Bags and Luggage in Singapore

PROSPECTS

Increasing fitness participation drives growth in backpacks

Backpacks recorded strong growth due to the active fitness scene in Singapore. Movements such as ActiveSG’s Active Health and the rising popularity of fitness subscription services like ClassPass encourage Singaporeans to proactively take ownership of their health and wellness.

Luggage projected to see strong growth in value sales

Growth in the luggage category is supported by the increasing number of outbound departures of Singapore residents for overseas trips as well as record high visitor arrival numbers. This resulted in growing demand for luggage.

Decline in tourist spending affects luxury handbags

Tourism receipts only grew marginally in 2018, despite more positive growth in inbound tourist arrivals. The sales value of luxury handbags in Singapore is dependent on tourists’ spending, especially among Mainland Chinese visitors.

COMPETITIVE LANDSCAPE

Tapestry boasts strong growth

LVMH group maintained the leadership in bags and luggage in terms of value sales in 2018. However, Tapestry Inc closed the gap on LVMH over the review period at GBO level, especially since the addition of the Kate Spade brand to the group.

Luxury bags offer lower price points

Luxury brands are not experiencing as robust growth as previously, as consumers are now less willing to invest in branded goods and luxury bags. Luxury brand owners are therefore being seen to shift their strategic direction in order to target the new market audience of the fast fashion crowd.

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