Factory Tours
Baikal
In Manhattan’s Garment District, Nicole Levy walks between cutting tables and sewing machines with the ease of someone who grew up in the rhythm of production. She’s at the headquarters of Baikal, a Manhattan-based handbag and accessory manufacturer founded by her father, Josef Itskovich, in 1981—before she was born.
“He started selling belts in flea markets,” Nicole explains. Over time, her parents built their own fabric handbag brand, designed by her mother and produced in New York, appearing at trade shows for more than two decades. Then, in 2004, a turning point arrived. “Someone approached them to manufacture a leather bag. And they originally said no,” she says. That bag became a breakout hit for bag designer Monica Botkier, and production quickly scaled into the hundreds, then thousands. Soon after, another designer, Rebecca Minkoff, came calling. “We started her business in 2005,” Nicole says of the luxury bag designer. The factory produced for her brand for eight years before expanding its client base.
Nicole joined the business straight out of college. “I’ve been doing this for 22 years,” she says. In 2024, she officially took over. Today, Baikal is woman-owned, with about 15 employees working across development and production.
Clients come to Baikal at every stage. Some come in with only an idea; others have full collections already in motion. The factory meets them where they are. “The services we offer include product development, hardware development, and material sourcing,” Nicole says. Patternmaking and sample development happen on site. Custom hardware, heat stamps, logo plates, zippers, leathers, fabrics, linings, dust bags—all can be sourced and produced through the factory’s network. “We do printed leathers. We can print your artwork on leather,” she adds. Beyond handbags, the team has wrapped lighting fixtures, produced pet accessories and watch straps, and even taken on furniture and pillow projects.
Their minimum order requirement is quite low, making the factory unusually accessible in the world of manufacturing. “Our minimum is 30 pieces,” Nicole says. For emerging designers, that small run can mean the difference between an idea and a launch.
The showroom is part of the appeal. “We’re in Manhattan, so it’s very convenient to get to, and we have a showroom,” she says. Clients can sit down, review materials, and easily watch their products being made. They can make edits on the spot, film production, and pick up finished goods directly.
Despite the steep costs of labor, rent, and production in NYC, Nicole isn’t taking Baikal anywhere else. “I can’t see us being outside of New York,” she says. “I feel like business would slow down so much.” Much of the work depends on touch and proximity. Clients need to feel the leather, compare swatches, and see details in person. Employees commute from across the region—Queens, New Jersey, and beyond. Relocating would disrupt that ecosystem. “It isn’t worth the price difference,” she says.
Staying local also brings logistical advantages. Roughly 90 percent of the business is U.S.-made, insulating the factory from some of the volatility affecting companies reliant on overseas production. Being in the Garment District also means she can source hardware, zippers, and leather within walking distance. It may cost slightly more, but it saves time, shipping, and uncertainty. “I’m okay with a little increase in price to get it quickly—that’s the whole convenience of it.”
Inside the factory, projects range from refined luxury to the wildly imaginative. Recently, the team completed a fully functional handbag shaped like a dog. “It was a bag in the shape of a dog, almost like a stuffed animal, but elevated, like denim and patchwork,” Nicole says. They built structured ears and a multi-fabric tail, working with sustainable materials and fillers. The final piece zipped open and functioned like any handbag. “Anyone who saw it was blown away.”
For the Grammys, the team produced about 70 wearable Bluetooth speaker bags. “It’s a sound system inside, and when you’re wearing it, it plays music,” she says. German luggage brand MCM commissioned custom footballs for a Super Bowl party they hosted. Museum clients rely on the factory for specialized leather-wrapped lighting installations. Baikal is not the cheapest option—but Nicole positions itself as the most capable.
“Compared to other factories in New York, what makes us different is that we hire the best talent,” Nicole says. “It’s not the cheapest place out there, but it’s the best you’ll get.” Her motto is direct: “Do it once. Do it right. Pay a little more. Get the perfect everything.”
That philosophy extends to how she advises new brands. “If you have no money, don’t start,” she says plainly. Launching a handbag line requires capital—but not necessarily the scale of other industries. “It’s not like you’re starting a coffee shop and you need a machine that costs $50,000. Getting a bag sample could cost a few thousand dollars, and then you’re already rolling.” What matters most is not cutting corners at the beginning. Cheap samples can derail a brand before it ever finds footing.
Nicole is also candid about the realities of New York manufacturing. “There’s a high minimum wage here. And these are not minimum wage workers.” Skilled craftspeople command skilled wages. Many customers, she says, don’t fully grasp the true cost of making a bag locally—labor hours, rent, electricity, insurance, materials. “When they see a bag from China that they can get for like $15, they’re not thinking that my minimum wage is more than that,” she says. The math simply doesn’t align.
In the future, Nicole hopes to expand organically. Since taking over, she has already seen growth. She also wants to address a deeper challenge: the decline of specialized craftsmanship. “I wish that I could train people in the art of sample making,” she says. “That craft is dying in the U.S.” A future school or structured training program could help sustain the next generation of makers.
In a city where manufacturing often conjures outdated images, Baikal offers another narrative—small-scale, high-skill, design-driven production rooted in proximity and precision. For Nicole, the formula remains simple: start strong, build carefully, and do it right the first time.
You can find Baikal’s luxury handbag manufacturing services on their website.