| Accessories Now: June 2007 |
|
|
|
In recent months retailers have been reporting on a “challenging environment” and are pulling out all the stops to ensure an improved second half of the year. Meanwhile, accessories, the after-thought of old, have become big business throughout this period of financial and climatic uncertainty.
The Latest The latest London retail figures for May reveal a slow month, particularly in the clothing sector. Women’s, men’s and childrenswear all showed a noticeable decline, and many high street chains resorted to discounting. During the warmer spells women’s fashion picked up, with strong sales in the accessories sector including bags, jewellery and sunglasses. Noticeable Increase Statistics show that sales in the accessories sector have doubled over the past few years. With a noticeable increase in accessories stock: handbags, jewellery, scarves, small leather goods, in high street stores and independents alike. Fastest Growing Sector According to Mintel, the accessories business, particularly handbags, is the fastest growing sector of the luxury fashion market, outperforming the other aspects of the market with ease. Women’s / Men’s While sales of women’s accessories has seen dramatic growth men’s accessories have seen little increase. Gap in the Market Market analysts believe that there is a noticeable gap in the market when it comes to fashion accessories aimed at women over the age of 40. Accessories as a Trend Focus The current mood for oversized bags, huge sunglasses, clumpy wedge heels, pendants and bangles reflects how accessories have become the main focus. The trend, according to the designer shows, is set to continue into Autumn/Winter 07/08. Fashion accessories add versatility to a woman’s wardrobe and are seen as investment items that can be mixed and worn time and time again. Growing Faster than Perfume Cosmetics, in particular perfume, have long been seen as the mass sellers that keep designer brands afloat. Although perfume is still a £15bn annual industry, it has become stagnated and sales have been slowing down, for the past two years the sector has grown by about 3% worldwide, whereas the accessories market is predicted to grow at about 11% over the next five years. Designers Take Note Designer brands are strongly focusing on accessories, Bulgari, best known for jewellery, announced last month that it was doubling its accessories stores by the end of this year. Alice Temperley, the British designer best known for beaded dresses and striking knitwear, has launched a line of bags and sunglasses to build up her brand range. A huge portion of the profits Last year accessories sales made up 63% of Prada’s profits. Easy to Sell – Better Margins Accessories have always been a key part of the fashion industry but over the last few seasons they have begun to dominate. The appeal of accessories for retailers is obvious - they are easier to sell with better margins. With fit and size out of the equation online accessories sales have become big business. Online E-tailing With the online retail market rapidly growing trend forecasters predict that quality products along with customer satisfaction and loyalty will remain key for e-tailers to generate repeat business. Service Needs to Step Up a Gear A recent mystery shopper exercise by customer service specialist Talisma revealed that online Clothing and Accessories retailers provided a poor level of service, with an average score of 45. The most successful online retailers responded to enquiries immediately, with accurate information and treated each potential customer as an individual. Accessories: Key Trends Autumn/Winter 07/08
|
