No More Complaints... 'Sales Halved' Travel Bag Industry

Travel Suitcase Sales Down 60-70% This Year
Samsonite Korea Halts New Hiring
Backpack Sales Increase Insufficient to Offset Losses
Luxury Brand Rimowa Also Struggles

[Asia Economy Reporter Cha Min-young] Luggage companies are struggling as travel routes have been blocked due to the novel coronavirus infection (COVID-19). While tightening their belts by cutting marketing expenses and even reducing staff, they have strengthened alternative lines such as backpacks and briefcases, but it has not been enough to offset sluggish sales.

According to the industry on the 13th, Samsonite Korea has halted all new hires, including occasional recruitment, this year. The global headquarters has undergone a complete workforce restructuring. This is because sales of their main product, travel suitcases, plummeted sharply as traveler demand dropped drastically after COVID-19. Marketing expenses were also significantly reduced. Samsonite Korea strengthened its sub-line 'Samsonite Red,' which focuses on daily bags such as backpacks, cross bags, and briefcases, and introduced 'smart backpacks' that allow convenient use of smart devices, achieving some success, but it only partially offset the decline in travel suitcase sales. American Tourister is running 'AT Care,' which extends the warranty period by one year when purchasing a suitcase, until March next year for customers whose travel plans have been blocked due to COVID-19. However, few are buying travel suitcases for uncertain future trips, leaving the company disheartened.

Luxury brands Tumi and Rimowa have also struggled this year. After being acquired by Louis Vuitton Mo?t Hennessy (LVMH) in 2016, they solidified their luxury image as essential honeymoon items and wedding gifts, but they could not escape the impact of COVID-19. Their insistence on focusing on travel suitcases as their main product line has resulted in greater sales damage compared to competitors.

According to domestic Department Store A from January 28 to October 11, right after the COVID-19 outbreak, sales of travel bags this year decreased by 60-70% compared to the previous year. At Premium Outlet B, sales in the travel suitcase category dropped by 50%, halving the previous year's sales. On major online mall C, travel suitcase sales decreased by 29% compared to the previous year. This was influenced by a 30% drop in sales of carry-on products under 20-21 inches, which account for 97% of total travel bag sales.

A department store official said, "In the travel bag industry, companies have taken a defensive stance by being passive about new store openings or relocations and new investments," adding, "Especially in the case of Rimowa, the sales impact is greater because it has maintained a single product line focused on suitcases."