Luggage Market – India

September 2010
Executive Summary

The luggage market in India is presently valued at INR XX bn and is expected to attain a market
size of approximately INR YY bn by 2012
Market
The luggage market in India is segmented as Segment 1 and Segment 2

The Indian luggage market is dominated by the unorganized sector with a b% market share of the
total market

Drivers &

Drivers

PLE
– Increase in disposable income
– Increase in traveling boosting the market

Challenges
– Stiff competition from unorganized
sector

Challenges stores

SAM
– Expansion in retailing and specialty

– Luggage as a lifestyle product

– Increasing costs of raw material

Shift in preference to soft luggage

Luggage manufacturers adding new product categories
Trends

Assistance provided by manufacturers to franchisee

The market consists of a few major players facing strong competition from the unorganized sector

Company 1 is the dominant players in the market while the premium segment is domination by
Competition Company 2

Foreign players are entering the market and are choosing the franchisee model as the preferred
entry route

LUGGAGE MARKET IN INDIA 2010.PPT 2

•Market Overview
•Drivers & Challenges
•Trends
•Competition

LUGGAGE MARKET IN INDIA 2010.PPT 3

 Luggage market in India has been developing gradually and
has strong growth prospects
Overview – Luggage Market Market Size and Growth
• The Indian luggage market is estimated to grow at INR bn
a% CAGR to INR X bn by 2012 60 a% X

E
• Franchisee model for business is developing as the W
V

L
major tool for penetration and revenue generation in 40 U
this market

P
• Companies are targeting the mid segment by offering

M
value for money products and high end segment by
20

0
tying up with global brands

SA
• Increase in fashion quotient of Indian consumers and
rise in western influence is driving the market
• Large pool of consumers is attracting foreign players
2009 2010e 2011e 2012e
Note: Figures are for the respective calendar years
Market Segmentation
• This market is highly fragmented and is dominated by Growing faster
L Type 1 driven by sales of
Product 1 and

Imports from Country 1 and stiff competition from the D is Type Product 2
Type 2
the major threat to the players in Indian market
• Company 1, Company 2, Company 3 and Company 4
are the major players in the Indian market Price Segment 1 Segment 2
• Luggage retailing is also catching up with the leading
players such as Company 5 and Company 6 Products < INR XX Products > INR YY
Growth: b% (2009-10) Growth: c% 2009-10)

Source:

LUGGAGE MARKET IN INDIA 2010.PPT 4

Drivers & Challenges – Summary

Drivers
Challenges
Increase in disposable income
Stiff competition from unorganized
Increase in traveling boosting the sector
market
Increasing costs of raw material
Expansion in retailing and specialty
stores

Luggage as a lifestyle product

LUGGAGE MARKET IN INDIA 2010.PPT 5

Trends – Summary

Shift in preference to soft

luggage

Key
Trends

Luggage manufacturers
Assistance provided by
adding new product
manufacturers to franchisee
categories

LUGGAGE MARKET IN INDIA 2010.PPT 6

 Market consists of a few major players facing strong
competition from the unorganized market
Overview Market Share (2009-10)
• Market is competitive with strong competition from Others
the R 20%
• Organized luggage market is gradually becoming
extremely competitive in the type 2 due to changing

P E
consumer preferences

L
• Foreign players have been gradually entering the
market focusing primarily on the type 2
Company 2
25%
55% Company 1

AM
• International players have been tying up with
domestic or regional players and is viewed as the

S
preferred sales route
• Organized market is dominated by Company
Premium Luggage Market Share (2009-10)
Others
60%

followed by Company 2 and Company 3

20%
• Indian luggage market also constitutes of leading
luggage retailers such as Company 4 and Company 5
• Other foreign brands expanding their presence
include Company 6 and Company 7
80%
Company 2

Source:

LUGGAGE MARKET IN INDIA 2010.PPT 7

 Major Domestic Players (4/5)

Company Snapshot: Company A

Corporate Information Brands and Products
Headquarters Mumbai Brand/Collection Product

Founded 19-- Brand 1 P1, P2 and P3

Product A, Product B, Product C and Brand 2 P4 and P5

Products
Product D
Brand 3 P6, P7, P8 and P9
Key People Person 1 – Chairman & MD

Business Highlights

E
• The company is engaged in the manufacturing of M luggage and outsourcing of D luggage

L
• It has its manufacturing unit at City 1, State 1

P

Has an installed capacity to manufacture over P pieces of M luggage/month

M
• Company A operates its business through q branch offices across India

A
• It is known for its innovation through its first fibre Product 1 and Product 2, C locking system, O luggage and K wheeling

S
system
• Company A possess a strong distribution network including X retailers, Y exclusive brand outlets and franchisees
Expansion Plans:
• It plans to expand its strong distribution network by opening Z more exclusive stores by 20--
• The establishment had a turnover of INR G bn in FY 20-- - -- and is targeting INR N bn in FY 20-- - --
Source:

LUGGAGE MARKET IN INDIA 2010.PPT 8

 Thank you for the attention
The Luggage Market – India report is a part of Research on India’s Consumer Goods Industry
Series.
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