With sales stagnating, VIP Industries, is seeking the help of high-profile car designer Dilip Chhabria (DC) to launch a new range of swanky briefcases. Products under VIP's premium luggage category are priced above Rs 2,500. The DC-designed briefcases are likely to be priced at around Rs 3,000.
The management team under him is working overtime to give a new dimension to the company's growth plans. With Samsonite challenging VIP's traditional market leadership, the company has increased its focus on the development of innovative products. It is also striving to enhance its distribution reach across the country.
According to an analyst, VIP's focus on contemporaries is in line with the latest trend emerging in the luggage industry.
With players such as Reebok and Nike jumping into the fray, it is an obvious move by the luggage major to protect its turf.
During the past two years, the company's sales have remained stagnant at around Rs 300 crore. Lifestyle products reflect the personality of the owner and that's precisely what Chhabria will work at.
The DC-designed briefcases would be targetted at young executives. The idea is to create a 'truly-traffic - eye-popping' model that can be easily distinguished from thousands of others.
VIP, the largest moulded luggage manufacturer in Asia, is the market leader in the Indian luggage industry. The company has a market share of over 60 per cent. It is also the world's second largest luggage manufacturer.
In the recent past, VIP Industries aimed at becoming a volume player by focusing on economy brands like Alfa. However, severe price competition from the unorganised sector, which accounts for close to 80 per cent of the Rs 500 crore luggage market, compelled the luggage major to change its strategy.