It's a back-to-school kind of scene with backpacks.

Working women, bikers and IT/ITES professionals are giving a fillip to the backpack market in India.

Sure enough, luggage makers in the organised and unorganised category are vying for a slice of the Rs 600-crore market as they smell moolah in this small but high-growth category.

“Backpacks will grow phenomenally in the coming years as they combine convenience with fashion. Interestingly, it is not just the youth, but a whole section of society that's going for them,” Mr Subrata Dutta, Managing Director, Samsonite India, says.

Endorsing this view, VIP Industries, the largest luggage manufacturer and retailer, also notes a perceptible change in the consumer profile. A young mobile workforce, owning two-wheelers and laptops, are also contributing to the rapid growth of this segment.

Mr Manish Vyas, Vice-President, Marketing, VIP Industries, says, “Though relatively a new concept in personal travel, the backpack is showing marked growth. For instance, a youth would carry a backpack but not a briefcase to his college, while working women hardly use briefcases, but backpacks are being patronised by them.”

Estimated at Rs 600 crore, the backpack market is registering a growth of over 30 per cent. Operating at a price point between Rs 350-Rs 3,500, companies are bringing out specific ranges to cater to this demand. Currently, all branded players contribute about 8-10 per cent to the category. Players like Reebok, too, have launched their own range.

Currently, 8 per cent of Samsonite's total sales come from backpacks while its mid-range American Tourister contributes about 12 per cent. The company has about 48 stock keeping units in American Tourister.

Analysts note that bulk of the demand for backpacks stems from cities like Bangalore and Chennai followed by Delhi and Mumbai. VIP has a nearly 60 per cent market share in the organised segment. Also, modern lifestyle retail outlets stock a slew of premium backpacks starting from Rs 450.

Mr V.P. Harris, Managing Director, Witco India, a multi-brand luggage retailer, says “the acceptance of backpacks will only grow,” adding Witco stocks over 300 styles in a price range of Rs 700 to over Rs 3,000.

However, VIP's Mr Vyas points out that the category is very large and unorganised. “There are multiple local players who sell at very low price points. Therefore, it is difficult to get good fit on the size. As branded players enter, penetration will improve. But it will not be a good margin business till the market evolves. Thus, only organised players with longer breakeven horizons and financial capability to invest long term can create brands in this category”.

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