A Rally in Mid–Cap Purses

A new battle is under way in the world of high–end handbags, with prices
of less–expensive bags rising as more companies move into the $400–to–$700
price range that two or three years ago was dominated by top luxury
brands.
http://online.wsj.com/article/SB114202746248595169.html
The Wall Street Journal
By CHERYL LU–LIEN TAN
March 11, 2006; Page P6
A new battle is under way in the world of high–end handbags.
Soaring prices for top brands give lesser–known labels cover to charge
more. How to buy smart
Fendi, Prada and other makers of luxury bags have attracted a lot of
attention lately for stratospheric prices that run thousands of dollars.
But prices of less–expensive bags are also rising as more companies move
into the $400–to–$700 price range that two or three years ago was
dominated by top luxury brands. With spring bags now hitting stores, some
of these companies are charging double or triple what they used to –– even
though high–end bags tend to depreciate quickly.
Some are even pitching their wares as stylish, but not so over–the–top
that they will be flashes in the pan. Kooba's Sienna bag, for example, has
trendy stitching on the straps and small metal rings, but the hardware is
minimal enough so the bag can look trendy for a few seasons.
The brands include lesser–known names such as Kooba, Botkier and Lolli, as
well as more–established labels like Kate Spade. Coach pioneered the
approach by successfully selling trendier bags in this price range along
with less–expensive styles. Some makers of $1,000–plus bags are keeping a
foot in the market too, often with canvas or nylon bags.
Designer Monica Botkier, a former fashion photographer, says she got into
the business in 2003 because she was frustrated by how much she was
spending on bags. Her Trigger bag, priced at $465 to $575, quickly took
off and has continued to sell well in new colors each season. She now
makes 20 styles priced from $595 to $950 for a python hobo. And she is
targeting women who buy luxury brands as well as those who want to but
can't afford to.
Kooba also started at a lower price point, charging as little as $250 in
1999. But last year its best–selling bag was its new Sienna, named for
actress Sienna Miller. The price: $595 to $650.
While most women spend far less on bags, $1,000–plus purses are selling
surprisingly well. The category accounted for 7% of handbag sales at
department and specialty stores last year, up from 1% three years ago,
according to market researcher NPD Group, which predicts the bag's share
will rise to 10% this year. Retailers expect Fendi's B. Fendi bag, which
starts at $1,430 and goes up to $27,700, to sell out this spring because
media coverage has prompted women to reserve bags at several stores.
Prices for European imports have risen sharply in recent years, partly due
to a weak dollar and high oil prices. And that has changed the equation
for retailers. When the cost of $400–to–$500 bags it bought from small
Italian and French companies jumped 37% two years ago, Searle, a New York
boutique chain, began looking for American suppliers of bags in that price
range, says spokesman Rick Weinstein.
But few trendy bags retain their value. One indication is how they fare at
consignment shops and the news isn't good. There is little demand for
less–established brands and few bags sell for their original price, says
Ina Bernstein, owner of an eponymous chain of consignment stores in New
York. Two exceptions: Herms Kelly and Birkin bags in good condition, she
says. Leslie Weinstein, who manages the Philadelphia branch of the Buffalo
Exchange consignment chain, says designer bags typically fetch 20% of
their original price.
Brenda Kauffman, fashion director at Bag, Borrow or Steal, an online
purse–rental firm, says many bags in the $400–to–$700 price range are made
of materials similar to what top brands use. "A lot of these bags don't
have $1,000 prices not because of the quality," she says. "A lot of times,
it's the name."
Lauren Merkin, who four years ago started her business with a clutch and
two totes priced from $165 to $300, says she targets people who want
designer bags but balk at the price. "The standard seemed to move from
$600 to $1,000 for a bag" she says, adding that she personally couldn't
justify spending that much. "It's just a handbag –– it's not rent." She
nevertheless just added a $575 lambskin tote to her line.
Shon McCarthy, co–owner of Lolli, says she started designing $300 to $398
hobo bags in 2003, betting that there were a lot of people around the
country like her who didn't want to pay $1,000 for a purse. Recent orders
on her Web site have come from Arizona, Texas and Kentucky. But she says
her prices have risen because she now uses pricier materials such as
Italian distressed leather on a new $520 bag.
Stylists say bags like these can look fashionable longer because they tend
to be more understated than trendy higher–priced bags. The $398 Lolli
double–ring lambskin bag, for example, has brass rings on the strap that
touch on the metal–hardware trend. "But the rings are not so in your face
that the bag is going to feel played out very soon," says Alle Fister,
stylist for online retailer Shopbop.com, which has carried the bag for 1
years.
Write to Cheryl Lu–Lien Tan at cheryl....@wsj.com
FINDING VALUE
Two fashion experts critique some bags that cost less than top luxury
brands.
http://online.wsj.com/article/SB114202746248595169.html#BAGCHRT

"Adrav" <nos...@nospam.com> wrote in message
news:duv359$sd...@reader2.panix.com...
Good article – thanks for posting it.
I am taken with the Trigger bag but I don't understand how she is targetting
those who want to buy but can't. At $465 for a bag?! I could, but I won't
spend that much on a bag. I realize there are some that will and more power
to them. But I just don't get how she's targetting the 'little' people with
a $465 bag. Am I missing something? (I guess that's why they call them
"high–end?")
she personally couldn't
My sentiment exactly – about bags, that is. I am loving that Michael Kors
straw handbag that someone posted about a while ago but I cannot do it for
$595. A straw bag, albeit well–woven and accessorized.
Jamie

"Adrav" <nos...@nospam.com> wrote in message
news:duv359$sd...@reader2.panix.com...
That was a great article. Interesting perspective and insight.

Thanks for the interesting article. It reminded me of a thread on a
knitting board where they were aghast at the prices being charged for
purses like this one:
http://www.neimanmarcus.com/store/catalog/prod.jhtml?cmCat=search&itemId=prod22120029
Granted they're on sale now, but apparently non–knitters have an issue
paying that much for knit bags as well.