When brand-name handbag mania strikes Jakarta

By Dini S. Djalal

JAKARTA (JP): It's a wedding reception, and the guests are scrambling over the desserts. A woman reaching for an eclair sees the woman on her right and spots a superior object of desire.

How smooth the black leather, how gleaming the gold chain, she thinks. Then she smiles and strokes the identical Chanel bag hanging on her shoulder, content that she too is part of the clique.

She's not alone. Arrive at any society event in Jakarta and at least a dozen identical Chanel bags will vie for attention. In this city of conspicuous consumption, the brand-name handbag is the fashionable woman's ultimate status symbol.

"If you want to judge how fashionable a person is, first you look at their shoes, then their bag," says Winnie, a 27-year-old marketing executive.

Actually, at times fashion has little to do with it.

"Handbags are like handphones. They're near eye-level, so they're an easily-seen status symbol," Winnie explains.

Status symbols are, by definition, more about conformity than style.

"A lot of women will do anything for a Chanel bag," says Winnie.

But what about other brands or designs? Don't these fashionable women want something a little more individual and original?

"That is what they call original," Winnie retorts.

Loco for Logos

The 1980s have often been labeled "the Designer Decade". Halfway through the 1990s, however, designer brands show little sign of disappearing, especially in Asia.

Exaggerated logos may have shrunk over the years, but Chanel's interlocking C's and Louis Vuitton's signature LV are still fashion's most coveted consonants.

Nowhere is the all-important logo more prominent than at Gucci, where Tom Ford's design renaissance has rescued the gold horse-shoe trademark from establishment doldrums. Now every victim de la mode, young and old, wants Gucci's signature on everything from bathrobes to flip-flops.

Even supposedly anti-fashion Prada is enjoying the popularity of their discreet triangle trademark. One can spot this hippiest of cachets on nylon backpacks, wallets and other luggage paraphernalia.

Less privileged shoppers, however, cannot afford too many labeled accessories -- hence the handbag mania.

"Handbags definitely sell the most. We report a 12 percent sales increase every year," said Inca Utan, Indonesia's distributor of leather goods labels Louis Vuitton, Charles Jourdan, and Loewe, which celebrated its 150th anniversary last week with a show at Plaza Indonesia.

"Handbags are popular because you can see the logo right away. For younger customers, the bigger the logo the better," Inca said.

The market is responding to this Asian fetish for logos. German leather-goods label Escada is considering placing their brand names on the outside of bags headed for Asian markets.

That's good news for those who treat handbags like investments.

"It's not difficult to spend too much money on clothes, because you may only wear it once or twice," explains 26-year-old model Luna. "But bags are different. You wear them often," she said.

Louis Vuitton is the preferred brand name among models, said Luna, although the more senior models can afford Chanel, which sells for up to Rp 7 million (US$3,111).

Social climbing

There are few things the true social climber cannot afford. Once the merchandise has been chosen, money is often no object for the resolute customer.

"If they want something, Indonesians will save up to buy it, even if they can't afford it," Winnie explained. She herself saved for months to buy a Nina Ricci evening bag for $1,000.

Was it worth it? "I don't go to many big parties, but when I do, I have to be presentable," she replied. Winnie may have only one evening bag, but her bag collection is substantial enough that she divides it into three categories: work, casual and evening.

How does she pay for all these purchases? "Credit," she answered. And not necessarily the plastic kind either. Winnie sometimes buys from friends returning from overseas shopping sprees.

"They'll let you pay up to six times, without interest," said Winnie. "If I had to pay the whole sum immediately, I would think twice," she added.

Yovie, also a marketing executive, stumbled into this underground business accidentally. "A friend of a friend lives overseas, and every two months she sends us new handbags," she said.

A shipment usually consists of ten bags, six of which are often sold by the end of the week.

"I give the other four to someone else to sell for a commission. This business turns over earnings for a lot of people," said Yovie.

Being a third person in the sales chain, Yovie receives 5 percent commission for every sale. She contends that the other middlemen make more.

"I don't make much, but enough to buy myself a new bag," she said, with a laugh.

Even with all these people cashing in, the products they sell are still considerably cheaper than those in stores. "We can sell a bag with a retail price of Rp 1.2 million for only Rp 700,000, and that's after profit," said Yovie.

Do her sales pitches disrupt her office?

"No, I only do it outside of office hours, maybe at lunch," said Yovie. Both Yovie and Winnie insist that these sales are almost routine. "In every office, there's always two ladies selling handbags and belts," said Winnie.

"It happens all the time," said Yovie, "It's good business."