Bags and Luggage in Brazil

2021 DEVELOPMENTS

COVID-19 restrictions reduce the appetite for bags and luggage for the second consecutive year

Following the crisis in Brazil in 2015-2016, there had been hope of an ongoing recovery in the economy and consumption. These hopes were dashed by the outbreak of COVID-19 in Brazil in 2020, which led to the deterioration of an already vulnerable situation.

The pre-pandemic health of businesses determined two major groups of companies: the weakened and the consolidators

The COVID-19 pandemic has led to an increase in the inequalities within Brazilian society which has generated polarisation in terms of the consumption of bags and luggage. The upper-middle-class has largely retained a somewhat steady work situation, with consumers working remotely from home and accumulating savings (due to less expenditure on restaurants, trips, and entertainment).

The increasing appeal of casual fashion reaches its peak with the COVID-19 pandemic

Employers have been increasingly employing less rigid dress codes in the workplace and this has been influencing consumption behaviour. However, with the COVID-19 pandemic and home seclusion this has elevated the casual lifestyle with a reduced focus on formal attire.

PROSPECTS AND OPPORTUNITIES

Stronger focus on lifestyle and fashion expected to reduce the dependence on seasonality

Uncertainty over the timeframe for containing COVID-19 has made it hard to project the future of bags and luggage in Brazil. Nevertheless, despite the uncertainty, the main players are focusing on producing items that meet with the new needs of consumers, who are now generally less guided by strict routines.

Comfortable and agender styles tend to become more relevant in post pandemic projections

According to national statistics, approximately 13% of the Brazilian workforce had the opportunity to work from home during the quarantine periods, significantly expanding the remote working culture in Brazil. With such a development it is expected that a significant section of the workforce will continue to spend more time working remotely over the forecast period, even once COVID-19 is contained.

Digital revolution and new strategies expected to gain traction during the coming years

Even with the delay in providing universal access to broadband internet, there is still expected to be an ongoing shift towards e-commerce within bags and luggage over the forecast period. COVID-19 restrictions have fuelled the rise of e-commerce and have made it almost essential that all players improve their digital interfaces.