Essay on Market Size And Growth Rate
In 2013, it was estimated that the market for handbags and leather accessories was approximately $93 billion. The market was the largest in the United States with 36 percent of industry sales, followed by Europe with 21 percent, then Japan and China. This industry is easily classified as a luxury market, reflected during the economic recession from 2006 to 2010. However, there are predictions that with the continued growth this market would continue to expand and that the Asia Pacific region will eventually run the market. Countries with rising standards of living and increasing income levels continue to grow this industry, specifically China, Indonesia, Malaysia, and India.
The industry included haute couture, traditional luxury, and accessible luxury. Industry sales have become more reliant on the accessible luxury brands that were more affordable to middle income individuals.
Number of Companies in Industry Although when looking at the entire industry there seems to be a lot of companies, the breakdown into three segments really limits how many companies are actually competing against each other. The most valuable luxury includes four major players (Louis Vuitton, Gucci, Hermes, and Cartier). This is then followed by traditional and accessible firms (Coach, DKNY, Dolce & Gabana, Michael Kors, Vera Bradley).
Experience Curve This industry is largely affected by the experience curve. New entrants cannot just enter into the market…