HS Code:
The Handbags category, classified under HS Code 4202, includes a wide range of products such as handbags, purses, clutches, and similar articles made from leather, textile materials, or plastics. This category is a significant segment of the global fashion and accessories market, driven by consumer demand for both luxury and affordable options. Handbags serve both functional and aesthetic purposes, often reflecting cultural trends and personal style. The trade in this category is influenced by factors such as material sourcing, labor costs, brand positioning, and import/export regulations.
Total Trade Volume
USD 15.3 billion
Data from 2022
Source
United Nations Comtrade Database
Average Rate
8.5%
Highest Rate
35% (applied by certain developing countries to protect local industries)
Lowest Rate
0% (under free trade agreements such as EU-Japan EPA)
Rise of Sustainable Materials
Increased demand for eco-friendly and vegan leather handbags, pushing manufacturers to innovate with recycled materials and reduce environmental impact.
2021-2023
Growth of Luxury Resale Market
The second-hand luxury handbag market has surged, driven by sustainability concerns and platforms like The RealReal, affecting new handbag sales in high-end segments.
2020-2022
Shift to E-commerce
Online sales of handbags have grown significantly, with brands and retailers focusing on digital marketing and direct-to-consumer models, especially post-COVID-19.
2020-2023
The European Union introduced new regulations requiring handbag manufacturers to disclose material sourcing and meet stricter environmental standards, impacting exporters to the EU market.
June 2023
Increased production costs for non-compliant manufacturers, potential trade barriers for smaller exporters, and a shift towards sustainable practices.
Ongoing trade disputes have led to fluctuating tariffs on Chinese-made handbags entering the US, prompting some manufacturers to relocate production to Vietnam and Cambodia.
March 2022
Diversification of supply chains, increased costs for US consumers, and growth in alternative manufacturing hubs.
Major luxury handbag brands like Louis Vuitton and Gucci have increased investments in the Asia-Pacific region, driven by rising middle-class demand in countries like China and South Korea.
January 2023
Boost in regional trade volumes, higher competition among luxury exporters, and potential oversaturation in key markets.