Bags and Luggage in Germany

PROSPECTS

Technology the main area of innovation, particularly in luggage

Bags and luggage recorded another healthy performance in 2019, with further positive volume and value growth. Current value growth was slightly faster than volume growth as unit prices continued to edge up due to innovations such as tech-enhanced products.

Trendy duffel bags popular for their versatility

One of the biggest trends in recent years in bags and luggage is fashion items in duffel bags – with duffel bags posting the strongest volume and value growth in the category in 2019. Commonly used for going to the gym, the product’s versatility for other purposes, such as traveling and offering space to carry things when out for a long day, is boosting sales and attracting the entry of more players.

Luxury handbag growth rates cool due to the broader trends in handbags

2017 was the year that luxury handbags reached peak value sales growth, the highest in six years, before growth subsequently slowed down in 2018, which continued in 2019. This slowdown can be associated with a trend shifting slightly away from ownership to experiential – which influenced the demand for handbags as a whole, including luxury handbags.

COMPETITIVE LANDSCAPE

Samsonite increases its lead

Bags and luggage remains highly fragmented, and Samsonite, which overtook VF Europe to take the top spot in 2017, managed to further extend its leadership in 2018, which was a good year for Samsonite. The Samsonite brand enjoys large consumer recognition in terms of quality and fair prices, and its business bags and luggage sales grew strongly in 2018.

Brand diversity is maintaining VF Europe’s sales

Despite the growing sales recorded by VF Europe’s different brands, and, indeed, the company itself as a whole, it still saw its share decline in 2018. Eastpak is one of the most important brands in the company’s portfolio, but its share has been stagnating in recent years, revealing a potential maturity in its core target market, which could point to potential sales declines and share loss in the future.

Smaller players boosted by the rise of internet retailing

The development of Germany’s internet retailing channel operations is driving costs lower for brands and customers as well as speeding up and improving processing and deliveries. With the ever increasing social media penetration among consumers, small brands with alternative designs and niche focus areas are therefore mushrooming in the Germany market.

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