Retail sales in China account for nearly 30 per cent of the market
As global living and consumption standards continue to rise and the growing popularity of outdoor activities, all kinds of backpacks have become indispensable accessories around people.Driven by market demand, global retail sales of backpacking industry market is on the rise.According to CIC data, the global backpack market retail sales grew at a compound annual rate of 8.1% from 2013 to 2018, and by 2018 the global backpack market retail sales had exceeded us $26 billion.
In terms of sub-region, the Asia-Pacific region dominated by China and Japan is the world’s largest backpack market.Let’s start with China. China is not only the world’s largest luggage producer and exporter, but also the world’s largest luggage market with a share of over 70% in the global luggage manufacturing industry.
Data shows that in 2018, the retail sales of China’s backpack industry reached $6.9 billion, up 9.5 percent year on year, accounting for 26.14 percent of global backpack retail sales.The strong development of China’s backpack market benefits from the rapid improvement of residents’ income level and the increase in product prices brought about by the upgrading of consumption.
Japanese backpack market is characterized by high market demand for luxury brands, but strict requirements on product quality and strict channel control. Foreign brands face high channel construction and network costs after entering the Japanese market, which hinders the continued growth of their market scale.From 2013 to 2018, Japan’s backpack market retail sales maintained a range of $1.2 billion to $1.4 billion.
In addition to China and Japan, the market size of other Asia-Pacific regions is also gradually expanding. Retail sales have increased from $2.6 billion in 2013 to $5 billion in 2018, and the proportion of global backpack retail sales has correspondingly increased from 14.53% to 18.94% in 2018.
Compared with the Asia-Pacific region, the North American and European markets have been the main customer markets for middle and high-end backpack products.The Backpack market in North America is characterized by a wide variety of products, wide selection of consumers, and sufficient market competition. However, consumers are tired of the old and the replacement of goods is fast, so the market retail sales can continue to grow.In 2018, the North American backpack market saw retail sales of about $3.5 billion, up 2.9 percent from a year earlier.
Backpack market in EU countries is characterized by high requirements for environmental protection, complex product quality certification procedures, and slow retail sales growth.From 2013 to 2018, the retail sales of backpacks in EU countries grew at a compound annual rate of 3.0%, with the 2018 retail sales of about $6.2 billion.
The trend of consumer branding is more obvious
First of all, the added value of bags with special functions, such as leisure holiday bags and professional outdoor sports bags, is much higher than ordinary bags, which will become a hot market for bags and luggage series in the future.Therefore, it is foreseeable that specialized market segments are expected to continue the momentum of rapid growth.
Secondly, the traditional practical functions of carrying and storing things of knapsack are gradually weakened, while the decorative functions are constantly strengthened. As a fashionable and personalized commodity, knapsack has more significance in expressing and making known consumers’ personalized attitude towards life.
Thirdly, backpack market brands will further show the trend of two-level differentiation. Some enterprises with brand advantages will continuously enhance the commercial value of their brands through celebrity endorsement, advertising and media public relations, etc., while the living environment of enterprises with backward technology brands will be worse and the brand differentiation phenomenon will be more obvious.
Finally, Chinese backpacking enterprises will participate more in the international market competition.Since the reform and opening up, backpack manufacturing enterprises in China have made great progress, but most of them still sell by OEM, and few of them can participate in global market competition with their own brands.However, in the future, with the expansion of specialized production scale of some domestic backpack manufacturers, the continuous improvement of design and research strength, and the enhancement of global marketing capability, there will be a group of backpack companies that can stand out in the global market competition.
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Kailian quality Packaging (Dongguan) Co. LTD
Post time: Sep-18-2020