TRENDS

Owing to economic slowdown in China in 2012, value growth in bags and luggage slowed down compared with the previous year. Bags and luggage is relatively mature and so lower growth was natural. Also, consumers are less willing to buy non-essential items when economic conditions are unfavourable, and when prices of food and daily necessities are high. The development of C2C internet retailing also negatively impacted sales of low-end bags and luggage sales in China as many young consumers bought fake brands or non-branded products through C2C internet retailing operations such as Taobao.