Bags and Luggage in Brazil

PROSPECTS

Fast fashion business model helps to boost sales of bags

Even with the economic difficulties negatively impacting the chances of stronger growth, bags and luggage recorded a positive performance in 2019. A fair amount of the growth was thanks to the fast fashion model, in which apparel and footwear retailers are accelerating the launches of new collections, which also benefits bags consumption.

Recovery in the number of domestic trips by land and air positively influences luggage sales

The lower levels of consumer confidence allied to the local currency devaluation are factors projected to continue negatively impacting the number of international trips and consequently reduce expenditure abroad. However, as domestic trips currently represent a lower-cost alternative to trips abroad, local destinations are expected to continue registering good performances and will be one of the main drivers of the positive performance by luggage.

COMPETITIVE LANDSCAPE

Increasing concentration reveals the importance of brand perception in non-necessary spending

As bags and luggage are considered extensions of the sense of style and these items are frequently made of expensive materials, such as leather with complex finishes, they are positioned with higher prices, above apparel’s average. The aspirational factor is an important trigger in the decision-making process and premium or luxury brands traditionally lead these categories.

Licensing grows at the main retailers and is expected to remain strong in backpacks

Backpacks traditionally shows organic growth as it is a popular item for students to carry school materials and even for adults during their routines at work or when going to the gym. Licensing is a growing trend that is expected to drive the category’s growth via the main apparel and footwear retailers.

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