Summary of Key Points
The Italian luxury handbag brand Valentina currently has only two remaining stores in mainland China (Henglong in Shanghai and Taikoo Li in Chengdu), having previously closed several stores in key shopping districts. Another luxury handbag brand, DELVAUX, has also reduced its number of stores to just a few. This reflects broader trends in the global luxury market: consumers are increasingly preferring experiential consumption (such as traveling), putting significant pressure on the growth of physical products like handbags. Major luxury brands (such as LV and Dior) are responding by lowering prices and launching popular designs (such as the bento bag and baguette bag), while niche brands like Valentina are falling behind due to their reliance on handbags, inability to keep up with trends, and lack of a distinct brand identity. In contrast, the less well-known brand Goyard has managed to grow despite the challenges, but it also faces issues like counterfeit products.
I. The Collective Closure of Niche Handbag Brands: No Accident, but a Sign of Changing Times
The luxury market is undergoing significant shifts:
1. Are consumers no longer interested in buying handbags? According to Bain research, the growth of experiential activities (such as travel and dining) is 1.5 times that of physical products. In the Chinese market, the demand for high-end clothing is growing twice as fast as for handbags. Simply put, people are more willing to spend on experiences and prefer clothing that reflects their personal style rather than handbags that merely serve as status symbols.
2. Major brands are bending over to compete: Brands like LV and Dior are adjusting their strategies—Dior’s 2026 spring/summer collection includes 27% more accessories priced under 1,000 euros, and the proportion of leather goods priced below 4,000 euros has increased from 69% to 87%. They are also launching popular designs, despite criticism of a lack of originality, in order to maintain sales.
3. Niche brands are caught in the middle: They lack the supply chain and design flexibility of major brands and are reluctant to abandon their classic styles, resulting in declining sales and the closure of stores.
II. Valentina’s Weaknesses: “Stubbornness” and “Lack of Competence”
Valentina’s closure is not due to the Chinese market’s weakness, but rather its own mistakes:
1. Over-reliance on handbags: Major brands can diversify their revenue with clothing and accessories, but Valentina’s income comes mainly from handbags, leaving it vulnerable to market downturns.
2. Hesitation to follow trends: Although Valentina did launch the popular Mochi bag, it didn’t invest heavily enough and continued to focus on its classic Iside model, failing to attract new customers.
3. Lack of business agility: Its design team and supply chain are slow to respond to market changes, making it difficult to release new products in a timely manner. Major brands can launch popular designs in just a few months, while Valentina may take half a year, by which time the trend has already passed.
III. Why Goyard is Growing Despite the Trends? It Adapted Secretly
Despite being a niche brand, Goyard has taken a different approach and succeeded in three key areas:
1. Flexibility with prints: While Valentina focuses on distinct shapes, Goyard uses classic prints that can adapt to different trends. Its bags, such as the tote and shoulder bags, use the same print design, maintaining recognition while staying relevant.
2. Quiet adaptation to trends: Goyard’s marketing is low-key, but its products meet market demands. For example, it launched a long-handled baguette bag when LV shifted away from its traditional styles.
3. Targeted customer base: Goyard targets a middle-class audience that seeks a niche taste with a recognizable style, avoiding both LV-style overlaps and complete obscurity.
However, Goyard also faces challenges, such as a high counterfeit rate of 18.92% (according to Entrupy), which can affect brand value.
IV. Valentina’s Path Forward: Change or Scale Back
To survive, Valentina needs to make several changes:
1. Adapt to trends: Stop clinging to its classic designs and invest more in popular styles (such as the baguette bag and fortune bag). Even if criticized for lack of originality, sales should be prioritized.
2. Provide a clear reason for consumers to buy: Identify a unique brand identity that resonates with its target audience. For example, Valentina could associate itself with the art community to convey a “Milanese design sensibility.”
3. Diversify products: Expand into clothing and accessories to diversify its revenue sources and reduce reliance on handbags.
4. Improve business capabilities: Enhance its supply chain and design team to respond more quickly to market changes.
If Valentina refuses to change, it may have to scale back, focusing on a small number of stores to serve its loyal fans, but it could eventually be marginalized by the market. In the current luxury market, standing still means falling behind.
Conclusion
Valentina’s situation is not an isolated case; it reflects the broader transformation of the niche luxury handbag industry. Consumers and major brands are changing, and niche brands must either adapt or face extinction. While century-old classics are valuable, staying unchanged in a world dominated by trends means being left behind.