Market Overview

In FY2023, the domestic retail market for bags and purses grew by 25.0% year over year to 1,691,100 million yen. The reclassification of COVID-19 as a Class-5 disease under the Infectious Disease Act, which lifted activity limitations and drove a recovery in demand. The market size surpassed the preceding fiscal year level thanks to the increase in inbound tourist demand. However, it is important to point out that an increase in the unit price of goods, which was caused by the rising costs of fuel and raw materials, also contributed to the expansion. On the other hand, domestic and licensee brands maintained steady performance in FY2023 by capitalizing on the demand for Japanese brand suitcases, “Made in Japan” products (those that particularly highlight their Japanese origins), and character collaborations featuring anime characters.

Noteworthy Topics

Luggage Retail Market

The luggage retail domestic market in FY2023 increased 52.2% year over year to 212,000  million yen. Luggage demand is split by users, with domestic customers preferring small-sized bags that are suitable for boarding flights to nearby nations and inbound tourists buying large-sized bags to carry home souvenirs they bought while in Japan. With the resurgence of inbound tourism, the demand for luggage is poised for sustained growth.

Future Outlook

The domestic bags and purses retail market is projected to reach 1,985.5 billion yen in FY2024, a 17.4% increase over the previous fiscal year. A market driver is the further expansion of inbound demand. Wealthy domestic consumers and foreign tourists continue to buy luxury imported brands. Among domestic consumers, sales of suitcases will be dominant. Meanwhile, concerns remain about the purchasing behaviors of local Japanese consumers, as higher expenses could lead them to refrain shopping.

Research Outline