Indian Accessories market has been evolving as a completely different and high-growth potential segment over the last few years. ‘Handbags and Clutches’ is an important accessory for today’s women. Indian fashion industry is in a significant stage of evolution, not only because of the size of the economy, but also because of the changing lifestyle needs. These factors, coupled with the rising disposable income and consumer’s 'Look Good, Feel good' attitude, are making fashion accessories very popular among the female clan.
The handbag market is pegged at around Rs 1000 crore and is growing at about 20 percent every year. Customers are ready to allocate a good amount of their spending budget to accessories to have a smart complete look. Retailers are also venturing into newer modes of selling products (e-commerce portals and social networking sites) apart from conventional brick-n-mortar models. This paradigm shift in marketing strategies is a result of consumers getting more aware and tech savvy.
Apparel brands (like Tommy Hilfiger, Zara, Aldo, Mango etc) are trying to woo the customers by enhancing their product portfolio. Apart from clothing, they are foraying into bags, handbags and clutches for women, to keep their clientele coming back for more.
Bags and clutches is a fast growing sub-segment under the umbrella of accessories. There are different kinds of bags required for different occasions. Women prefer to carry chic bags for ladies luncheons while having a suave bag is a must for office. Wedding attires are incomplete without clutches or potlis. So there is a lot of room for innovation and investment for the players to carve a niche for themselves. The market is young and growing at a very fast pace.
The fashion accessories market of India was observed at US$ 3.4 billion in 2014 and is estimated to grow at CAGR of 12 percent to reach US$ 10.6 billion by 2024. Unorganised players dominate this market, and the share of organised retail stands at a meagre 16 percent for bags, belts and wallets (including clutches). Since Indian consumers are increasingly accepting modern, contemporary fashion accessories as an important part of their overall outfit choices, they are inspiring the entry of new domestic and international players into the market. The size of the market for watches and belts, bags, wallets has been observed to increase by a ratio of 2:1 from the years 2014 to 2019. Though the same ratio may not be noted for the second half of the decade, they definitely shall continue to move towards a higher market share and a more organised structure.
Online media has also been a pivotal role in boosting the market for bags and clutches. There are plethora of options to choose from along with added advantages of online shopping. The features of ease of purchase, search engine optimisation (SEO) and cash on delivery (COD), free exchanges and returns along with a wide variety of accessories to choose from, make it impossible for the consumers to resist this option of shopping. The trend is following in Tier II and tier III cities along with the metros.