2016 Bags and Luggage Market Report in China

From: Euromonitor Internatinal
Time: 2016-07-19
Summary: Bags and Luggage Trends; Bags and Luggage Competitive Landscape; Bags and Luggage Prospects.

Bags and Luggage Trends

In 2016, the performance of bags and luggage was polarised between ultra high-end luxury goods brands on the one hand and affordable luxury brands on the other, with sales of ultra high-end luxury brands seriously compromised by the weakening economic situation and anti-corruption campaigns, which led to the closure of retail outlets of numerous luxury goods retailers, including Louis Vuitton, which closed three outlets in late 2015 and another two in early 2016. On the other hand, the expansion of affordable luxury brands, represented by the likes of Kate Spade and Furla, accelerated in China’s first-tier and second-tier cities, with Furla, for instance, opening 29 new retail outlets in the country during 2014 and 2015, with the company planning to open a further 10 new outlets in 2016. This expansion is based on the strong domestic demand for such accessible luxury brands for personal use.

Bags and Luggage Competitive Landscape

Due to rising outbound tourism, the weakening of the Chinese economy and the government’s anti-corruption campaign, sales of ultra high-end bags and luggage brands such as Louis Vuitton have been seriously negatively affected, leading to declines being recorded in the brand’s value share and decelerating value growth since 2013. 

Bags and Luggage Prospects

Bags and luggage is expected to experience a steady value CAGR of 4% at constant 2016 prices over the forecast period, with growth set to be underpinned by the stable demand for high-quality branded products, in line with rising household incomes and the growing pursuit of high-quality lifestyles. The upbeat outlook for the Chinese travel and tourism market is set to result in rising domestic and outbound tourism during the forecast period and this is also set to boost sales of luggage in particular, to lead to the expectation of a strong value CAGR for the category over the forecast period.  

Previous:Jen Lewis of BuzzFeed Mashes Up Two Beloved Animated Franchises

Next:Market Report about Backpack& Courier Bag Manufacturing in the US