But, c’mon, $850 for a keychain?!
That’s how much you have to shell out for one of those hot Fendi Bag Bugs—assuming, that is, your name even gets called from the long waiting list of would-be purchasers.
The Fendi Bag Bug is just the poster child of the luxury tchotchke, or high-priced, fashion- branded knickknack that has become the fastest growing segment of the fashion market. Other examples:
- Karlitos, or mini Karl Lagerfeld-shaped keychains from Fendi: $1,700;
- The Hermès silk postcard and envelope: $95;
- The wooden dice set in alligator leather case from Burberry: $3,000
Tchotchkes increase not only revenues but a company’s brand awareness and customer base. “It enables the customer to get a piece of the brand without having to buy a couture gown,” explains one observer.
Another thing they have going for them is that they’re small and don’t take up much of what’s becoming one of the most precious commodities in retail fashion licensing: shelf space.
Of course, the reason the tchotchke phenomenon is working, at least for now, is that the goods are sold only at upscale stores at high prices and in limited supplies. The moment these things start appearing at Target or Walmart for $100, the brand equity will be gone and the phenomenon will be over.
Accessories were the second fastest growing segment (behind apparel) of the fashion property type in 2014, with retail sales of $7.9 billion, a 3.9% increase over 2013. Retail sales of fashionlicensed merchandise overall topped $20 billion on growth of 3.4% growth in 2014.
Although it constitutes 20.3% of all licensed merchandise sales, the fashion sector continues to be challenging, observers say. Unique tchotchkes may be a way to recapture the attention of consumers who turned away from tony labels during the prolonged recession.