Importance of Visible Logos on Handbags is Diminishing

BY Courtney Huckabay
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One-​third of the handbags purchased in the U.S. in the 12 months ending June 2016 did not have a visible logo, according to The NPD Group. The sales of handbags without a visible logo increased their share of the market in the past year, and this is a style trend that is crossing generations.

Sales of handbags with no visible logo were highest among the older generations, Boomers and older, but gained more traction with Gen Zs, the youngest generation, who captured an additional 8 share points in unit sales. Older Millennials, ages 25–34, and Gen Xers, ages 35–49, also increased their purchase of no visible logo bags, and sales of these bags to younger Millennials, ages 18–24, were flat in the 12 months ending June 2016 compared to same period year ago.

17.6% of Americans plan to purchase new handbags or purses in the next 12 months, according to the most recent AudienceSCAN study.

Consumers are becoming less focused on image and more focused on individuality – especially the younger generations,” said Marshal Cohen, chief industry analyst, The NPD Group, Inc. “While the cachet of designer logos is still relevant for many, the days of consumers looking to be a part of a designer or brand movement are waning in favor of their desire to find the style and function unique to their personality and lifestyle.

Retailers should be sure to show off the subtle logos they carry in emails to Purse/​Handbag Shoppers. The latest AudienceSCAN survey revealed 34% of shoppers took action after checking their inboxes in the past month!

NPD’s recent report, The New Handbag Customer Revealed 2016, created in partnership with Stylitics, found that 81 percent of Millennials said it was important to them that the logo on their handbag be subtle. In alignment with this sentiment, the handbag logo placement that experienced the most notable market loss in the 12 months ending June 2016 was the in-​material pattern style. Even though Millennials generally want the handbags they splurge on to be recognizable, they are increasingly seeking this recognition through distinction of design. Personalization options for handbags, like key fobs, interchangeable straps, and patches, are becoming more prevalent.

Newspaper advertising could be an effective way to reach Purse/​Handbag Shoppers. According to the most current AudienceSCAN research, 56.4% of shoppers took action after seeing ads in the paper in the past year (print, online, mobile or tablet).

Millennials have launched a movement of individuality en masse that is greatly influencing retail, including the fashion industry,” added Cohen. “Handbag manufacturers and marketers in general have been tasked by this up-​and-​coming generation and their more mature counterparts to demonstrate their creativity and get their consumer’s attention in new ways."

AudienceSCAN data is available as part of a subscription to AdMall for Agencies, or with the SalesFuel API. Media companies can access AudienceSCAN data through the AudienceSCAN Reports in AdMall.