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Witco and the Indian Luggage Market

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The luggage market in India has been growing steadily over the past few years due to the increasing disposable income levels, a rise in air travel, the expanding number of retailers and speciality stores all over India, and luggage fast turning into a lifestyle product than something utilitarian. The modern market is dominated by a handful of players such as VIP and Samsonite.

One of the prominent modern retailers of luggage in India is the 60-year-old Witco, a South Indian specialty multi-brand chain that retails premium luggage, bags, and accessories. The company is led by its 53-year-old Managing Director VP Harris.

Witco was founded in 1951 by the late MPC Mohamed, one of the pioneers of the plastic industry in Chennai. The firm called West India Plastic Trading Co was established in George Town, Madras, dealt in the wholesale and retail of plastic-ware, travel goods, and accessories. It was among the first brands in India to launch a portfolio of handcrafted luggage and bags under a trademark. The company grew over time to become one of the most trusted brands in the category – a fact which came out clearly when the Indian affiliate of Interbrand, Equitor, did a brand audit on Witco.

During the peak of the oppressive license Raj and the prohibitive tax regime with zero incentive for the category by the government, Witco decided to exit manufacturing altogether and focus only on retail. Liberalisation of the economy brought new life to Witco but the decision to stay focussed exclusively on retailing continued.

A couple of large-format multi-brand stores ranging from 3,500 to 7,000 sq.ft. were commissioned in the early 1990s on Anna Salai Road and Usman Road, positioned as multi-level destination stores for luggage, bags, and accessories. These were followed with landmark stores at Anna Nagar, Adyar, Cathedral Road, and Mylapore.

Witco’s positioning statement is: “Step out of Witco with the complete confidence of having purchased the most elegant and convenient travel accompaniments that meet your special requirements.” Explains Harris: “The brand aims to empower the Indian traveller to be ‘travel-ready.’ We have a vision to be India’s leading travel goods retailer across all segments.”Witco offers premium luggage products and bags for a range of customers, from the daily commuter to the international traveller. The product categories include luggage, travel bags, laptop bags, executive bags, backpacks, school bags, hand bags, and accessories.

Brands from all over the world make up the product mix. These include international brands such as Samsonite, Delsey, American Tourister, Case Logic, Nike, Puma, Fiorelli, Blues & Blues, and Gola and, while the Indian brands include names such as VIP, Sky Bag, Baggit, Hidesign, Wildcarft,  Harrsions, and more.

The travel and personal accessories segment includes locks, passport holders, belts, wallets, travel adapters, and other travel necessities. This category overall gives a lifestyle element to the brand.Customers at Witco can be segmented as the business traveller, IT traveller, family traveller, adventure enthusiast, holiday traveller, students travelling abroad, and the daily commuter. These segments can be in an age band of anywhere between 25 and 50. The overall attitude of Witco customers is characterised by a need to experiment, express their personality and seek a guide to the best choice available. Its customers mostly belong to the socio-economic classification (SEC) of A1+ with a mean household income (MHI) of over Rs 30,000.

According to Witco officials, there is a shift in preference of customers to soft luggage from hard due to price advantage and the convenience factor. Other trends include personalised designs to make the luggage easily recognisable, light weight to avoid paying excess baggage charges at the airports and extra security such as TSA locks. Comfortable and fast four-wheelers are also being preferred. In handbags, there has been a clear shift in customer mindset where now a woman owns several handbags based on occasion or the dress she carries it with.

Witco has an average store size of 800 to 1,500 sq.ft. The overall investment needed to set up a store is around Rs 2,000 per sq.ft. The time period for a store to reach operational break-even varies from three to six months.As part of its marketing strategy, Witco from time to time holds events focussed on various product categories. Some examples include the Handbag Gala, the Office Bag Expo, and the School Bag Carnival. During these events, the product assortment of that particular category is expanded and communicated using various mediums such as mainline newspapers, bus panels, SMS campaigns, store facades, and in-store POP, among others.

Witco runs a customer loyalty programme called Witco Priority Club. The company’s main objective is to keep the programme simple – only the mobile number of a customer is needed to register. The tag line of the concept is: “No cards. No hassle. Just rewards.”

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