The Hindu Business Line : Samsonite to ramp up retail presence

Samsonite India has earmarked an investment of Rs 40 crore towards expanding its retail network. Having forayed into the luxury segment with its Black Label brand, the luggage major intends launching 12 exclusive Black Label stores within the next three years.

It has also decided to increase the retail network for its value for money family brand of American Tourister from the existing 45 stores to 200 stores to reach out to the mini-metros and smaller towns across the country by the end of the year. The existing Samsonite Original Stores is also expected to increase its numbers from 162 to 180 stores.

Speaking to Business Line, Dr Ramesh Tainwala, President-Samsonite South Asia Pvt Ltd, said: "Today Samsonite has retail focus. In fact we have decided to emulate the Indian retail model to the emerging markets such as China, Turkey, Central Asia and Latin America."

The company intends funding its retail expansion through internal accruals and local borrowings.

With a 27-per cent share in the Rs 1,000-crore luggage market, Samsonite of late has been segmenting its offerings under the three brands of Black Label, Samsonite and American Tourister.

Expecting its luxury brand of Black Label to record a Rs 60-crore turnover in its first year, Samsonite expects to brand to register a 12 per cent growth in the Indian market.

However, its fastest growing brand is expected to be American Tourister, which has pegged growth rates at 46 per cent while the targets set for growth for the Samsonite brand is 30 per cent.

Adds Dr Tainwala, "We expect American Tourister to grow faster since it is channels such as hypermarkets and department stores which are fuelling its growth." Meanwhile, Samsonite is also scouting for a brand ambassador for this mid segment brand.

"We are looking for a local celebrity to endorse the American Tourister brand," says Dr. Tainwala.

The parent company Samsonite Corporation has recently floated an IPO but in India its operations are still unaffected by this development. "It is not necessary that in India Samsonite there would be a similar outcome," added Dr. Tainwala, who himself continues to have a minor stake in the company.

Marking an ad spend of Rs 16 crore this year, Samsonite expects to spend disproportionately behind its newly launched luxury brand of Black Label.

After having Richard Branson of Virgin Airlines endorsing the brand in its campaigns, the global luggage brand has now roped in American socialite Rosselini to stand for its brand in the future.

With a domestic turnover of Rs 350 crore, Samsonite India expects to grow between 35-40 per cent this year.

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