Luggage brands on a high-growth path as the travel industry booms.

India's travel resurgence drives a substantial transformation in the luggage industry, doubling sales and increasing global interest. Once considered 'low involvement,' the market is now witnessing a surge in investor interest and attention from renowned brands. Executives note a remarkable 100% year-on-year growth in the premium range, featuring global brands like Tommy Hilfiger and Delsey Paris. Additionally, the affordable range is experiencing over 40% year-on-year growth, with brands like Safari, Kamiliant, and Aristocrat gaining popularity, especially in tier-3 and tier-4 cities.

The industry is revolutionizing with partnerships such as Ethos Watch Boutiques and German luxury luggage brand Rimowa and licensing agreements for premium luggage under football legend Diego Maradona's franchise. Direct-to-consumer brands like Mokobara, Nasher Miles, and Uppercase are also emerging. Crisil estimates the luggage market to be worth US$ 1.8 billion (Rs. 15,000 crore), with organized players holding a 40% market share. The capital structure and coverage metrics are expected to be minimally impacted despite increased debt levels due to improved cash accruals. The evolving landscape has led to intensified competition, impacting market share for VIP Industries, which reported an 84% year-on-year drop in consolidated net profit at US$ 8,61,653 (Rs. 7.15 crore) for the December quarter. Established brands like Samsonite are responding with innovative marketing strategies, partnering with influencers and celebrities to maintain their competitive edge in this dynamic market.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.