With people around the world being bombarded with images of fashionable people and a highly stylized society, a new wave of consumers is born. Women are at the height of awareness, learning designer names and labels as if it were second nature. The Internet has opened the flood gates allowing all women to have their finger on the pulse of the style culture. This being said, the accessories market stands at a position of sheer opportunity. Never before has the market been so open and embracing of new designers, marketing campaigns and boutiques. Exclusivity and individuality are the key words that are necessary to any savvy merchandiser's vocabulary as they are the driving forces of the future.

The notion of exclusivity boasts the woman who wants to have a unique handbag that can't be found in every boutique. The ideological premise of exclusivity intersects with the woman who lives for underground fashion- the girl who will traipse to no-man's land to find the must-have deadstocked Adidas high-tops- the girl who will set her alarm to 4:30 AM to ensure she wins the Stella McCartney for H&M top on eBay. For this woman, style is a way of life thus the new, wet-behind the ears designers are her comrades. Ed Burstell, Sr. VP of Bergdorf Goodman's Bergdorf Goodman says, "To set itself apart, Bergdorfs has always looked for things that are in tight distribution and preferably exclusive." In this light- smaller labels and young designers need to take advantage of this massive opportunity. Handbag designer Monica Botkier of Botkier Inc. says "the desire for smaller and novel brands right now is at an all time high," something that has helped establish her company. As the niche-driven, underground accessories labels become in demand- these labels need to be extremely efficient and retailers need to be willing to take risks in order to appease their demanding customers.

Consider Scoop and Intermix's rapid growth. These two companies epitomize a retailer's ability to provide for their demanding customer. The number of doors these two stores boast have increased significantly in the last 2 years. Undoubtedly Scoop co-owner, Stefani Greenfield and Intermix founder, Khajak Keledijan have been able to make their mark in the untapped resource of the contemporary market. The contemporary market provides women with the ability to stand out among other women and express outwardly that they are fashion conscious woman. Boutiques that position themselves as ahead-of-the-trends oasises are in a time of uber-growth, with very little lying between them and incredible profit.

Any true style intelligence will agree that even the likes of Scoop, Girlshop and Intermix can be considered mainstream. This demographic of consumers want true labels with underground roots, thus the power of Individuality is proven. In fact, the mere presence of a label in a known store will lead the fashion outlaw to exile the brand name from her jewelry box. In this case, independent designers are the best bet- and so, retailers are forced to comply. Here, individuality is a driving force. The distribution channels are in flux, as trade-shows are not the only option. In various urban centers markets are popping up- all supporting young designers and their talents. In New York, Edge*ny has emerged as a permanent boutique displaying over 50 designers. This store represents the true individuality that true style connosuiers are searching for. In addition, online shops are popping up catering to the customer who demands personal attention. Websites like icovetthis.com are dedicated to providing the consumer with unique pieces that won't be seen elsewhere. One-of-a-kinds are also essential- from having a pair of vans tagged to creating your own personalized perfume, the consumer enjoys having a say in the products they buy. Stylish women find delight in discovering a brand that manifests outside the limelight- and just as quickly as their excitement came- it can be as quickly gone when Bloomingdale's picks up the line.


RISE OF LIFESTYLE BRAND

Market Researcher NPD reported that U.S. consumer spending on apparel and some accessories rose 4% between 2004 and 2005 to hit an all-time high number of $181 billion. The 2005 increase mirrors that of 2004, thus the future looks incredibly promising. Not surprisingly, it has been the sales of women's accessories that have led the way in terms of gains for 2005. Helping to thrust the accessories market forward is the growing amount of lifestyle brands.
Women can now be head to toe in Marc Jacobs or Diane von Furstenberg.
High-end contemporary labels are feverously stepping out into the accessories market, hoping to create a true lifestyle brand. Designers are either licensing their names or creating their own accessories line in-house to help increase their brand awareness.
- -Diane von Furstenberg said that the accessories business has become a priority to her and that "accessories are a punctuation to clothes, they complete the look."
- Marc Jacob sent 34 of his 60 collection looks down the runway in his February fashion show accompanied by handbags.
- Stella McCartney launches an accessories line and says that a bag is as important as a dress or jacket, as women rely on their handbags to express themselves- likewise with shoes and jewelry.

Ed Bucciarelli, former group president of accessories and cosmetics for Liz Claiborne says, "There is a void in contemporary accessories brands compared to the tremendous growth the apparel has seen." He thinks accessories have even more potential. "There's definitely been a swing toward more body-conscious, Ôlook-at-me' apparel in all these contemporary brands, but not all women can wear those fashions. With accessories, they can own a piece of the brand and not have to worry about fit." Clearly Contemporary labels are banking in on their "names" and this endeavor is proving to be extremely beneficial. (Lauren Parker, "The Contemporary Market", Accessories, August 2005)

The Hi-Lo consumer is a necessary component of the lifestyle brand. Since the pioneer Isaak Mizrahi teamed up with Target, dozens of other high end designers have collaborated with more accessible companies and labels. H & M sold out of garments created by Karl Lagerfeld in minutes, likewise with Stella McCartney. By allowing the average spender access to a high profile designer- companies are vastly improving their sales. Yohji Yamamoto has created a fabulous line of accessories in conjunction with Adidas that has proved highly profitable and has boosted brand recognition.

The continuing success of the accessories business is attracting a crowd as new labels are attempting to crash the party and established brands are launching accessories lines playing off the consumer comfort level of their names. As the accessories industry continues to move along at a healthier clip than other retail sectors, more American designers have increased their focus on this all-important category.

Publisher: infomat inc
InfoMat serves as a one-stop information source for international apparel, textile & accessories professionals. This is where retailers, manufacturers, wholesalers, and service providers interact with our network of over 350,000+ fashion companies. We make it easy to source, connect, compare, research and assess industry-wide business opportunities.
Web: www.infomat.com
Published: october 2006
Market: womens
Region: usa
Industry: accessories
Editor: maggie zayko

DISCLAIMER
Information in this report relies on sources including Trade Shows, Associations, News Releases, Government Reports and other public sources. Infomat can accept no responsibility for the accuracy or completeness of such information or for loss or damage caused by any use thereof.