Luggage and Bags Industry

Today's Situation of China's Luggage and Bags Industry

Overall Market Trend

·       Shift in Consumer Demand: Consumer demand for luggage and bags has shifted from practicality to quality and personalization. The demand for high-end and luxury luggage has increased significantly. Intelligence, technological innovation, and environmental protection concepts are becoming new trends driving the development of the luggage and bags industry.

·       Market Polarization: According to the Southern+ client, in the first three quarters of this year, China's luggage and bags industry showed obvious regional differences. For example, Chongqing's luggage and bags export value in the first three quarters was approximately 610 million yuan, a year-on-year decrease of 17.3%; while Huaihua International Port in Hunan Province had an export value of 230 million yuan for luggage and bags in the first three quarters, a year-on-year increase of 94.1%; Baigou, Hebei Province had a luggage and bags export value of 7.154 billion yuan in the first half of the year, a year-on-year increase of 17.78%. It shows a polarization trend of growth in some regions and decline in others.

·       Small Luggage and Bags as a Breakthrough: Consumer preferences have changed. Affected by the global economic downturn, the demand for long-distance travel has decreased, and the consumption of large-capacity luggage has been sluggish. However, the demand for short-distance travel has increased as a substitute. Small luggage and bags such as women's handbags, shoulder bags, backpacks, and key bags weighing less than 500 grams are favored by the market due to their lightness, simplicity, and relatively low prices, which can better meet the needs of high-frequency consumption.

Production and Export Situation

·       High Production Proportion: China is the world's largest luggage and bags manufacturing country, with its production accounting for more than 70% of the global share. The production capacity is distributed in Guangdong, Zhejiang, Baigou, Hebei, Shaodong, Hunan, and Nantai, Liaoning.

·       Export Challenges: Some overseas countries have continuously increased import tariffs on luggage and bags to protect their domestic low-end manufacturing enterprises. International trade frictions and exchange rate fluctuations have also affected the export business of Chinese luggage and bags enterprises.

·       Opportunities for Going Global: Despite challenges, China's luggage and bags industry is gradually booming in going global. In the first eight months of last year alone, China's cumulative export value of luggage and bags and similar containers reached US$22.78 billion, a year-on-year increase of 34%. Moreover, the industry's going global has rapidly shifted from a single product export to an industrial capital export represented by production capacity, brand, and industrial chain.

Industry Competition Pattern

·       Low Concentration of Leading Enterprises: The concentration of leading enterprises in China's luggage and bags industry is relatively low, far from the era of stock competition. The market competition is fierce, involving many domestic and foreign brands and enterprises. The high-end market is occupied by well-known international brands, the mid-end market is dominated by domestic enterprises but lacks leading enterprises, and the low-end market is mainly occupied by unbranded products.

·       Enhanced Brand Awareness: Consumers' brand awareness has gradually increased, and their recognition and loyalty to well-known brands have continuously improved. The market share of branded luggage and bags has gradually expanded, and brand building has become an important direction for the development of luggage and bags enterprises.

Industry Development Drivers

·       Technological Innovation: With the in-depth development of the new industrial revolution characterized by digitalization, greening, and integration, China's luggage and bags industry is accelerating the formation of new productivity. From the continuous improvement of design innovation to the refinement of production processes, from the rapid development of intelligent manufacturing to the integrated innovation of cultural inheritance, all are promoting the development of the industry.

·       Regional Coordinated Development: Labor-intensive industries are relocating from central cities to the central and western hinterland. Inland cities such as Huaihua, Hunan Province, have become attractive destinations for industrial transfer due to lower labor costs, complete luggage and bags industry chains, and policy support.