Small money accessories cash in on small handbag growth

Sales of smaller size handbags are on the rise and smaller money accessories, such as card cases and coin purses are cashing in on the trend, according to new research from the NPD Group.

Small and mini-sized options were the largest sources of growth in the women handbag category, at the expense of larger sized handbags that have experienced overall declines. With combined unit sales of small and mini-sized handbags growing 2 percent in the 12 months ending October 2016, compared to the prior year, and dollar sales increased 3 percent.

It’s this growing popularity of smaller handbags that has created a demand for smaller accessories to carry money and credit cards, while dollar sales of more traditional wallets declined.

The report also reveals that sales for non-wallet money accessories increased 13 percent to almost 23 million dollars in the 12 months ending in October 2016. With lower price points, under 75 dollars accounted for the majority of the categories unit growth, but NPD Group also noted that higher price points were among the fastest growing segments this past year and represented more than half of money accessory dollar gains.

“Consumers are realising that they don’t need to carry everything with them at all times,” said Beth Goldstein, executive director and industry analyst, accessories and footwear, The NPD Group. “The desire to simplify and streamline is made easier with the prevalence of electronic payment and loyalty membership app options – consumers can consolidate most of those cards that used to fill their wallets onto their mobile phones.”

NPD Group chief industry analyst Marshal Cohen added: “Understanding where this developing trend in accessories is resonating most with consumers, and how those consumers are approaching the spend, is critical to year-round retail planning.

“Small personal accessories are a natural fit as gifts, and the new emphasis on smaller sizes with lower price tags will increase the opportunity for self-gifting this holiday season, as well as filling stockings.”