The Rs 758-crore VIP Industries is preparing to enter the handbag segment with a new brand by the year-end. The bags would be positioned as ‘mass premium' and are likely to have a European-sounding name. The company expects the bags will generate as much business as luggage within a decade.

Speaking to Business Line , Mr Dilip Piramal, Chairman, VIP Industries said, “We are planning to enter the ladies handbag market by the last quarter and the full impact of this segment will only be visible next year. Though the handbag segment is nearly six to seven times the luggage market, there is still no big brand in it. We expect handbags to equal the luggage business in the next 10 years.''

Sourcing the ladies bags from China, like the rest of its luggage portfolio, VIP expects to build its indigenous brand in a relatively unorganised and unbranded bags market in India.

“Consumers need a choice and we felt there was potential in this category. Besides, handbags would complement our luggage business and we would use almost half our existing network of luggage dealers for the handbag category,” added Mr Piramal.

Recently, VIP's nearest competitor, Samsonite, also entered the bag segment with the Samsonite Red brand pegged upwards of Rs 2,500. “We launched Samsonite Red in April this year and have positioned it as a unisex casual bag,” said Mr Subrata Dutta, Managing Director, Samsonite.

Besides, there are also international bag brands such as Guess and Kipling, along with desi brands such as Hidesign and Holii (from the Future Group).

Meanwhile, with most international luggage majors suffering losses, VIP, which had a distribution tie-up with the ailing Delsey brand, is now replacing it with the Carlton brand, which it acquired nearly seven years back.

Related Topics
comment COMMENT NOW