Home Retail Samsonite to go big on online, eyes 25 pc revenue from e-sales

Samsonite to go big on online, eyes 25 pc revenue from e-sales

By  
SHARE

Luggage retailer  is targeting 25 per cent of revenues from online sales channel in the next five years leveraging on its e-retail platform planned for launch next year, a top company official told news agency PTI

Samsonite to go big on online, eyes 25 pc revenue from e-sales
The Indian luggage industry is estimated at approximately Rs 12,000 crore, of which the branded market at retail value is Rs 6,000 crore and Samsonite enjoys close to 40 per cent market share in the branded segment.

“In India, online sales contribution is 8 per cent whereas on a global scale, approximately 9 per cent is the online sales contribution. It is expected to grow to 25 per cent in the next five years with the help of , an e- retail platform specialising in luggage. We intend to launch in India in 2018,” Samsonite President, Asia Pacific,  was quoted by PTI as saying.

The US-based company will be expanding in the offline market as well and plans to add 50 stores this year to take its count over 400 in the country as it eyes a growth of 12-15 per cent in sales.

“At present, we have over 350 stores in India. We plan to open additional 50 stores by the end of this year. We are expecting a 12-15 per cent growth in sales. This will be in line with our past growth trends,” he was further quoted as saying.

The company, which sells Samsonite,  brands among others, had clocked a revenue of Rs 2,400 crore in MRP value terms for 2016. contributes around 70 per cent of the revenue in the country.

The company gets 60 per cent of its turnover from metros and tier I cities and sees opportunity in the lower tier cities.

Samsonite’s product range includes luggage bags, backpacks, duffel bags. Dutta said the company sees huge potential in the womens handbag space with its brand .

“We see womens category as a future growth driver, with our womens hand bag brand Lipault in particular, he added.

Travel products, which include trolley cases in soft and hard material comprises 65 per cent of the company’s business in the country, while the non-travel products like backpacks, laptop briefcases, duffels and totes account for the remaining 35 per cent of the business.

The Indian luggage industry is estimated at approximately Rs 12,000 crore, of which the branded market at retail value is Rs 6,000 crore. Samsonite enjoys close to 40 per cent market share in the branded segment.