Luxury handbag prices have been rising at a significant rate over the last few years. Since 2019, luxury prices overall have risen by 52%, on average, according to the British bank HSBC. Consumers, meanwhile are flocking to more affordable options in response.
New retail and wholesale data reveals that the affordable luxury handbag category is growing at a faster rate than any other sector of the handbag market.
According to the digital wholesale marketplace Joor, the growth of the affordable luxury handbag sector is swiftly outpacing more expensive handbag categories. Affordable handbags in a casual tote silhouette, specifically, are outselling high-luxury bags, showing a clear shift over the last three years.
Since 2021, sales of handbags priced $250-$500 have grown from 63% of all handbag sales to 70%, making them the dominant price bracket in the category. Meanwhile, sales of bags over $1,000 have more than halved, from 7% of all handbag sales to 3%. Affordable luxury handbags’ dominance only grows when looking exclusively at the U.S., where they make up 84% of all handbag sales.
The popularity of the tote handbag style has also grown significantly between 2021-2024, going from 12% of all handbag sales to 41%.
At a time when luxury brands are constantly pushing their prices higher, the growth of the affordable luxury handbag sector represents a golden opportunity for brands outside of the high luxury space, according to Joor svp of marketing Amanda McCormick Bacal.
“The handbag sector has long been a key driver of growth in the fashion industry,” she said. “While many luxury brands are currently navigating challenging market conditions, our transaction data highlights the opportunities that exist for brands offering accessible price points and sought-after silhouettes. We are seeing a noticeable shift in retailer assortments, with a growing focus on more affordable styles.”
The popularity of mid-price bags isn’t lost on the companies that specialize in them. Tapestry has noted the success of Coach’s Tabby bag, priced around $375, and has recently experimented with selling Tabby bags at full price in Coach outlet stores.
“The Tabby family once again outperformed, over-indexing with new and younger consumers and nearly doubling versus last year,” said Tapestry CEO Joanne Crevoiserat on the company’s first-quarter earnings call last month. “Based on the power of Tabby, we launched a test that brought the Tabby 26 to our outlet channel at full price. This test continues to exceed plan and, as a result, we rolled it out to more locations with Tabby now available in over 200 outlet stores globally — again, at full price.”
High-luxury handbag prices have increased exponentially in recent years, as struggling luxury brands double down on targeting only their most affluent customers. But luxury brands that laser-focus on their most affluent customers risk missing out on the growing number of consumers who favor a mid-price bag.
“While focusing on affluent customers may appear lucrative, it is a short-sighted approach that risks long-term brand dilution,” said Keith Fraley, a professor of fashion business at the Fashion Institute of Technology. “Neglecting aspirational customers not only erodes future brand loyalty, but it also narrows the brand’s cultural relevance. By catering exclusively to the ultra-rich, brands may inadvertently foster a backlash, where the aspirational class — once brand loyalists — becomes disillusioned and shifts towards more inclusive luxury alternatives. Ignoring this segment could prove costly, as the aspirational consumer base often drives brand desirability and cultural cachet.”
