Owing to the emergence of several metropolitan cities and the subsequent appetite for luxury purchases in China, the country has been the undoubted growth driver of several accessories brands over the past five years. China overtook the US to become the largest personal accessories market by value sales in 2011, and since then has grown at a comprehensively faster pace. However, the US will continue to be the most influential market in the global strategies of most personal accessories players for three major reasons.
Consumer and Marketer Maturity
Nearly all personal accessories categories in the US have a highly evolved pricing structure. As such, the appreciation of private label, mid-priced, affordable luxury and high-end luxury brands is well defined among their respective target audiences. Fossil and JanSport are recognisable examples of mid-priced brands, while Coach and Michael Kors epitomise affordable luxury. On the other hand, most locally-based players in China tend to focus on economically-priced products, while international brands satisfy demand for high-end products. As a result, luxury players Swatch Group, LVMH and Richemont are the biggest international companies in China.