China has had a long-standing tradition in bag-making dating back centuries, and recently with a growing middle-class and a higher standard of living, a more active domestic market has helped to support this already strong industry. In 2008, China became the top producer and exporter of luggage and bags in the world, mainly exporting to the United States and European markets. Chinese exports exceeded the US $10 billion mark for the first time in 2008, reaching US $13.8 billion, 33% of the world’s total exports value. Export value increased 24% compared with 2007. However, as a retail consumer good, the industry has proven susceptible to global economic volatility and thus was adversely affected by the economic crisis that started in 2008. By 2009, there had been a slight decline in exports with a total of US $13 billion worth of bags made in China. Though this wasn’t a significant drop, it did expose its vulnerabilities. From January to August in 2010, the total amount of imports and exports of bags was at US $11.4 billion, up 35.77% compared with the previous year over the same period, of which the export value alone reached US $10.83 billion, over 95% of all trade in luggage and bags in the country.
The luggage and bag industry is well known for a developed, complete industrial chain that includes raw materials for inputs and an accessories market. Currently, the highest concentration of production is in Guangdong Province. Zhejiang province is the second largest base. The specialty of the Zhejiang area is a focus on leather bags in particular. The next largest bases are Baigou in Heibei province and Nantai in North East China. These 2 areas are best known for their professional processing capabilities and hardware and accessories production.
CPG has been actively involved in the sourcing of luggage and bags made in China since the early 1980’s. We engaged in most aspects of the production chain and a wide range of supply channels and sourcing products including:
- Ladies Handbags: leather, synthetic and others
- Leather Attache Cases and Accessories
- Nested luggage: Leather, Nylon, and Ramie blends
- Travel bags and Carry ons