Channel Overview in Personal Accessories

Physical distribution still favoured for high-end products

Distribution of personal accessories remains predominantly physical. The luxury nature of some personal accessories purchases still favours physical distribution, with stores acting as both brand building tools and spaces to develop premium customer service.

Wholesale suffers from growing push for direct-to-consumer operations

Wholesale is suffering globally, with an increasing number of players moving away from B2B and boosting B2C distribution. Better control of brand image and pricing, and tighter control of stocks and margins are the main reasons behind this shift.

Global appeal of travel boosts bags and luggage specialist retailers

The world is expected to see 1.5 billion arrivals by 2022. The growing appeal for “experiences over stuff” is benefiting travel-0related categories, and thus bags and luggage specialist retailers.

Internet retailing still outgrowing all other channels, but is starting to slow down

Internet retailing remains the fastest growing channel within personal accessories. However, growth is expected to slow down over the forecast period. Digital saturation in some highly developed markets, paired with strong efforts from physical retailers to lure consumers back to stores, will pay off.

Hybrid propositions will blend the best of both worlds moving forward

Retailers are fully embracing omni-channel strategies. The role of stores has changed and they are no longer a pure transactional space. As such, winning distribution propositions should include the best of both digital and physical retail in a holistic manner.