In recent years, while the luggage and bag market has maintained steady overall growth, it is undergoing profound changes marked by intensified involution, industrial reshuffling, and structural transformation. Demand remains consistently strong, yet the traditional business model has become increasingly unsustainable.

Looking at the overall market scale, China’s luggage and bag industry has expanded year after year, now approaching the 380 billion yuan mark with a stable annual growth rate. It is projected to exceed 500 billion yuan in the next few years. The recovery of travel and tourism has driven a sharp surge in demand for suitcases and storage bags. Meanwhile, daily commuting and fashion matching have underpinned stable consumption demand for women’s handbags, backpacks and business bags, laying a solid foundation for the industry. As the global core manufacturing hub for luggage and bags, China accounts for half of global exports and retains strong competitiveness in cross-border trade thanks to its complete industrial chain.

Beneath the prosperity, however, industrial involution is evident. Low entry barriers and severe product homogeneity have pushed numerous manufacturers and merchants into cutthroat price wars. Similar products are sold at ever-lower prices, squeezing profit margins continuously. Many traditional OEM factories have seen declines in both revenue and profits. Fluctuating raw material costs, rampant copycat products, and the shift of cross-border orders to low-cost Southeast Asian factories have further created hardships for practitioners relying on low-volume, low-price business models.

Consumer demand has also undergone fundamental changes, with affordability no longer the sole consideration. Generation Z has become the main consumer group, showing a clear preference for aesthetic design, niche style and domestic trendy brands. Nearly 70% of young consumers are willing to choose local brands with distinctive design and premium quality. Minimalist style, lightweight design, multi-functionality and anti-theft portability have become mainstream trends. Smart suitcases and luggage made from eco-friendly recycled materials continue to gain popularity, while high-end customized and light luxury accessory bags also register robust growth.

Market channels have also been completely restructured. Physical offline stores are gradually recovering, yet the main battlefield has shifted to live streaming, short videos and private domain communities on online platforms. Douyin and Xiaohongshu have boosted the popularity of niche designer styles. Cross-border e-commerce has emerged as a new growth outlet, with booming demand in Southeast Asia, Japan and South Korea. Leveraging the policy dividends of RCEP, domestic luggage brands are expanding rapidly overseas via cross-border platforms, and many niche brands have achieved booming sales through differentiated design.

To sum up the market performance in recent years: the overall market remains resilient amid fierce involution; low-end homogeneous businesses struggle, while high-end segmented tracks thrive; traditional OEMs face bottlenecks, and domestic design innovation, functional upgrading and cross-border expansion have become new development paths. The era of relying purely on low prices is over; a new era focusing on design, quality, market segmentation and refined operation has just begun.