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    The document discusses the luggage and leather goods market in Germany, which was valued at €2 billion in 2008. Consumption grew on average 2.9% annually since 2004, while imports from developing countries accounted for over 59% of the market by value. Luggage represented 30% of the total market, while handbags made up 25%. The market declined in 2009 due to the global economic downturn but has opportunities for suppliers of higher quality products targeting fashion-oriented consumers.

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    Luggage

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    147 views2 pages
    The document discusses the luggage and leather goods market in Germany, which was valued at €2 billion in 2008. Consumption grew on average 2.9% annually since 2004, while imports from developing countries accounted for over 59% of the market by value. Luggage represented 30% of the total market, while handbags made up 25%. The market declined in 2009 due to the global economic downturn but has opportunities for suppliers of higher quality products targeting fashion-oriented consumers.

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    The document discusses the luggage and leather goods market in Germany, which was valued at €2 billion in 2008. Consumption grew on average 2.9% annually since 2004, while imports from developing countries accounted for over 59% of the market by value. Luggage represented 30% of the total market, while handbags made up 25%. The market declined in 2009 due to the global economic downturn but has opportunities for suppliers of higher quality products targeting fashion-oriented consumers.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    147 views2 pages

    Luggage

    Uploaded by

    faraianda
    The document discusses the luggage and leather goods market in Germany, which was valued at €2 billion in 2008. Consumption grew on average 2.9% annually since 2004, while imports from developing countries accounted for over 59% of the market by value. Luggage represented 30% of the total market, while handbags made up 25%. The market declined in 2009 due to the global economic downturn but has opportunities for suppliers of higher quality products targeting fashion-oriented consumers.

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    of 2

    CBI MARKET SURVEY: THE LUGGAGE AND LEATHER GOODS MARKET

    IN GERMANY

    CBI MARKET SURVEY

    THE LUGGAGE AND LEATHER GOODS MARKET


    IN GERMANY
    Publication date: March 2010

    Report summary
    This CBI market survey discusses the following highlights for the luggage and leather goods
    market in Germany, which includes suitcases, briefcases (including computer cases),
    handbags, travel bags and other bags and small leather goods (including belts, wallets, purses,
    key pouches):
    • German consumption of luggage and leather goods was € 2 billion in 2008, up 2.9% per
    annum on average since 2004, while production value increased by an annual average of
    1.3% to € 182 million, and volume increased to 12.6 thousand tonnes.
    • In 2008, Germany imported luggage and leather goods valued at € 1.3 billion, or 133
    thousand tonnes. Since 2004 values were up by 7.3% but volumes were down by an
    average annual rate of 0.9%.
    • More than 59% of imports by value (€ 753 million) came from developing countries (81%
    by volume or 108 thousand tonnes). The share of imports by developing countries was up
    from 58% in 2004 in value (€ 554 million), and from 77% (106 thousand tonnes) in volume
    terms. Germany has an above average share of developing country imports compared to
    other EU countries for this sector. It was also a major re-exporter to other EU countries.

    This survey provides exporters of luggage and leather goods with sector-specific market
    information related to gaining access to Germany. By focusing on a specific country, this
    survey provides additional information, complementary to the more general information and
    data provided in the CBI market survey ‘The luggage and leather goods market in the EU’,
    which covers the EU market in general. That survey also contains an overview and explanation
    of the selected products dealt with, some general remarks on the statistics used, as well as
    information on other available documents for this sector. It can be downloaded from
    http://www.cbi.eu/marketinfo

    1 Market description: consumption and production

    Consumption
    Total market size
    The German market for luggage and leather goods was valued at € 2 billion in 2008,
    registering an average annual increase of 2.9% since 2004, below the EU average of 3.4%
    over the same period. Germany was the largest EU market, ahead of France and Italy. On a
    per capita basis, it was behind Italy, France, Spain, Austria and Luxembourg. Germany
    accounted for 19% of all luggage and leather goods sales in the EU, marginally down on its
    position in 2004.

    Table 1.1 Consumption of luggage and leather goods in Germany,


    2004 - 2008, € million
    Average ann. Population Consumption
    2004 2005 2006 2007 2008
    % change (million) per capita €
    1,789 1,875 1,953 2,006 2,002 2.9 82.4 24.3
    Source: German Luggage and Leathergoods Association (2009)

    Growth in Germany was particularly strong up to 2007, but the market slowed in 2008,
    registering a marginal fall in value. There were a number of regional variations in performance
    and sales held up more strongly in some of the larger cities. The market declined in 2009 as
    the global economic downturn was also felt in Germany. According to German Statistics, sales

    Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer

    Page 1 of 18
    CBI MARKET SURVEY: THE LUGGAGE AND LEATHER GOODS MARKET
    IN GERMANY

    through leather goods retailers declined by almost 4% in the first half of the year, although
    industry sources suggest a better performance.

    Luggage represented the largest product group, valued at € 601 million or 30% of the total
    market, as highlighted in Figure 1.1. This share has decreased over the period. The next
    largest product group was handbags, valued at € 500 million or 25% of the market. School
    and other bags were valued at € 300 million or 15% of the market. The remaining shares were
    broadly similar. Small accessories such as wallets, purses, credit card holders, key fobs, cases
    and covers for MP3 players etc, belts and business cases were each valued at € 200 million or
    10% of the market.

    Figure 1.1 German luggage and leather goods consumption by product,


    % value 2008

    Handbags
    25.0%
    Sc hool and
    ot her bags
    15.0%

    Bus iness
    cases
    10.0% Luggage
    30.0%
    Smal l
    accessori es
    10.0% Belts
    10.0%

    Source: German Leather Goods Association (2009)

    Luggage
    The luggage sector is particularly strong in Germany. It commands a higher market share than
    handbags, unlike many other leading EU Member States. However, there were fewer domestic
    trips in 2008 compared to 2007, and business travel activity slowed down sharply in the
    second half of 2008. Nevertheless sales of luggage broadly held their value in 2008, partly due
    to price rises. There has been an increase in the availability of luggage and cases for women.
    Designs are more geared to female tastes and preferences, ie lightweight, more colour
    varieties. In addition, with regard to safety at airports, the appearance of bags and suitcases
    has changed to become more clear and compact.

    Other related product groups have also been stimulated due to the increase in short breaks,
    which has boosted sales of travel bags. Luxury travel is a growth sector in Germany,
    particularly for more affluent older consumers, further encouraging sales of expensive branded
    luggage sets.

    Leather goods
    Leather goods suppliers will further embrace the fashion segment as a way to develop and
    drive new sales. According to the magazine Textilwirtschaft, 43% of all fashion retailers want
    to expand their range of accessories. This is a very good indication of the importance of
    accessories. Accessories (bags, scarves and belts) are an extremely important part of the
    turnover in the fashion industry. More well-known fashion accessories carry their own brand
    name and offer higher margins than clothing. Hence, retailers are keen to stock a wide range
    of accessories to maximise their potential returns.

    Although some consumers continue to demand lower prices, there is a clear trend towards
    quality and sales of higher quality products. For many consumers, price is no longer the main
    determinant of purchase. 31% of women say that handbags and belts are the most important

    Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer

    Page 2 of 18

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