Wednesday

16


January , 2019
Cool quotient boosts luggage industry
15:30 pm

Kuntala Sarkar


India is one of the top five markets of the luggage industry. Consumers are now seeing luggage as a status enhancer and a lifestyle product. Additionally, progress in the standard of living, rise in income, expanding travelling expenditure for both business and leisure, and the recent trend of gifting branded luggage are augmenting the market.

The leading luggage brands are now focusing on items, which can attract youngsters because they are keener to travel. Online shopping portals have also contributed to this growth process and have offered the companies a wider market reach. Also, a shift in demand from hard luggage to soft luggage is noticeable.

Tushar Jain, Founder and Managing Director, High Spirit Commercial Ventures Pvt. Ltd. and Traworld, told BE, “The introduction of GST has also eased the business playing field for the organised players in the segment.” 

Retailers and online portals stock a wide range of soft luggage that include leather briefcases, computer cases, garment bags, garment carriers, backpacks, duffel bags, motor-cycle luggage, trolley bags, vanity case, suitcases and handbags. It is expected that India’s soft luggage sale will account for more than 60% of the country’s total turnover by the end of the current fiscal year. The major luggage brands in India include Samsonite, VIP, American Tourister, Traworld, Safari, Delsey, Briggs and Riley, and Travelpro.

During 2013-2018, the Asia-Pacific region was responsible for around 63% of the total absolute sale of luggage in the world and the market in India performed impressively as well. According to Equity Levers, the Indian luggage industry is growing at 18%-20% compound annual growth rate (CAGR).

The luggage market can be segmented into organised and unorganised sectors. The unorganised sector is growing at around 25%, which is comparatively high as compared to the organised sector which is growing at 8%. Jain informed

BE, “In the domestic market in India, net worth of the luggage industry is  Rs. 20,000 crore. Branded luggage holds a value of  Rs.6,000 crore whereas the non-branded segment is worth around `15,000 crore.” ‘India Luggage Market Research Report 2018’ by ‘QYResearch Reports’ informs, “In 2017, the India’s luggage bag revenue was $800 million and it is expected to reach $1514 million in 2025 as the market sales were 32.3 million units in 2017. It is predicted to reach 69.2 million units in 2025.”

Traworld exploring the back-pack segment:

The High Spirit Commercial Ventures are the largest player in the backpack space in the price range of Rs. 399 to  Rs. 799. They sell backpacks bags under three brands namely Priority, Humty Dumty and Hashtag. The Hashtag brand is uniquely positioned towards the youth market and the Humty Dumty brand caters to school going children.

Traworld products are widely available across leading luggage retail stores and also obtainable for general trade through a large distribution network. The brand is also retailing their products online. Traworld is the fourth largest player in the Indian market after VIP, Samsonite-American Tourister and Safari. The company has grown around 30% in the last six years. Jain told BE that the company has sold seven million hard and soft luggage bags last year and has declared a turnover of around Rs. 250 crore for the FY 2018. As a premium luggage brand, Traworld recently signed actress Sonam Kapoor as its brand ambassador. According to industry insiders, this may be seen as recognition of the fact that the luggage market is also foucussing on style along with utility.

 

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