Basic Overview Of The Luggage Industry
Luggage products have been clearly classified in the International Harmonized Commodity System Code (HS). The classification of bags in the field of national quality standards is from the perspective of usage. Therefore, the definition of luggage and bags in our country is not very uniform with the internationally accepted classification.
The upstream of the luggage industry is mainly composed of aluminum alloy, leather, fabrics and other raw materials. Leather luggage, fabric luggage, PU luggage, etc. constitute the midstream of the industry. The downstream sales channels of the main luggage industry include supermarkets, brand physical stores, and clothing wholesale markets. Online channels such as offline channels and e-commerce platforms.
With the continuous improvement of people's living and consumption levels, all kinds of bags have become indispensable accessories around people. In recent years, the global luggage industry sales have shown a fluctuating growth trend. Data shows that the global luggage industry sales reached 156 billion U.S. dollars in 2019, an increase of 10.1 billion U.S. dollars from 2018.
The luggage market in my country is huge, and it has been in a period of sustained and accelerated growth in recent years. According to statistics, in 2019, the market size of my country's luggage industry has increased significantly, reaching about 253 billion yuan, a year-on-year increase of 22.64%.
According to data from the General Administration of Customs of China, China’s export volume of luggage and similar containers was 3.07 million tons in 2019, a year-on-year decrease of 2.85%, and the export value reached US$27.23 billion, a year-on-year increase of 0.48%. From January to November 2020, China’s exports of luggage and similar containers amounted to 1.82 million tons, and the realized export value was 18.37 billion U.S. dollars.
The individual needs of consumers are becoming more and more obvious
The application scenarios of luggage mainly include daily bags and travel luggage. In our traditional concept, the fashion demand attributes of daily bags are stronger, but with the younger generation of consumers, the fashion requirements for luggage products have become increasingly obvious. While pursuing "beauty", consumers also require the functional attributes of luggage products to meet daily needs, including the wear resistance of materials, the material of pulleys, and the elasticity of the box. In general, consumers tend to pursue products with quality, practicality and individuality.
cost-effective products gradually enter the mass market
Overseas big brands entered the Chinese market earlier and occupied the mid-to-high-end luggage brand market. For domestic brands, launching explosive products with a cost-effective route has become a viable path: the current consumer market is relatively fragmented, and third- and fourth-tier consumers are still undergoing consumption upgrades. In the process, first- and second-tier consumers gradually become more rational in their consumption concepts, focusing on cost-effective products and personalized products. Moreover, the current e-commerce development is mature, and cost-effective suitcases are also suitable for e-commerce sales as standard products.
