Posted On: 2021-05-26
Travel luggage acquired the largest revenue share in the luggage market in Bangladesh – 6Wresearch
The Bangladesh luggage market witnessed considerable growth in recent years on account of the growing consumer demand for travel luggage bags and casual bags from the population of Bangladesh underpinned by strong growth in tourism in the country and the rising education sector. The demand for luggage bags is on an upward growth trajectory mainly attributed to urban consumers who are more inclined towards travelling and education-related activities. However, the spread of covid-19 resulted in a complete termination of long-distance travel, school, colleges and offices. Stringent lockdown imposed in the country to curb the spread of coronavirus resulted in the closing of speciality stores and malls, which lowered the sales of luggage bags during the year 2020 and thus, the market revenues witnessed a decline during this year. Also, the demand from school and college students was in a major slump owing to restrictions on travel and the closing of educational institutions. However, the Bangladesh luggage market is expected to reach 2019 peaks in 2022 with a slight recovery in 2021 with the reopening of schools, colleges and the revocation of travel restrictions
According to 6Wresearch, the Bangladesh Luggage Market is projected to grow at a CAGR of 8.4% during 2021-27F. The increasing number of rail and air passengers and the rising disposable income in Bangladesh are the major factors contributing to the growth of the luggage market. The projected growth in the Bangladesh luggage market for the coming years can also be attributed to the government’s planned expenditure of 37 billion USD by 2024 for the education sector and the steps being taken by the Ministry of Primary and Mass Education to increase the number of teachers in the country. With the rising innovation by the manufacturers in the luggage bags industry, the adoption of newer and technology headed luggage bags is anticipated to rise in the forthcoming period.
By distribution channel, supermarket/hypermarkets that are dealing in multiple brands garnered the majority of the market share as the consumers have the option of comparing the different brands available at the store physically and choose the right luggage bag for their requirement and comfort. However, the growing popularity of e-commerce websites among millennials is likely to drive significant growth in the online distribution channel segment over the coming years.
According to Alpana Tyagi, Senior Research Analyst, 6Wresearch,” Travel luggage bags held the majority share in the Bangladesh Luggage market in 2020 owing to an increased number of rail and air passengers moving to their native place or from rural to urban cities. Furthermore, the rise in the travel related to leisure activities has given a push to the demand for travel bags in the country.
In the coming years, casual bags would see a higher growth on account of the increasing number of educational institutes and enrolments along with the proposed plan of government’s expenditure of 37 billion US$ in the education sector by 2024 which would boost the education sector in the country resulting in increased access to education for everyone. Moreover, the higher proportion of younger population in the country would also boost the sales of casual bags in the coming years.”, Alpana further added
According to Rahul Dubey, Research Associate, 6Wresearch, “Supermarkets/Hypermarkets were a major contributor to the Bangladesh luggage market revenues in 2020 owing to the presence of a variety of luggage brands at one place in a supermarket/hypermarket and the inclination of the country’s population towards offline stores where they can see and check the luggage bags physically.
Online platforms would gain higher growth in the forecast period on account of the large younger population and the rising number of e-commerce platforms in the country including Daraz. Bangladesh has witnessed a 19% increase in internet population since 2020 indicating a rise in technology-driven consumers which would result in the growth of online distribution channel.”, Rahul concluded
According to Ashish Karki, Research Associate, 6Wresearch, “The concentration of major population in the central region, accounting for about 35% of the total population, resulted in its major contribution to the luggage market revenues of Bangladesh. Moreover, there is a large population constantly moving in and out of Dhaka which led to higher sales in the region.
Central Bangladesh is expected to retain its dominance in the luggage market of Bangladesh over the coming years as a result of rapid urbanization and rising tourism sector along with the constantly increasing population of central region of Bangladesh.”, Ashish further added
“Bangladesh Luggage Market (2021-2027F)” report provides an in-depth analysis with 18 figures and 6 tables, covered in 100 pages. The report estimates and forecasts the Bangladesh Luggage Market by Types, Distribution Channel and Regions. The report provides an unbiased and detailed analysis of the ongoing trends, opportunities/high growth areas and market drivers which would help the stakeholders to devise and align their market strategies according to the current and future market dynamics.