Bags and Luggage in Thailand

PROSPECTS

Increased travel boosts growth despite lag in Chinese tourism

Value growth of bags and luggage was strong again in 2018, as demand for travel brands increased in Thailand. As a favourite destination for tourists, Thailand continues to welcome increasing numbers of inbound tourists, and volume sales growth remained stable in 2019 in spite of a slowdown in Chinese tourist arrivals over the year.

Small bags are all the rage, encouraging strong promotion and new launches

Downsizing has become a global trend in a variety of ways, and in line with this trend, consumers are being attracted by smaller bags of all kinds. In 2019, small bags also benefited from brands and retailers upgrading and promoting their collections of mini cross-body bags, belt bags, wrist-dangling bags and long wallets.

Internet retailing growth dynamic but in-store sales prevail

While customers still enjoy choosing, trying and buying their bags and luggage from brands’ official stores and other specialist retailers, the online shopping trend continues to build in Thailand, with value sales through that channel increasing by double digits again in 2019. major Thai manufacturer and retailer Jaspal contributed to this boom by using its online store to feature a large selection of its small size bags.

COMPETITIVE LANDSCAPE

Kering gains on LVMH with boost from Gucci, but both luxury brands thrive

In 2018, LVMH Moet Hennessy Louis Vuitton lost its leading value share to Kering, its closed competitor amongst luxury brands, after Kering’s Gucci brand saw a sales surge, partly thanks to successfully capitalising on the mini bag trend with a popular new collection. However, both companies have a number of successful luxury brands, and LVMH’s singular Luis Vuitton brand still maintained its leading position over Kering’s top three brands in 2018.

Samsonite maintains focus on building hard cases, appealing to younger travellers

In 2018, Samsonite maintained its strong leadership in luggage and continued to benefit from increased incoming and outbound tourism abetted by affordable airfares and accommodation. Samsonite’s new collections focused on hard cases, which use new composite technology to reduce weight while maintaining the luggage’s strength.

Jaspel’s focused promotion for Lyn generates strong value growth

In 2018, Jaspel’s Lyn brand, a quality brand offering quirky and colourful bags, shoes, sunglasses and other personal accessories, benefitted from Jaspal’s year-end sale promotions from November to December in 2018 after gaining strong value sales growth in bags. Lyn brought more customers to Jaspal’s many stores in Thailand, which not only sold discounted products but also took the opportunity to introduce new collections.

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