Bags and Luggage in Germany

2021 DEVELOPMENTS

Luxury handbags leading the growth alongside other premium products

After the sales slump in 2020, bags and luggage managed to gradually claw back its way in 2021 to post positive growth, although still being nowhere near its pre-pandemic sales levels due to prolonged lockdowns and ongoing travel restrictions. Of the various products, luxury handbags performed the best in Germany in 2021.

Non-travel products driving the industry’s early recovery stage

Non-travel-related products are growing on a par with travel items in bags and luggage in 2021. The fact that international travel is still highly restricted, due to further COVID-19 waves and a delayed vaccination programme, is a major factor supporting this trend.

E-commerce continues to grow even after its excellent 2020 performance

As throughout the whole industry, the importance of e-commerce saw major gains for most bags and luggage brands in 2020. This helped the channel to record very strong growth in its bags and luggage sales and share in 2020, but, despite this, it has been continuing to grow in 2021.

PROSPECTS AND OPPORTUNITIES

Full recovery expected only in the medium term although 2022 will see dynamic growth

The bags and luggage category will be recovering in Germany throughout 2021, although the coming years are expected to bring even stronger growth. Given the current state of events both in terms of vaccination programmes across the EU and the pandemic’s evolution, less strict restrictions and even a normalisation of daily life are expected to be seen in 2022, which will translate into a much stronger increase in value sales, making it almost like the real post-pandemic rebound year.

Lower international expenditure leads to adjusted brand strategies

One of the greatest shifts that is taking place in bags and luggage is the increased importance of local consumers. Whereas in the past major players relied strongly on revenues generated by non-residents in store-based points of sale, particularly in the most-visited cities such as Berlin and Munich, as international travel levels were significantly reduced due to the pandemic’s restrictions, brands directed their efforts more towards residents in Germany.

Home-office culture and consumers’ habit persistence to hit long-term demand

The difficulties that bags and luggage will experience in recovering its 2020 losses will be the result of a number of factors. In general, there is likely to be a major habit-persistence effect among consumers, which saw their consumption levels in the category drop significantly in 2020 and with no particular need to return to past levels in the immediate future.