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Indian luggage brands & their bag full of tricks

A look at what the domestic luggage brands are doing to meet the global competition head-on and adapt to the changing times

Bengaluru: The Indian luggage industry has witnessed significant growth and transformation in recent years, reflecting the agile nature of consumer preferences, technological advancements, and global trade dynamics.

In 2023, revenue in the luggage and bags segment in India amounts to $14.04 billion and the market is expected to grow annually at a compound annual growth rate of 5.95% from 2023 to 2026, as per data analytics platform Statista.

Let’s explore the multifaceted journey of the Indian luggage industry, examining its competitive edge against its global counterparts, its adaptability, and its potential for further expansion in the face of a rapidly changing global marketplace.

Competing with global players 

Indian luggage brands have established a distinct competitive edge over their foreign counterparts, propelled by several key factors that uniquely position them in India as well as the global market.

“Firstly, local brands have a deeper understanding of the diverse Indian market, allowing them to offer tailored products and experiences that resonate with local preferences and cultural nuances,” said Ayush Tainwala, chief executive officer of Bagzone Pvt Ltd, the parent company of fashion accessories brand Lavie Sport.

“Additionally, building trust through personalized customer service and support in regional languages can be a significant advantage. Collaborations with local influencers and celebrities can also enhance brand visibility and credibility. Finally, affordability and value-driven pricing strategies are essential to cater to the cost-conscious Indian traveller,” added Tainwala.

Lokesh Daga, founder of Nasher Miles, a Mumbai-based travel brand that sells a variety of hard side and soft side luggage, backpacks, and duffle bags feels that Indian luggage brands balance affordable prices with good quality, which attracts budget-conscious Indian customers. Moreover, the ability to control production processes grants Indian travel brands remarkable agility. “This agility helps them keep up with market trends and by understanding the local market, offering competitive prices, and staying flexible, Indian luggage brands build trust and loyalty among their customers,” Daga said.

Adapting to consumer shifts

There has also been a notable shift in preferences within the luggage and bag industry, driven by evolving lifestyles, increased travel, and a heightened emphasis on functionality and style.

There has also been an increased preference for sustainable products. Bagzone reported an increase in demand for sustainable and eco-friendly travel products, prompting the company to invest in sustainable materials and production processes.

The other shift is in the way consumers buy luggage to which retailers are responding. Abhinav Kumar, Whole Time Director of Brand Concepts, a multi-brand retail house for travel gear, handbags, and lifestyle accessories, shared that the company has integrated technology into the stores in response to the customer’s changing shopping habits.

“To enhance the shopping experience, we have integrated digital solutions in some of our stores. This includes the installation of digital kiosks, which allow customers to browse our inventory seamlessly,” said Kumar.

Tech and digital as a catalyst 

Technology is being used extensively in the product as well. From smart luggage with tracking systems to lightweight materials developed through cutting-edge manufacturing processes, technological advancements are an integral part of today’s bags.

E-commerce platforms and mobile applications further enable luggage brands to reach a global audience. In fact, the online channel has led to the growth of several D2C brands in the segment like Assembly and Nasher Miles.

“As a D2C brand, our exclusive digital presence has been a game-changer. By strategically leveraging e-marketplaces, we can offer our products precisely where customers are searching for them, ensuring maximum visibility and accessibility,” said Daga of Nasher Miles.

Apart from e-commerce, technology also leverages digital marketing, offering a myriad of opportunities for brands to connect with consumers, build brand awareness, and drive sales.

“Digital marketing has empowered us to quickly refresh our advertisements, incorporate new materials for product launches, and engage with our audience effectively across various online platforms. This agility not only keeps our brand contemporary and appealing but also enables us to promptly adapt to market trends, reinforcing our competitiveness,” added Daga.

Bright prospects 

The future of the Indian luggage industry appears promising as it stands at the intersection of various positive trends. Revenue in the travel and tourism market is projected to reach $18.91 billion in 2023 and is expected to show an annual growth rate (CAGR 2023-2027) of 13.47%, resulting in a projected market volume of $31.3 billion by 2027, according to Statista.

Also, the total expenditure made by Indian travellers will soar to $410 billion by 2030 making India the fourth largest global spender, as per a report by online travel marketplace Booking.com and management consulting firm McKinsey & Company.

With a burgeoning middle class, a rising trend in domestic and international travel, and an increased emphasis on lifestyle and fashion, the demand for luggage solutions is expected to soar.

Dealing with the baggage of the pandemic

The Indian luggage industry was one of the sectors that were hit the hardest due to the pandemic with retail and travel coming to a complete standstill. That was a time when the luggage industry saw the closure of droves of stores nationwide. For example, Samsonite shuttered more than 100 outlets in India.

However, like other sectors, this segment too swiftly embraced the digital.

“In response to the challenges posed by the closure of travel and luggage stores during the pandemic, our brand undertook a strategic shift to adapt to the new circumstances,” said Abhinav Kumar, chief executive officer of Brand Concepts Ltd.

“We recognized the need to pivot from a heavy reliance on physical retail stores to a more diversified approach. This led to the launch of our online platform, bagline.in, which provided a direct avenue to reach our customers. Additionally, we strengthened our presence on e-commerce platforms such as Amazon and Myntra, expanding our digital footprint and tapping into a wider customer base,” added Kumar.

Luggage manufacturing company VIP Industries Ltd, which owns brands such as VIP, Carlton, Skybags, Aristocrat, Caprese and Alfa, had read the signs early and adapted by implementing a China+1 strategy which involved shifting 90% of production to India and Bangladesh. Also, like others, VIP also turned its focus on developing its direct to consumers (D2C) channels.

Suyash Dongare, head of digital marketing at VIP Industries shared that the company now aims to make D2C its largest sales channel.

The post Indian luggage brands & their bag full of tricks appeared first on India Retailing.



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