High Net-Worth Individuals to Propel Market for Technologically Advanced Luggage

  • Published On : Apr 20, 2015
Luggage comprises the segments of casual bags, business bags, and travel purpose bags. The global luggage market includes several types of luggage that fulfill particular requirements, such as duffel bags, suitcases, spinner bags, messenger bags, expandable bags, and carry-on bags.

Rising Urbanization and Disposable Incomes to Spur Global Luggage Market 

Growing urbanization is a major factor driving the markets for various lifestyle products. Luggage is an indispensable category of lifestyle products, especially in developed countries, and is accordingly being helped massively by the growing demand for lifestyle products. In developing nations, the all-purpose bags that were used earlier for travel, business, and other purposes have been replaced by purpose-based bags owing to urbanization and rising disposable income. Additionally, growing travel and outings and business activities are driving luggage sales.

Luggage Sales Driven by Growing Travel and Tourism Globally

The growing inclination of the global population for travel and adventure tours has benefitted the travel and tourism industry and in turn industries that are directly or indirectly related to it. The growing disposable income of the average consumer and preference for new recreation activities is driving the travel and tourism industry worldwide. Luggage is an important part of travel gear and hence benefits from growing travel and tourism activities.

Technological advancement is another factor that is spurring the global luggage market. High net worth individuals (HNWIs) are spending increasingly on high-end luggage with additional gadgets such as inbuilt GPS tracking systems, which is propelling the luggage market globally. As per a leading industry source, the number of HNWIs in the U.S. was 4 million in 2013, whereas in China there were 700,000 HNWIs the same year.

The luggage market has several distribution channels, such as specialist retailers, supermarkets, factory outlets, hypermarkets, and internet sales. Specialist retailers are independent vendors that sell luggage and other related specialty products. Factory outlets are company-owned stores that sell the products of only the respective companies. The Internet is also a major distribution channel through either the company’s own online sales channel or through other e-commerce channels on the internet.

Unorganized Players to Threat Organized Luggage Market 

By geographical segmentation, Europe was the largest contributor to the global luggage market and was followed by Asia Pacific due to high tourist activities in the last few years. Developed nations such as the U.S., Finland, Sweden have high domestic and overseas tourist activities that contribute to the global luggage market. On the contrary, developing countries such as India and China have large unorganized luggage markets that pose a significant threat to the organized global luggage market. 

The unorganized players in the regional markets offer products with designs that are quite similar to the ones offered by large players in the global luggage market, but at much lower costs. The unorganized players in the regional luggage markets save on design, advertising, R&D, branding, and raw materials. In developing nations, medium- and low-income population is the largest consumer of such inferior but acceptable luggage.

The strong presence of unorganized players in the luggage market is posing threat to organized players in the market. The absence of a strong anti-forging network in developing countries is contributing to the growth of unorganized players in the luggage market and inhibiting the growth of organized players.

The major vendors in the luggage market globally are Tumi Holdings Inc., VF Corporation, Rimowa GmbH, Samsonite International S.A., VIP Industries, Goyard, Briggs and Riley Travelware, MCM Worldwide, Louis Vuitton Malletier S.A., and ACE Company Ltd.

Browse Full Luggage Market Research Report With Complete TOC @ https://www.persistencemarketresearch.com/market-research/luggage-market.asp
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