Bags and Luggage in Brazil

PROSPECTS

Limited recovery expected in tourism will impact bag and luggage

Both business and leisure tourism continued to perform behind the levels of growth in number of trips registered prior to the economic crisis that started in 2015. Some recovery is expected, but only marginally considering the pace of growth projected for the country’s GDP, which represents a major concern for bags and luggage manufacturers.

Items with higher specific value will drive positive results until 2023

As the economy is set to improve over the forecast period, sales of products offering higher specific value are expected to post better performances. Consumers in general opt to purchase better quality items once their disposable incomes increase, favouring the trade-up process in sales of medium and high prices on handbags over the forecast period.

Backpacks is expected to continue growing through licensing

Growth of backpacks is driven by demands from children and teenagers when carrying school materials. This growth will not only be organic but also through manufacturers’ efforts to increase their appeal, especially to younger consumers.

COMPETITIVE LANDSCAPE

“Others” loses share during the tourism downturn

With travelling becoming less frequent, average- to low-priced brands consolidated under “others” are experiencing reduced value share. However, as bags and luggage is a highly fragmented landscape, “others” continued to hold a strong share of value sales, despite this decline.

Leading brands belong to the highest price tiers

Arezzo Indústria & Comércio, Victor Hugo Artefatos De Couro, LVMH Fashion Group Brasil, Samsonite Brasil, Prada Brasil Importação e Comércio de Artigos de Luxo and Burberry Group Plc are among the top 12 players and managed to retain their value shares or even grow further. These luxury or premium brands concentrate most of the sales share since they act nationally, in the main cities of each region of the country, unlike the smaller local players.

Licensing on backpacks

A growing number of brands such as Bagaggio, Xeryus, Sestini and Tilibra, amongst others, are selling backpacks with licensed brands from Nickelodeon (Sponge Bob, Paw Patrol), Disney/Marvel (Mickey, Minnie, Spiderman, Avengers, Black Panther), Barbie (Mattel) among many other popular names in an effort to increase their appeal to children. In Brazil, parents usually favour purchasing products for their children instead of buying for themselves, which helps to maintain sales in children’s categories.

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