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Purvita Chatterjee

Mumbai, March 27 Having repositioned itself as a lifestyle brand, Samsonite is reducing its dependence on luggage as a category. After entering the footwear segment last year, it is now extending the brand into new categories — stationery and accessories such as eye wear and watches.

Speaking to Business Line, Dr Ramesh Tainwala, President, Samsonite Greater Asia, said, “By the end of this year we should have launched our stationery collection, which would be along the lines of the Mont Blanc range. It would comprise writing instruments and diaries. We expect non-luggage merchandise to contribute 50 per cent of the total revenues across all the markets of Samsonite, including India.”

Besides this, the luggage major is also changing its retailing strategy whereby it is getting away from having stand-alone stores to enhancing its presence in the shop-in-shop format with the big retailers. “India is a peculiar country where the stand-alone stores are not efficient and profitable. We intend participating with the retailers, especially the global retailers who are entering the country,” said Dr Tainwala.

Samsonite in India would be using its global retailing associates and using their retail space once they make an entry into the Indian market.

High-end retailers such as Debenhams (already in India), Harvey Nicholas, Saks and Harrods are expected to stock the Samsonite brand, as and when they set up operations in the country. Currently, Indian retailers such as Shoppers’ Stop and Lifestyle have tied up with the luggage maker.

“Big retailers provide efficiencies in rent and also back-end support, warehousing facilities and logistics. It makes more sense to tie up with them than trying to operate retail stores on our own,” he claims.

Samsonite also does not believe in having localised advertising as it has positioned itself as an international lifestyle brand. “We have stopped all work by the local agency and creatives are sourced from TBWA in NewYork,” says Dr Tainwala. Besides, there are no intentions to manufacture the brand in India and its existing facilities at Nashik have become a design and development hub.

At the same time, India is expected to emerge as Samsonite’s third largest market after China and the US. “Currently, India is our fifth largest market but in the next three years, we see India becoming either our second or third largest market. Growth rates in the Indian market are currently at 65 per cent,” claims Dr Tainwala. With luggage comprising 75 per cent of its current revenues, the Rs 200-crore Samsonite India expects this to drop to 50 per cent as it expands its non-luggage portfolio in the country.

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