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China's luggage industry embarks on a path of transformation and upgrading, solidly occupying overseas markets.

2023-10-19

2023-07-24 10:18辽宁

China's luggage manufacturing industry has a long and illustrious history, with its ancient and time-honored craftsmanship earning international renown. As far back as ancient times, China's leatherworking skills were renowned, and historical records frequently mention the craftsmanship of ancient luggage making. With the evolution of time, these traditional skills have been passed down and find extensive application in modern luggage manufacturing


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With its robust luggage manufacturing capabilities, China has become a major player in the export of luggage and bags. Chinese luggage products are in high demand overseas, with frequent instances of surging orders in Europe and the United States last year, some extending into this year.


China's luggage industry has consistently maintained steady growth, with its export volume increasing year by year. The domestic advantages in production capacity and technological expertise have allowed Chinese luggage to establish a competitive presence in international markets, offering both competitive prices and quality. Simultaneously, the deepening of international trade cooperation has provided extensive market opportunities for the export of Chinese luggage.


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Baigou in Baoding, Hebei, is a traditional production hub for China's luggage industry. The Baigou luggage market was previously approved as a pilot for market procurement trade methods, providing more export convenience for small and micro-enterprises and merchants without self-owned import and export rights. This included faster customs clearance, the ability to consolidate shipments and handle individual foreign exchange settlements, further boosting Baigou's export trade. In the first half of this year, the export value of Baigou's luggage market through the trial trade method reached 878 million US dollars, a year-on-year increase of 611.95%.


The luggage industry in Baigou has undergone a continuous development journey: from domestic wholesale to becoming a top seller overseas; from small handicraft workshops and roadside stalls to wholesale markets with front and rear storage facilities, and now to spacious and well-lit international luggage trading centers. Today, Baigou has evolved into a regional specialty industry cluster that encompasses raw material supply, research and development, design, production, and sales.


This region is home to over 30,000 luggage production and sales entities, with an annual production of more than 800 million pieces, accounting for over a quarter of the national production volume. In 2022, the luggage industry's output value in Baigou surpassed 36 billion yuan.


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Not only in Baigou but also in regions with luggage industries like Zhejiang and Guangdong, orders have significantly increased under the policy dividends of the RCEP (Regional Comprehensive Economic Partnership Agreement).


While benefiting from these policy advantages, business partners must also gain a better understanding of export-related matters to establish a foothold in overseas markets. When engaging in luggage exports, it is essential to first be aware of the certification and standards requirements of different countries. Specific certification standards may vary depending on the country, product type, and intended use.

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For example:

The European market typically requires compliance with CE certification standards to ensure that products meet the safety, health, and environmental requirements of the European Union.

The U.S. market may require FDA (U.S. Food and Drug Administration) certification, especially for certain bags that come into direct contact with human skin.

The Japanese market necessitates adherence to JIS (Japanese Industrial Standards) certification to ensure product quality and safety.

The Korean market requires K-Mark certification to guarantee product quality and compliance with national standards.

In addition, some universally recognized certification standards like ISO 9001 (Quality Management System Certification) and ISO 14001 (Environmental Management System Certification) can enhance a product’s market competitiveness regardless of the destination country.

Apart from relevant certifications, export logistics is also a crucial aspect that luggage companies need to pay close attention.


Considerations for export transportation:


1. Firstly, it's crucial to choose the appropriate mode of transportation. Sea freight is a relatively economical and common method for exporting luggage, although it involves longer transit times. Depending on the nature of the cargo, urgency, and budget, you can select suitable sea freight services, such as Full Container Load (FCL) or Less than Container Load (LCL).


2. Finding a reliable freight forwarding company is of utmost importance! Coordinate with the freight forwarder to arrange for cargo packing, inland transportation, storage, and other related matters. During the packaging process, maintain real-time communication with the freight forwarder to ensure that the luggage is properly packaged to withstand impacts, vibrations, and stacking pressures during transportation. Use high-quality packaging materials and appropriate cushioning to prevent damage to the cargo during transit.

3. Prepare the correct export and transportation documents, including commercial invoices, packing lists, customs declarations, shipping bills, insurance documents, and more. Ensure the accuracy and completeness of these documents to avoid issues at customs or destination ports.

4. Communicate with the freight forwarding company to arrange export transportation, such as booking cargo space on shipping flights, handling relevant insurance (based on trade terms), completing property transfer procedures within the agreed timeframe, and obtaining bills of lading.

5. Settle payments. General expenses may include domestic trailer transport fees, customs brokerage fees, shipping charges, port and miscellaneous fees, and documentation fees, among others.

In addition to the above considerations, business partners should also stay informed about market trade trends. It's known that the top two export markets for Chinese luggage products are the European Union and the United States. However, apart from Europe and the United States, orders for luggage exports to Australia, Singapore, and Japan are also on the rise. International trade friends, do you think luggage exports will continue to thrive this year?


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