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Total advertising expenditure on accessories reached £64.9 million last year on calculations by Nielsen Media Research UK, an overall rise of 28 per cent since 2002. Most of the spending has come from luxury goods brands.
During a difficult time for print advertising, spending to promote luxury goods is surprisingly strong. Several advertising agencies, including M&C Saatchi in London, have recently set up luxury goods divisions.
Research from Mintel found that women in Britain are spending £350 million a year on handbags. Sales are up 146 per cent in five years as stores offer own brands and cheap imports alongside designer items costing as much as £1,000.
Christian Dior’s accessories division and Graff Diamonds have almost doubled their advertising expenditure in just a few years. The popularity of Prada accessories, from handbags to shoes, has pushed the luxury group’s advertising budget on these goods up from £361,417 in 2002 to £765,698 last year, while Burberry’s expenditure multiplied sixfold from £94,082 in 2002 to £535,561 in 2005 and Bulgari’s has grown from £176,957 to a massive £874,490.
Nielsen found that Christian Dior doubled its spending from £717,107 in 2002 to £1.42 million in 2005, Graff Diamonds’ advertising is up from £711,960 in 2002 to £1.3 million last year.
Watch and jewellery makers top the lists for spending but advertising of accessories, designer handbags and shoes is growing to attract cash-rich professional women. Tod’s, the shoe and bag maker, has seen its advertising budget increase from £14,539 in 2002 to £441,169 in 2005.
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