Global Luggage Market

Transcription

1 Global Luggage Market

2 Executive Summary The worldwide luggage market includes a wide range of products that vary in quality and prices. Premium luggage bags are costly, high quality, full-featured products and have selective distribution. In addition, there is a broad middle market in which products are differentiated by features, brand name and price. Both organized and unorganized players operate in this segment. Within this market, sales are largest at mid and low product price levels. Product differentiation decreases and breadth of distribution increases at lower price levels. At the lower end of the luggage market, unbranded or private label products with few differentiating features are sold in significant volumes and at low margins, competing primarily on the basis of price. Further, the report states that the increasing competition from local brands and counterfeit products is one of the main challenges hindering the growth of the market. This competition has led to market fragmentation, which has, in turn, resulted in several issues such as lack of price standardization, an uneven competitive scenario and market share erosion. The key factors driving growth of the global luggage industry include rising global economy, increasingly improving travel and tourism industry, escalating disposable income, increasing urban population and accelerating market and promotional efforts. Some of the noteworthy developments of this industry include changing product trend, increasing demand of ultra-light weight materials made up of polycarbonate resins, new innovations and increasing contribution of travel and tourism, which includes luggage market as well, in the global economy. However, the growth of luggage industry is hindered by the adverse economic conditions, acts of counterfeiting and trade restrictions. This report offers a comprehensive analysis of the worldwide luggage market, along with an in-depth study of the regional markets including the US, China, India and Japan. The competition in the respective market is intense with few large players viz Samsonite, VF Corporation, Tumi Holdings and VIP Industries, among others. The competitive landscape of the global luggage markets, along with the company profiles of the leading players are also discussed in detail. By combining SPSS Inc. s data integration and analysis capabilities with our relevant findings, we have predicted the future growth of the industry. We employed various significant variables that have an impact on this industry and created regression models with SPSS Base to determine the future direction of the industry. Before deploying the regression model, the relationship between several independent or predictor variables and the dependent variable was analyzed using standard SPSS output, including charts, tables and tests.

3 The global luggage market can be categorized into three product groups; namely travel bags segment, business bags segment, and casual bags segment. Global Imports of Travel Goods ( ) For the period spanning , the export value (in current prices) of HS group 4202 grew at a CAGR of %. HS (Harmonized System) group 4202 consists of suit cases, camera cases, handbags and others. The same accounted for US$... billion, up by.%, compared to US$... billion in the previous year. Global import increased from US$... billion in 2012 to US$... billion in Many markets like the US, the EU, Japan, South Korea and Canada restrict the import of bags containing leather. These prohibitions significantly affected the global import trend. Casual bags held the largest share and accounted for % of the total luggage industry in it was immediately followed by Travel bags with % of share. Business bags accounted for % share in the cited period. Global Exports of Travel Goods ( ) Breakdown of Global Luggage Retail Sales by Segments (2013E) Casual Bags Travel Bags Business Bags

4 US$ Million Some of the noteworthy developments of luggage industry include increasing demand of ultra-light weight materials and increasing contribution of the respective market in the global economy. Import Value of Travel Goods in the US ( ) Most of the travel goods sold in the US are imported. The total import value of travel goods increased from US$... billion in 2012 to US$... billion in India is one of the major luggage markets across the world. Indian luggage market was estimated to be US$... million in 2013, down by.%, compared to US$... million in the prior year. However, in terms of local currency, the same registered an incline of %. The largest share in the US travel goods market is of travel/sports bags, which held % share of revenue in 2013, followed by handbags with % share. Leather goods and luggage constitutes other important types of travel goods, with % and % respective share of revenue in the cited year. Indian Luggage Market Value ( ) The US Travel Goods Market Breakdown by Value (2013) 2008 Luggage Travel/Sports Bags Personal Leather Goods Luggage Locks Business Cases/Computer Bags Handbags Backpacks

5 US$ Million The key factors driving growth of the global luggage industry include increasingly improving travel and tourism industry, escalating disposable income and accelerating market and promotional efforts. Export of Travel Goods in India ( ) India is majorly an export market for travel goods, primarily to different parts of Europe. As of 2013, the total export market was worth US$... million, which was % higher than the US$... million of exports in In line with the exports, the imports of travel goods in the country also increased to US$... million from US$... million in China is the largest export market for the travel goods. For 2013, the export from the country reached the value of US$... billion, compared to US$... billion in The imports in the country accounted for US$... billion in The Japanese luggage industry is highly fragmented with a number of players operating in the market. Ace is the market leader with a share of % in It was followed by Porter and Samsonite with % and % share of the market, respectively. Export of Travel Goods in China ( ) Japanese Luggage Market Share by Major Players (2012) Ace Porter Samsonite Rimowa Tumi Sunco Others

6 E 2015E 2016E 2017E US$ Million The growth of luggage market is hindered by a number of factors including adverse economic conditions, acts of counterfeiting and trade restrictions. The US Luggage Sales by Value ( ) Global Luggage Market Retail Sales Forecast ( F) The retail sales of global luggage market is forecasted to grow at a CAGR of.% over the period and is anticipated to reach US$... billion by The growth will be driven by factors like high travel and tourism spending, rise in international tourist arrivals, and overall world economic health. International tourist arrivals will reach close to billion in 2020 and hit billion by Asia-Pacific will gain most of the new arrivals and will also be the strongest growing outbound region. As of 2013, the retail sales of the luggage goods in the US increased significantly by.% y-o-y. The US luggage goods sales was US$... billion in the cited year, compared to US$... billion in The luggage goods sales fell by volume, but consumers were willing to pay more for those fewer products, leading to a rise in sales by value. As the result, the average unit price for luggage increased % for the year. The global luggage market is intensely competitive with the presence of both organized and unorganized players. Samsonite remains the market leader in the worldwide luggage market, followed by VF Corporation, Tumi, Ace, Delsey, VIP, and Rimowa, among others. Competition is largely based on the brand name, product pricing, quality, and design; product technology; and advertising, among other such factors. Note: Market attractiveness is inverse of penetration. Low penetration means high attractiveness and vice-versa