Bags were considered to be a mere commodity for packing things till few years back but with the augmentation of domestic and international travel, high disposable income, growing overseas business, globalisation, merging international trade boundaries- the travel bags and luggage has got the status of fashion accessory and status symbol. Nowadays, plethora of options are available in terms of size, quality, material used, colour etc. This drift has stimulated the demand for personalised/customised luggage bags and India is not untouched by this. The pioneers in leading luggage brands are reaching out to youth as potential customers owing to their keenness of travel. Increase in the online shopping have also boosted growth process and in return the companies have received a wider market reach.
The luggage bag industry can be categorised as below on basis of:
New Trends in Luggage bags:
With the growing automation, it would be belittling to think that the travel bags sector is not affected by it. Information technology has paved its way in the luggage industry and some of the top industry players are coming up with innovative solutions to introduce Smart Luggage, also known as ‘Pluggage’ as it comes with various innovations.
Globally, many companies such as Arlo Skye, Barracuda, Samsara and Raden have taken a step forward and introduced innovative technologies for “Smart Luggage”. Mobile phone charging options are added along with other electronic items, GPS locators that allow consumers to track their bag with the help of an app, in-built electronic weighing scales and alert devices that send notifications when their bag is unlocked are some of the new technologies to name a few.
Below are some of the innovations enlisted:
- Two Way Anti Loss: Bluetooth enabled bags have been launched that gives the user access to operate the lock using phone via a paired app. Also, the bag will send notification to the owner once he moves more than a pre-set distance from the bag, the proximity sensors are installed for the same. The sample can be ordered from Dongguan Kangkai Manufacture Co. Ltd, China.
- With Fingerprint Scanner/Biometric: Bags with fingerprint scanner are making waves in the market. The smart trolley bag uses fingerprint to activate the locking and unlocking mechanism. The user can store upto 10 fingerprints in latest model from Xtend ‘Kabuto Luggage’. While another supplier Eastop Luggage Industrial Co. Ltd. (Guangdong, China) have feature of storing upto 4 fingerprints and comes fitted with weight display, Bluetooth tracking features. The company also allows the customer to make customisation of colour, design, size with MOQ of 200 pieces and the FOB price being $35 to $45.
- Location Tracking: GPS enabled bags help in identifying the location of the bag and help the owner to locate the bag via an app in real-time.
- Automatic Weight Display: Many of the innovative bags comes with a feature of displaying the weight of the bag on LCD fitted at top. Once the owner lifts the bag, the weight will be automatically displayed on the screen. And the cherry on the cake is all these bags can be colour, size customised and integration of other advancements can be done when the order is of certain minimum order quantity. Supplier is Edna Co. Ltd.
- Bluetooth Alert System: MODS Luggage & Bags China Ltd’s has patented smart luggage which has Bluetooth alert system which send notification to the owner once its unlocked.
- Others: Many bags comes with options where the port is available for charging mobile phone. In-built speakers, waterproof and dust proof features are also added as an option in travel bags. Size adjustment flexibility, ultra lightweight, compact, printed, colourful bags are some of the innovations companies are focussing on to garner more attention from consumers.
Global Luggage Market revenue, by region, 2015-2025 (USD billion) Forecast:
According to marketwatch.com, the valuation of global luggage bag market was 12900 million US $ in 2018 and increasing at a CAGR of 9.1% during 2019-2025, the travel bag market will be reaching to an estimated value of 23,700 million US$ by the end of 2025. Some of the global top players are Samsonite, VIP Industries, VF corporation, Olympia, Victorinox, Tommy Hilfiger, Riggs, Delsey, Fox luggage etc.
Indian Luggage Bag Industry:
The Indian luggage industry is involved in the manufacturing of luggage bags, delivery bags, bag packs, duffel bags, laptop bags, other business travelling bags and various travel accessories. If we compare globally, India is positioned among the top five markets. Majority of the bags market is captured by the unorganised sector which is 68% of the total market. The main market players in organised sector which holds 95% of market are majorly Samsonite, VIP and Safari which faces a tough competition from the unorganised sector. Among the above, VIP is in first position with 47% of the market share followed by 45% held by Safari and rest of the market share goes to Safari.
In the period of 2013-2018, the Asia-Pacific region has marked an astonishing figure of 63% of the total travel bags sale in the world and India has outshined all of the countries. As per the report by Equity Levers, the Indian luggage industry is rising at a growth rate of 18%-20% compound annual growth rate (CAGR).
Facts & Figures about Indian Luggage Market:
- Networth of Indian Luggage market: Rs 20,000 Crore
- Branded luggage: Rs 6,000 crore
- Non-Branded Luggage: Approximately 15,000 crore
According to QY research reports, “In 2017, the India’s luggage bag revenue was $800 million and it is expected to reach $1514 million in 2025 as the market sales were 32.3 million units in 2017. It is predicted to reach 69.2 million units in 2025.”
Overview of Top Global Bags Manufacturers:
Roadmap Ahead:
The upsurge in luxury lifestyle and shifting customer attitude has resulted in massive growth in the travel bags business. Trolley bags segment is considered to be the most rewarding one due to high consumer preference owing to its ease of mobility, comfortable to transport on various surfaces; across terminals, subways and escalators, and navigating busy and crowded terminals.
- Travel luggage market is expected to reach more than USD 23.0 billion by the end of 2025. Changing lifestyle among the working-class professionals along with the extensive brand campaigns by companies including Samsonite International and LVMH Moët Hennessy is expected to increase leisure spending among consumers over the next eight years.
- In the domain of sports bags as well the CAGR is expected to be almost 17% in a period from 2017-2025. The inclination of adults to health and fitness is supposed to be the main driving factor towards this rise.
- Business travel bags will grow at the same CAGR as sports bag 1.e. at 17% within the same period from 2017-2025. Globalisation, increased trade ties, business expansions will be the prime reasons for witnessing this growth. As per the report issued by Global Business Travel Association, in 2013 the international business travel was valued at USD 273.7 billion which jumped to a whooping figure of USD 341 billion in 2018, reflecting a growth of 4.49% CAGR in the said period of 2013-2018.
References:
- • www.globalsources.com.hk
• Marketwatch.com
• Hexaresearch.com
• Alliedmarketresearch.com
By: Anshu Chauhan1,a, Sachin Chauhan2,b
1 M.S. – Wuhan Textile University, China; B Tech- TIT&S Bhiwani (Haryana); Merchandising Manager (Pinnium Brands), Bengaluru
2M.S. – Wuhan Textile University, China B Tech -TIT&S Bhiwani (Haryana); Asst Manager, National Textile Corporation, Delhi a[email protected] , b[email protected]
