Five-Pocket Tote and Hoodie Tote lead prices from $29.95 to $148
Gap Inc. launched a handbag collection designed by Reed Krakoff, the designer who made Coach a household name. Suzanne Kapner reported the launch exclusively for The Wall Street Journal’s CMO Today newsletter.
The bags use faux suede, denim, fleece, canvas and other lower-cost materials, according to the newsletter. Prices range from $29.95 to $148, similar to other items in Gap’s assortment.
Two signature designs anchor the line: a Five-Pocket Tote made from denim and a Hoodie Tote made from fleece. According to Kapner, the unusual material choices are meant to mark the bags as Gap products in a handbag market crowded with well-established players.
Kapner reported that the bags could help Gap seek a larger share in the roughly $15 billion accessories category. “Gap is definitely not going higher-end,” she wrote. “It’s sticking with its value proposition and pricing for this new handbag line.” The denim, fleece and canvas fabrics align with “Gap’s casual vibe,” she said.
“Accessories are not a new business for Gap, but we’ve never been in it with distinction or conviction,” said Chief Executive Richard Dickson. Handbags carry higher profit margins than apparel and can drive foot traffic to Gap’s stores and websites, he said.