Australian luggage brand Nere is anticipating strong sales this holiday season, thanks to the ongoing travel boom, growing appeal of practical gifts like suitcases, and high-profile location of its first stand-alone store, which opened in November. Located on the ground floor of Melbourne Central, the store carries Nere-branded suitcases, soft-sided bags, packing cubes, toiletry kits, luggage tags, water bottles and other accessories that shoppers can mix and match in various colours to create t
e their own personalised luggage sets.
There are about 1600 possible product combinations, according to Felicity McGahan, group CEO of Strand, the 96-year-old Australian luggage chain that launched Nere in 2022. With most items priced under A$200, the brand is seeking to elevate travel for the mass-market consumer.
“Everyone travels now,” McGahan told Inside Retail. “Whether you are in a car, on a long weekend, or going internationally, it’s about having a bag that supports that. We’re very much about value and being accessible to all.”
On-trend luggage sets
The expanding travel and tourism industry is the primary driver of the global luggage market, which is expected to generate US$177 billion in revenue in 2023, according to market research site Statista.
This year saw European tourism return to pre-Covid levels, and despite the cost-of-living crisis, McGahan believes spending on travel is here to stay.
“When Covid took travel from us, we all realised the role it really plays in our lives. I don’t think we’ll ever give it up again. We’ll right-size it relative to our budgets,” she said.
For some consumers, a key part of the travel experience involves purchasing a fashionable set of luggage, not only for the purpose of packing their clothes, but also to feature in photos on social media.
“This category isn’t about age, it’s about style – you want to have luggage that ties back to your look,” McGahan said.
Nere releases new colours and accessories every season. Besides enabling the brand to keep up with the latest trends, it’s a smart way to drive repeat purchases, since most people don’t buy new luggage every year.
McGahan was quick to note that Nere’s fashion focus hasn’t come at the cost of its product quality.
“We’ve come from being travel experts, and then we’ve layered in the fashion and the newness, it’s not the other way around,” she said. “We know the weight of the case is important. We know the wheels are important, the handle. We’ll follow the trends, but not fast.”
Global expansion ahead
Since Nere first launched in 2022, it has sold about 1.6 million units, according to McGahan. Initially, the brand was only available at Strand stores in Australia and New Zealand, but over the past few months, it has built a stand-alone offering.
In May, Nere rolled out an e-commerce site in the UK, where Strand has had a presence since acquiring British travel brand Antler in 2020. And in November, it launched online in Australia and became available on The Iconic, alongside opening its first stand-alone store at Melbourne Central.
“This is obviously a lab,” McGahan said about the store. “We will definitely open multiple stores here, and then we’ll go on a UK journey as well. We’d love to be in America as well, but let’s just get Australia right.”
The CEO also sees an opportunity for Nere to collaborate with non-luggage brands to drive awareness and growth.
“There’s a lot of Australian brands that would like to collaborate with us. It’s a category that a lot of people don’t jump into because it’s complicated. You’ve got to get your sourcing right. It takes a year to produce luggage, it’s highly engineered,” she explained.
With nearly 100 years of experience, Strand is well-positioned to capture the opportunity in this space, and Nere is a core part of its plan to do so.
“We’re over a half-billion-dollar business in Australia, so we’re pretty maximised here,” she said, in reference to the Strand business. “When you talk about opportunities now, for us, it’s the northern hemisphere and fashion travel, and making that our big idea to export.”