Bags and Luggage in Romania

PROSPECTS

Rising incomes drive growth

Key to the growth of bags and luggage in Romania has been the strong growth in consumer incomes with the minimum wage being increased by a further 9% in 2018, following a previous increase of 16% in 2017. As a result, consumers are becoming increasingly aspirational which is reflected in the strong performances of designer brands.

Business bags benefits from rising employment, fashion and low-cost airlines

Employment opportunities are increasing in Romania, with many workers being keen to appear smart and professional. This has resulted in double-digit current value and retail volume growth once again being seen for business bags in 2018.

Affordable fashion is the focus within handbags

Handbags remains the largest category within bags and luggage in Romania, with it accounting for half of all value sales in 2018. It continues to be perceived as a feminine item in Romania, with basic handbags dominating the category.

COMPETITIVE LANDSCAPE

Lamonza on the rise

Local company Azad Enterprises Srl retained the lead in bags and luggage in 2017 thanks largely to the strong performance of its Lamonza brand, which recorded double-digit current value growth. This brand is notably proving successful in cross body bags, duffle bags, other small bags and luggage.

Affordable handbags on the rise as demand for luxury handbags wanes

Within handbags luxury brand Louis Vuitton retained the lead in 2017, although it continued to lose share, as did other leading luxury brands such as Gucci and Burberry. However, new player Michael Kors did record dynamic growth in 2017, with its range of luxury handbags attracting interest among fashion-conscious consumers.

Counterfeits remain an obstacle

Counterfeits continue to hinder sales of bags and luggage, with these widely available via informal retailing channels. Romania continues to have a strong informal economy and counterfeits are available across a wide range of product areas, including bags and luggage.

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