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May 7 , 2025
How to start a bag business? To do the bag business, one needs strategic planning, creativity and market awareness. The most crucial thing is the positioning of the brand and the selection of product materials, which directly determine whether the bag business can be done well and whether it can be trusted by customers. How to launch a luxury leather bag brand? This article will explore the process of starting a bag business and analyze the characteristics of various main materials.
Precise market research is the first step to successfully creating a bag brand. Understand the needs of different types of bags (such as backpacks, handbags, travel bags, tote bags, and eco-friendly bags), and determine which category of bags has the greatest potential.
What are the age range, income level and consumption preferences of your target customers? Are they avant-garde individuals, busy professionals, environmentally conscious consumers or travelers?
Analyze and research industry reports, focusing on the current popular trends of bags (materials, colors, functions, etc.). For instance, in recent years, sustainable materials and minimalist design have become increasingly popular.
Analyze whether there are any gaps in the industry market? For example, affordable bags and functional baby bags.
Analyze the competitors in the bag industry. What are their weaknesses and replicable advantages? What do they offer and how do you make your brand stand out?
Who are the direct competitors? How about their products of the same price and style?
What are the indirect competitors? Are there any better alternative solutions?
Genuine leather vs. eco-friendly alternatives (such as apple leather price comparison).
Hardware accessories (cost differences in various regions), materials include zinc alloy (affordable), copper gold-plated or stainless steel alloy (luxury goods), etc.
In terms of production cooperation, it is recommended to choose leather bag factories in Baiyun District, Guangzhou (such as Gionar). I’ve decided to do the bag business. First, I’ll try placing small batch orders (100-300 pieces). If the market feedback is good, I’ll increase the order volume.
The retail price of genuine leather = (materials + labor + packaging) x 6-12 times (such as brands like Polene,songmont, and Tory Burch).
The retail price of Vegan leather = (materials + labor + packaging) x 3 to 5 times (such as Guess,HM).
Referring to the pricing of competing products, similar material competing products are priced at 500 US dollars → can be priced at 400-600 US dollars (differentiated design or service).
Determine your business model: Through what channels do you sell your bags? The choice of your bag manufacturer and the selection of sales channels, all these partners need to be well planned.
Formulation of marketing strategies: How will you attract customers to purchase your products? How to do marketing online? How to do promotion offline?
Registering a company and a trademark: Choose a business structure (such as a limited liability company or sole proprietorship, etc.) and register your business and trademark.
Misconception 1: Focusing only on big cities while neglecting the markets of small ones.
Misconception 2: Over-reliance on questionnaires while neglecting actual behavioral data.
Brand positioning determines the choice of materials and is crucial to the success or failure of a business. How to conduct brand positioning and material selection?
Brand positioning is a process of establishing a unique perception in the minds of target consumers through differentiated strategies in terms of the quality, lifespan, and materials of the bags, aiming to shape the core value of the brand.
Design your trademark and brand identity, and establish a brand identity that can resonate with your customers. This includes overall identifiers such as your logo, color palette and packaging.
The material selection in brand positioning will affect the pricing of your products and the target market. Common materials include: full-grain cowhide, top-grain leather, microfiber, canvas, PU leather, etc.
Full Grain Leather is the highest quality and most durable type of leather. It is the outermost layer of animal skin and does not require sanding or polishing, retaining the natural texture (including defects such as scars or wrinkles). It is used in high-end handmade wallets, briefcases, etc., and can be used for 10 to 25 years. Laboratory tests show a lifespan of 3,000 friction tests.
Top-grain leather is a high-quality leather that strikes a balance between durability, aesthetics and affordability. It comes from the top layer of animal skin but undergoes slight processing. It is the second-highest grade of leather after full-grain cowhide and is widely used in business notebook covers, high-end bags, shoes and furniture. Products made of top-grain leather can be used for 5 to 8 years, with a laboratory test lifespan of 1,800 friction tests.
How to distinguish full grain leather and top grain leather ?
Split leather is a type of leather with a relatively low cost. It is made from the fibrous layer beneath the top grain of animal skin. After removing the top grain (used for full-grain/top-grain leather), the remaining leather is horizontally divided into several layers. It is usually used in budget-friendly products, but lacks durability and the superior quality of top-grain or full-grain leather. Split leather is widely used in fast fashion belts, etc. Products made of Split leather can usually be used for 2 to 4 years, and the laboratory test lifespan is 800 times of friction tests.
Microfibers are synthetic textiles made from microfibers, typically polyester and polyamide (nylon), designed to be softer, lighter and more functional than natural fabrics, and can be used in gym sports bags. Products made of microfibers can typically be used for 3 to 5 years, with a laboratory test lifespan of 1,200 friction tests.
PU leather (polyurethane leather) is an alternative to artificial leather. By applying a polyurethane layer on a fabric base (usually polyester or cotton), it mimics the appearance and feel of genuine leather and can be used in seasonal popular color clutch bags. PU leather products can typically be used for 1.5 to 3 years, with a laboratory test lifespan of 500 friction tests.
Differentiation: By offering unique functional design, brand positioning or material selection, achieve the goal of standing out. This might be environmental protection or high-end craftsmanship.
Quality and brand: People buy bags not only for their functionality, but also for their brand and quality. Focus on the appearance and feel of the product.
Social media engagement: Instagram, Facebook and TikTok are key platforms for visual products. Post regularly, interact with followers, and use relevant tags.
Over the past 19 years, Gionar, a high-end leather bag manufacturer, has customized bags for major brands around the world, ensuring quality. Welcome to join hands with Gionar and create miracles for your bag brand together.
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