Carry on: Despite declining profit, trends favouring carry-on luggage have benefited retailers

The Luggage Stores industry has performed well over the past five years. Retail demand for luggage has benefited from increasing competition in the domestic and international airline market, which has placed downward pressure on airfare prices and encouraged more consumers to travel. Despite discretionary income weakly declining, demand for luggage also benefited from business confidence trending upwards overall, which has boded well for domestic business travel. Despite increasing demand for luggage, intensifying industry competition has placed downward pressure on product prices and constrained industry revenue growth. Nonetheless, industry revenue is expected to rise at an annualised 3.8% over the five years through 2018-19, to reach $319.6 million. Revenue is expected to grow by more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies

Industry Threats & Opportunities

  • Increasing international and domestic travel by Australians has supported revenue growth
  • Lower airfares have encouraged domestic travel and luggage purchases over the past five years
  • The number of Australians travelling overseas is forecast to increase over the next five years
  • Industry Report - Industry Investment Chapter

    The industry exhibits low capital intensity. For every dollar spent on capital, $13.27 is spent on wages. The industry is labour-intensive as employees are required for day-to-day tasks, such as providing customer service, stocking shelves, displaying merchandise, processing transactions and managing inventory. As the industry's products are not regularly purchased items, consumers will often require assistance and specific advice from staff. Suitcases are typically high-value goods that are perceived as an important investment to consumers. Consequently, luggage stores generally emphasise customer service more than other retail industries...purchase to read more.

    Additional Insights for the Luggage Stores Industry

    IBISWorld has determined the most important Key Success Factors for the Luggage Stores are:

  • Attractive product presentation
  • Production of goods currently favoured by the market
  • Having a clear market position
  • IBISWorld analysts also discuss how external factors such as Domestic tourist visitor nights and International travel by Australians in the Luggage Stores industry impact industry performance..

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    What's in this report

    What is the Luggage Stores Industry?

    Operators in the industry primarily retail a range of luggage including suitcases, carry-on luggage, duffel bags, backpacks and accessories. Retailers sell these products in their stores or online websites. The industry excludes the retail sale of leather clothing and footwear. The industry excludes luggage sales made by department stores and online-only retailers.

    Industry Products
  • Suitcases
  • Duffel bags and backpacks
  • Other travel goods and accessories
  • Carry-on luggage
  • Industry Activities
  • Duffel and backpack retailing
  • Suitcase retailing
  • Carry-on luggage retailing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Domestic tourist visitor nights
  • International travel by Australians
  • Real household discretionary income
  • Business confidence index

  • Current Performance
  • Travel by Australians
  • The influence

    of airlines

  • Rising competition
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Travel by Australians
  • Rising competition
  • Product innovation
  • Table: Luggage Stores Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Luggage Stores Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Professional, Scientific and Technical Services
  • Consumers

  • Key Selling Industries
  • Leather and Leather Substitute Product Manufacturing
  • Retail Property Operators
  • Telecommunications Services

  • Products & Services
  • Carry-on luggage
  • Suitcases
  • Duffel bags and backpacks
  • Other travel goods and accessories
  • Chart: Luggage Stores Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • People aged 35 to 54
  • People aged 15 to 34
  • People aged 55 and over
  • Chart: Major Market Segmentation for the Luggage Stores Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Luggage Stores

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Luggage Stores Industry

  • Industry Globalization
    Strandbags Group Pty Limited,
  • Table: Strandbags Group Pty Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Luggage Stores Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Luggage Stores Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • Loosely shaped luggage that allows the person to wear it on their back.
  • Carry-On Luggage
  • Luggage that can be taken onboard with a passenger as opposed to being deposited in the cargo hold.
  • Duffel Bag
  • A large cylinder shaped bag that is often used to store large amounts of belongings.
  • Suitcase
  • A flat, rectangular shaped piece of luggage that is made to store large amounts of belongings.
  • What Our Customers Say

    Why buy this report?

    The Luggage Stores market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Luggage Stores:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Luggage Stores market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Luggage Stores, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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