Global Luggage Market Propelled by Increasing Urbanization and Scope of Travel
Published On : Mar 09, 2016
Samsonite IP Holdings, one of the leading companies in the global luggage market, released a new line of suitcases and bags in 2015. These bags were capable of cellular-enabled tracking. Even more recently, ANDIAMO Luggage LLC launched a baggage line that comes with features such as battery charger and a Wi-Fi hotspot. On similar lines, Bluesmart Inc. is a startup that managed to generate almost US$1.4 mn through crowd sourcing to create bags that come with dual USB chargers, battery packs, and tracking systems. These are some of the innovations in the market for different types of luggage.
The global luggage market is being influenced by consumer demand as well as the functioning of the key players, including ACE Co, Ltd., Goyard, Louis Vuitton Malletier S.A., MCM Worldwide, Rimowa GmbH, Briggs & Riley Travelware, VF Corporation, VIP Industries, Tumi Holdings, Inc., and Samsonite International S.A.
Global Luggage Market Grows with High Rates of Urbanization
Urbanization is the biggest reason for the current growth curve shown by the global luggage market. A direct result of urbanization is the changing lifestyles of individuals. Travelling is being made easier and locations that were previously difficult to access no longer show the same level of inaccessibility. Therefore, there is a marked increase in the number of individuals that are travelling for both business and personal reasons. Another driver for the global luggage market is the increasing number of people accessing overseas locations for education. The high number of students studying outside their own country is also adding to the number of consumers in the global luggage market.
At the same time, the avenues of sales and distribution in the luggage market are also improving significantly. Typical distributors in the global luggage market are hypermarkets, supermarkets, factory outlets, and specialist retailers. The rise of ecommerce over the past decade has created a surge in sales of all types of bags.
Global Luggage Market Restrained by Unorganized Regional Sales
One of the major restraints on the global luggage market is the high level of disorganized distribution and sales of bags, especially in developing economies such as China and India. There are a large number of regional players in these regions that are making it difficult to streamline the distribution lines. These regional companies usually launch products that are in many ways identical to the more internationally popular brands. These products are inferior in quality in terms of materials used and manufacturing but at the same time, these companies cut costs on branding, marketing, advertising, as well as research and development efforts. Such bags are highly popular among individuals of low and medium income classes. These bags serve a temporary purpose for those who want to travel shorter distances, therefore taking up a major share in the global luggage market from the perspective of short-distance travelers. These regions also do not currently possess strong regulatory support and anti-counterfeiting regulations for the global luggage market, paving the way for illegal manufacturing.
The global luggage market will benefit from the growing number of high net worth individuals, who lead lifestyles where traveling is one of the primary aspects. The increasing number of HNWIs is thus directly boosting the global luggage market.
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