Laos Sourcing: Bags & wallets 2018

 

In Laos Sourcing: Bags & wallets 2018, buyers can find:

Verified exporters – Featured suppliers offering various types of bags & wallets

Products – Full-color images with specifications and prices

Supply market intelligence – Supply centers, industry trends, challenges, production and pricing

To read the full report, click on the section tabs below.

Sector highlightsSuppliers & productsIndustry overviewProduct featuresPDF downloadSupplier list

Laos Sourcing: Bags & wallets 2018 Sector highlights

Industry overviewExport dataProduct features
  • Laos makers are creating unique designs and enhancing the product quality to differentiate themselves.

  • Skilled weavers in various parts of the country produce cotton and silk textiles featuring traditional colors and patterns.

  • High logistics costs make prices of Laos products higher compared to counterparts in other countries.
  • Laos' exports of suitcases, handbags and similar containers amounted to $760,677 in 2016.

  • Japan, Germany and Thailand were the main overseas markets.

  • Interviewed suppliers are looking to boost exports to North America and the EU.
  • Bags and wallets are usually made from silk, cotton, bamboo and rattan.

  • Makers incorporate fabrics with traditional patterns in modern bag and wallet styles.

  • Prices depend on the material and complexity of the design.

Laos Sourcing: Bags & wallets 2018 Suppliers & products

Laos Sourcing: Bags & wallets 2018 Suppliers & products

Laos Sourcing: Bags & wallets 2018

• Bags • Wallets

Our team has visited all Laos manufacturers featured here to verify their export capability.Each has a website on GlobalSources.com with full company details, product images with specifications, manufacturing capability and complete contact details.

Click suppliers’ names below to view their full profiles and product offerings on GlobalSources.com.


Products

Below is a selection of products from our featured suppliers. Click on the images to find more products and supplier information.

For a complete listing of the featured suppliers, click here.

Bags   
Laos Sourcing: Bags & Wallets 2018Laos Sourcing: Bags & Wallets 2018Laos Sourcing: Bags & Wallets 2018Laos Sourcing: Bags & Wallets 2018
Laos Sourcing: Bags & Wallets 2018Laos Sourcing: Bags & Wallets 2018Laos Sourcing: Bags & Wallets 2018Laos Sourcing: Bags & Wallets 2018
Laos Sourcing: Bags & Wallets 2018Laos Sourcing: Bags & Wallets 2018Laos Sourcing: Bags & Wallets 2018 
Wallets 
Laos Sourcing: Bags & Wallets 2018Laos Sourcing: Bags & Wallets 2018

Laos Sourcing: Bags & wallets 2018 Industry overview

Laos Sourcing: Bags & wallets 2018 Industry overview

Laos Sourcing: Bags & wallets 2018

• Bags • Wallets

This section discusses key issues affecting export manufacturers in Laos, offering insight into industry composition and important supply centers.

Laos bags & wallets exportsCompetitive advantagesChallengesIndustry composition
  • Laos' exports of suitcases, handbags and similar containers amounted to $760,677 in 2016.

  • Japan, Germany and Thailand were the top importers.

  • Interviewed suppliers are looking to boost exports to North America and the EU.
  • Skilled weavers in various parts of the country produce cotton and silk textiles featuring traditional colors and patterns.

  • Minimum wages in Laos are lower than in most Asian countries.

  • The government is implementing initiatives to improve the ease of doing business in the country.
  • Pricing competition is a challenge due primarily to high logistics cost.

  • Lack of skilled workers during the harvest season limits the availability of raw materials.

  • Trade infrastructure and supporting industries are underdeveloped.
  • The industry consists mostly of small companies.

  • Suppliers operating on a small scale have fewer than 20 employees.

  • Makers of bags and wallets are mainly found in and around Vientiane and the province of Savannakhet province.

Laos makers of bags and wallets are creating unique, handmade designs and enhancing the quality of their products to differentiate their products. Suppliers generally cannot compete based solely on price since their quotes are relatively higher compared to companies in other parts of Asia due to high transportation costs.

The country’s exports of suitcases, trunks, rucksacks, handbags and similar containers under HS code 4202 amounted to $760,677 in 2016, up 62 percent from 2015. Japan, Germany and Thailand were the top importers, accounting for 50, 32 and 17 percent of overseas sales, respectively.

Interviewed suppliers are looking to boost exports to North America and the EU.

Competitive advantages

The handicraft sector offers bags and wallets made of locally sourced, handwoven fabrics featuring traditional colors and patterns.

Suppliers typically contract craftsmen from local villages to produce the textiles that will be adopted in their bags and wallets.

Some exporters source semifinished or finished products from nearby communities. While fabrics such as silk and cotton can also be found Thailand, Myanmar and other countries, local fabric producers incorporate intricate weaving and dyeing techniques in their creations, which distinguish the items as being from Laos.

Handwoven cotton textiles can be sourced from weavers in various parts of the country. The main sources of such fabrics include Luang Prabang, Sayabouly, Huaphan, Oudomxay, Luang Namtha, Phongsaly and Xanyabouly provinces in northern Laos and Savannakhet and Champasak provinces in the central and southern Laos.

Silk fabrics are produced domestically, but other suppliers need to import from China, Thailand, Japan, India, Italy and Vietnam as domestic production is unable to meet demand.

Rattan and bamboo is sourced from various parts of the country.

Laos has relatively lower labor costs compared with suppliers in several other countries in Asia. Shanghai in China, for instance, has a statutory minimum wage of about $378 (2,420 yuan) monthly. In comparison, Laos’ minimum wage is currently about $108 (900,000 kip) per month.

The government is implementing initiatives to improve the ease of doing business in the country. In February this year, for instance, Prime Minister Thongloun Sisoulitha issued an executive order to facilitate the process for starting a business, The Laotian Times reported May 14, 2018.

Challenges

As a landlocked country, Laos must transport products through bordering countries, resulting in high logistics costs and long lead times.

Exports are mainly done via DHL, TNT, EMS and other parcel services, which is costly. Goods need to be transported from the factory to a seaport in another country such as Thailand or Vietnam, which is the cheaper mode of sending products overseas compared with land or air transportation. Travel to and from the country are limited to road networks since Laos currently does not have a railway system for moving goods.

Besides transportation facilities and other trade infrastructure, supporting industries are underdeveloped as well. Accessories such as zippers and buttons are usually obtained from China, Vietnam and Thailand. Leather for straps and other parts is also often imported.

During the harvest season, which usually falls from October to November, manufacturers typically experience a shortage of workers because most weavers are also farmers. The planting season starts in May or June to take advantage of the rainy season which extends until Nov. This leads to a limited supply of handwoven fabrics since most workers accept weaving work only after the rice harvest.

With these challenges, FOB prices of Laos bags and wallets are generally higher than those offered by counterparts in Vietnam, Thailand or China.

To address these difficulties, some suppliers opt to make the finish products from another country although the raw materials come from Laos. Naree Laos Brand, one of the biggest handbag manufacturers in Laos, sources silk from Laos but produces bags in Thailand. Accessories such as clasp and ring handles is procured in Thailand.

Other suppliers accept only ex works trade terms, wherein the buyers shoulders the cost of transporting the goods from the factory.

Industry composition

Laos’ handicraft sector, to which most bag and wallet makers belong, consists mostly of companies operating on a small scale. Such suppliers typically have fewer than 20 employees and total assets of less than $29,496 (250 million kip).

Producers of bags and wallets are mainly found in and around Vientiane and the province of Savannakhet province, the largest and most culturally diverse area in Laos situated in the middle of the country. Savannakhet is bordered by Vietnam to the east, Thailand to the West, Khammouane province to the North and Salavanh province to the south.

Supplier locations map

The highlighted areas on the map show the locations of the head offices and factories of the bag and wallet suppliers featured in this report.

Laos Sourcing: Bags & wallets 2018 supplier locations map

Laos Sourcing: Bags & wallets 2018 Product features

Laos Sourcing: Bags & wallets 2018 Product features

Laos Sourcing: Bags & wallets 2018

• Bags • Wallets

This section offers information on how trends in materials, design and manufacturing are impacting prices offered by Laos bag & wallet suppliers.

Buyers can also learn more about the materials used and the common price ranges of certain designs.

Sections


Materials & designsManufacturing & QCPricing
  • Bags and wallets are usually made from locally available materials.

  • Silk, cotton, bamboo and rattan are among the common inputs.

  • Suppliers will focus on eco-friendly products.
  • Weaving and dyeing of textiles is usually subcontracted.

  • Quality checks are dependent on buyer requirement.

  • Attachment of buttons, zippers and other components are often done in-house.
  • Quotes are based primarily on raw material and labor costs.

  • Logistics expenses are also a major price determinant.

  • Interviewed suppliers expect prices to be 5 to 10 percent higher in six months.

Materials & designs

Bags and wallets from Laos are usually made from natural materials. Silk, cotton, bamboo and rattan are among the common options. Most suppliers use locally available materials to reduce cost and to highlight this as a unique selling point.

Leather and components such as zippers and buttons are typically imported from China, Vietnam or Thailand. Some makers use silk from China or Thailand.

Laos bags and wallets are usually handmade. Simple designs featuring a traditional pattern in one or two colors are the norm. Such bags typically have a zipper or button closure.

In terms of style, handbags, shopper bags and clutch bags are the most commonly offered items. For wallets, envelope wallets and purses are widely available.

Interviewed suppliers intend to focus on products featuring more eco-friendly materials. In terms of design, the trend is for bags featuring traditional Laos motifs and patterns.

Makers are focusing on the quality and design of their products to be competitive. As the industry remains relatively small, the design and R&D for bags and wallets are usually done by the owners.

Manufacturing & QC

Several small makers complete most production processes in-house, from planting cotton or growing mulberry, to dyeing and weaving.

Midsize suppliers typically purchase raw materials from nearby villages, comes up with the design depending on the fabric, and subcontract the sewing to smaller firms specialize in the process.

Large manufacturers, meanwhile, can often do the end-to-end production from planting to finish in their own plants. Processing and assembly plants are predominantly concentrated in and around Vientiane and Savannakhet. For large orders, suppliers subcontract about 80 percent of weaving work.

Quality control processes are typically conducted by together by suppliers and buyers. The product quality in general, especially of items meant for the domestic market, is not yet compliant with export standards.

Pricing

Bags and wallets for various price points are available. Prices are based primarily on raw material and labor costs. Expenses related to sending products overseas are also a major consideration.

In bags, a customized tote bag made of handwoven cotton measuring 314x7x20 to 30x30x10cm is available for less than $50. Between $60 and $200, buyers can find sling clutch bags measuring at least 17x15x5cm that is made of Laos silk or leather.

For wallets, buyers can find purses made of hand-dyed cotton with one or two compartments and a zipper closure for less than $15. Designs made from Laos silk, with one compartment, are offered between $15 and $20.

Suppliers interviewed said they expect prices to increase 5 to 10 percent in the next six months due mainly to high logistics costs and lack of skilled workers.

Price guide

Price guide: Bags
$15 to $50
Tote bag; handwoven cotton; with lining; hand-dyed in natural dye; zipper or button closure; 14x7x20 to 30x30x10cm
$60 to $110
Sling clutch bag; Laos silk; gold- or silver-colored chain strap; 17x15x5 to 22x12x5cm
$110 to $200
Sling clutch bag; Laos silk or calfskin; gold- or silver-colored chain strap; 22x13x5.5 to 25x18x7cm

Click image to enlarge.

Laos Sourcing: Bags & wallets 2018 Product features
Price guide: Wallets
Less than $15
Hand-dyed cotton; zipper closure; one or two compartments; 14x20cm
$15 to $20
Laos silk; zipper closure; one compartment; 10x20.5cm

Laos Sourcing: Bags & wallets 2018 PDF download

Laos Sourcing: Bags & wallets 2018 PDF downloads

Laos Sourcing: Bags & wallets 2018

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Suppliers & products

Sections


  • Featured suppliers with websites on GlobalSources.com
  • Other featured suppliers

Industry overview

Sections


  • Highlights
  • Exports
  • Competitive advantages
  • Challenges
  • Industry composition
  • Laos bag & wallet suppliers

Charts


  • Laos exports of bags & wallets
  • Supplier locations map

Product features

Sections


  • Highlights
  • Materials & designs
  • Manufacturing & QC
  • Pricing
  • Price guide
  • Laos bag & wallet suppliers

Laos Sourcing: Bags & wallets 2018 Supplier list

Laos bag & wallet suppliers

Click company names below marked Active to view verified suppliers and products featured on GlobalSources.com.

Suppliers featured on
Supplier statusBagsWallets
Naree HandbagsActive
Nikone HandicraftActive
Phakaned HandicraftActive
SengsavangActive