The global luggage market is a direct beneficiary of growing urbanization and globalization. Tourism is on the rise in various guises and the technological background of luggage has never been as sophisticated as in present times. It wasn’t that long ago that the same bag used to double as a travel suitcase, a laptop bag, and a shopping bag. Now, though, it is common to see each of these purposes have separate baggage items allocated to them. This growing sophistication of luggage usage is driving the global luggage market massively.
Travel Bags Segment to Exhibit Highest Growth
The global luggage market is divided by product type into business bags, casual bags, and travel bags. Of these, travel bags are the leading category. The diverse customization possible in travel bags is responsible for this hierarchy, since various kinds of travelers demand various kinds of travel bags.
Growing diversification in the purpose of travel and increasing interest in casual tourism are aiding that cause. While tourism was earlier viewed as a luxury, it is now increasingly becoming a need for many, due to the globalization of most if not all businesses. Business travel is among the growing categories of travel, as is medical tourism. Casual travelers are also increasing in number, with millennials all over the world becoming more interested than ever in traveling.
Medical tourism is a rapidly growing industry in emerging economies in Asia Pacific. India and Thailand are at the forefront of the medical tourism industry in Asia Pacific. Consequently, the global luggage market has the highest scope in these countries, in addition to China and Japan. However, the prime constraint restraining the global luggage market comes to the fore in these promising regions.
Established Unorganized Markets Hamper Global Luggage Market
The emerging economies in Asia Pacific are also known for their unorganized luggage markets. Made up by local distributors and manufacturers, these unorganized markets make available largely the same luggage items as the ones presented by organized brands, but at a lower cost. In these price-sensitive areas, this leads to a clear dominance of the unorganized local luggage market over the organized global luggage market. This remains the major hurdle for global luggage manufacturers to overcome in order to gain a significant share in the Asia Pacific market.
This roadblock could be overcome thanks to the increasing prominence of online retailing. Many global luggage manufacturers now have a strong online presence. This ties in with the widening presence of high-speed broadband in Asia Pacific. The number of online customers in Asia Pacific, particularly in dynamic economies such as India, China, Japan, South Korea, Malaysia, Indonesia, etc., is continuously growing. The price discounts that can be made available in e-commerce and the convenience of shopping online could lure new customers to the organized global luggage market instead of relying on unorganized markets.