Why Tote Bags Can Bring Significant Value to Brands?

The humble tote bag wields significant influence in the fashion world and can drive substantial sales for brands while serving as a personal advertising billboard.

Summary: Highly effective marketing tool for brands Exclusivity is the coveted new trend

What makes a tote bag special? Its timeless silhouette exudes contemporary style with an array of trendy options gaining popularity. From luxurious leather versions worth thousands of dollars by The Row, Bottega Veneta, and Saint Laurent, to free cotton versions – as well as countless higher-end offerings like the renowned Marc Jacobs tote – XL tote bags are popular for their convenience and versatility.

This formula has proven successful so far, and its enduring appeal is expected to continue to grow in the future.

In 2023, the hashtag for Marc Jacobs tote bags garnered 86.5 million views on TikTok alone, with Google searches for these bags increasing by 1,850% compared to 2022. Dior’s Book Tote is also highly sought after, averaging 40,000 searches per month from 2020 to 2023.

Lyst named The Row’s Margaux tote the hottest product of the quarter after searches surged by 63%, fueled by famous fans like Kendall Jenner, Zoë Kravitz, and Jennifer Lawrence.

Marta Indeka, a senior foresight analyst at The Future Laboratory, notes: “We are witnessing a shift in the perception of value and the amount people are willing to spend on a luxury bag. Until a few years ago, Goyard was the ultimate luxury tote, but now, as consumers begin to see everyday totes as an investment, many brands have successfully introduced designs that reach ‘It-bag’ status.”

According to Net-a-Porter’s Market Director, Libby Page, the website has seen a 300% increase in searches for leather tote bags in the past month, reflecting a growing desire for more XL, practical styles. It’s no surprise that the tote bag market is predicted to reach $3.6 billion by 2030, according to Data Bridge Market Research.

However, as more affordable options like the $40 LL Bean trend, will these high-priced items maintain their enduring power?

“In the post-Covid world and in the era of hybrid lifestyles – combining office, home, and gym commutes – we need a bag that can accommodate everything, while many will also want a bag to serve as a statement piece,” says Fflur Roberts, Head of Luxury Goods at Euromonitor International, noting that luxury bags serve their purpose and meet all demands.

“People want to invest their money in practical things they can use,” agrees Gabriel Rylka, founder of luxury fashion resale platform Break Archive. He also notes an increasing demand for larger tote bags recently.

“For the past two years, I’ve been overwhelmed by all the micro-trends exploding on social media, and I want to prioritize comfort and utility. What better way to do that than with a big tote? Something I can pour my whole life into, take everywhere, and use daily for work.”

Highly effective marketing tool for brands Traditionally seen as cheap cotton items used for gym and shopping bags, what should be done with luxury versions?

Roberts explains: “From both a marketing and production perspective, these bags are a natural choice for brands to focus on developing products for luxury brands. Tote bags often prominently display the brand’s logo or monogram, serving as a clear social status symbol and an effective marketing tool for the brand.”

Roberts also notes that while many of these brands offer leather tote bags, one of the recent introductions is the cotton canvas tote bag – Dior’s Book tote. “In this case, these tote bags serve as a relatively affordable product to produce while also being a luxury item that reflects consumer aspirations and desires.”

Tote bags also represent a “gateway” product from a consumer perspective, with the style being one of the brand’s most rational bag choices. Take the Marc Jacobs tote, for example. It starts at £195 compared to their £425 leather bucket bag options.

However, brands should be cautious not to overprice. Emily Gordon-Smith, Head of Content and Sustainable Development at Stylus, notes, “Interestingly, some of the best tote bags in use today are not from fashion brands but from bookstores. The number of celebrities and influencers carrying cotton tote bags from Daunt Books, The Strand, and Shakespeare & Company has quickly become a staple of street style.”

Gordon-Smith points out that Bottega Veneta has reproduced The Strand’s tote bag – but at $1,500, this has received criticism from literary publishers like Literary Hub. And Emily Mariko’s canvas bags, priced at $120, also faced intense backlash as social media users deemed them aesthetically lacking, overpriced, and difficult to purchase in her TikTok comments.

Furthermore, while bags like Saint Laurent’s Icare Maxi Shop and Gucci’s Ophidia prominently display the brand’s logos and monogrammed initials, Rylka believes that a strong, recognizable silhouette will become the new icon – as we can see with the popularity of The Row’s Margaux tote. “We see fatigue with items with too many logos, coupled with current trends like ‘quiet luxury,’ and I think customers will always prioritize well-designed pieces over logo-covered ones.”

Exclusivity is the coveted new trend Flaunting wealth is not the only status symbol consumers pursue. Exclusivity and brand loyalty are also strong motivators behind the popularity of tote bags.

For example, Break Archive offers free tote bags with slogan phrases for frequent customers or those who spend a certain amount for their first purchase. Rylka explains: “Whenever I post that tote bag on Break Archive’s Instagram, I always get DMs asking if the bag is for sale, how they can buy it. However, we don’t distribute tote bags widely, and we’ll never sell this type of bag.”

He learned this from brands like Gucci Beauty. “There’s a trend on TikTok where people order Gucci Beauty just for the cotton tote bag with the Gucci logo attached.”

“It’s a freebie, but people see it as a luxurious item, making it desirable – especially when they become scarce and hard to buy,” he adds, noting that this is a successful tactic also employed by Saint Laurent Beauty and the French-based brand Sézane. Later, they resold the previous tote bag giveaway for up to £100.

Will tote bags flood the market everywhere? Experts say that as freebie tote bag options fill wardrobes, status bags will survive. Gordon-Smith shares about the timing of luxury totes: “Articulating a personal statement discreetly really appeals to today’s consumers, and for luxury fashion brands, elevating the luxury level for this humble tote bag is the pinnacle of the new minimalist movement.”

However, for Roberts, these bags are more than just trendy; they are timeless pieces. She says, “There’s nothing new about luxury tote bags – Louis Vuitton’s iconic Neverfull bag is one of the most coveted luxury leather goods in the world but has been around since 2007.”

“However, 17 years have passed, and the Neverfull bag is now one of Louis Vuitton’s most recognizable and sought-after bags, celebrated for its versatile design, spacious interior, and iconic monogram canvas material, making it a timeless piece in the luxury world, and also potentially serving as an investment – for this purpose, more and more consumers see these products as an investment that will not lose value.”