Market Overview

The domestic retail market for bags and purses reached 1,961,100 million yen in FY2024, representing 16.3% year-over-year increase. This growth was chiefly catalyzed by a robust resurgence in inbound tourism demand, alongside strategic price adjustments that bolstered the average transaction value among domestic consumers. From a product standpoint, import (luxury) brands experienced significant momentum, fueled by high sell-through rates of core staple collections and signature pieces. On the other hand, domestic and licensee brands maintained steady performance by capitalizing on the demand for “Made in Japan” products, high-performance suitcases, and character collaborations.

Noteworthy Topics

Luggage Retail Market

The domestic luggage retail market marked an impressive 44.8% year-over-year growth in FY2024, reaching 307,000 million yen. This surge was primarily fueled by the robust resurgence of inbound tourism.
Looking ahead, demand is expected to diverge between international visitors and domestic consumers. Inbound demand is projected to taper off, largely due to a decline in Chinese tourism. Conversely, domestic demand for carry-on suitcases is poised for sustained growth. This shift is driven by a weak yen—which encourages Japanese travelers to favor domestic trips or short-haul Asian destinations—combined with the rising popularity of Low-Cost Carriers (LCCs) that charge fees for checked luggage.

Future Outlook

The domestic bags and purses retail market is projected to reach 1,834,700 million yen in FY2025, representing 93.3% of the previous fiscal year. Overall, inbound demand for luxury import brands is projected to soften, while persistent inflation heightens budget consciousness among Japanese consumers. Furthermore, given the current polarization of the market—where demand is concentrated at the premium and entry-level tiers—mid-range products are expected to face increasingly stiff competition.

Research Outline