Global luggage brand Samsonite, which operates in the mid-to-premium segment of the luggage market in India, is planning to strengthen its presence in the sub-Rs 2,000 category, through its new mass market brand AT.

“With consumers willing to move from the unbranded to the branded segment even in the mass market, we see a huge potential here,” said Mr Ramesh Tainwala, President, Asia Pacific and Middle East, Samsonite.

The company piloted the launch of AT in 2011 in the North and the East. With the brand contributing about 10 per cent of its revenues last year, Samsonite now plans to take the brand to the Southern markets, he said.

The retailing dynamics for this category would be different than what the company does for its existing brands (Samsonite and American Tourister, which is a mid-market brand), he explained. “We would be targeting smaller towns and novelty stores for this brand,” he added.

Currently, about 50 per cent of the luggage industry turnover in India comes from this segment.

The growth of the estimated Rs 2,500-crore luggage industry in India, pegged at 30 per cent year-on-year, is largely due to the result of the changes in the airline industry, he said. “For instance, with airlines becoming finicky about weight and size, lightweight luggage is in demand,” he said. Also airport sizes have become larger necessitating the use of luggage with wheels, he added.

Samsonite, which posted revenues of around Rs 800 crore in 2010-11 fiscal in India is also planning to enhance its non-travel luggage business which includes office bags, laptop bags and handbags. About one-third of the company's business in India now comes from non-travel bags, which it plans to increase to 50 per cent in three years. “This is to insulate our business from the vagaries of the economy which will directly impact travel and travel-related luggage,” he pointed out.

The company also plans to launch a separate business unit for the Samsonite footwear range later this year, he said.

> anjali@thehindu.co.in

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