Handbags Fight Off Recession Luxury Designer

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Greater China, including Hong Kong, Macau, Taiwan, are doing well, and Australia, South Korea and the U.K. are doing okay,” Trapani said. Like many other brands, Hermes included, Asia remains a key part of the recovery strategy. It is really a fact that luxury brands are likely to continue doing well in Asia.

Manes expects the British department store to record double-digit growth in handbag sales compared with last year. Selfridges achieved this by moving away from masstige products to include more niche items.

As for Bulgari, the Italian luxury goods brand is on the road to recovery, according to a Bloomberg report. CEO Francesco Trapani said higher demand for its handbags has helped Bulgari regain some of the ground it lost in 2008.

In a related development, Reuters reports that the sentiment at the Paris fashion shows reflected Hermes’ thinking. “Yes there is the crisis, but it’s always an opportunity for some brands. We’re going to have a record year and record profit,” Sebastian Manes, director of accessories at Selfridges&Co, told Reuters at the Vivienne Westwood show.

According to Thomas, that strategy involves Hermes handbags and other leather goods, unsurprisingly. Sales of leather goods in the second quarter rose 21 percent, firmly endorsing Thomas’ views. Thomas also took the opportunity to rubbish any notion that Hermes would ever stoop to entering the so-called masstige segment.

With major brands and retailers confirming the resilient demand for handbags and leather goods, the cult toward designer handbags and shoe received great boosts recently. The Financial Times were discussing Hermes’ strategy for beating the recessionary forces buffeting the luxury market with CEO Patrick Thomas.

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