Dubai: Samsonite, the world’s largest travel luggage company, sees between 15-20 per cent growth in revenues this year in the region despite headwinds faced by other industries.
The group’s core brand, Samsonite, is one of the most well-known travel luggage brands in the world but it also has brands like American Tourister, High Sierra, Hartmann, Gregory, Kamiliant, Lipault and Speck under its portfolio.
“The growth is expected to be stronger as we are rolling out value-for-money products to eat into the market share of other brands,” Shaheen Jamil, business head of Samsonite Middle East, Africa, SAARC and CIS, told Gulf News.
The Hong Kong-listed company acquired New Jersey-based Tumi for $1.8 billion (Dh6.61 billion) recently to expand in the premium business travel bags segment and expand further in Asia and Europe.
Although two-third of Tumi’s sales come from the US, “the real opportunity” is outside North America.
Jamil said that premium fashion brands have taken a hit because of economic slowdown but the mid-market segment hasn’t so far.
In 2015, the company grew round 15 per cent in the region.
According to Jamil, the number two brand in the region is American Tourister but third place depends on the region and it varies.
In India, he said that it will be VIP but in the Middle East, it is Delsey or American Tourister in the mid-market.
“We are changing our focus and in a big time. Earlier, we were a brand that would sell luggage primarily and a little bit of bags. Now we are changing into a company that sells bags and also luggage. We have a brand for school kids — High Sierra — and we are launching a brand that is below the American Tourister and for mass market — Kamiliant. It is going to be launched in the UAE next month,” he said.
The “back-to-school business” is huge and around 80 per cent of the sale happens only during the two months, he said.
He added that Samsonite, which is a mid-segment luggage brand in the US, is considered a super-premium brand in India. To address this perception, the company rolled out American Tourister.
“Today, we are into every category and in every price point. So far, 2016 has started on a positive note despite [a] fall in tourist inflow into Dubai. This is where we come into the picture. The low end of the luggage market is untapped and that is where Kamiliant fits in. We are trying to eat into the market share of other brands,” he said.
The non-travel sector with products such as laptops and gym bags is a “huge market and offers huge opportunities” for growth.
Samsonite is also planning to launch mobile phone and iPad covers and a travel-prayer mat with a compass in the region.
The UAE, which contributes around 25 per cent is the biggest market, followed by Saudi Arabia with 17 per cent and Kuwait.
“We don’t do different things but we do things differently,” he said.
Samsonite’s global net sales increased 3.5 per cent from a year earlier to $2.43 billion.
