Mumbai: Samsonite, the world’s biggest luggage maker, said it has seen a wave of 20-25 digital-first luggage startups in India since the pandemic but will continue to abstain from chasing volumes through deep discounting to match pricing of the smaller rivals despite near-term market share pressure. Demand for luggage has normalised in the country driven by rising domestic travel and weddings, rebounding from a slowdown in 2024 due to a high base of post-pandemic surge.
“Samsonite was one of the biggest beneficiaries of the travel boom that followed Covid-19, when pent-up demand led to soaring sales across the segment. But those gains were unsustainable,” said Jai Krishnan, chief executive officer, India, Samsonite South Asia. “We are now seeing healthy retail footfalls which is a good indicator of demand.”
India has emerged as one of the most stable markets globally for Samsonite, outshining slower growth in the developed markets.
India is Samsonite’s third largest market after the US and China. During the September quarter, India recorded sequential improvement led by a recovery in the American Tourister brand, Samsonite’s largest business in the country. Sales in India rose 8.5% last quarter, recovering from a 2.7% decline a year ago. In calendar 2024, Samsonite’s India sales fell 18% to $210 million.
“While weddings remain the single biggest trigger for luggage sales, it is also now driven less by frequent international trips and more by domestic tourism, religious travel and shorter, more frequent holidays,” said Krishnan, adding that trousseau purchase is usually accompanied by multiple journeys that helps suitcase sales moving even as other discretionary categories soften.
India’s travel market is still widening too. Semi-urban consumers, who earlier used to have limited travel, have started to treat leisure trips as routine. In addition, there are a host of other drivers including more students studying away from home and young professionals relocating for work.
New entrants in the luggage industry such as Mokobara, Assembly, and Uppercase have been offering discounts to lure buyers, impacting luggage industry profits or widening losses after Safari Industries and VIP followed suit.
Samsonite, however, said aggressive advertising by loss-making startups may actually expand the overall category by nudging consumers to think about travel and luggage more often. People may even experiment with cheaper options but repeat purchases will be in favour of established brands, according to Krishnan.
“We don’t want to erode our brand equity in a category where durability and service matter,” he said. In India, the company operates across the price pyramid through three labels: entry level Kamiliant, mid-to-premium American Tourister, and Samsonite at the pricier end. Kamiliant accounts for about a fifth of sales and Samsonite another fifth with American Tourister forming the bulk.
