Bags and Luggage in Argentina

PROSPECTS

Preference for lower-ticket products for personal use and gifts

In a tough and complicated economic context, luggage saw a further strong decrease in retail volume sales in 2019. More consumers decided not to travel abroad, while others opted for closer destinations, which limited the need for luggage.

Move towards synthetic materials over leather to keep prices affordable

As consumers favour lower-priced products due to their loss of purchasing power, there is a move towards synthetic materials over much more expensive leather items. This is increasingly relevant in a difficult economic environment as local consumers like to follow seasonal needs or trends.

Steady rise of online sales with the main players establishing a strong presence

In line with the general trend in retailing, internet retailing is steadily growing its value share in bags and luggage in Argentina. This has encouraged the owners of important brands like Prune, Blaque, XL Shop and Samsonite to create and develop their websites and invest in online advertising to lure consumers.

COMPETITIVE LANDSCAPE

As import restrictions are lifted, Louis Vuitton returns

Having withdrawn its physical presence from the market in 2012, due to the restrictions on imports, Louis Vuitton returned to Argentina in 2018 with a temporary pop-up store at the exclusive Patio Bullrich shopping mall in Buenos Aires. As restrictions have been relaxed, more major international and global brand owners see new potential in the market, and Louis Vuitton joined the wave of such brands entering or re-entering the country in various industries.

Luggage remains highly fragmented with infrequent travellers opting for function and low price over brand name

The competitive landscape of luggage remains highly fragmented. In general, local consumers do not travel abroad often, while there is a general tendency to prioritise price-quality ratio over brand name.

Domestic players diversify their offer to offset drop in demand

The leading player in bags in value share terms, XL Shop, was the first major manufacturer to introduce synthetic material products to its portfolio. The player has therefore broadened its range in the category, while diversifying its general offer to include umbrellas, watches, jewellery and footwear.

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