Travel Luggage Market India

Travel Luggage Market India

Market size of Indian Luggage Industry is Rs. 37000 Crore. The growth rate of Branded luggage is 9 to 12 whereas unbranded luggage Market is growing at 3 to 4%  per year. 

There are three major players who dominate the branded luggage market. VIP, which has 50% market share, possesses the brands Skybags, VIP, Aristocrat, Alfa, Carlton and Caprese. 
Samsonite, with 35% market shares owns American Tourister, High Sierra, Samsonite, Kamaliant etc. 

Source: Statistica

Competitive Analysis: 

VIP Industries

•Strong brands in each category

•Repositioning VIP brand to target Young Indian Family.

•Strong Distribution network.

Samsonite

•Sleeker & more contemporary designs at same prices

•favourite among the niche urban consumers.

•90 % market shares in the premium category.

Safari

         •Rapidly growing in mass-premium section.

         •Brands other than Safari have low brand awareness

         •Growing CSD sales

Da Milano

         •Four-five seasonal portfolios for an elite customer base

         •It acquired Genius Leathercraft and also forayed into the school bags          segment.

Porter’s 5 Forces Analysis of Indian Luggage 

Industry-

1) Bargaining Power of Customers - 

• Customers preferences are changing.
• Easy evaluation online or Hypermarkets.
• Several Brands Available.  ( large unorganized sector too) 

2) Bargaining power of Suppliers 

• Dependence on imports from China.
• Shifting Manufacturing to Bangladesh
• Hard Luggage Manufacturing India. 

3) Threats of New Entrants (Barriers to Entry ) 

• Oligopolistic Industry. Well recognized brands.
• Strong distribution of existing brands.
• Online advantage D2C. Favorable response to new brands.
• Switching costs low 

4) Threats of Substitutes 

• Travel, Marriages making luggage bags indispensable.
• GST supporting organised luggage market

5) Industry Rivalry 

• Two brands which have 85% market share, compete at all three segments ( Mass, Economy & Premium).

As per Poster's five forces analysis the industry is moderately attractive for profits. 

Shifts / Trends- 

•Shift from unbranded to branded luggage.

•Bags replacement rate dropped to 2-3 years from 4-5 yrs.

•Increase in discretionary middle class income.

•Growth in tourism ( domestic & Intl. air travel) India 3rd in world tourism 

  sector after China and US. (50 million outbound tourists by 2020 )

•Shift from unorganized to organised (owing to GST )

•Luggage a fast growing category at Hypermarkets. E-commerce growth

•Backpacks fastest growing segment at 40% rate.

•More youth-oriented products, lightweight with more innovative and space 

  efficient designs.

India Opportunity for A digital focused 

foreign luggage brand 

•More than 40% of those under 33 prioritize ‘Instagrammability’ of next holiday 

  spot.

•India 3rd largest country based on number of Instagram users.

•150 Million would be added to middle class by 2025.

•India fastest growing E-commerce ( 51% annual). $120 Bn. in 2020. 

Recommendations for New Brand - 

All the above discussed factors as well as

•Fast growth of online payment ecosystem.

•Shift of luggage as a style accessory.

 
Represent a lucrative opportunity for a New Brand.