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In the 16th century, small bags were made out of common materials. They were leather and fastened with drawstring on top. Large cloth bags were introduced and worn by travelers diagonally across the body.
In the 17th century, bags became more complex and elaborate. Girls were taught skills such as embroidery and needlework, that could assist them in finding a husband. These skills gave rise to stitched artwork on bags.
In the 18th century, as neo-classical clothing came into fashion, women started carrying their bags as not to ruin their outfits. They named these bags "reticules." Most women had more than one, so that they could use a certain one for each occasion. Contents of these bags might include rouge, face powder, a fan, a scent bottle, visiting cards, a card case, and smelling salts.
In the early 1900s people specifically began calling their bags "handbags". This term also referred to luggage that men carried. They then inspired women, who began carrying bags with complicated fasteners, internal compartments, and locks. In the 1920s, it became popular that bags no longer had to match your outfit. In the 1940s, with WWII, handbags were made out of wood or plastic, since most metals were stragetic materials. In the 1950s, popular handbag designers included Chanel, Louis Vuitton, and Hermes. Today these three brands are still popular, along with Gucci, Christian Dior, Fendi, Prada, Kate Spade, and Lockheart among many others.
Luxurious small handbags or clutches were considered a necessary accessory of formal female attire, but this is frequently ignored, especially by younger women who often consider it old-fashioned and stuffy.