LUGGAGE MARKET ANALYSIS

Market Challenges And Opportunities

Global Luggage Market- Drivers

Increasing Tourism and Business Travel: Increasing globalization and economic development have led to a rise in international tourism and business travel over the past decade. As more people travel for leisure and work around the world, demand for luggage to conveniently transport personal items has also grown significantly.

With international tourist arrivals rising from 0.76 Bn in 2010 to over 1 Bn in 2020 according to United Nations World Tourism Organization data, travellers require suitable bags, backpacks and trolleys to pack for their trips abroad. Growing global business interactions have prompted frequent travel among professionals from various industries. Whether for short business meetings or extended client visits, these people depend on luggage to easily carry documents, laptops and other daily necessities while on the move.

This upsurge in tourism and commercial travel across borders has opened up huge opportunities for the global luggage industry. A wide variety of bags catering to different trip durations and purposes have entered the market. Ranging from compact carry-on bags suitable for quick weekend getaways to large suitcases for extended family vacations, innovative products are addressing the diverse luggage needs. Smart features such as double wheel systems, multi-device charging, and global lost-and-found registration have enhanced user convenience.

Increase in Travel and Outings: The tourism and travel industry has witnessed tremendous growth over the past few years. As people are travelling more for various purposes like holidays, business trips, family visits, and others, there has been a notable rise in demand for luggage products globally. With increased mobility and growing inclination towards experiencing new places, cultures and adventures, travel and outings have become an important part of lifestyle for many. This has provided a big fillip to the luggage market. People need luggage of various types like suitcases, bags, backpacks and other travel accessories to carry their belongings comfortably during their journeys. The growing suitcase and travel bag segment within the overall luggage industry is a testament to this rising travel trend. Products are being innovated to meet the evolving needs of travellers such as lightweight and durable suitcases with plenty of storage, trolleys with multiple compartments, smart bags with USB ports, and others.

The increased economic opportunities and higher disposable incomes in developing nations have also contributed to this growth. Therefore, the consistent expansion of the travel industry aided by growing affluence, easy connectivity and changing cultural preferences is a major driver propelling the global luggage market ahead. Although international travel was impeded during the pandemic, the overall long term outlook for this industry and luggage sector remains positive as mobility resumes backed by widespread vaccination.

Global Luggage Market- Opportunities

Demand for Lightweight and Durable Bags: The demand for lightweight and durable bags is a huge opportunity for growth in the global luggage market. Over the past few years, there has been a strong shift towards more sustainable and eco-friendly bag options across both business and leisure travel. Customers are increasingly prioritizing bags that are lightweight for ease of carrying but also hold up well over repeated use. This preference for lighter yet resilient bags aligns well with the trends in global travel patterns. According to the World Tourism Organization (UNWTO), international tourist arrivals grew by 4% in 2020 despite the pandemic compared to 2019. As travel continues recovering globally, luggage manufacturers that offer innovative yet durable lightweight bags stand to benefit tremendously.

Such bags meet the needs of present-day travellers well. Their lighter weight means less stress on travellers who often juggle multiple bags, devices and documents while rushing through busy airports or hauling luggage up many train station or hotel stairs. However, the sturdiness of these new materials like carbon fiber, polycarbonate and high-density nylon ensure the bags hold up against the bumps of frequent travel. This valuable combination of traits has seen some bag companies featuring these qualities grow revenues by over 15% year on year according to their recent financial reports.

Emergence of Online Retailing: The emergence of online retailing provides tremendous opportunities for growth of global luggage market. As more people conduct their shopping online out of convenience and choice, luggage brands now have alternative channels to directly reach consumers anywhere and anytime. With just a click, consumers can browse through various luggage designs, styles, sizes and price points from the comfort of their homes. People no longer have to visit physical stores which have limited inventory on display or depend on the availability of particular products locally.

Online retailing helps luggage brands to build global presence and cater to diverse consumer demands. Shoppers searching for specific features or the latest collections can easily find and purchase them online instead of waiting for or missing out on products in stores. Especially post pandemic, as international travels resume, online sites are projected to become the preferred choice for travelers to purchase luggage needed for upcoming trips. These provide seamless shopping experience without worrying about the luggage getting sold out by the travel dates.

This rapid expansion of e-commerce offers new avenues for luggage brands to penetrate global markets and expanding customer base which would drive volume growth. With rising digital connectivity, online retailing is expected to play a pivotal role in the upcoming years in shaping future growth trajectory of the global luggage market.

Global Luggage Market- Restraints

Rising online counterfeits: The rising issue of online counterfeits is posing serious challenges for the growth of the global luggage market. With the increased penetration of internet and e-commerce platforms, fake and duplicate luggage items have become widely available which is confusing customers and threatening the brand image of original manufacturers. Counterfeit products are nearly identical copies of original luggage in terms of appearance and design but are of very inferior quality. These use low grade materials and components which have very low durability. Customers who purchase these thinking them to be original, often end up with luggage that gets damaged or wears out in just one or two uses. This results in poor customer experience and dissatisfaction. It also diminishes the aura of reliability and longevity associated with well-known luggage brands. Various international studies conducted by World Customs Organization revealed that out of every 10 products sold online, nearly 4-5 were counterfeits. This flooded supply of fakes hampers repeat sales and future purchases from genuine manufacturers.

Another challenge is that these duplicate products are often sold at much lower costs compared to originals to lure customers. However, their lifetime ownership cost is high since these need frequent replacements. This distorts customer’s perception about actual price-value of quality luggage. Several customer reviews published on e-commerce sites and social media platforms complain about the fake luggage purchased online. This creates distrust among viewers about the authenticity of products sold over internet. Original brands end up losing prospective customers and market share to these unauthorized duplicates. Stricter regulations and technology solutions are needed to curb online counterfeits in order to establish a level playing field for growth of reputed luggage brands.

Counterbalance: To overcome this restraint, the key market players need to take action. The surge in online counterfeits has prompted the need for robust anti-counterfeiting measures, spanning from supply chain management to e-commerce transactions, to safeguard consumers and legitimate businesses from the adverse effects of counterfeit products, which might increase the global luggage market's growth.