calpak

Market Research Report: CALPAK

Company Overview

CALPAK, established in 1989 by Edward and Judy Kwon, is a lifestyle brand specializing in innovative and stylish travel essentials. The company offers a diverse range of products, including luggage, backpacks, duffel bags, and travel accessories, catering to the modern traveler. Headquartered in Compton, California, CALPAK has expanded its product line significantly over the years, growing from approximately 10-15 SKUs in 2016 to over 500 by July 2023.

Product Expansion and Diversification

To address the challenge of infrequent repeat purchases inherent in the luggage industry, CALPAK has strategically diversified its product offerings. The company introduced items such as laptop sleeves, belt bags, lunch bags, and other travel accessories. This expansion has led to non-luggage products accounting for over 70% of total sales, with traditional luggage comprising the remaining 30%. This approach has enabled CALPAK to maintain consistent year-over-year growth, achieving 100% growth as of July 2023.

Retail Strategy and Physical Store Presence

In November 2024, CALPAK opened its first permanent retail store at the Century City Mall in Los Angeles, California. This 1,200-square-foot store showcases approximately 80% to 85% of CALPAK's SKUs, organized by categories such as duffels, roller bags, backpacks, and packing cubes. The decision to establish a physical presence was influenced by the success of a 2019 pop-up event in New York City, where in-person interactions led to increased sales and customer engagement. The Los Angeles location was chosen due to the city's significant customer base, with approximately one million lifetime users.

Marketing and Target Demographics

CALPAK's marketing strategy has evolved to appeal to a broader demographic. While the core customer base remains individuals aged 25 to 35, the company has recognized the importance of inclusivity in its campaigns. Recent advertisements feature people of all ages, including a campaign with Aki and Koichi, a fashionable influencer couple in their 70s. This shift aims to reflect the diverse needs of customers who purchase products for various family members and friends.

Product Innovation and Viral Success

CALPAK has achieved notable success with several viral products, particularly on platforms like TikTok. The Luka line, a collection of puffy duffel bags, gained popularity for its sleek design and functionality, leading to expanded color options. Additionally, the company introduced a baby gear collection inspired by customer feedback, featuring items like diaper totes and stroller caddies. These products are designed with practical features such as waterproof linings and magnetic closures, catering to the needs of parents on the go.

Financial Performance

While specific revenue figures are not publicly disclosed, CALPAK has reported consistent growth. The company experienced 100% year-over-year growth as of July 2023 and sold approximately 60,000 items in the previous year. The expansion into non-luggage products and the establishment of a physical retail presence have contributed to this upward trajectory.

Competitive Landscape

CALPAK operates in a competitive market alongside brands such as Away, Samsonite, and TUMI. The company's focus on design-forward, functional products at accessible price points differentiates it from competitors. By continuously innovating and expanding its product lines, CALPAK has positioned itself as a versatile brand catering to a wide range of travel needs.