India’s travel industry is currently experiencing a vibrant surge, yet established luggage manufacturers are facing challenges in capitalizing on this growth. The shift in consumer preferences toward modern brands has left legacy companies like Samsonite, VIP Industries, and Safari grappling with declining sales and profits.

The Rise of New-Age Luggage Brands

Recent conversations with industry insiders reveal that discounts on luggage have skyrocketed, ranging from 50% to 70% across both online and offline platforms. Shoppers are increasingly inclined to seek out durable and cost-effective options. Innovative newcomers such as Mokobara, Nasher Miles, ICON, and Uppercase are shaking up the market with fresh designs and cutting-edge features. This competitive landscape has led to a significant churn in India’s estimated ₹15,000 crore luggage market.

Evolving Market Dynamics

A report from Crisil Ratings indicates that organized luggage manufacturers hold approximately 40-45% of the overall market share in India. While the transition from unorganized to organized luggage is gaining momentum, it is the agility and creativity of new brands that are capturing a larger slice of the market.

For instance, Samsonite, the world’s largest luggage manufacturer, reported a 19.3% drop in net sales in India for FY24, primarily due to escalating competition. In its recent earnings call, the company acknowledged that rivals like VIP Industries and Safari are ramping up discounts to attract consumers, adversely impacting sales, particularly for the American Tourister brand, which saw a 6% decline.

Challenges for Established Brands

If we disregard India, Samsonite’s overall sales decline for American Tourister was a more modest 1.9% for FY24, according to CEO Kyle Gendreau. Neetu Kashiramka, Managing Director of VIP Industries, confirmed that while deep discounts are being offered on soft luggage, e-commerce platforms like Flipkart and Amazon are exacerbating the issue by selling below their purchase prices, complicating matters for established brands.

The Impact of E-Commerce on the Luggage Market

Industry experts suggest that the online shopping boom has democratized the luggage sector, allowing both established and emerging brands to compete at accessible price points. The frequency at which consumers replace their luggage has also increased, driven by direct-to-consumer (D2C) brands that are pushing innovative solutions.

Harminder Sahni, founder and Managing Director of Wazir Advisors, noted that the post-COVID luggage market has transformed significantly. Today’s travelers are not only venturing out more often but are also seeking stylish and functional products.

Innovative Features Captivating Consumers

Modern D2C brands are introducing smart luggage equipped with tracking systems to locate lost bags. Some brands focus on lightweight materials to enhance travel convenience, while others incorporate innovative sensors for automated movement, adapting to the traveler’s pace. Additionally, many designs prioritize maximizing packing capacity without sacrificing aesthetics.

N Chandramouli, CEO of TRA Research, emphasized the shift from traditional luggage to products that reflect the modern traveler’s style and needs. Luggage is increasingly becoming a personal expression, with brands catering to both short and long trips.

Marketing Strategies of Legacy Brands

To regain consumer interest, established players like Samsonite and VIP Industries have ramped up their marketing strategies, collaborating with brand ambassadors and social media influencers to enhance their digital presence.

Gendreau expressed optimism that promotional activities would taper off in 2025, predicting that the market would stabilize soon. Meanwhile, Kashiramka believes that e-commerce platforms must reconsider their aggressive discounting strategies to bolster profitability.

Conclusion: A Thriving Consumer Experience

For now, consumers are reaping the benefits of this competitive landscape, enjoying a wider variety of travel products than ever before. As the luggage market continues to evolve, both established and emerging brands must adapt to meet the changing preferences of modern travelers.