The study presents an overview on the handbag market in India. It also provides information on online retail landscape, competitor profile and consumer profile.

1. Handbag Industry Profile
25 July, 2013
Troika Consulting

2. Presentation Plan
 Handbag Industry Profile
 Handbag and Accessories Market
 Online Retailing Landscape
 Competitor Profile
 Consumer Profile
 Outlook

3. Bags and Accessories Market
Casual Bag Market, India
Over 2011 13, online sales of the luggage industry (including
handbags) have grown by 80.2%, according to KEN Research
Market size, INR crore
4,000
3,500
3,000
•
2,500
2,000
3,673
1,500
1,000
500
Casual handbags dominate the ladies handbag market
with a share of 56%, they are followed by office bags at a
27 percent share.
1,716
919
2006
2010
In 2011, the woman’s handbag market was estimated at
around INR 2000 crore and expected to grow to INR 4000
crore by 2016.
2015E
Margins in handbags and accessories are very attractive;
for bags they are around 40 45 percent.
Source: Frost & Sullivan
•
•
By 2015, the size of the overall luggage market will rise to INR 10,018
crore, according to Frost & Sullivan
•
Over 2014 18, the Indian luggage market is expected to grow at a
CAGR of 18%, driven by the casual bag segment, according to a
recent report by KEN Research
According to a recent report by Euromonitor International, the
personal accessories market in India is expected to witness
double digit growth rates in the coming years.
Although, non-branded accessories dominate in the Indian
market, the sales of branded accessories are currently
growing at a relatively higher pace.
Source: Overview of the global luggage market, India Luggage Industry Outlook to FY’2018, Growing market of fashion
accessories, KIT: Women's handbags market in India, Madura's key brands go off the beaten track, Personal Accessories
in India

4. Online Retail Landscape (1/3)
Over 2012-21 , the total size of the e-tailing business in India is estimated to rise hundred-fold, from USD 0.6 billion to USD 76
billion, according to a study by Technopak
Market size, INR thousand
crore
Retail market size, India
Structure of online retail
8,000
5,271
7,000
46%
6,000
54%
5,000
Vertical focused players
Multi-category players
3,421
4,000
2,331
2,587
150
187
235
454
2010
3,000
2011
2012
2015F
2,122
2,000
1,000
1,401
Market demands
-
Unorganised retail
2020F
Organised retail
Key factors that consumers look for in online retail
•
•
•
Currently, online retail constitutes only 1% of the total organized
retail market
•
According to IAMAI, in 2011, online retail sales were INR 3,058
crore, up 25% over 2007. The market is expected to witness rapid
growth in years to come
Free door-to-door shipping
Convenient return process
•
Multiple payment modes
23% of online shoppers in metropolitan cities choose to pay
via cash
60% of the transactions at Myntra are paid via cash
Source: E-tailing to touch $ 76 billion by 2021 in India: Study, Trends in India’s e-commerce market, ebay.in census
2012, Rebirth of e-commerce in India, PwC

5. Online Retail Landscape (2/3)
According to a study by Google, interest in online shopping in India grew by 128% over 2011 12, compared with just 40% growth over 2010 11
Survey responses for top product categories ever purchased online
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
In 2013, according to Google, online shopping will grow
exponentially, with apparel and accessories being the
hottest categories
84.0%
71.0%
64.0%
Apparels & Electronics
Beauty &
accessories
personal care
62.0%
61.0%
Books
Household
products
Big fashion retail brands such as Madura Fashion &
Lifestyle, DLF Brands, Future Group and Reliance Brands have
or are planning to venture into online retail
According to a report by Allegro Capital, "Online fashion
retailing emerged as the largest segment within the domestic ecommerce, where 52 start-ups attracted INR 3,742 crore in
investments from venture capitalists in the past three years.
About INR 1,176 crore went into 21 apparel and accessories etailers.“
Apparels and accessories, with 84% responses is the top category
for online shopping
Also, the frequency of purchase was higher for apparels and
accessories (34%) and beauty and personal care (33%) than
compared with electronics (28%)
In 2013, the online sales of hand bags in India are estimated to
be around INR 30 crore, according to an analysis by Troika
Source: Google India Study reports numbers about online shopping in India, Apparel retailers log on to e-platforms for
growth

6. Online Retail Landscape (3/3)
Indian online retailers setting aggressive targets
•
By 2015, Snapdeal.com optimistic to reach INR 5,346 crore in revenues. Currently it offers more than 3000 brands that are shipped over 4000 cities
and towns in India
•
Flipkart revenues for the year ended March 2012 were over INR 535 crore, for 2013 they are expected to rise to INR 2,673 crore. The company has
a customer base of four million and ships out more than 50,000 items a day
•
Myntra revenues have been doubling every 4 5 months over the past year and a half. For the financial year 2013 14, the company is targeting
revenues of INR 1,176 crore
Year of establishment
Reach (million)
Penetration (cities)
Range (brands)
Revenues (USD
million)
Yebhi.com
2004
1.2
1,100
150
20
Myntra.com
2007
3
1,200
500
100
Fashionandyou.com
2010
3.6
1,200
500
11
Yepme.com
2011
0.5
500
NA
30
Jabong.com
2012
1.5
500
500
150
Top online retailers
Source: Indian Apparel Market, Have Global E-tailers Missed the Bus in India?

7. Competitor Profile (1/2)
The chart below represents some major brands that sell handbags in the category of INR 2000 4000 . It provides an insight across two dimensions
average price and fashion quotient.
Nine West
Mango
Medium
United Colors of Benetton
Caprese
Baggit
Holii
Van Heusen
Hidesign
Carlton London
Low
Fashion Style
High
Zara
Lavie
Giordano
2000
2500
3000
3500
Average price of handbags
Source: Troika Analysis
4000
4500
5000

8. Competitor Profile (2/2)
Competitor Analysis
•
Over 76 brands are selling bags online
in the price range of INR 2000 – 4000
•
Little less than half of these are
available at multiple online retail
websites such as Jabong, Myntra and
Flipkart
•
Major Indian brands offering bags in
this range
•
Baggit, Lavie, Kara, Shwa, Holii
(by
Hidesign), Lupine, Fabulloso, Hide
sign and Bulchee
Some brands offering bags near the
average price of INR 3000
•
Carlton
London, Giordano, Kara, Lavie, M
ango, United Colors of Benetton
and Zara
•
Minimum and maximum price range of
some major brands
Carlton
London, Giordano, Mango, United
Colors of Benetton and Zara
•
Lavie offers the maximum number
(161) of bags online in the price range
2000 – 4000
•
Nine West comes second with 137
bags being offered online. The price
range is (1950 – 6490)
Hidesign (2895 – 6395)
Zara (1790 – 4790)
Baggit (1325 – 3600)
Mango (990 – 4990)
Source: Troika Analysis and online retail websites
Major foreign brands offering bags in
this range

9. Consumer Profile
Small towns and a young population to drive the online retail market in India
By 2015, the number of internet users in India will approximately
reach three times the number in 2011, according to McKinsey
Profile of online users in India, 2012
Percentage
Internet users, millions
330 370
120
2011
2015
45.0%
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
15.3%
Female
6.5%
1.3%
1.8%
2.4%
3.6%
45 - 54
35 - 44
23.7%
21.9%
25 - 34
15 - 24
9.7%
55+
Tier 1 and tier 2 cities towns to drive online sales
13.7%
Age
•
Almost 50% of the sales of leading online players such as Myntra
and Jabong now comes from tier 1 and tier 2 cities and towns
Globally, India has one of the youngest online demographics, this
represents a huge opportunity for fashion accessories industry
•
The proportion of repeat customers from tier 2 and 3 cities is more
than that from metropolitan cities
•
75% of the online users age between 15 34
•
40% of the online audience are females
•
According to Accel partners, a Silicon valley venture capitalist, 56%
of the online shoppers in India hail from tier 2 cities and towns
•
15 24 is the fastest growing online segment
Source: Tier-II cities driving e-commerce in India: Accel, Top e-commerce sites report 50 pc sales coming from tier-2 and
tier-3 cities, State of e-Commerce in India, ASSOCHAM
Male

10. Outlook
Over 2012-15, the fashion accessories market in India is estimated to grow at a CAGR of more than 14 percent, according to RNCOS
Major growth drivers
•
•
Growing internet penetration
An estimated 180 million
broadband users by 2020
Over 800 million mobile
subscribers
Increasing acceptance of online
shopping
Currently only 5% of the 200
million credit and debit card
holders transact online
150 million of these card holders
willing to shop online
•
Rising purchasing power of
consumers in small cities and towns
•
Increasing fashion awareness among
the Indian population
•
Recent developments
The handbag market is witnessing a lot of activity with new launches and expansions.
Brands are bullish of the growth in this sector.
•
Over 2013 14, Hidesign plans to invest INR 20 crore in its expansion plan in India. The brand
aims to open 100 exclusive boutiques in 2013. The revenues of Hidesign have been growing by
22 28 percent every year, according to Dilip Kapur, President, Hidesign.
•
VIP sees a great opportunity, for its latest launched brand ‘Caprese’, in the middle segment of
INR 2000-7000. There is currently no dominant player in this range, said MD VIP Industries.
VIP aims to be a dominant player in the INR 2,000 crore segment over the next five years
•
Advertising via social media websites
Over 2013 17, Da Milano plans to invest INR 90 crore in expansion. In 2013 itself it aims to
open 50 new stores in India.
In 2000, 80% of the brands INR 25 crore revenues came from exports. While in 2012, 80%
of its INR 135 crore revenues came from the Indian market.
Source: RNCOS, The rise of e-commerce in India, IBEF, Hidesign to invest Rs 20 cr in next two years for expansion, eyes
100 boutiques by next yr, Leather goods maker Da Milano emerges as one of the top mid-level retailers in India, Da
Milano building a stronger foothold in India, VIP Industries enters ladies handbag category with Caprese

11. Contact:
talk@troikaconsulting.in
www.troikaconsulting.in