What Uniqlo's 'millennial Birkin' bag going viral again says about shoppers right now

By Nicole Lyn Pesce

We're broke, picky and carrying a lot of baggage

When it comes to a cute but practical accessory that you can grab for under $20, Uniqlo's got this in the bag.

The Japanese fashion giant, which is owned by Fast Retailing (JP:9983), is trending once more for a roomy and affordable crossbody bag that some fans have dubbed the "millennial Birkin," which references the iconic Birkin bags from French luxury designer Hermès that can command prices in the tens of thousands of dollars.

This isn't the first time this particular Uniqlo piece has taken off. The $20 Round Mini Shoulder Bag first went viral in 2022 after TikToker Caitlin Phillimore-Price posted a video that showed her pulling what she described as 12 pounds' worth of everyday essentials out of the purse, including a full package of cookies, a camera, an EpiPen, over-ear headphones, a bottle of perfume, a phone, a wallet and a mobile charger.

This roominess has led some people to call it the Mary Poppins bag, recalling actress Julie Andrews famously pulling out all manner of clothes and furniture from the titular character's satchel in the 1964 Disney movie. The purse's half-moon shape has also led to nicknames like the "dumpling bag" and the "banana bag." It has remained popular over the past couple of years and is trending again this week, with Google Trends data showing searches for "uniqlo birkin" and "millennial birkin uniqlo" spiking more than 5,000% over the past several days.

So what is it about a minimalistic bag that has captivated so many shoppers and TikTokers? Fashion-retail analysts suggest that the Uniqlo "it" bag, along with Lululemon's (LULU) trendy $38 Belt Bag fanny pack and Costco's (COST) $17 Lole Belt Bag, are a perfect fit for what many budget-conscious consumers are experiencing these days.

"It's a reasonable price, it comes in several colors and it fits a good amount of items," said Julie Ramhold, a consumer analyst with DealNews.com.

"With inflation still being an issue and higher prices across the board, it's really important for consumers to feel that their purchases are a good value," she added. "They want to ensure they're stretching their dollar as far as they can, especially on purchases that are more discretionary and less necessary."

Circana analyst Beth Goldstein, who tracks the fashion-accessories market, agreed that the bag "plays into what consumers want to spend money on right now."

She noted that while handbag sales overall have struggled as many people prefer hands-free bags so they can keep their phone in their hands, crossbody bags and fanny packs are faring better in part because they provide easy access while being worn. Dollar sales in the handbag category fell by 9% in the 12 months ending in March 2024 compared with the same period the year before, according to Circana's Retail Tracking Service, while sales of small crossbody bags, including fanny, waist and chest packs, fell 3% and gained a share of the market.

With the latest earnings season well under way, many retailers including Walmart (WMT), H&M (HNNMY) and Ikea, as well as restaurant chains like McDonald's (MCD) and Starbucks (SBUX), have been partly pinning their weaker-than-expected sales and forecasts on consumers who are trading down or buying less as they grapple with inflation, rising debt and a job market that has been sending mixed signals.

Read more: Angry shoppers are fighting back against inflation - even the wealthy ones. Companies are feeling it.

"Consumers are still struggling with the prices of things. The products that they have to consume every day, like food, gas [and] household products, are high right now," Goldstein said.

Against this economic pressure, a $20 bag is a small luxury that also serves a practical purpose. In fact, Uniqlo's "millennial Birkin" and Stanley's $49 water bottles fall into the category of "attainable status symbol," Goldstein said. "Forty-nine dollars is a little pricey for a water bottle, but as a status symbol, it's pretty inexpensive," she said.

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DealNews.com's Ramhold agreed. "Because this sleek bag can fit so many items comfortably and comes in so many different colors, this is a 'frivolous' purchase that budget-conscious consumers can feel really good about making," she said.

Representatives from Uniqlo and its parent company Fast Retailing were not immediately available for comment. But Fast Retailing recently upgraded its full-year net profit forecast, expecting to make a record $2.1 billion in the year through August. The company noted that its operating profit and sales were "fueled primarily by considerably higher first-half profits from Uniqlo operations in North America, Europe and Southeast Asia."

Goldstein noted that the Uniqlo bag has the benefit of coming in a variety of colors and patterns. Similar to the Stanley cups, the bags come in a bevy of shades that consumers can match to different outfits. "Why not collect them?" Goldstein asked.

In fact, she and her 11-year-old daughter both own the bag, suggesting the crossbody also has cross-generational appeal.

"It [the Uniqlo bag] is very easy. You have everything you need right there in front of you, on your chest," she said. "And this is not some copy of a leather bag in a crappy material. It's a nylon bag, so it's durable and lightweight. And it's cute."

-Nicole Lyn Pesce

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05-09-24 1452ET

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