Anya Hindmarch and the (soft) power of a handbag


Anya Hindmarch and the (soft) power of a handbag

The choice of an Anya Hindmarch handbag as a royal gift for Melania Trump was a clear demonstration of the soft power of a British brand that has fans everywhere from Downing Street to the high street.

Started by the designer of that name in 1987 when she was 18 years old, the brand has become known for its playful designs, from personalised bags with photographs printed directly on them, to smiley-faced totes and a Kelloggs Corn Flakes wallet.

Over the years, Hindmarch built a loyal following among sections of the UK elite. She had close connections to the previous Conservative government and also made personalised clutch bags, stitched with a letter "D" for Princess Diana.

Catherine, the current Princess of Wales, can sometimes be seen with an Anya evening bag with a monogrammed "C" and had one of the designer's bags for the state banquet held for Donald and Melania Trump this week.

But the brand's clout among royals and political leaders far exceeds its commercial footprint.

According to its most recent accounts, it had sales of £24.1mn for the year to the end of January 2024 and £20.5mn the previous year. It also had pre-tax losses of £666,000, compared to £1.6mn the year before.

At that scale, it is dwarfed by other luxury brands such as Burberry, which made £2.4bn in sales last year, and other bag specialists like Mulberry and Aspinal.

Hindmarch has previously told the Financial Times that she had the opportunity to sell the business to a luxury giant "many times over and I just never wanted to give up control. Everyone knocked on our door."

Having stepped back from leading the business in 2011, she returned as managing director in 2019 and took back majority control of the brand in 2023.

She was able to do so after raising funds from the wealthy Marandi family -- backers also of fashion designer Emilia Wickstead -- who bought a majority stake with the intention of eventually passing control to Hindmarch.

The business now has 15 shops around the world, compared to 43 before the pandemic, but has a "Village" in west London, consisting of five themed shops and a café.

Luca Solca, luxury industry analyst at Bernstein, said the decision to give an Anya Hindmarch bag suggested the royal family "didn't want to look too extravagant".

"The price points are very good when you compare it to a Dior or Louis Vuitton handbag where you can pay £10,000. I think it signifies a resurgence of these British brands, which have been maybe a little unloved."

Anya Hindmarch is just one example of a British luxury brand -- other examples are Erdem and Emilia Wickstead -- that have fans in high places but without significant commercial success.

Others, including couture designers Ralph & Russo and Hollywood A-lister favourite Vampire's Wife, have closed down in the past few years because of financial difficulties, while London-based brand Roksanda was sold in a distressed sale process last year.

Hindmarch, a self-confessed Thatcherite and life-long Conservative supporter, was at one point closely linked to the Tory government. She was a party fundraiser and unofficial adviser to David Cameron and was friends with his wife Samantha Cameron. In 2008, she chaired the party's annual fundraising event, then known as the Black and White Ball.

This week's gift to the first lady is not the first time an Anya Hindmarch handbag has played a role in diplomacy. A monogrammed satin clutch bag was given to Carla Bruni-Sarkozy during a 2012 meeting between David Cameron and then French President Nicolas Sarkozy.

The brand's continuing influence was on display at a Conservative party business conference two years ago, where Anya Hindmarch asked then prime minister Rishi Sunak about what the government would do to support Britain's creative industries.

As part of his reply, Sunak said thank you for "everything you've done for our country" as well as for "providing many great birthday and Christmas presents for my wife over the years".

The brand is probably still best known by some for its £5 "I'm not a plastic bag" canvas bags, which were sold in UK supermarkets and became a global phenomenon when they were launched in 2007.

Today, it sells £750 totes made of recycled plastic, with the updated slogan: "I Am A Plastic Bag." It has also returned to the mass market with limited-edition £10 "smiley" tote bags, sold once again through UK supermarkets.

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