Bags and Luggage in France

PROSPECTS

All signals are green for the category

After a challenging year in 2016 marked by a dip in tourist numbers following the terrorist attacks, bags and luggage returned to growth in 2017 and should maintain this growth in 2018. In 2017, foreign tourists returned to France with inbound arrivals up slightly after a decline in 2016, including affluent Chinese tourists who are now critical to the French luxury industry.

Millennials are the key target audience for all players

Luxury handbags is generally in good health, benefiting from demand by both wealthy foreign tourists and a rich fringe of the French population. Across the board, luxury players target international and French millennials through a multichannel strategy and increased presence on social media via advertising and influencers.

“Made in France" and sustainability are increasingly important

“Made in France” is an increasingly important factor among buyers of leather goods and bags. Millennials are increasingly sensitive to a sustainable, local and ecological approach, and more and more people – French and tourists alike – look for a “Made in France” indication, which combines product quality and protection of local jobs and craftsmanship.

COMPETITIVE LANDSCAPE

The return of Asian tourists boosts luxury brands

Luxury brands, in particular Louis Vuitton, Hermès and Gucci benefited from the return of Asian tourists to France and reported strong performance in 2017. Rimowa acquired by LVMH in 2016 enjoyed great success in luggage among Asian tourists, following the opening of a Parisian flagship store on five levels on the prestigious Faubourg Saint-Honoré Road.

SMCP maintains healthy growth

French GBO SMCP Group, which owns the brands Sandro, Maje and Claudie Pierlot, continued to show good growth, as it continued expanding its accessories ranges to supplement its successful apparel business. Its bags business carried more weight than footwear in the group’s revenues at the end of the review period.

Small direct-to-consumer Parisian brands emerge

In recent years, new little Parisian companies offering leather items at accessible prices started to blossom in the bags and luggage category, in the same way they did in other industries such as apparel or skincare. Some of these companies relied 100% on online sales via websites and social media, without any intermediate or distribution partners in traditional retail thus far.

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