Bags and Luggage in Japan

PROSPECTS

Overall sales are positive, with handbags leading the way

Whilst bags and luggage suffered sales declines in 2016 following the Chinese government’s implementation of a new tax policy affecting products bought overseas to be brought back to China, the category recovered quickly due to the increasing number of travellers to Japan. Based on Euromonitor International Travel data, inbound trips Japan rose to 31 million in 2018, up from 10 million inbound trips in 2013.

Business bags decline, replaced by backpacks supported by casual office wear

In the review period, the office working environment drastically changed in Japan. The current government agenda includes reforming people’s work style, which means encouraging more flexible working hours and less overtime work.

Luggage unit prices decline

As travel has become a more accessible and frequent activity for Japanese consumers, many consumers now seek to travel smarter, more efficiently and more compactly, especially for short-term travel. Hence, carry-ons were a more important focus over the review period.

COMPETITIVE LANDSCAPE

Global brands dominate the category

Global brands continue to show a strong presence in bags and luggage, boosted by continuing trends such as inbound tourism. In the review period, new efforts were seen from global brands, including localisation and strategic store openings in prime locations.

Highly fragmented landscape with local brands emerging

Although the top players are international brands, bags and luggage in Japan also has many independent local brands, which create a very fragmented landscape with various price ranges. For low- and mid-priced bags and luggage, small local brands emerge and disappear quickly, correlating with recent fashion trends.

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