Samsonite giving a tough fight to VIP and Safari


Samsonite is catching up with market leader VIP Industries and this can be attributed to e-commerce, which accounts for 10% of Samsonite’s sales. While Samsonite caters to high income category with products varying from Rs 4,000 to Rs 12,000, VIP products vary from Rs 2,500 to Rs 8,000.

Why this is important?

  • Samsonite is actively trying to eat into VIP’s market share by pitching its American Tourister against VIP’s Skybags which accounts for 35-40% of VIP’s sales.
  • In 2016, Samsonite also conceived ‘Kamiliant’, a brand focusing on sub Rs 3500 segment and to take on unbranded products in smaller cities.Kamiliant is being sold across 2,000 points of sale that include hypermarkets, distribution outlets and canteens.
  • Overall, Samsonite has also increased its points of sales by over 50 per cent in the last three years to over 5,000 locations.
  • According to the company, Samsonite’s Nasik factory currently makes around 80,000 units a month and will be producing 1,00,000 units in a month and then double to 200,000 units in a couple years. While 70% of this will be exported, India remains in the top 5 global markets for the company.

Luggage sector is primarily unorganised and this gives players like Samsonite, VIP and Safari good headroom to grow. Distribution network, marketing and gauging the customer taste will be key for any of these big players to capture a greater market share.

Stocks to be impacted

VIP Industries Ltd.(CMP: Rs. 390, Market Cap: Rs. 5,522, FY2020 PE: 32.5), Safari Industries India Ltd. (CMP: Rs 643, Market Cap: Rs 1,431, TTM PE: 84.3)

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