I'm Gar
ry, named after a fellow Welshman, not an American actor. Attention to detail will be very important if you go into business

Yes, this market is very saturated, but then all markets that have a very low entry barrier (products made easily with very little capital investment) are, so either
1. Put a few million £ into a new hi-tech product that other people can't compete with (think iPhone or Tesla).
2. Give up
3. Or make a niche product that people are happy to pay extra for, niche markets are easier to enter and succeed in, but much more difficult to scale-up if things go really well.
I know nothing about backpacks but I do know a bit about manufacturing and I've spent time in China. Don't let the challenges deter you, but do identify and recognise them.
The person I mentioned earlier, who may be able to help (or at least advise) with machinery, makes niche products in a very saturated, junk market. She makes dog leads, collars and the like and horse stuff. The market is completely flooded with junk products, mainly from asia, made down to a price. None of her competitors actually design anything, they just copy everyone else and try to make it for a penny less, and even if those products fit the animal and work at all, they drop to bits very quickly. As someone who has a lifetime of experience with both horses and dogs, hers are properly designed, made from the right materials and superbly stitched, with each operation carried out on a separate, specialised machine. They look good, they last forever and people who buy from her become loyal repeat customers.
Since we're on the subjects, I believe (from memory) that Lowepro started life as a cottage industry, making everything by hand. The same with
Chimera, who were the first to make softboxes from fabric instead of sheet steel, everything done well, and everything under their own control. Not cheap, but well worth their premium price. Because of my business connections and history, I've always had the best softboxes (free) but would happily pay for them if I had to, the cheap ones aren't worth having, and although there are a lot of people who are happy to buy cheap rubbish, there are also plenty of people like me who believe in buying once and buying for life.