South Korea genuine leather handbag makers push design, price advantages

Suppliers capitalize on demand shift from branded products overseas.

Genuine leather handbags companies in South Korea are adjusting strategies to enliven exports. They focus on areas where loyalty to major Europe brands is changing so competition is based on design merits, with price as an additional incentive.

A number are targeting China's growing market, which posted 14 percent annual increase in 2009-13. They are confident the popularity of South Korea culture there will help boost sales. "We think the Korean Wave is contributing to the rise in orders," said EunJu Son, assistant designer at Ninesixone Inc. "Products quoted at $721 to $1,803 are selling well there, with design and materials increasingly affecting purchasing decisions," said TaeHun Kim, CEO of Taehunkim.

To establish a better foothold overseas, South Korea manufacturers present a range of leather handbags comparable with Europe labels. They, however, take care not to overemphasize price.

"Low quotes do not ensure long-term survival. Ultimately, differentiation through the best possible products should be the only way," said YeOn Han, creative director at HanssyNY. The company highlights new and lightweight styles. It uses cowhide from local sources and Italy, and sheepskin from New Zealand. Hardware items with 16K gold plating and embellishments are designed in-house, with the former's manufacture subcontracted. Clutches account for 50 percent of the supplier's output and sales.

Suart adopts cowhide from Italy and conducts printing in-house to better implement design concepts. Its entry-level models are based on a combination of leather and fabric, while midrange pieces are made of printed leather. High-end kinds utilize special variants of the skin material. The maker offers custom color consultation as added service, and undertakes batch instead of mass manufacturing to complement its viral marketing approach. Clutches are Suart's bestsellers. These come with straps for easy conversion to crossbody bags.

Taehunkim obtains rawhide, including python and lizard skin, from Italy for its women's handbags. "These imported materials have excellent color tones, are easy to dye and exhibit quality printing, but usually cost three to 10 times more than inputs from domestic sources," said Kim. Clutches represent 10 percent of the company's yield, and tote and shoulder bags the remainder.

At Ninesixone, clutches make up the popular range. The supplier markets products under the Biker Starlet, Jacey Chae and Bureau brands. The second label carries high-end handbags, and the last has the men's collection.

To ensure durability, companies implement strict QC measures. HanssyNY does so at all manufacturing stages.

HanssyNY ships products to the US and Europe, and has mainland China, the Middle East and Southeast Asia as future markets. Taehunkim plans to enter the mainland in 3Q15. Suart will add the US and Europe in the years ahead. Its current overse

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