Sales of bags and luggage returned to positive growth in 2021, following the decline seen in 2020, when Coronavirus (COVID-19) first hit the region. Luggage was particularly badly hit by the closed borders and travel restrictions implemented to contain the spread of the virus, with sales not expected to return to pre-pandemic levels until 2025. Bags, on the other hand, saw a slower decline in 2020 and should be back to 2019 levels again as soon as 2022.
This report comes in PPT.
The arrival of the COVID-19 virus in Asia Pacific in 2020 resulted in a marked decline in bags and luggage sales in this year. Sales of bags were not as badly impacted by the pandemic as luggage, which lost a third of its retail value as the travel industry more or less ground to a halt. Luggage was the most dynamic area in bags and luggage in 2021, even though some cross-border travel restrictions were still in place, as domestic tourism helped revive this category.
Luxury handbags managed to continue recording positive growth in real value terms in 2020, in spite of the pandemic. However, this was mostly based on a very dynamic performance in China, with luxury handbag sales benefiting from the travel restrictions, given the Chinese were buying such products in their domestic market, rather than abroad, as they often purchase luxury goods when they are on their travels. Luxury handbags is also expected to remain one of the most dynamic categories over the forecast period.
Although store-based retailing continues to dominate sales of bags and luggage in Asia Pacific, the exceptional circumstances in 2020 helped e-commerce record strong share gains, which further growth seen in 2021. Over a fifth of retail value is now accounted for by online sales in some markets (India, South Korea), with the regional rate topping 16% in 2021.
Bags and luggage is expected to see positive annual growth rates throughout the 2021-2026 period, although its performance in 2021 and 2022 was still being influenced by lingering restrictions across the region given localised spikes in COVID-19 case numbers. While bags is currently expected to return to pre-pandemic sales levels in 2022, this is not expected before 2025 for luggage.
Personal Accessories refers to a diversified group of personal products including Bags & Luggage, Jewellery, Watches and Writing instruments.
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