I dont think the above graphic will work. Maybe if you enlarge the picture and make it sepia it would match better. Also the quality (resolution) of the bag and the poster don't match. The watermark is okay - it does not dilute from the product. Just make sure all you watermarks are consistent across all your image.
On the website:
It looks okay. The navigation is straight forward. You should try changing the font typeface. Maybe add some flash animation. If you update your whole web interface, make sure it something more feminine - softer colors, some gradients, softfocus, add some flowers or chic clipart. Models it would be nice if you had some young models posing with the bags or something like them walking with them/ sitting with them or something showing their bag accessories with their clothes.
Maybe as a promotion you should email some of your clients. Ask them to take a few pictures with them and their bags. Have them sign a disclaimer that the photos they submit will be used online at your web site. You can then give them a discount or a promotional bag(s) for their trouble.

Hope the advice works for you. If you have extra bags send them my way. I may find some models.

Levimage
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