Bags and Luggage in Mexico

2020 IMPACT

Work-from-home, closure of schools and restricted travel all impact demand for bags and luggage during the lockdown

Already starting to show signs of a slowdown in demand pre-COVID-19 due to increasingly unfavourable conditions such as a contraction in the country’s GDP, volume and value sales of bags and luggage recorded declines in Q2 2020, as lockdown measures in response to COVID-19 by the Mexican government resulted in a high proportion of the population being urged to remain at home wherever possible, including work-from-home strategies, restricted movement, and a focus on prioritising spending on basic essentials such as groceries, medicines and surface care.

Highly fragmented competitive landscape in 2019 sees luxury player Hermès take over leadership of bags and luggage from Samsonite

Bags and luggage remained a highly fragmented competitive landscape in 2019 with luxury handbag producer Hermès de Paris Mexico SA de CV taking over category leadership from luggage player Samsonite. Hermès also offers backpacks, crossbody bags, wallets and coin pouches and other small bags, with the latter categories offering greater affordability to aspirational consumers.

E-commerce benefits from stronger demand boosted by lockdown

With many non-essential store-based retailers that sell bags and luggage, including non-grocery specialists and department stores, were forced to close during the lockdown in 2020 in response to COVID-19, an increasing number of consumers turned towards e-commerce, with the latter gaining further value share, a trend which was already emerging pre-pandemic, as it offers a wide range of products at competitive prices and favourable delivery options. The distribution channel therefore recorded double-digit current value growth in Q2 2020, which is likely to continue throughout the year, even once lockdown measures are eased and non-essential stores reopen; while bags and luggage could also be purchased through essential stores such as hypermarkets, many local consumers were unwilling to spend longer amounts of time browsing in stores due to concerns about exposure to the virus.

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