Analysts at Ken Research in their latest publication “Saudi Arabia Bags and Luggage Market“ expect that the Bags and Luggage Market will increase due to increasing domestic and outbound tourism. The market is expected to register a positive CAGR of 16.3% in terms of revenue during the forecast period 2018-2023. Luggage and Bags in Saudi Arabia
Change in Consumer Behavior: The customer retention of major brands such as LMVH, Michael Kors, Hermes and others have decreased in the country. This resulted reorientation of marketing strategy to gain and retain customers. Companies like Michel Kors have started their customer loyalty program which aims to provide special privileges in order to improve their customer retention. Luggage and Bags in Saudi Arabia
Omni Channel Strategy: The advent of E-commerce has provided an opportunity for the bag and luggage brands to expand their reach in the market. Offline which is expected remain the largest segment in the future as well may see slower growth as compared to online retail. The fashion retail industry is expected to expand during this period creating demand for bags as accessories. There were a number of marketing initiatives undertaken by various fashion retail companies to enhance their brand equity in the eyes of customers by providing bags as bundled accessory with apparel. Luggage and Bags in Saudi Arabia
Market Entry of Regional Brands: It is expected that there will be an increase in supply of bags imported from neighboring countries such as Egypt and Turkey due to rising popularity of Egyptian and Turkish fashion designers. Egyptian brand Okhtein is an example, which sells luxury bags. The brand is owned by Egypt based designers Aya and Mounaz Abdelraouf and retails their high-end bags through multi brand retail chain Harvey Nicholas.