U.K. Travel Goods

U.K. – Travel goods

HEADLINES

In 2009, value sales of travel goods increased by 1.7% over prior year, reaching nearly £1.6 billion.Sales of briefcases and computer bags grew by 2.3%, the fastest rate amongst all of the travel goods subsectors.The travel goods market remains highly fragmented, dominated by private label products.Over the forecast period, value sales of travel goods are projected to grow at a CAGR of 3.4%, reaching nearly $1.9 billion in 2014.

TRENDS

| Sales of travel goods experienced moderately strong growth throughout the review period, recording a CAGR of 3.7%. Slower growth in 2009 was due to the lingering effects of the global recession, but sales growth is expected to pick up once the UK economy recovers and consumer confidence returns. |

| The primary reason for the vulnerability of the travel goods subsector is its dependence on high rates of consumer travel, an activity that is susceptible to economic uncertainty. In 2008 but particularly in 2009, many consumers decided to postpone or cancel travel plans, and this had an impact on sales of travel goods. |

| The fastest growing subsector amongst travel goods was briefcases and computer cases, not surprisingly the subsector least dependent on the travelling public. These products are targeted at a high-income demographic, most of whom are unlikely to have been adversely affected by the recession. |

| Sales of handbags grew by 2.16% in 2009. During the review period, value sales of handbags grew at a CAGR of 4.5%, making them one of the unbridled success stories amongst personal goods subsectors. During the review period, handbag sales were buttressed by the fashionindustry and by the huge demand in the UK for accessories, fuelled by the gains in disposable income and easy access to credit. Inevitably, handbags are a non-essential item, and sales will be affected by any downturn in the economy. The fact that sales remained strong in 2009 is a testament to the product’s...