This industry is fairly fragmented and diversified. Industry retailers may specialize in selling specific accessories, such as hats, costume jewelry or luggage. The more specialized retailers may not have significant competition from other stores because they operate in a niche market. A retailer’s depth and quality of merchandise, fashion selection, procurement and pricing methods, inventory control, reputation and store design and location are important factors in competing successfully in this industry.
Competitors: Coach Inc, LVMH Moet Hennessy Louis Vuitton SA, Claire’s Stores Inc, Genesco Inc
External competition from alternative retailers has intensified during the past five years. External competitors are department stores, discount stores and online-only retailers.
1. Department stores
Department stores offer consumers the convenience of a one-stop-shop format, allowing shoppers to buy apparel, footwear and accessories for the entire family in one location.
2. Discount stores
Discount stores are also a source of competition for handbag, luggage and accessory stores. These retailers offer very low prices to consumers, which lead to substantial growth during the recession. While their offerings do not always match the quality and aesthetic appeal of accessory stores, discount retailers are substitutes for lower-end products.
3. Online-only retailers
Online-only retailers have also made a name for themselves over the past five years. They have captured customer attention by offering wide selections, quick price comparisons and free shipping offers.
Stores industry has largely recovered from its recessionary lows, and revenue is forecast to increase at an average annual rate of 4.6% to $11.5 billion by the end of 2018. Nevertheless, the industry will also continue to experience external competition from alternative retailers such as department and online-only stores, which will