With air traffic expected to increase in the coming years, VIP Industries can be expected to gain market share as it has established distribution network.
LUGGAGE INDUSTRY
The luggage industry is one of the fastest growing industries in India. The industry is expected to clock 18 percent CAGR growth in the coming years backed by continued increase in travel, new luggage and backpacks advertising campaigns, new distribution schemes and strong new product launches.
The steady rise in travel expenditure among households has fuelled growth for the luggage industry. There is growing preference globally and in India for branded bags and luggage. The increasing fashion consciousness and aspiration levels along with higher disposable incomes are amongst the key growth drivers for the industry even as the bags and luggage are considered lifestyle products.
Among all the channels, the hypermarket channel continues to witness the strongest growth which also suggests that Indian consumers prefer affordable luggage and convenience of modern shopping formats. Increase in e-commerce business also augurs well for the luggage industry in India even as affordable luxury brands continue to grow well in India.
THE COMPANY
VIP Industries, one of the leading manufacturers of both hard and soft luggage and also hand bags, possesses a market share of more than 50 percent in the organised luggage space.
Through its multiple brands, VIP Industries has presence across various price points, which is one of its core strengths.
The polycarbonate category within the hard luggage is one of the fastest growing in the hard luggage category. However, it is the softluggage that continues to grow faster for VIP Industries, contributing over 70% to the company’s sales.
This story is from the April 16 2017 edition of Dalal Street Investment Journal.
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This story is from the April 16 2017 edition of Dalal Street Investment Journal.
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