Global Branding

26 Pages 6416 Words

uggage market.
In 1986, excise duty was imposed on inputs to moulded luggage sector and this led to a shakeout in the industry, which saw VIP buying out the competing Universal Luggage. VIP’s policy has been to maintain the two brands as distinct and separate in the consumer’s mind and in effect, the very fact that both these companies belong to the same business group is not very common knowledge.
A notable development was the vertical integration of the Dilip G. Piramal Group in the luggage/plastic industry. In 1994, DGP group took over Klockner Windsor, a major manufacturer of extrusion and injection-moulding machines used for making moulded luggage and renamed it DGP Windsor.
VIP emerged as the second largest manufacturer of luggage in the world, and holding 80% (VIP & Universal) share in the Indian organized sector for luggage.

· Post 1997: The year 1997 saw the entry of Samsonite, World No. 1 player in luggage, into the Indian market with the setting up of a manufacturing base in Nashik, through a joint venture with Tainwala & Co. as the minority stakeholder. Samsonite grabbed about 6% of the organized sector market in the first year of its operations and has been growing in the Indian market since then.

The organized sector of Indian luggage market, which has grown to a size of Rs.600 crores, is witnessing a historic phenomenon today, with the two largest firms in the world fighting for their shares in the Indian pie, and one of them holds a near monopoly already.

2.2 Market Constitution:
The Indian Luggage industry is estimated to be worth Rs.1,300 crores, out of which, the organized sector accounts for Rs.600 crores and the unorganized sector has the balance Rs.700 crores.
Broadly, luggage is classified into hard luggage (moulded luggage) and soft luggage (vinyl, leather, synthetic leather). CAN WE DEFINE LUGGAGE?
In the organized sector, currently, the moulded luggage category commands approximately 80% (...