South America Handbags Market - Growth, Trends, Covid-19 Impact, and Forecast(2022 - 2027)

South America Handbags Market - Growth, Trends, Covid-19 Impact, and Forecast(2022 - 2027)

South America Handbags Market is projected to reach 4.1 % in the forecast period 2022-2027.

Handbags are considered an integral part of a woman’s wardrobe. Designers are including handbags in their collections more often to increase revenue in the fashion industry. The fashion and luxury market has a strong influence on the different designs of handbags. The arrival of numerous brands and their easy availability through retail stores and online retail channels are contributing to the market's growth. Further, manufacturers are collaborating with well-known designers to develop curated collections and promote them as a lifestyle statement. Celebrity endorsement, fashion events, and social media advertisements are promoting the sales of luxury handbags in the region.

However, the presence of counterfeit products, that replicate the original brands is challenging industry performance. Moreover, the emerging subscription model of lending luxury handbags for an occasion is influencing the purchase decisions of price-conscious consumers.

Key Market TrendsPopularity of Leather Handbags

Leather purses are well-appreciated as a luxury fashion statement among women consumers. Also, the region exhibits widespread leather resources, with countries such as Argentina, and Columbia renowned for their high leather quality products. Several large-scale leather manufacturing firms are also focusing on in-house packaging and manufacturing to gain greater control over the entire supply chain activities. The handcrafting techniques, which are unique to South America enable aesthetic and ultra-luxurious designs. Handcrafted leather bags are gaining popularity among fashion-conscious millennial consumers. Further, the increase in exposure to handbags through e-commerce websites, social media, and celebrity endorsements is promoting consumer spending on leather purses and office bags. Growing consumer interest in sustainable fashion inspired by environmental consciousness is promoting product innovation in the industry such as vegan leather bags and upcycled leather bags. For instance, Volta Atelier, the Brazilian fashion house crafts handbags and other fashion accessories using 100% leather discarded by the leather goods industry in the country.

Brazil is Leading the Handbags Market

Brazil holds the largest share of the South Americ Handbags Market. The growth in the sector is mainly due to local brands diversifying the products and prices offered to target different consumer groups. Additionally, in recent years the country has seen improvement in both the quality and design of luxury handbags produced. The demand for vintage handbags is further boosting the sales of handbags in South America. Further, the well-developed network of multi-barns and single-brand stores along with individual fashion boutiques are enabling consumers to choose from a wide variety of handbags marketed by private labels and global luxury fashion brands. For instance, in October 2022, Balenciaga launched its Summer 23 collection in collaboration with Lay’s, a snack food brand. The brand has created a bag that looks exactly like a packet of Lay’s chips. Improved fashion sense, high disposable income, and penetration of online fashion stores are the key factors anticipated to drive handbag sales in Brazil during the forecast period.

Competitive Landscape

The South America Handbags Market is highly competitive, with the presence of both global and regional players. The major companies in the market include LVMH Moet Hennessy Louis Vuitton, Kering SA, and Prada Holding SpA among others. The key players are expanding their presence in the region by launching new stores, curated collections, and investing in advertising and promotions. For instance, in October 2020, Brazilian accessories brand Ryzí opened its first store in São Paulo. The new Ryzí store carries the brand’s full range of bags and collaboration designs. Companies are competing on different factors, including product design, quality, sustainability, and price points.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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