Bagline is now committed to broadening its portfolio with more global brands, enhancing its retail footprint to over 100 stores, and setting up its own manufacturing facility
Bengaluru: Modern consumers often feel they cannot have enough bags, as social media has ingrained the belief that bags are a critical part of one’s outfit. Not only for that reason, but the bags and luggage market in India has witnessed substantial growth in recent years, propelled by a surge in travel, the influx of major global brands, and an emphasis on both convenience and aesthetics.
Bagline, a multi-brand retailer in India specialising in travel gear and fashion accessories, established in 2007 as a sister brand to Brand Concepts Ltd., in 2007.
The Indore-based publicly listed company holds exclusive rights for bags and accessories under global brands like Tommy Hilfiger Travel Gear, United Colors of Benetton, and Aeropostale and also operates its proprietary private labels, Sugarush and The Vertical.
It retails over 5,000 stock keeping units (SKUs), including luggage trolleys, backpacks, business cases, wallets, belts, women’s handbags, and various other accessories.
Bagline is committed to broadening its portfolio with more global brands, enhancing its retail footprint and to grow its revenue from the current Rs 500 crores to Rs 1,000 crores within a few years.
In an exclusive conversation with IndiaRetailing, Abhinav Kumar, Director and CEO of Brand Concepts Ltd., provides an in-depth look at the company’s business strategies, diverse product portfolio, technological and sustainability innovations, and ambitious expansion plans.
Edited excerpts…
What is Bagline’s business model?
Our business model revolves around licensing, primarily focusing on international brands. Licensing not only grants distribution rights but also allows us to design, develop, and manufacture products under these brands.
Initially, we started with two brands—Spikar and Rocky. In 2011, we introduced Tommy Hilfiger and later expanded our portfolio by acquiring more brands. Our approach has been to establish each brand successfully before replicating the model with new ones.
Later we started opening monobrand stores, such as Tommy Hilfiger accessory and travel gear stores. This eventually led to the idea of a multi-brand specialty store, where we could showcase all the brands and products under one roof, giving rise to Bagline.
Earlier, we were also involved in character licensing, offering school bags and children’s accessories featuring popular characters like Spider-Man, Ben 10, Shinchan, and Nickelodeon and Cartoon Network franchises. At our peak, we held around 14 to 15 character licenses. However, we eventually decided to move away from character licensing to focus solely on the fashion segment.
In 2013-14, we began investing in a multi-brand store concept. Over the next two years, we expanded rapidly, opening around 25 to 30 stores. However, we had to shut down some stores and lost a few due to competition, as some franchisees received offers from other brands. This period brought a significant learning experience.
What was your initial investment to launch the brand?
It’s difficult to pinpoint an exact figure, but initially, we invested around 2 crores.
Which are Bagline’s core categories?
We operate across three main categories.
- Travel gear: This includes everything you would typically find in a travel store such as luggage (hard and soft), uprights, trolleys, backpacks, and business cases.
- Small leather goods: This category covers men’s and women’s accessories, including belts, wallets, and other leather items.
- Women’s handbags: This includes ladies’ purses and related accessories.
Some brands encompass all three categories, while others focus on one or two, depending on their positioning.
Are there any new brands being introduced soon?
We have signed Los Angeles-based fashion and lifestyle brand Juicy Couture and are currently in the launch phase, bringing the brand to India. We are also planning to open standalone Juicy Couture stores, which will feature the apparel line and other elements of the brand.
The official launch is slated for this month, with Juicy Couture debuting across Shoppers Stop as a key retail partner. The brand will also be available on major luxury e-commerce platforms like Tata CLiQ Luxury, AJIO Luxe, and hopefully Myntra Luxe.
In April, we will open Juicy Couture’s first store in India, with plans to expand to 8–10 stores over the next two years, depending on consumer response.
At present, which brand is witnessing the highest growth?
The majority of our business is driven by Tommy Hilfiger, contributing nearly 80% of our business.
What is the primary age group you are targeting?
Across our various brands, we cater to different age groups. Broadly speaking, our focus ranges from 22-24 years old up to 50 years old, depending on the brand.
Aeropostale, however, has a slightly younger target audience, starting from around 18-20 years old and going up to 28.
What is Bagline’s current retail presence?
Bagline’s first store was in Ludhiana, and early on, we opened multiple stores simultaneously—around three to five at once. Currently, we operate 48 stores across 29 cities nationwide, including 43 Bagline stores and 5 Tommy Hilfiger stores.
Average size of a Bagline store?
The average size of a Bagline store currently ranges between 500 – 600 sq. ft. While we initially had a few smaller stores, we have now started opening slightly larger spaces. As we continue expanding our brand portfolio and product categories, we are also focusing on increasing store sizes.
Going forward, most of our new stores will be between 1,000 – 1,500 sq. ft. Additionally, we are considering experimenting with a much larger store format, around 2,000 – 2,500 sq. ft., as a pilot project. This will allow us to assess consumer response before scaling up.
How many SKUs do you present in each store?
At the company level, our SKU count is quite extensive. Each season, across all our brands, we launch more than 500 to 600 SKUs, giving us a broad product range. At any given time, whether online or offline, we have over 5,000 SKUs live across various platforms.
As a fashion-driven company, we follow a seasonal approach similar to apparel brands, launching new collections for Spring/Summer and Fall/Winter.
What is the ratio between offline and online sales?
Online sales contribute around 40% to 45%, while offline sales make up 55% to 60%. I believe this ratio will remain relatively stable, possibly shifting slightly to 47%–53%, but staying within the same range. Consumer shopping patterns have evolved, and while online was initially driven by value-seeking customers, the landscape has now balanced between both channels.
Both online and offline channels have substantial room for growth, and the overall sales ratio is expected to stay within a similar range over time.
Online shopping has become an integral part of daily life, driven by convenience. It enables brands to reach a much wider audience across numerous pin codes, improving overall distribution. While, fashion shopping is not purely necessity-based; it is an experiential activity. Consumers will continue visiting physical stores as malls provide an engaging shopping experience, often seen as a form of leisure or therapy.
Which region is currently experiencing the highest demand?
North remains a strong market for us, with Gujarat in particular and Mumbai continues to be a key market.
Now, we are witnessing significant demand in tier-3 cities. Previously, consumers from these regions had to travel to metros for shopping, but with the rise of large retail developments in smaller cities, shopping experiences have greatly improved. Developers like Phoenix Mills are creating high-quality retail spaces, and as we expand into these regions, we see a strong and growing appetite for international brands and quality products.
Are there any new markets you are planning to expand into?
Our presence in the South is currently limited, with only three to four stores across the entire region, primarily in Bengaluru and Hyderabad. Expanding in the South is a key priority for us. We are focusing on emerging tier-3 cities while continuing to grow in major metros like Delhi, Mumbai, and Bengaluru, which can accommodate more stores due to their size and population.
Do you prefer malls or high streets to open stores?
I generally prefer malls because, in India, only a few cities have weather conditions suitable for high-street retail. High streets have traditionally been a European concept, where the climate is more favourable. While locations like Connaught Place are great examples, retailers often see sales dip during peak summers.
Malls, on the other hand, offer a well-curated environment where consumers are more comfortable. Parking is convenient, and with cinemas, food courts, and fine dining all in one place, the overall shopping experience is much more seamless.
Are you present on any quick commerce platforms?
We have started with Zepto and are in discussions with Blinkit, but we are proceeding cautiously. Rather than rushing, we are carefully evaluating what works, what doesn’t, and understanding consumer preferences.
What is your retail expansion strategy for the coming years?
Our expansion strategy includes a mix of mono-brand stores and Bagline outlets. If a brand is strong enough to warrant an exclusive standalone presence, we will invest in dedicated brand stores. For instance, with Juicy Couture, we aim to offer a complete brand experience through standalone stores
At the same time, we are continuing to expand our Bagline footprint, now focusing on larger store formats to provide better brand representation and a wider selection for consumers.
Can you elaborate on the key technologies your company is using?
From ERP solutions and warehouse management systems to business intelligence software, we ensure tech integration across all platforms. A strong focus on omnichannel retailing has been a key aspect of our digital strategy.
For instance, we were among the first to introduce the endless aisle concept, allowing customers to browse our entire collection from a dedicated in-store digital bay, accessing inventory from our mother warehouse and all stores.
Also, we have begun leveraging AI in our backend operations, primarily for data analysis and sales trend forecasting, streamlining what was previously a manual data-crunching process. While AI is yet to be implemented in customer-facing functions, our organisation remains highly digital-forward, continuously integrating new technologies into daily operations.
Does Bagline have its own manufacturing facility in India?
Until now, we did not have an in-house manufacturing facility, but that is changing. We have acquired a backpack manufacturing unit—previously a sister concern—which is now being merged into our operations. The acquisition is currently pending NCT approval, after which it will be fully integrated.
Moreover, we are setting up a state-of-the-art hard luggage manufacturing plant in Indore. Trials have already begun, and full-scale production is expected to start in April.
In the first phase, we are targeting an annual production capacity of 3 lakh units, with the potential to scale up to 10 times that capacity. This facility will not be limited to our private labels; we will manufacture for multiple brands, ensuring top-tier quality.
How do you plan to incorporate sustainability practices into the facility?
We are incorporating eco-friendly practices to minimise carbon emissions and ensure compliance with global standards, enabling us to meet export requirements for markets such as Europe and the US. Our goal is to establish a cutting-edge production facility capable of manufacturing for brands like Tommy Hilfiger, Juicy Couture, and future brand collaborations.
As a listed company, we are deeply committed to environmental sustainability. Over 65% of the leather we use for our small leather goods is ethically sourced and more than 90% of our metal trims are lead and chromium free.
What is your typical marketing budget?
Marketing spend varies by brand, but overall, we allocate around 4-5% of our revenue to marketing. Last year, we increased our spending to nearly 8% when we launched a television campaign featuring Arjun Rampal during the World Cup. Although India didn’t win the tournament, the campaign itself was highly successful.
Moving forward, we have several campaigns lined up. Our strategy includes collaborating with a wide range of influencers, from micro-influencers to top-tier personalities, as well as creating experiential marketing initiatives such as airport installations.
Are there any challenges you are facing in business now?
The overall retail industry has experienced a slowdown over the past year. While travel continues to grow, and we remain optimistic about the sector in the long term, recent trends have put pressure on some major brands, whether due to sales challenges or excess inventory. As a result, heavy discounting has become common, but since we operate on the premium side, we have chosen not to engage in price wars.
Instead, we have opted to sit out and wait for this phase to pass, though this decision has come with its own challenges, including muted growth. However, we have remained committed to prioritising our bottom line rather than chasing revenue targets at the expense of profitability.
What is Bagline’s current financial position?
For fiscal year (FY) 2024, we closed at approximately Rs 250 crores in wholesale revenue, which translates to around Rs 460-470 crores in retail sales. Until the first nine months of FY25, we have reached Rs 200 crores, with one quarter’s results still pending.
We started Q1 with nearly 20% growth. However, by the end of Q3, our growth had moderated to around 8% in revenue, and our bottom line took a hit due to revenue not keeping pace with overall expenses.
Currently, our retail operations are at approximately Rs 500 crores, but since we follow a wholesale model, only 10% of our business comes from retail, with the rest captured through wholesale channels.
What is your revenue expectation for FY26?
That depends on both external and internal factors. While market slowdowns are beyond our control, internally, we aim for a 20-30% CAGR over the next three years, provided market conditions remain favorable. This is the growth trajectory we are targeting and striving to achieve.
Now, the focus is on scaling up—expanding from Rs 500 crores to Rs 1,000 crores and then to Rs 2,000 crores. To support this growth, we are strengthening our infrastructure, enhancing resources, improving manpower, refining processes, and upgrading facilities.
Top strategic priorities for FY26?
Our top priority is expanding our brand portfolio, as we aim to become a house of brands by filling key white spaces. The second priority is Bagline, where we plan to experiment with larger-format stores, enhancing the shopping experience for consumers.The third priority is strengthening our digital presence, not just in sales but also in marketing, ensuring greater consumer engagement and brand visibility.
Are there any plans to expand Bagline into global markets?
We would love to expand globally, but currently, all our brand licenses are limited to India, as we do not hold global rights. We have the necessary infrastructure to manage global licenses, but international brands typically hesitate to grant them to Indian entities..
However, we believe the time has come for Indian players to compete for such opportunities, and we have already begun pitching for global licenses with select brands. While we cannot confirm if or when this will happen, expanding globally remains one of our long-term aspirations.
The post Bagging new heights: Abhinav Kumar’s Bagline to hit 100 stores, eyes Rs 1,000 cr revenue in 2 years appeared first on India Retailing.
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