Samsonite serves every segment

World’s leading luggage maker Samsonite, which has two brands in India – Samsonite and American Tourister – plans to launch third brand to cater to mass market, priced below Rs 5,000, says Dr Ramesh Tainwala, President, Samsonite, Asia Pacific and Middle East.

How big is the luggage market in India?

The total luggage market in India is estimated to be around Rs 6,000 crore – of which 50 per cent is organised.  

What are the factors propelling the industry growth?

An increase in disposable income naturally leads to a larger tendency to travel for leisure, holidays and various other reasons. Also, we see consumers travelling more today, for specific occasions within family, business or even with friends. Both these factors are key responsible in the industry growth.

Who is your target audience? What is your pricing strategy for them?

For Samsonite, we primarily target the prestige end of the market – which is mainly the business traveler, affluent families that travel for holidays regularly. For this set of customer, our product pricing is always over Rs 10,000.

For American Tourister, we focus on the constantly growing mid-segment consumer in India. The product pricing is always maintained between Rs 5,000 and Rs 10,000.

We are also preparing for a third brand to be launched, catering to the most popular segment in India, which is below Rs 5,000.

Which are the highest selling categories at your stores? What is the average bill size?

The highest selling category is the ‘business product’ and an average bill size would be about Rs 12,000.

What kind of investment is required to set up each store? How much time does it take to break-even?

Each store requires an investment of about Rs 50 lakh and we aim to break-even in a period not exceeding one year.

Which store model suits Samsonite best?

For Samsonite as a brand the EBO model is the most preferred, since we are able to project the brand better in a controlled environment.

While for American Tourister, MBOs and SIS work perfectly. Primarily due to their large reach and penetration across various cities and states.

Please share your expansion plan for FY 14.

We aim to open 100 new stores – 60 through franchise model and 40 company-owned.