Analysis of the Development Trend of China's Luggage Industry

In today's 21st century, consumer demand for luggage is no longer the hunger-driven consumption of the early days of liberation, but rather a pursuit of diversification, personalization, and service. This requires companies to design, manufacture, and meet consumer needs quickly. In today's 21st century, consumer demand for luggage is no longer the hunger-driven consumption of the early days of liberation, but rather a pursuit of diversification, personalization, and service. This requires companies to design, manufacture, and meet consumer needs quickly. The following is an analysis of the development trends of China's luggage industry in 2016 compiled by Yubo Zhiye's editor. In 2017, competition in China's luggage industry became increasingly fierce. International brands have entered China, and their highly competitive product advantages and mature management models have enabled them to gain a foothold in the Chinese market and put tremendous pressure on traditional domestic manufacturers. Currently, at the top of the domestic luggage market pyramid are international top brands such as LV, with high prices and profits, and their market share is continuously expanding. Domestic brands are more concentrated at the shallow level of price and channels, their market share is large but their profits are low, and they can only win by volume. The mid-range segment consists of a few mid-to-high-end brands, but these brands lack personality and appeal, and are unable to resonate deeply with consumers' emotions; product homogeneity is severe, and everyone seems to be competing on the same narrow path. Development trends of China's luggage industry in 2016: 1. Differentiated competition will gradually become a trend. Currently, in the Chinese luggage market, although some luggage companies have begun to take the path of differentiated development, more are still following the path of homogenization. Their development strategy is to imitate others' practices, including imitating others' styles, styles, and even channels. During the period of rapid development of China's luggage industry, this imitation and even plagiarism strategy has indeed allowed them to survive, and some have done very well. However, this has resulted in a situation where the market is plagued by excessive homogeneous products. Looking at the market, all luggage, regardless of color, style, or design, are almost identical. What are the consequences of this? For consumers, they cannot distinguish between good and bad quality. When the product categories, appearance, colors, etc., of luggage produced by various manufacturers are almost the same, they can only make purchasing decisions based on price, buying the cheapest one. From the manufacturer's perspective, everyone is competing at a low level, competing with each other on price, etc. This has resulted in increasingly lower profit margins for the luggage industry. Under normal circumstances, low-priced products mean that the manufacturer's input is also less, resulting in lower and lower product quality, forming a vicious cycle. This is not only detrimental to consumers but also to the sustainable development of the entire luggage industry. With the continuous increase in the cost of raw materials, labor costs, etc., this primary form of competition based mainly on price will become unsustainable. The key to solving this problem is to take the path of differentiation. In fact, not all consumers only want to buy cheap but low-quality luggage. A large number of consumers hope to spend more money to buy high-quality, beautiful, and branded luggage. This provides the possibility for luggage companies to change their wholesale model and take a differentiated approach. For the luggage industry, the core of differentiation is the design style of luggage. In terms of product design, it is necessary to find the right positioning and form a unique style. Once the style positioning is established, it should be maintained for a long time. Of course, differentiation will also be reflected in other aspects, such as channels. Currently, the main channel for luggage is the wholesale large distribution channel. In addition, agency channels, exclusive sales channels, shopping malls, etc., are all worth considering. Through a differentiated channel model, one can also take their own differentiated business path. 2. E-commerce is an inevitable trend. E-commerce has low transaction costs and high efficiency. Buyers and sellers conduct business activities through the network without the participation of intermediaries, reducing the relevant stages of transactions. Sellers can use the Internet to introduce and promote products, avoiding the large amount of expenses in traditional methods such as advertising and printing. Buyers and sellers communicate supply and demand information in real time, making it possible for zero-inventory production and zero-inventory sales, thus reducing inventory costs to zero. Traditional trade platforms are physical stores, and e-commerce platforms greatly reduce the rent of stores. The Internet can gather people's power, easily combining the small demands of various parties to place orders with manufacturers, allowing the resident manufacturers to achieve rapid sales growth and precise production. Nowadays, most businesses in the luggage industry have entered e-commerce, and platforms such as Alibaba and World Window Leather Goods have brought them benefits. Whether it's wholesalers or retailers, entering e-commerce early will be a wise choice. 3. Large supermarkets are favored. Not everyone likes to trade online, and traditional markets will still have a certain share, but urgent reform is needed. As store rents and transfer fees, as well as operating costs, become increasingly high, and prime stores become increasingly scarce and difficult to find, some communities with a stronger business atmosphere have gradually entered the sights of retailers, similar to the KFC model of opening large-scale luggage stores, then using the advantages of rent and transfer fees to integrate locally marketable goods, and then using the advantageous conditions such as the cyclical nature of accounts payable for goods and improved service and management to win the market. Regardless of the chosen business model, fine management is necessary. Whether a store can give consumers a good feeling depends on the overall quality of the store, which is built up by countless details. Therefore, perfect detailed, systematic, process-oriented, and information-oriented fine management is particularly important. Competition and challenges in the luggage industry are becoming increasingly fierce, but there is also considerable market space, with opportunities and challenges coexisting. The 2017-2021 China Luggage Industry Market Demand and Investment Consulting Report analysis shows that regardless of the business model chosen by luggage companies, fine management is necessary. Whether a store can give consumers a good feeling depends on the overall quality of the store, which is built up by countless details. Therefore, perfect detailed, systematic, process-oriented, and information-oriented fine management is particularly important. Competition and challenges in the luggage industry are becoming increasingly fierce, but there is also considerable market space, with opportunities and challenges coexisting. The spring of China's luggage industry is not far off.