brands have a signature luxury designer handbag which became the landmark by which they became recognized. However they still need to concentrate on developing new landmark products with iconic shapes which emphasis sophisticated design. However discretion often goes out the window when these high end mega-brands are produce full logo bags as a means of status distinction.

The up and coming brands sell a more functional, luxury designer handbag to younger consumers with lower budgets where price is a more important buying benchmark than for the higher end brands. Emerging brands position themselves by using one of three product strategies: attempt to own a shape, concentrate on best sellers or be a lower-priced fast-follower. This approach may not be sustainable in the long term. These brands often go for easy-to-spot logos and canvas prints.

It is obvious that this is no time for any of these companies, mega-brand or not, to be relying on previous success. In a market oversupplied with choice, a tactic based on past success and reputation, whether associated with a logo or not is a recipe for failure.

Consumers these days are very knowledgeable because they can research online before buying. They look for new and exciting products and get bored quicker than in the past. The manufacturers of a luxury designer handbag has to keep on their toes and watch what social media, blogs and forums are saying about fashion trends. They have to be innovative and not rely purely on their past success. Consumers want to be trend setters and want to be admired and talked about and even envied especially on social media.