Bags and Luggage in Switzerland

PROSPECTS

Consumers’ price-sensitivity constrains value sales

Although the Swiss economy is gradually recovering and unemployment is falling, Swiss consumers remain price-sensitive and cautious when spending. Switzerland is one of the world’s most expensive countries to live in and median disposable income is set to grow only modestly over the forecast period.

Internet retailing continues to develop and grow

Bags and luggage are sold by a large number of retailers at various price points, but all types of brick-and-mortar retailers face increased competition from internet retailing, which has grown rapidly in Switzerland. Internet retailing has benefited from the strong Swiss franc in recent years, which has seen Swiss consumers make greater use of the internet to shop overseas for bargains.

Growing demand for versatile products

Modern Swiss consumers increasingly look for stylish accessories that suit their active lifestyles. For example, backpacks recorded a marginal upturn in retail current value sales in 2018; benefiting from more casual dress codes in workplaces and increased interest in fitness and outdoor activities.

COMPETITIVE LANDSCAPE

Luxury brands benefit from the return of international tourists

In 2017, luxury brands profited from the growth in inbound tourist arrivals, especially affluent visitors from China. The euro also appreciated in 2017 to lose its advantage over the Swiss franc, effectively making Switzerland a desirable shopping destination again.

Swiss consumers’ search for value benefits mid-priced handbags

As local consumers are generally brand-conscious, their search for value benefits mid-priced players, such as luggage brands March and Heys. Meanwhile, affordable luxury handbag brands like LONGCHAMP and Furla maintained or grew their retail value shares in 2017.

Sports brands benefit from the growing popularity of functional and versatile products

As Swiss consumers look for functional, yet stylish and versatile products, such as backpacks, adidas and Nike are increasingly popular brands in bags and luggage. Their well-established brand names, constant product innovation and advertising campaigns make them top-of-mind brands at the time of purchase.

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