Samsonite, a manufacturer of luggage, reported a roughly 38% increase in sales in India during the first half of 2023, which is a clear sign that the travel boom is driving up demand for hard luggage and travel bags.
Samsonite International SA, which represents the Southeast Asian markets for the bag manufacturer, reported that net sales in India increased 38% (constant currency) during the first half of 2023. According to the company’s results announcement for the six months ended 30 June, which was posted on Wednesday in Hong Kong, net sales in China increased by 99% over the same time.
The figures are underpinned by a significant amount of unmet business demand and are based on net sales in India rising 109.1% year over year in the preceding year, although on a lower basis. As of June 30, India represented 18.2% of Samsonite International’s net sales.
As more Indians take vacations, Jai Krishnan, CEO of Samsonite India, anticipates that demand for bags will be steady and eventually reach levels that are far higher than those before the outbreak.
While demand started picking up last year, it has now settled at a new normal level, “which is much higher than earlier“, he said.
“Last three to four years were very different for our industry. In 2020 early part, nobody travelled anywhere. Slowly, it started coming back in October-December 2020, followed by the second wave. As we got out of the second wave, I think people started realizing how much they love travelling. We knew there would be a surge. Which is why we had the courage to invest,” Jai Krishnan said.
Samsonite increased expenditures at its facility in Nashik earlier to increase capacity in anticipation of post-pandemic demand. Since the start of the epidemic, the Nashik factory has already undergone two rounds of capacity expansion—one in 2020 and another earlier this year—for a total expenditure of almost 250 crore.
Due to this, the company’s manufacturing capacity has increased from 200,000 pieces per month in 2019 to 530,000 pieces per month at this time. By the end of 2024, the plant’s second phase of development, which is expected to increase monthly capacity to 750,000 units and primarily meet local demand, would have been disclosed by the firm. 10% of Samsonite India’s industrial output is accounted for by exports.
Additionally, the business increased its investment in upgrading existing Samsonite locations, both company-owned and franchised.
Krishnan said export demand can also double. “Today, a lot of countries are looking at options for manufacturing and India is a very natural option,” he said.
The company also stepped up investment in renovating existing Samsonite stores including those franchised and those that are company owned. “We invested a lot of money last year, we’ve refurbished 95% of our stores last year,” he said.
The luggage manufacturer offers brands including Samsonite, American Tourister, and Kamiliant in India. The company’s top-selling brand in India by volume is American Tourister.
By the end of this year, the business will have 500 American Tourister stores through franchise partners and 100 Samsonite stores in its network of mono-brand stores. Additionally, it has multi-brand storefronts and sells online.
Along with increased travel and expanded luggage usage, replacement sales have also increased.
