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Indian Ladies Handbag Industry Report
For any queries or detailed information:
Contact us on +91 22 6002 2001 or e-mail at research@reevolv.in
August 2014
Indian Ladies Handbag Industry Report
Table of Contents
Particulars
Page Nos.
1. Executive Summary
4
2. Ladies Handbag Industry Overview
2.1. Market Opportunity
6
2.2. Growth Drivers
7
3. Business Dynamics
3.1. Business Model
9
3.2. Buying Criteria
12
3.3. Key Success Factors
14
3.4. Key Challenges
17
4. Competitive Mapping
4.1. Market Segments
19
4.2. Spread of Brands across Market Segments
20
4.3. SKU concentration of Brands across Market Segments
22
4.4. Brand Positioning and Distribution
24
5. Select Interviews
27
6. Consumer Survey
6.1. Overall
35
6.2. Market segments
40
6.3. Region wise
45
6.4. Tier I Cities
53
7. Equity transaction
7.1. Hidesign
60
Indian Ladies Handbag Industry Report
Particulars
Page Nos.
8. Indian Market Player Profiles
8.1. Adamis
61
8.2. Major Brands (Aldo, Charles & Keith, Guess)
65
8.3. Alessia 74
74
8.4. Baggit
77
8.5. Blue & Blues
82
8.6. Caprese
87
8.7. Da Milano
90
8.8. Esbeda
94
8.9. Fiorelli
98
8.10. Gucci
101
8.11. Hidesign
106
8.12. Holii
112
8.13. Lavie
117
8.14. Lino Perros
122
8.15. Louis Vuitton
127
8.16. Peperone
132
8.17. Rhysetta
135
9. International Players
9.1. Brief Overview of International Players
140
9.2. Case Study - Prada
145
10. Annexure
149
Indian Ladies Handbag Industry Report
1. Executive Summary
Indian Ladies Handbag Industry Report
3. Business Dynamics
3.1. Business Model
The graphical representation of the prevalent business model in Ladies Handbag industry is depicted
below:
3.2. Buying Criteria
3.3. Key Success Factors
3.4. Key Challenges
Indian Ladies Handbag Industry Report
4. Competitive Mapping
4.1. Market Segments
The graphic representation of the segments is as under:
Indian Ladies Handbag Industry Report
Non-Leather Handbags:
The number of brands in non-leather segment is considerably higher compared to leather. For analysis
purpose, only leading brands have been considered. The same brands are covered under the company
profiles section of this report.
Brand
Mass
(<Rs1500)
Semi Premium
(Rs1501Rs3000)
Premium
(Rs3001Rs4500)
Luxury
(>Rs4500)
Aldo
Alessia74
Baggit
Caprese
Charles & Keith
Esbeda
Fiorelli
Guess
Lavie
Lino Perros
Peperone
Rhysetta
Indian Ladies Handbag Industry Report
10
11
12
5. Select Interviews
Store Manager , Luxury Brand
Questions Answers
What is the change in customer profile for luxury
handbags?
What are the buying criteria of an individual who buys
luxury handbags?
What is the buying process of luxury hand bags in India?
What are the key attributes of sales team in luxury?
What is important while selling luxury handbags?
How important is training for your sales team?
Who are your target consumers?
Is there any seasonality?
What is your branding strategy in India?
How do the luxury brands choose location for store?
Do you believe that there is market in Tier II cities?
What is the impact of E-Commerce?
How does your distribution network work?
How do they deal with counterfeits?
What is the difference between luxury brand and fashion
brand?
COO of Leading Brand
Questions Answers
What was the premise on which you launched brand
Lavie for handbags in India?
What are the challenges faced?
What is the idea behind brand extension to footwear?
What is the differentiation of brand Lavie?
Do you see ecommerce as a challenge?
How different is the global handbag consumer vs. Indian
consumer?
Do you have in-house production?
What are the critical factors?
Indian Ladies Handbag Industry Report
13
14
15
16
6. Consumer Survey
Below are the results of the primary survey of women customers across age groups. The respondents are
from tier 1, 2, 3 and other cities across India. The sample size is xxx. The results of this survey are in four
parts as under:
6.1. Overall
1. How many handbags does she buy?
2. From where does she prefer to buy handbags?
3. At what price does she buy handbags and how long does she use it?
Casual vs. Formal vs. Party / Evening / Special Occasion Handbag
4. What does she look before buying handbags?
Indian Ladies Handbag Industry Report
17
18
19
5. When does she buy handbag?
6. In handbags which are the top brands does she buy? And Why?
Usage Awareness Price Variety Quality
Baggit
Housewife
Student
Working Woman
Caprese
Housewife
Student
Working Woman
Hidesign
Housewife
Student
Working Woman
Lavie
Housewife
Student
Working Woman
Esbeda
Housewife
Student
Working Woman
Consumer Views on Top Brands :
Baggit
Indian Ladies Handbag Industry Report
20
Caprese
Hidesign
Lavie
Esbeda
7. Does she struggle to find a handbag? What according to her are the gaps in the handbag
industry?
8. Does she buy handbags online and from where? If No, is she willing to buy in the future?
Housewife
Students
Working Women
Indian Ladies Handbag Industry Report
21
22
6. In handbags which are the top brands does she buy? And Why?
Rank as
per Usage
Brands Usage Awareness Price Variety Quality
North
Baggit
Caprese
Hidesign
Lavie
Esbeda
South
Baggit
Caprese
Hidesign
Lavie
Esbeda
West
Baggit
Caprese
Hidesign
Lavie
Esbeda
Indian Ladies Handbag Industry Report
23
East
Baggit
Caprese
Hidesign
Lavie
Esbeda
Top Brands Highlights
North
East
West
South
7. Does she struggle to find a handbag? What according to her are the gaps in the handbag
industry?
Sometimes Never Always Sometimes or Always
North
East
West
South
8. Does she buy handbags online and from where? If No, is she willing to buy in the future?
North
East
West
South
Women who have bought handbags online
Indian Ladies Handbag Industry Report
24
6.4. Tier I Cities
1. How many handbags does she buy?
Tier I Cities
No. of handbags bought
(per annum)
Price - Casual Handbag
(INR)
Duration for which handbag
is used (Years)
Mumbai
Delhi
Pune
Hyderabad
Bengaluru
Kolkata
Chennai
Ahmadabad
2. From where does she prefer to buy handbags?
Tier I Cities
Branded
shops
Malls/ Dept.
stores
Local
shops
Hawkers Exhibitions Hotels Online
Mumbai
Delhi
Pune
Hyderabad
Bengaluru
Kolkata
Chennai
Ahmadabad
Comments
Mumbai
Delhi
Pune
Hyderabad
Bengaluru
Kolkata
Chennai
Ahmadabad
25
3. At what price does she buy handbags and how long does she use it?
Casual handbag Formal Handbag
Party/Evening/Special
Occasion Handbag
Price
(INR)
Duration
(Years)
Price
(INR)
Duration
(Years)
Price
(INR)
Duration
(Years)
Mumbai
Delhi
Pune
Hyderabad
Bengaluru
Kolkata
Chennai
Ahmadabad
Casual handbag -
Formal handbag -
Party/Evening/Special Occasion Handbag -
4. What does she look before buying handbags?
Durability/ Quality Price Brand Style/ Design Comments
Mumbai
Delhi
Pune
Hyderabad
Bengaluru
Kolkata
Chennai
Ahmadabad
5. When does she buy handbags?
Tier I Cities
Sale /
Discount
New designs/
Patterns/
Colour
Want to match
with current
trends
Impulse
purchase
Whenever you
need them
Comments
Mumbai
Delhi
Pune
Hyderabad
Bengaluru
Kolkata
Chennai
Ahmadabad
Indian Ladies Handbag Industry Report
26
6. In handbags which are the top brands does she buy? And Why?
Rank
as per
Usage
Brands Usage Awareness Price Variety Quality Comments
Mumbai
Baggit
Caprese
Hidesign
Lavie
Esbeda
Delhi
Baggit
Caprese
Hidesign
Lavie
Esbeda
Pune
Baggit
Caprese
Hidesign
Lavie
Esbeda
Hyderabad
Baggit
Caprese
Hidesign
Lavie
Esbeda
Bengaluru
Baggit
Caprese
Hidesign
Lavie
Esbeda
Kolkata
Baggit
Caprese
Hidesign
Lavie
Esbeda
Chennai
Baggit
Caprese
Hidesign
Lavie
Esbeda
Ahmadabad
Baggit
Caprese
Hidesign
Lavie
Esbeda
Indian Ladies Handbag Industry Report
27
7. Does she struggle to find handbags? What according to her are the gaps in the handbag
industry?
Tier I Cities
Struggle to find handbag Gaps in handbags
Sometim
es
Never Always Variety
Design/
Colours
Price Quality
Availab
ility
None
Mumbai
Delhi
Pune
Hyderabad
Bengaluru
Kolkata
Chennai
Ahmadabad
8. Does she buy handbags online and from where? If No, is she willing to buy in the future?
Tier I Cities
Percentage of women who
have bought online
Percentage of women who
have not bought online but
are willing to buy
Top Websites
Mumbai
Delhi
Pune
Hyderabad
Bengaluru
Kolkata
Chennai
Ahmadabad
Indian Ladies Handbag Industry Report
28
29
Description
Company Name
Founder
Year of Inception/
Incorporation
Inception
Incorporation
About Company /
Brand
Brand(s)
Total no. of Outlets
Production Facilities
Raw Material
Types of Handbag
Distribution
Online Sales
Future Plans
Source Company Website and Reevolv Research
Indian Ladies Handbag Industry Report
30
8.1.2. Location
Tier I Cities
Tier II Cities
State Wise Presence Region Wise Presence
Source Company Website and Reevolv Research
8.1.3. Product Mix
Type of handbags No. of SKU's Price Range (in Rs.)
Source Company website and Reevolv Research
0
2
4
6
1 2 3 4
0
1
2
3
4
5
1 2 3 4
0
1
2
3
4
5
1 2 3 4
Indian Ladies Handbag Industry Report
31
8.1.4. Financials
Profit & Loss Account for the year ended 31st March (Rs. Mn)
FY2009 FY2010 FY2011 FY2012 FY2013
Revenues from Operation - - - - -
Other Income - - - - -
Total Revenues - - - - -
Cost of Materials Consumed - - - - -
Rent, Rates and Taxes - - - - -
Administrative and General Expenses - - - - -
Employee Expenses - - - - -
Selling and Distribution Expenses - - - - -
Other Expenses - - - - -
Total Expenditure - - - - -
EBITDA - - - - -
Depreciation - - - - -
EBIT - - - - -
Interest - - - - -
Profit before Prior Period Items and Tax - - - - -
PBT - - - - -
PAT - - - - -
Indian Ladies Handbag Industry Report
32
33
34
9. International Players
9.1 Brief Overview of International Players
9.1.1 XXXX
Description
Company Name
Brand(s)
About
Company/Brand
Popular Products
Target Market
Market Strategy
Geographical
presence
Source : Company Website and Reevolv Research
Indian Ladies Handbag Industry Report
35
36
10 Annexure
10.1 Ratios
Key Ratios
Cost of Material Consumed %
Cost of Material Consumed
Total Revenues
X 100
Employee Expenses %
Employee Expenses
Total Revenues
X 100
Selling & Distribution Expenses %
Selling & Distribution Expenses
Total Revenues
X 100
Administrative Expenses %
Administrative Expenses
Total Revenues
X 100
EBITDA %
EBITDA
Total Revenues
X 100
EBIT %
EBIT
Total Revenues
X 100
PBT %
PBT
Total Revenues
X 100
PAT %
PAT
Total Revenues
X 100
ROCE %
EBIT
Capital Employed
X 100
ROE %
PAT
Net Worth
X 100
Capital Employed
Total of Asset / Liabilities
(Liabilities =Shareholders funds +Loan Funds +Deferred Tax +Minority Interest)
Working Capital Turnover Ratio
Total Revenues
Net Current Assets excl Cash Bank
Net Fixed Assets Turnover Ratio
Total Revenues
(Net Fixed Assets excl Capital Work in Progress)
Inventory Days
Inventory
(Cost of Material Consumed)
X 365
Debtors Days
Debtors
Total Revenues
X 365
Indian Ladies Handbag Industry Report
37
10.2 Abbreviations
Description
Bn Billon
CAGR Compound Annual Growth Rate
CCD Compulsory Convertible Debentures
CCPS Compulsory Convertible Preference Shares
CECO Company owned E-Commerce portal
CY Calendar Year
EBIT Earnings before interest and tax
EBITDA Earnings before interest, tax, depreciation and amortisation
EBO Exclusive Brand Outlet
EV Enterprise value
FY Financial year
L Luxury
LFR Large Format Retail
M Mass segment
MBO Multi Brand Outlet
MMR Mumbai Metropolitan Region
Mn Million
NA Not available
NCR National Capital Region
NM Not meaningful
NR Not relevant
NS Not specific
OEC Other e-commerce portal
P Premium
P/E Price to earnings
PAT Profit after tax
PBT Profit before tax
ROCE Return on capital employed
ROE Return on equity
SP Semi premium
TC Traditional channel
Indian Ladies Handbag Industry Report
38
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Founded in 2008, Reevolv is a team of CAs, MBAs and Engineers with functional and industry expertise
and diverse background of investment banking and management consulting.
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