Launching a handbag venture can be hard to handle, but it's
probably easier today than it's ever been before. Just look at
the statistics: Industry estimates indicate that the growth of
handbag sales nationwide now exceeds 7 percent a year--a rate
higher than any other category in the accessories business.
And if you ask entrepreneurs--both fledgling and
established--they'll tell you the same. Giants like Coach, Liz
Claiborne and Ralph Lauren can't possibly meet every market
demand, leaving the door wide open for self-starters.
Fashion-editor-turned handbag-millionaire Kate Spade comes to
mind. She left Mademoiselle in 1993 to launch her own venture,
making a name for herself as the industry's ultra-chic,
trendsetting forerunner. She's proven entrepreneurial
creativity really can win out: Today her classic yet original
designs (in silk shantung, patent leather and everything in
between) are sold in upscale stores like Neiman Marcus and Saks.
Her hip handbags have even attained strong followings in Japan,
Italy and London--not too shabby when you consider she started out
with no business experience in a New York City loft apartment.
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Spade is not alone. Her unique creations stand out from the
crowd--and smaller designers seeking to retain their hold in this
highly competitive industry know their products must also be
distinctive. "There aren't too many people making
[handbags] like mine," says 31-year-old Ken Fosh, owner of
Zippi Leather in Houston.
Although he emigrated from Israel just 10 years ago and arrived
in the United States penniless and unable to speak English, Fosh
began teaching himself handbag design and manufacturing. Today,
Zippi Leather, which also makes leather accessories, regularly
earns more than $1 million in annual sales. Fosh distinguishes his
business in two ways: Customers not only get the option to
customize their orders, but they can also choose from his
collection of rare, exotic leathers.
Or consider Caroline Ferenczi, 48, a case in point. She's
taken her products to the Net in an effort to reach a worldwide
customer base. And although C & C Ventures Ltd. is only in its
second year of importing bags from Italy, Ferenczi expects the
budding consumer interest she's already witnessed to transform
her Queens, New York-based mail order business into a more
lucrative investment.
Seymour Mondshein, 47, is keeping his business all in the
family. He and his wife, Lisa Martin, 41, expect to hit $500,000 in
sales this year with their Rosemont, New Jersey, mail order
business, Maple Leather Co. Mondshein first learned the handbag
trade from his father, and as a child, he used scraps from the
family fur business to sew marble pouches. Today, he designs
handbags made of tapestries, nylon, leather and colorful fabrics
with an impressionistic flair. "I take something to the market
that isn't already there," Mondshein says.
It's a busy market, but for those willing to shoulder the
expectations of cutting-edge fashion, success is practically in the
bag.
Contact Sources
C&C Ventures Ltd., (888) 245-1637, http://www.ccventures.com
Maple Leather Co., (609) 397-1199, http://www.mapleleather.com
Zippi Leather, (713) 977-4184, fax: (713) 977-6312