A Change In Consumer Culture Will Be A Great Opportunity For Samsonite.

According to the world clothing shoes and hats net, the world's largest luggage enterprise Samsonite (

) CEO Ramesh Tainwala believes that the pformation of consumer culture is a great opportunity.

He recalled that when he first entered the society, he worked to buy houses, get married, and buy electrical appliances. Now people are willing to take most of their income to experience new culture and new food.

The millennial generation is more inclined to travel and then leads the suitcase.

Vigorous development.

The pformation of consumer culture from material to experience is not the only driving force for the development of the industry.

In the densely populated area, the new middle class began to travel for the first time, providing a new market for the luggage industry.

Data show that the global market value of suitcase exceeds 300 billion, and the growth of global travel market will push the steady growth of single digit.

The booming market has spawned many suitcase start-ups, and now completed the $20 million B round of Internet luggage brand Away in May.

Ramesh Tainwala said he did not worry about these "small" rivals.

"Over the past few years, we have been growing in two figures - travel, food and entertainment have become the preferred list of people."

In the 2016 fiscal year, Samsonite's sales increased by 15.5% over the same period, much higher than 6% of the whole industry.

Changes in aviation rules have led to changes in the business structure of Samsonite group.

30 years ago, chassis and travel bags accounted for only 7 to 8% of the company's sales, and now it has grown to 40 to 50%.

Samsonite group is developing fiber and metal structure to reduce the weight of suitcase as much as possible, especially for more popular cheap voyages.

"People travel more frequently and shorter distances.

They want to carry their luggage with them instead of doing it on the side of the conveyor belt, "Ramesh Tainwala said.

Future growth

Ramesh Tainwala points out that the growth of suitcase category is directly proportional to the growth of tourism industry.

Data from the World Tourism Organization show that over the past five years, the number of tourist trips has increased by 3 to 4%.

In the same period, Samsonite's business grew at a compound annual growth rate of 12.4%, with an industry growth rate of 4 to 5%.

By region, the number of Chinese tourists has increased the most.

In the past five years, more than 100 million people are leaving China every year.

This figure is expected to reach 200 million in 2020.

Ramesh Tainwala believes that Samsonite has plenty of room for growth in the 320 billion dollar global luggage market.

"When we enter the market in Afghanistan or Rwanda, we are often the only local foreign countries.

One may even be us and Coca-Cola.

If we can become the first luggage brand in many countries, we will have an excellent opportunity.

The United States is our biggest market. Latin America is the fastest growing market. "

Samsonite group's products are now sold in many countries around the world, and it is one of the few Accessories Companies in the world with a wide range of distribution channels. 100

In different markets, Samsonite group's strategy is "adjust measures to local conditions".

For now, Samsonite's flagship goods in Asia are not high-end suitcases priced from 500 to 600 dollars, but mid-range suitcases with 300 to 350 dollars, with the intention of grasping the fast growing mid market of China and India.

The group is planning to launch a luggage rental service in Japan.

Ramesh Tainwala explains: "in Japan, where the living space is small, where is the suitcase after vacation? This is the origin of the concept of our luggage rental."

It is reported that Samsonite will use the trunk after being leased and put it in a machine similar to the car washing machine, then put it in a vacuum packaging bag for distribution, so as to ensure the health and safety.

Retail channel expansion

Samsonite group is investing heavily in retail channels.

The group hopes to have 50 thousand sales outlets worldwide and will increase 200 to 300 (sales outlets) annually.

"Retail stores are more important to our products because customers want to really touch and feel products.

Up to now, electricity supplier sales account for only 9% of the group's total sales, "Ramesh Tainwala said.

Ramesh Tainwala pointed out that physical stores will always exist, but strategies must be adopted to cater for new customers' consumption habits.

Nowadays, the boundaries between online and offline become more and more blurred. "But I do not think it is necessary to distinguish between online and offline, which is more like a whole channel."

Reasonable pricing

Samsonite group currently offers products at multiple prices, such as high-end brand Tumi priced at US $1000 and above, and the mid-range brand Samsonite priced from 200 to US $600, and the group's brands include: Cumberland, American Traveler and so on.

In March 2016, Samsonite group bought Tumi of light luxury luggage brand for $1 billion 800 million.

Ramesh Tainwala pointed out that the low end trunk market is growing fastest.

More people want to travel, especially the expanding new middle class in emerging countries.

"In emerging economies, the number of people traveling economically is increasing.

We will focus on this market sector to convey real value to consumers, so pricing will not be particularly ridiculous.

The slump in the physical sales industry has led many retailers to try to attract customers through discount strategies.

In such a big environment, Samsonite group has different positioning and prospects for different brands.

Such as flagship brand Tumi, no sales promotion and no discount, rookie Li about 1/4 of the products will be discounted sales promotion, and American Tourist is basically a discount brand.

"Tumi must avoid leaving a discount image in the minds of consumers."

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