In an exclusive conversation with Tushar Jain, Founder MD, Trawold sheds light on the growth strategy of the company.
Kindly present your views on current luggage industry in India? It would be great if you can highlight few financial numbers? Also where do you see this market will stand over next five years?
The current size of the Indian luggage market is pegged at Rs. 20,000 crore, whereas China’s market is more than Rs. 1, 00,000 crore for domestic market and Rs. 2, 00,000 crore for export market, there is long way to go for India to reach the level of Chinese market, this also shows that the penetration level for both backpackers and luggage bags is very low in India and expected to increase substantially in the years to come.
The Indian luggage industry is growing at 17-19% and we at High Spirit Commercial Ventures has been growing at a CAGR of 30% for the last six years. The need and the demand for value products is increasing. The products should offer good quality, fashion appeal and should come at affordable prices. We have excelled in this segment as the market is also moving in this direction.
Kindly shed light on the corporate journey of Trawold to Indian market. Also what kind of distribution the brand holds in the online as well as offline space? Going forward what are the plans for distribution expansion?
Traworld is a premium luggage bags brand from the House of High Spirit Commercial Ventures Pvt Ltd. Apart from Traworld the parent company has other brands like Priority, Hashtag, Humty Dumty as current portfolio of brands.
The brand was launched in 2017 and has been doing extremely well. We have presence in all leading retail outlets with an online presence on platforms like- Amazon, Flipkart, Shopclues, Snapdeal, Indiamart, Paytm mall and others. As far as offline presence is concerned, our offices are spread across 10 major cities having presence in more than 3,500 MBOs across the country. This makes us a pan-Indian player as we have presence in every major district of the country.
What are the operational challenges as far as luggage industry is concerned?
We have to maintain various models with varied colour choices of our consumers. We have to deliver bags on time at our MBOs, otherwise we will have loss of sale. Having said that we are seasoned player in the sector with 16 years of experience, we have mastered all the elements involved in our operations and have achieved good amount of efficiencies in the last couple of years. There is no limit to operational efficiency and we continue to strive to bring in more efficiency in our operations. We have recently set up large plat at Bhiwandi spread across 1.50 lakh sq.ft. facility to ease out some of the bottlenecks in our manufacturing process.
Companies such as VIP is the market leader in the luggage space. Who do you see as your competition also what would be your strategy to counter them?
We are already the fourth largest player in the market. We have also emerged as the largest player in backpackers segment last year by selling 7 million pieces.
We have taken different positioning to tap value and fashionable conscious consumers in the market. We have seen that the bags segment has become discount based market and we would like to offer high quality fashionable products at affordable prices rather than quoting high prices and offering huge discounts on MRP. This has really played well to capture the market and to become fourth largest player in the market.
As we have recently signed women as brand ambassador for our leading luggage brand Traworld, which is first of its kind in the sector. We would like to position our brand as a fashionable and premium brand, so we have signed fashion diva and Bollywood icon Sonam Kapoor Ahuja.
Kindly shed light on your product categories and best selling price points?
We own premium luggage bags brand ‘Traworld’. Thebrand has achieved sizable business and has presence across all major metros and other major cities in the country. The addressable market for Traworld luggage brand is Rs. 6,000 core.
The company also owns leading other brands like Priority, Humty Dumty and Hashtag under backpackers segment. Hashtag is targeted towards youth, Humty Dumty is targeted towards kids whereas priority is a large umbrella brand in backpackers segment.
At last, kindly highlight your expansion plans for FY18-19
The company has set up large factory at Bhiwandi near Mumbai which is 1.31 lac square foot facility for manufacturing of backpackers bags. The company is also setting up manufacturing facility for hard luggage in the next six months at the same facility. The capacity would be 60,000 per month. We are setting up another major plant at Patna, Bihar wherein we are going to manufacture 25 lac bags per annum.