Bags / Shoes & Accessories

With the rise of Internet marketing, people's consumption habits and lifestyles have undergone great changes, especially due to the impact of the 2020 epidemic. Live streaming, content marketing, new retail, etc. have become common sales models. What follows is people's higher standards of life quality, product quality and other aspects. With brand-new changes and upgrades, and reshaping of brand value, my country's luggage industry has ushered in a new development opportunity in the post-epidemic era.

The market is polarized, and Chinese luggage brands break through

For a long time, the business model of the domestic luggage industry is mostly based on professional manufacturers (ODM) and processing manufacturers (OEM), and the industrial chain is concentrated on upstream accessories and midstream OEMs. Processing manufacturers are generally small in scale and large in number, and the added value of their products is low. The homogeneity competition is very fierce. Professional manufacturers are large in scale and have certain R&D and design capabilities, and most of them also operate their own brands at the same time. Luggage brand operators are mainly from abroad, mastering the R&D, design and sales links with the highest product profit margins.

The distribution of the domestic luggage industry chain is reflected in the severe polarization in the market. First, the pattern of domestic luggage is generally low-end, weak brand, low markup rate, and the unit price is generally below 500 yuan. The second is that overseas brands occupy high-end product lines, with unit prices ranging from thousands to tens of thousands of yuan, with high price increase rates. The discontinuation of the brand has become a good opportunity for the development of domestic high-cost luggage brands such as Aihuashi and 90 points. The sales of suitcases priced at 300-1000 yuan are hot. Before them, it was difficult to find a high-value, cost-effective, and high-quality luggage product in China. The current downstream consumer market is relatively fragmented. Consumers in third- and fourth-tier cities are still in the process of consumption upgrading, while consumers in first- and second-tier cities have gradually become more rational, focusing on cost-effective products and personalized products. Changing the business model and innovating product thinking are the key to success for the domestic luggage industry to further deepen the brand and expand the market.

Consumer demand trend reverses to promote product line upgrades

In 2020, under the influence of the epidemic, people's lifestyles have changed drastically. Under this major premise, people's consumption habits have also undergone tremendous changes. According to the report on the Top 10 Global Consumer Trends in 2020 released by the global market research company Euromonitor, there are two major themes in the major global consumer trends in 2020: convenience and personalization. Personal customization, compatibility with diversity, love for the local, globalization, etc. are all reasons why people tend to choose in consumption. These consumer trends also have a profound impact and significance on the luggage industry.

Online sales continue to rise, channel blessings to change

Another change of consumption habits to the luggage industry is reflected in sales channels. The total online retail sales continued to rise. Data show that from 2014 to 2019, the national online retail sales increased nearly three times as a whole. Due to the impact of the epidemic, online retail will perform well in 2020, with a cumulative proportion of 23.6% in the first quarter of 2020, a year-on-year increase of 5.4%.

Among them, live streaming has been particularly prominent in the past year. Its authenticity, real-time interactivity, and a sense of safe distance across the screen have met the strong consumer needs of people who are inconvenient to travel during the epidemic, allowing live streaming to bring goods to The dark horse posture has become a traffic portal that major brands have seized one after another. Under the huge traffic vent, methods such as holding hands with popular anchors, bosses to live live, and creating branded live broadcast rooms are competing to appear, and the luggage industry has also tried live broadcasts one after another. Among them, Aihuashi, Bulaimei and other luggage brands have performed outstandingly. They have established good cooperative relationships with the top anchors of the Taoist line such as Wei Ya, Li Jiaqi, Lie Erbao, and Sydney, achieving a double harvest of word-of-mouth and sales. In addition, Aihuashi has also set up brand live broadcast rooms of Taoxi, Douyin and other channels to deepen interaction with users and have been widely recognized by fans. It is this keen market awareness and resilience to change in time and adapt to changes. It is this kind of keen market perception and resilience that makes Aihuashi luggage a travel companion of choice for over 50 million people.

Consumer groups are younger, and cross-industry innovation helps brands break the circle and grow

In recent years, the product innovation and marketing innovation initiated by the cross-industry joint name in the luggage industry have given the luggage brand new vigor and vitality. 90 points successively cooperated with the IP of film and television dramas such as The Wandering Earth and Tomb Notes to create situational luggage products, showing the style of the country's tide with local characteristics; Bulaimei partnered with Disney IP to meet the needs of young users for personalized products; Aihua The cooperation between Shi Luggage and Coca-Cola and Snoopy is also a successful attempt at IP crossover, injecting classic trend genes into the brand. There is no doubt that cross-border co-branding has become a surprisingly winning trump card. The combination of classic IP and brand is even more eye-catching. The collision of different cultural circles has not only broken the dilemma of product homogeneity, but also allowed brands and young consumers. The emotional link of the group is more stable.

With the huge market size, the future of China's luggage market can be expected

With the steady growth of per capita disposable income, it provides the basic driving force for the growth of luggage consumption; and branding and scale have become the general trend, China's luggage brand power is gradually strengthened, and the price increase rate is steadily increasing. Therefore, the next ten years will still be the golden opportunity for the development of China's luggage industry.

In the face of the consumer market suppressed by the epidemic, luggage brands are just taking advantage of the time to accumulate their strength. In the short term, with the help of China's economic recovery, domestic and foreign sales will be strengthened at the same time to consolidate the sales strategy of "internal and external"; in the long run, we will do our own thing. Homework, combining bag design and manufacturing with international trends, producing high-quality and unique products, shaping distinctive brand characteristics, and developing more products that are popular in the market. Only by adapting to changes can we keep up with the pace of development of the times; innovation is the root of the brand's invincibility.