The luggage industry in India is currently undergoing a consolidation phase. Competition in the sector is expected to intensify with the entry of foreign players like Delsey of France. Companies with good research and development facilities are expected to survive while others may end up as contract manufacturers for the bigger players. The luggage market comprises of three segments namely the premium segment with 15% of total market share, the popular segment and the standard segment. Samsonite (International) and VIP are the dominant players in the premium segment with a market share of 52% in the popular segment. V.I.P. industries and Universal dominate the low-end standard segment.
The luggage market is dominated by the unorganized sector with 50% market share. Northern and western India are the biggest markets in the country. V.I.P. and Samsonite are focusing on developing their distribution networks. Both players are also into exports. V.I.P.’s export touched Rs.134 million in 1997-98 and is mainly targeted at Gulf and West European Markets. Samsonite posted an export turnover of Rs.150 million for the year ended December ’98. Luggage manufacturers, particularly V.I.P. have slashed prices following decline in prices of raw materials.
The organized sector (8%) is growing at a lesser pace when compared to the unorganized sector (25%). The organized sector will have to face the reality that players in this sector may become organized and come out with branded products emerging as competitors to the existing players in the organized sector. The organized sector has to be cautious of the developing grey market.
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The luggage market is dominated by the unorganized sector with 50% market share. Northern and western India are the biggest markets in the country. V.I.P. and Samsonite are focusing on developing their distribution networks. Both players are also into exports. V.I.P.’s export touched Rs.134 million in 1997-98 and is mainly targeted at Gulf and West European Markets. Samsonite posted an export turnover of Rs.150 million for the year ended December ’98. Luggage manufacturers, particularly V.I.P. have slashed prices following decline in prices of raw materials.
The organized sector (8%) is growing at a lesser pace when compared to the unorganized sector (25%). The organized sector will have to face the reality that players in this sector may become organized and come out with branded products emerging as competitors to the existing players in the organized sector. The organized sector has to be cautious of the developing grey market.
Download Full Project Report Below -
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