Samsonite set to continue its growth plans

Dubai: Despite reduced consumer spending and a slower regional growth rate, Samsonite isn't compromising on its image and is planning to go ahead with its expansion plans in the UAE.

"We have our customer base ... which [includes] local and expatriate population residing in the UAE, GCC residents as well as tourists. This is the power of a strong and truly global brand," says Prashant Vatkar, vice president for Samsonite Middle East.

However, he admits that the global downturn has put "a clear pressure on business across categories including the retail segment."

The maker of leather suitcases, toiletries bags and briefcases, reported that its sales growth in the UAE this year has been a bit sluggish.

"We have been able to post a modest 15 per cent growth in the UAE for January and the first 15 days of February this year over the same period last year. In 2008, the growth was much higher over 2007. Our sales growth has slowed down a bit but the important point is we are still growing," Vatkar points out.

Despite slow sales growth, the brand has not resorted to bargain-basement prices to keep customers coming. Vatkar says Samsonite gives away discounts only twice a year.

Vatkar believes that the Middle East region, and the UAE, in particular, still offers a higher growth potential as the income per capita remains high and the consumers have a preference for prestige brands.

Samsonite runs five "mono brand stand-alone" stores in Dubai and 13 other shops across the UAE.

"We have kept a focused approach on ensuring that we do not slow down on the retail expansion at strategic locations. In November 2008, we opened three mono brand stores for Samsonite in Deira City Centre, Mall of the Emirates and Dubai Mall. Grand Stores, our distribution partner in the UAE, has played a critical role in this expansion," according to Vatkar.