How can i start a handbag line?

Sales and Marketing information for a start-up handbag company

• I am looking for sales and marketing information. I own a start-up handbag company which is growing. I am looking for articles and data that show how small handbag companies have grown their sales and market share. It would be helpful to have current information on the gift industry and the accessory industry showing growth by geographical territory. But mainly, I am interested in articles etc describing "how it was done" or "how to do it." Data about companies such as Louis Vuitton or Gucci (large handbag companies) is irrelevant. Please do not include in answer.

• Answer:

  <Growing sales in the handbag business ? case studies. MooRoo Handbags Established in 1998 as a one-woman operation by Mary Norton. A trade show at the Jacob K. Javitz Convention Center, resulted in orders worth $65,000. Proof of the orders got her a $20,000 line of credit from a bank. The $20,000 was invested in renting a warehouse and buying equipment. In February 2001, MooRoo opened a store on South Carolina?s high-end King Street. $50,000 was spent renovating the building. Sales doubled each year from 1998 with the customer base increasing by 40% each season. The company suffered a drop in orders after September 11 which were revived when the company was featured in an article in People magazine. Projected sales for 2003 were $2million. Product price range - $450 - $1,200. Future expansion plans are to open stores in New York City and Beverly Hills. http://www.entrepreneur.com/article/0,4621,306339,00.html The company has virtually no advertising budget. The brand has been built by celebrity placement. Norton is familiar with the film industry and knows how to contact celebrities. Lots of products are given away to stars so that they are photographed wearing it to an event. For the Academy Awards the company rents a hotel in Los Angeles for a week and offers refreshments to stars who want to come and select a handbag to wear to the ceremony. This costs $25,000. The company has good customer loyalty with about 80 percent of customers returning to buy additional handbags. Not being based in New York has the disadvantage that some opportunities for press coverage are missed. http://www.charleston.net/stories/092903/bus_29strictly.shtml Moo Roo website. http://www.mooroo.com/ Celebrities and press. http://www.mooroo.com/press.asp ------------------------------------------------------------------------------ Harveys Industries Inc. Established 1996 as a home based business. Sales ? 40,000 units per year. Unit price ? over $100. Their seat belt bags account for 95% of their sales. The company does no advertising or marketing claiming that the bags seem to sell themselves. They are sold in retail outlets including Marshall Field?s in Chicago and Nordstrom, and Henri Bendel in New York. http://www.ocmetro.com/metro103102/hot25/Harvey_hot25_2002.html Articles about the bags have appeared in a number of magazines including Coast Magazine, LA Times Magazine, Glow, Organic Style, Lemonade, Glue, Raygun, Shuz,, Womens Wear Daily Journal and Self. http://www.seatbeltbags.com/news.php Seatbeltbag website. http://www.seatbeltbags.com/ ------------------------------------------------------------------ Susan Towner Totes Established 2002. The company called on speciality retailers and boutiques to see if they would sell the bags. Their goal was to get into 10 stores in their first year which they exceeded by getting into 20. Susan Towner cold calls potential retailers for five or six hours a day. Their sales breakdown as follows: retail 75%, trunk shows 15% and website sales 10%. http://www.boston.com/yourlife/home/articles/2004/02/12/house_works/ Susan Towner Totes website. http://www.susantownertotes.com/ ------------------------------------------------------------- Kate Spade Inc. Established 1992. In 1992 they paid $2,500 to take part in a trade show. They got orders from two stores Barneys and Charivari but failed to get enough order to cover the cost of the show. They produced designs for five markets a year. In 1993, revenues were around $100,000. By 1995, revenues were $1.5 million. By 1996, revenues reached $6 million and have more than doubled every year since then. In 1999, they sold 56% of the business to Nieman Marcus for $33.6 million. In recent years they have licensed the Kate Spade name. In the Groove with Kate Spade by Anne Ashby Gilbert ? Fortune. http://www.fortune.com/fortune/smallbusiness/managing/articles/0,15114,360374,00.html Lessons from America?s new entrepreneurs ? USA Weekend Magazine. http://www.usaweekend.com/98_issues/980823/980823upstarts.html ----------------------------------------------------------- Corem Rose Established in 1999 by Melinda Gomez. With capital of $30,000, Gomez took samples of her work to boutiques. She now employs a fashion rep to find shelf space at boutiques and department stores. The handbags are also displayed in show room in New York and Los Angeles where buyers shop for new merchandise. Making contact with a celebrity stylist was the key to success with the handbags worn by four celebrities at the Academy Awards. Since then many more celebrities have been photographed with Corem Rose handbags. First year revenue was $100,000. This year (2001) revenue is anticipated to triple. http://money.cnn.com/2001/09/10/sbstarting/q_handbags/ Designing Success ? how Corem Rose succeeded in the handbag business. http://www.themanagementor.com/kuniverse/kmailers_universe/mktg_kmailers/0802_4.htm Corem Rose website http://www.coremrose.com/ -------------------------------------------------------------- Ebags has produced a print catalog that was mailed to customers who bought multiple times and had an average order size of $80. This resulted in a 75 percent increase in sales over the same period last year. http://www.ebags.com/info/aboutebags/index.cfm?Fuseaction=newsitem&release_ID=63 -------------------------------------------------------------- Coach This article describes how Coach turned around its business from near failure to success. http://www.pbs.org/wsw/tvprogram/guests/20021122.html Coach has expanded its product line to cater for the lower-end market. Four years ago Coach introduced a brand of Demi handbags that sell for as little as $128 (compared to their high-end purses which sell for $7,500). Sales over the holidays in 2003 accounted for 10% of the companies business. Another product the Wrislet, a 6-inch long leather accessory business that some use as a handbag (retail price $48) generates $25 million business. Coach?s second quarter sales have risen by 31% and net income by 41%. http://www.usatoday.com/money/advertising/2003-01-30-marketing-luxury_x.htm Analysis of the company?s business. http://www.fool.com/news/commentary/2003/commentary030626lal.htm?source=EDNWFT -------------------------------------------------------------- Staci Woo Staci Woo found retailers by knocking on doors. http://www.mary-kateandashley.com/mind_body_soul/display.php?33.3 Woo website http://www.underwoo.com/buzz/aboutarticle.html ------------------------------------------------------- Lillian Vernon Corporation Lillian started a mail order business selling a personalised handbag and belt which would be monogrammed free of charge. With start up capital of $2,000 she invested $495 in an advertisement in Seventeen magazine which resulted in $32,000 in orders. http://www.homebusinessmag.com/tarticle.html?aID=1011&mID=1 ----------------------------------------------------- Capobianco Established in 2000, Capobianco used industry contacts to initially market her handbags. They are currently sold in 100 boutiques and retail for between $125 and $250. The bags have been featured in Country Home and Organic Style. In March and April she will attend trade shows in Dallas and Los Angeles. http://www.thedesertsun.com/news/stories2004/business/20040321223344.shtml ------------------------------------------------------------ ------------------------------------------------------------ Geographical regions. USA American Apparel & Footware Association http://apparelandfootwear.org/3col.cfm?pageID=92 The AAFA publishes two reports on the apparel and footware business. The reports are free for members. Focus: An Economic Profile of the Apparel and Footware Industries contains details of imports, retail sales, consumption, exports and domestic production. It also includes relevant economic indicators and demographic information. In addition it features an analysis of the industry?s past and future. It costs $250 for non-members. Trends provides updates on production, imports, exports, consumption, employment, trade by price line and consumer expenditures. It costs $75 for non-members. http://apparelandfootwear.org/4col.cfm?pageID=212 The 2004 USA Handbags Market Report costs $1250.00 http://www.infomat.com/research/infre0001235.html Increase in sales of 5% for luxury goods predicted for 2003 Christmas season. http://www.swlearning.com/economics/econ_news/econ_news_productivity.html Europe According to an article in Italian Style, the luxury goods market in Italy and Europe is set to make a full recovery by 2005. http://www.italtrade.com/countries/americas/usa/dec2003.pdf Travel & Leather Goods Market in France. http://www.uktradeinvest.gov.uk/giftware/france3/profile/overview.shtml Far East Hong Kong?s Travel Goods and Handbags Industry. http://www.tdctrade.com/main/industries/t2_2_42.htm This feasibility study for a leather goods manufacturing unit in Pakistan gives details of the global trade for leather goods in 1999 , major importers by country with their percentage share and percentage growth. http://www.smeda.org.pk/bopp/handbags.pdf Japanese tire of luxury brands. According to Merrill Lynch, Japanese consumers buy 40% of the world?s high end handbags. According to Yano Research Institute sales of luxury goods have fallen in five of the past six years and are expected to fall a further 4.4 percent in 2003. http://www.iht.com/articles/111456.html ----------------------------------------------------------- Trade shows. NW Apparel and Footwear Materials Show. http://www.americanevents.com/information.asp Fashion Source. http://www.sifair.com/fashionSource/index.html The Luggage, Leathergoods, Handbags & Accessories Show - Toronto http://www.tradeget.com/tradefairs/tradefair_25Apr.html Directory of trade shows. http://www.apparelnews.net/TradeShows/ Directory of trade shows. http://www.expocentral.com/consumer_goods/industry_consumer_goods_apparel_footwear_and_leather.html> ----------------------------------------------------- <Additional links:> The Handbag Market from A-Z This publication provides a industry overview with key press, manufacturing and sales contacts. Trade shows and associations are also featured. It costs $165.00 <http://www.infomat.com/publications/infpu0001590.html> <Contact any Celebrity ? printed directory and online database.> <http://contactanycelebrity.com/store/index.htm> <Search strategy:> <"handbags" "successful business"> <://www.google.com/search?q=%22handbags%22+%22successful+business%22&hl=en&lr=&ie=UTF-8&start=30&sa=N> <handbags growth> <://www.google.com/search?sourceid=navclient&q=handbags+growth> <"handbag business"> <://www.google.com/search?q=%22handbag+business%22&hl=en&lr=&ie=UTF-8&start=20&sa=N> <Hope this helps.>