• China's Bag Industry Enjoys Bright Prospect

China's Bag Industry Enjoys Bright Prospect

China's bag industry is seen as a promising one both at home and abroad market and enjoys bright prospect. China's bag industry has developed rapidly both in domestic and foreign markets, becoming a big bag producer and exporter, but it is extremely disproportionate when it comes to its powerful status and lack of brand.

On March 14, in the 25th China Beijing international exhibition gifts exhibition, which is held in Beijing China international exhibition center, it is also found that there are quite many bags brand in exhibition. They show-up more or less tells about the development situation of bag industry, such as brand awareness.

Many people may think, big brands require high threshold. In fact, there are a lot of misunderstandings about famous brand, and one of the most important is the problem of middlemen profits. They may think brand products are with high discount and high price, which leave little profit for middlemen. First, the customers have their own taste on the big brands, and branding is often a lot easier, especially big international brand. Second, middlemen's profits come from sales, and when sales are increasing, the profit is also very considerable. Third, the profit is a comprehensive concept, such as payment days, inventory, etc., all of which would affect the capital turnover and raise the cost, while big brand won't have these problems. Fourth, as the bags market is becoming more and more mature and the consumers' brand awareness is improving, it is hard to satisfy customers without the brand. The only consequence will be getting trapped in a small market.

Domestically, 14 billion Yuan market of outdoor travel backpack is taken by international top brands such as Louis Vuitton and some foreign authorized mid-range brands, while domestic brands have less than 10% market share. Data show that Europe, the United States and other developed countries and regions have imported bags from our country, accounting for 70% of such products, and a rising trend has shown in recent years. But because the product does not have its own brand in China and with low added value, the unit price of export bags is much lower than the imported ones; most enterprises just earn the cheap processing fee from export bags. Thus, brand bags market is blank in our country, and it is ill-matched with the title of big bags producer and exporter. We are desperately in need of our own brand bag which can impress the world based on the international market.

On the other hand, consumer market and terminal customers has been very focused on brand which is a prerequisite. The key for successful business benefit is to grasp the general trend. So, for bags industry, only by building its own brand, can it win the international market.

China's Bag Industry Enjoys Bright Prospect

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