Skip to main content

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. 









Comments

Post a Comment

Popular posts from this blog

How popular is your favourite instant noodles brand?

How popular is your favourite instant noodles brand? Instant noodles are increasingly becoming an important part of our lives. Presence of the different flavors, changing consumer lifestyles, growing urbanization are fueling the popularity of the instant noodles across all age groups. India is now the 5th country in terms of overall consumption of the instant noodles (no of packets). The size of Indian Instant noodle market is 1.42 Bn. US dollars (according to Statistica). There are roughly 10 major instant noodles brands in India and market is wide open for any new smart product in the category.   This prompts us to think what is the popularity of different instant noodles brands and is there any difference in the perception of different noodle brands. We conducted a market research to find out brand awareness and consumer behavior.  " What is the first brand that comes into your mind when you think of instant noodles? "  Top of Mind...
Post a Comment
Read more

What Boeing's fall from the industry leader teaches us about Business Strategy

Boeing 737 Max has been grounded since March, after two crashes killed 346 people.  The Max is Boeing’s most important plane, with about 5,000 ordered by airlines around the world. The FAA Re-certification flight to return the Boeing 737 MAX back to skies is  approaching soon.  In a survey 52% of fliers said they would prefer  the other aircraft type if given a choice between MAX or another Aircraft type. The Story: Chapter 1 : The Origin       1) Airbus announced an update on their most popular model Airbus A320 in 2010 (15% fuel efficient with larger engine).      2)   In a race to launch a better plane faster,  Boeing resorted to upgrade its model 737 as opposed to developing a new aircraft from scratch (a decade).      Chapter 2: Race for Survival    3) As Boeing 737 was lower to the ground compared to A320 Neo, there wasn't enough room under the wings to fi...
Post a Comment
Read more