Recently we can see more line up for luxury
bags at Canton Road, a traditional shopping hub for bags such as Louie Vuitton,
Chanel, Hermes, Gucci…etc
In my analysis, Bags are more
fashion-focused, and fashion trends tend to change more rapidly than watch
styles say 2-5 years. This fast-changing cycle of new styles and designs brings
customers back to buy the latest bags, even those who already own quite a few.
Watches are more lasting pieces say 5-10 years, so customers don't need to
update them as frequently. This faster fashion cycle likely boosts bag sales.
Women are the primary target for luxury bags, while watches appeal more to both men and women; more precisely 90% men and 10% women. The higher proportion of female consumers and the importance of bags as a fashion accessory for women could drive more demand and sales. Women may buy more bags to match different outfits and occasions, while a single watch may suffice. Don't underestimate the target being spotted on bag is much larger than the tiny lady watch in her wrist!
Mainland Chinese tourists account for a
large portion of luxury sales in Hong Kong. Bags are a very popular item for
these tourists to buy in Hong Kong due to perceptions of better selections and
prices. As a highly visible fashion item, luxury bags also communicate status
and wealth, status of celebrity, confidence of a success which is appealing in
the culture. Watches are not quite as high on the shopping lists of these
tourists and are not as conspicuous a signal of affluence. So the preferences
of this tourist market likely also boost luxury bag sales over watches.
In general, while both watches and bags are
popular luxury goods, bags may be more susceptible to changes in fashion trends
and more targeted at female consumers. In a market like Hong Kong that attracts
a lot of female mainland tourists, this could lead to stronger growth and sales
for luxury bags compared to watches. Of course, there is no guarantee this
trend will always continue, but it seems a reasonable possibility based on the
factors involved.
One thing noted, 90% of the bag purchased are
paid by her boy friends of close relation-male, and most ladies enjoy the time
their credit card or supplementary credit cards to be printed at those luxury bag
boutiques!!
Enjoy the bags, we enjoy the sales!
HK Snob
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