The holiday season witnessed a major spike in international travel bookings by Indian tourists this year, especially to Asian destinations offering visa-free entry or on-arrival visas like Thailand, Indonesia, and Sri Lanka. Industry experts say this visa relaxation allowed many first-time travelers to finally take the plunge and plan foreign trips. The increased outbound travel from India has sparked a luggage revolution, with sales more than doubling across price segments.
Saurabh Srivastava, Vice President at Amazon Fashion India, noted, “We are seeing 100% year-on-year growth in the premium luggage range with global brands like Tommy Hilfiger and Delsey Paris. The affordable range is seeing 40%+ YOY growth driven by brands like Safari, Kamiliant, and Aristocrat, including demand from Tier 3 and 4 cities.”
The Indian luggage industry, estimated at INR 15,000 crore by ratings agency Crisil, is benefiting from the rise in discretionary spending and wanderlust among Indians. Crisil predicts a 15% revenue increase for organized luggage makers in FY 2022-23, as they ramp up manufacturing capacity and retail presence.
Rajeev Kale, President of Thomas Cook India, explained, “Visas are a key hurdle for Indian travelers. So visa-free entry has catalyzed growth to these destinations by around 35%. Topping the list is Sri Lanka with a 40% surge, followed by Malaysia and Thailand at 35% and 30%, respectively.”
“While we are early in the booking cycle for India’s peak travel season, the easy access and air connectivity to visa-free destinations will drive year-round travel,” he added.
Surfing the Luggage Wave
The visa relaxation has allowed many first-time travelers from India’s rising middle class to finally take the plunge and book foreign trips this holiday season. Industry experts say most first-time travelers prefer group tours and mid-range hotels, allowing them to balance affordability and experiences.
This has benefited luggage brands catering to the value-conscious Indian traveler like Safari, Aristocrat, and Kamiliant. These brands have a strong presence in Tier 2-4 cities, on e-commerce platforms, and retail outlets.
Aristocrat’s management noted suitcase sales jumped 45% this holiday season compared to last year. The brand is now enhancing its casual backpack range targeting college students and urban youth.
At the same time, increased spending power has also boosted demand for international luxury brands among India’s aspirational consumers. Ethos Watch Boutiques recently partnered with the German brand Rimowa to open stores in India, starting with Mumbai.
Srivastava of Amazon Fashion said premium luggage sales are growing at 100% YOY for global brands like Tommy Hilfiger and Delsey Paris. Luggage is now seen as an important style statement by many affluent Indian travelers. Direct-to-Consumer Brands.
The expanding market has also attracted direct-to-consumer (D2C) startups focusing on luggage and travel accessories. Companies like Mokobara, Nasher Miles, and Uppercase offer contemporary designs targeted at young travelers.
Acefour Accessories, which raised $7 million in a pre-Series A round this year, is expanding beyond backpacks and trolleys into laptop bags, duffels, and other travel accessories.
These D2C brands leverage social media marketing and influencer partnerships. Their lean digital business model allows faster product development and direct customer feedback. Kushal Khandwala, Co-Founder of Nasher Miles, said, “The Indian customer is more design-conscious today. We offer a differentiated design aesthetic for modern travelers.” The startup is now planning to open 25 stores across India.
Partnerships and Influencer Marketing
Luggage companies are also entering partnerships with luxury brands and celebrities for product design and marketing.
Dream Theatre, a licensing firm, is launching a range of premium luggage with football star Diego Maradona. “We see strong potential for celebrity-endorsed brands in luggage,” said Dream Theatre CEO Jiggy George.
Samsonite recently announced partnerships with six Indian influencers including actor Milind Soman, tennis star Sania Mirza, and Mamaearth co-founder Ghazal Alagh for its ‘Tested Like Samsonite’ campaign.
Ramesh Tainwala, Samsonite’s global CEO, said, “Influencers allow us to connect with consumers emotionally beyond just the product. This helps increase brand awareness and consideration.”
The Way Ahead
With demand booming, Crisil estimates luggage makers will invest ₹700 crore this fiscal to expand manufacturing capacity by 40% and retail presence by 35-40%.
While this capex will increase debt levels, Crisil expects the sector’s improved cash accruals will ensure capital structure and coverage metrics are not materially impacted.
As rising incomes and government initiatives like e-visas expand India’s addressable outbound travel market, the future looks promising for luggage brands catering to this evolving market. Ankur Bhatia, Executive Director of Bird Group, summed it up, “The luggage industry is set for exciting times ahead.”
Team Profile
- News Writer
- Shubham Chakraborty, a Freelance Writer, holds an MBA from XLRI and boasts 6.5 years of extensive corporate experience. Departing from his corporate path, he embarked on a journey to fulfill his childhood dream of focusing on writing.
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