Samsonite to launch sub-brand of affordable footwear

Samsonite India is re-jigging its footwear pricing strategy by having a separate sub-brand with price points below Rs 3,000 to make its brand of shoes more affordable for the Indian market.

Mr Subrata Dutta, Managing Director, Samsonite South Asia, told Business Line , “We are looking at a new sub-brand in footwear for travel, comfort and style, which will be priced below Rs 3,000. These shoes will be made more affordable, especially for the Indian market, and we would be selling them through Samsonite and multi-brand stores.''

Currently, Samsonite's footwear range is pegged upwards of Rs 3,000 and contributes between 5-6 per cent of its Rs 750-crore turnover. “We realise that footwear is a difficult category, but India and China are top markets for the company and there are a lot of local initiatives planned for these markets,'' says Mr Dutta.

In fact, Samsonite recently listed itself on the Hong Kong Exchange and the funds raised would also get used in the Indian market. Today, India contributes 6.6 per cent of Samsonite's global turnover of $1.2 billion.

Samsonite has discontinued its licensing arrangements with big brands such as Timberland and Lactose for bags and is not in hurry to forge more licensing arrangements. Besides, it is also staying away from launching premium accessories such as watches and eyewear for the moment. “We still need more time to launch accessories under Samsonite as the market is not growing as fast as we had anticipated,'' claims Mr Dutta.

With intentions of increasing its presence at the mass end of the luggage market, Samsonite is expecting its American Tourister brand to give it the necessary growth in top line. “American Tourister's contribution to the total turnover has gone up from 10 per cent to 50 per cent. Today, we would be taking the brand to more tier-2 & 3 cities and have enhanced distribution for the brand,'' added Mr Dutta. In fact, the American Tourister brand is growing at 70 per cent today compared to the more sluggish growth of Samsonite at 40 per cent.

Samsonite India is also increasing its ad spends with a Rs 50-crore budget. It has appointed a new digital agency Ignitee for digital advertising. “We would be spending almost 13 per cent of our ad budget on the digital medium and would be launching a global campaign,'' added Mr Dutta. Samsonite has roped in celebrity commentator, Harsha Bhogle, to capture the online space through his blog based on cricket.

COMMENT NOW