Market research: The market of bag in China

The market of bag in China

market of bag in ChinaOverview of the market, female needs for bags are higher than male. Femalelooks for brands and styles to demonstrate their tastes. The way of sales are including wholesale market, shopping center, exclusive store, boutique and online-store. Premium brands are located in department such as Samsonite and Santa Barbara. Luxury brands like Louis Vuitton and Chanel have its own boutique store. Wholesale market is for low-end products. For the past few years, online shopping growth fast, it becomes the most popular main channel, Amazon, Ebay and Taobao are present for the famous E-commerce company.

2.Bag market analysis


Brands studies can de divided into three part, luxury brands, normal brands, and non-brands.  From China IRN, it shows that in 2013, bags are the 3rd popular products in the luxury market, with annual increase12%, sales revenue at 42.4 billion. Top three brands named as Hermes, Chanel and Louis Vuitton. (China Luxury Institute). Normal brands such as Chinese local brand have 65% market share. These new brands with unique style, high quality and affordable prices attract lots of young people.  Use brand “Dissona” as an example, it’s a Chinese local brand, one shop with monthly sales at 300 thousands, have 25% market share among middle to high rated bags.  Non-branded bags have a long history in China. Because of the economic increase and mind changes, people are more pursue branded ones. In additional, low price brand bags are filled within market, people have more choice. As a result non- branded market share lower from 70% to 30%. (Chinese luxury market research)


One stylist said that “Female has more than 100 bags are reasonably”. It clearly demonstrate that bags ‘important to female. Customers can be classifying into four groups, eager ones, fashion icon, new rich and core group. Eager ones are both female and male who aged at 18 to 30 with annual income around from 100,000 to 300,000. They spend least of their income to buy compare to other groups. This group size is largest nearly 50%. Next is fashion icon. Almost of them are female aged at 20-35 with annual income 150,000 to 500,000. Icons want to catch up the fashion so they may spend more of their income to invest in bags.  These kinds of people are around 5% with an upgrade numbers. The third is new rich with the age from 30-50. They come from private owners or wealth person, with income over 500,000. New rich are chasing logo, they pay more for bags than those icons. New rich group size is 30%. Last is core group with age 30-60. Their income is over 800,000, they comes from government officials, famous celebrities and entrepreneur. They enjoy high quality and luxury lifestyle so they consume most. This group is accounted for 15%. (Bain & Company 2013)

2.3Way of sale

Fast-paced life changes our shopping habit. We switch from in-store shopping to online shopping. According to all E-commerce sales, top 10 ranking list comes out. Louis Vuitton is first following by Septwolves, Goldlion, Ferlybird, Polo, Playboy, Satchi, Montagut, Hugo Boss, and Gucci. Traditional shopping is that people walking around to look for their products, they compare quality and price in different store, after that they can make the decision. It wastes time and energy. In contrast, on-line shopping can shop the goods around worlds, compare the goods just by clicking the mouse. It seems easy and comfortable, more over it’s door to door shipment. In 2012, clothing and bags are top1 sold online with the percentage 38.7%. (I research). Female spends 12.4% more than male on clothing and bags. Researches show that there are 28.9% of Chinese online shopping over 40 times, only 3.4% of people shop online less than 3 times. There is a online shopping festival called “double 11” from Taobao. At that time, nearly everything give discount.  11.11.2013, the total trading is 35 billion. The following charts show the amount of sold.  Septwolves is top 1 with amount 12 million, following by Elle at 14million.

bag market China

3.SWOT analysis

3.1What are the strengths

Consumption concepts change, bags are no more just bags, and they are accessories, stands for taste and lifestyle. Different apparel should match different bag, so everybody are not satisfy with less bags. Economy growth makes crowds increase income. The more income the more they will consume.

3.2What are the weaknesses

New polices upcoming will affect the taxes and other costs. Then the total manufacture cost will apply, profit will be influenced.

3.3What are the opportunities

E-commerce gradually improved, more people turn to online shopping. Online shop for seller is the way to reduce the cost as well.

3.4What are the threatens

New brands coming to market include local and overseas. It’s a competitive market, how company can keep the market share is an issue.

4.Porter’s five forces

Porter’s five forces also can apply for this market. Industry competitors indicate the intensity of rivalry among the bag industry. Competitors are from local and overseas, and their market position is different. Next are new entrants. Newer can be a brand, store or just personal hand-made bags. Third is supplier that includes leather suppliers, hardware suppliers, water, electricity and etc. The following comes with customers. Customer’s interests can be change anywhere anytime. Bag Company should trace the fashion and people tastes. Last one is substitute. Bags are easily substitute.  As a result company maybe more focus on the quality, serveries and pattern.


Non-countable bags are sold in the market. Luxury bags and normal brands even non-brands bags are fulfill in markets. Although function of the bags is almost the same, people seek what they love even it is with higher price. Online shopping is a trend, customers have more chance to compare to choose. For company, the way to gain more market share is to find the right position and the target populations.  In-store sell is not the only way, E-commerce will give company opportunity to gain more shares as well as save costs.


China luxury institute,



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