logging in or signing up 47405352-luggage-retail-final aSGuest95684 Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: Embed: Flash iPad Copy Does not support media & animations WordPress Embed Customize Embed URL: Copy Thumbnail: Copy The presentation is successfully added In Your Favorites. Views: 846 Category: Entertainment License: All Rights Reserved Like it (0) Dislike it (0) Added: April 22, 2011 This Presentation is Public Favorites: 0 Presentation Description No description available. Comments Posting comment... Premium member Presentation Transcript Slide 1: www.themegallery.com BRANDED LUGGAGE RETAIL BY: dharamveer Mba-1v sem Slide 2: OBJECTIVES To study the luggage industry and its nuances in the international scenario. To study and analyse Indian luggage industry in the retail context. To study the feasibility of setting up of a branded retail outlet for luggage in Patna. Slide 3: RESEARCH METHODOLOGY: Secondary Research- The secondary data and theoretical information regarding the luggage retailing and market would be conducted using reports, trade journals and internet. Primary Research- Questionnaire survey to understand the scope of opening a branded retail store for luggage would be done with customers and retailers. Sample size - 100 Sampling method – convenience & judgmental Slide 4: LUGGAGE INDUSTRY AS A WHOLE The luggage industry as a whole has increased over the years. With the recent weight restrictions on luggage added by the Airline industry, sales should continue to increase over the years to come. The industry (US) revenue for the year 2006 was approximately $720,000,000. The gross profit was 34.14% . There were 193 establishments in this industry that year. Total import export value for the year 2006 was $4,408,764,000. There were 164 countries that conducted foreign trade with the US. The top trading Countries were: China, Canada, Italy, Vietnam and Mexico. Their combined total represents approximately 85% of all Imports and exports. Total import value for the year 2006 was $3,703,527,000. This represents a 15.9% increase for the year 2005. The US. had imported industry related merchandise from 122 countries in 2006. The top importing Countries were: China, Italy, Vietnam, France, and the Philippines. Slide 5: US LUGGAGE RETAILING SCENARIO The U.S. luggage and leather goods market, like the apparel market, is growing at about 3 percent to 4 percent annually at retail, where the sector accounts for about $7 billion. Also reflecting trends in the apparel industry, makers of luggage, bags and cases continue to send more production offshore. Whereas international sourcing accounted for an estimated 65 percent to 70 percent of their production. In fact, the industry's leading trade group, the Luggage & Leather Goods Manufacturers Association (LLGMA), changed its rules several years ago and no longer requires potential members to have U.S. production facilities. Now mandating only that members have an office in the United States. By all accounts, the 90-year-old, $700 million, publicly held Samsonite Corp. is the big fish, with an estimated 30 percent of U.S. market share. Insiders point to JCPenney's Jaguar line as having the second-largest market share, with 7 percent of overall sales, followed closely by Atlantic Luggage Co., which captures approximately 6 percent of the dollars. Slide 6: M A J O R P L A Y E R S Slide 7: It’s a division of the holding company LVMH. It was founded in 1854 by Louis vuitton. Headquartered in Paris, Louis Vuitton is an international trendsetting enterprise that employs more than 9,500 people in more than 300 locations in 44 countries around the world. Slide 8: The Kipling story is one of great passion, creativity and entrepreneurial spirit. In 1987, three friends in the fashion capital of the world created a line of casual and colourful bags .They named the brand Kipling, after the well-known and well-travelled author Rudyard Kipling. Every year, 6 million Kipling bags are purchased from Kipling’s 215 stores and 450 corners and shop-in-shops, or from 4,000 multi-brand stores. Kipling is part of VF Corporation, a global leader in branded apparel and accessories. Slide 9: Immigrant Sol Koffler founded American Luggage Works in Providence, Rhode Island in either 1932 or 1933 with his life savings. He was determined to produce luggage priced at $1 in the midst of the Great Depression. The company's breakthrough came soon after when Koffler devised a new line that was significantly better than that of the competition; he named it American Tourister. In 1993, American Tourister was acquired by Astrum International, which also made Samsonite luggage. Astrum was renamed the Samsonite Corporation two years later.. American Tourister has now become a lower-end version of its Samsonite sister brand. Slide 10: INDIAN LUGGAGE MARKET ACC. TO DATA MONITOR REPORT , LUGGAGE AND LEATHER GOODS RETAIL SALES IN INDIA INCREASED AT A CAGR OF 16.4 % BETWEEN 2003 AND 2008. BAGS , WALLETS AND PURSES SALES LED THE LUGGAGE AND LEATHER GOODS WITH A SHARE OF 57.9% IN 2008 Slide 11: LUGGAGE BRANDS MARKET SHARE Slide 12: Pre-1997 During this period, the companies were more interested in volume sales rather than satisfaction.. Quality of the Indian luggage at that time was suited mostly for the low end mass market and not for the premium end quality conscious customer. Innovations were very few. People had got used to the old type of luggage which had a top, a bottom and a lock to keep it intact. The manufacturing process concentrated more on volumes than on quality. And surprisingly, nobody was complaining. The reason: lack of quality awareness among the customers. The battlefield now comprised VIP Industries and Safari to name a few until the entry of world number one the $737 million Samsonite International, in late 1996. Till then competition was restricted to sales. Service and customer satisfaction didn’t assume importance. In short, it was more of selling than marketing. Slide 13: Post-1997 This was the period when the industry witnessed a paradigm shift in terms of quality and service. Liberalized baggage rules, presence of multinational and freer import of luggage helped the Indian consumer to access international quality luggage. In fact it ushered in a phase where even the domestic companies showed the keenness to compete with the foreigners instead of following them. Sanjeev Aga, former CEO, VIP Industries says. “A few years back we were not aware of our own strengths. We assumed that the best was Samsonite or Delsey and we tried to come close to their standards. But now, we feel that we must do better to outsmart them in the market.’ While between 1990 and 1996 VIP had registered only eight new designs in the next two years (1997 and 1998) the company registered 16 design patents. The Indian consumer today has more choice than before. Slide 14: Political Environment: Government has placed the raw materials required for the industry under OGL (Open general license). Raw materials can be freely imported. There is no restriction on the export of finished product and very little barriers were there for foreign firms to enter into Indian market. International prices of raw materials are highly flexible. There is no policy to control the burgeoning grey market. Social Environment: Luggage sales show a peak during the marriage season. This season witnesses a spate of purchases of luggage. Brands are promoted as status for consumers & tourists. Economic Environment: The luggage industry’s growth rate is dependent on the level of business & leisure activity in the country. The positive signal in the growth of the economy works well for the luggage industry. The growth in the tourism industry affects the performances of the luggage industry. Technological Environment: - Technology is also developed in manufacturing of the luggage with specialized moulding materials used to mould the plastic material. Technology has made it possible for companies to go for a large production (VIP is 12000 per/day (286 models) & Samsonite is 1500 per/day (85 models) . ENVIROMENT ANALYSIS Slide 15: PORTER’S MODEL Slide 16: Delhi's latest Economic Survey for 2007-08 says as much: Patna's capita gross district domestic product is Rs 31,441. Patna also has the highest per capita saving in the state at Rs 675. Highest per-capita fuel consumption and the highest per capita income at Rs 6,958. Across the state, the city also has highest per capita spending share on health and education (in 2006-07) at Rs 674 and Rs 5,633. PATNA SCENARIO Slide 17: Scope of branded luggage in Patna To check the scope of branded luggage in Patna, primary research has been done in Patna though questionnaire survey. It has been done for retailers and customers both. Retailer survey Sample size : 20 ( Judgmental sampling) Customer survey Sample size: 50 (Judgmental sampling) Slide 18: RETAILER SURVEY Slide 19: Share of organised retailing is 40% and of unorganised is 60% Although the share of unorganized market is less than organized but still organized market is growing at a very fast pace in Patna. Slide 20: Consumer have maximum preference for soft 2 wheel strolley , duffle, wheel duffle and hard suitcase Slide 21: COMPARARTIVE ANALYSIS OF PRICES OF VIP , AMERICAN TOURISTER AND SAMSONITE Slide 23: Share of soft luggage is 65% Soft luggage market is capturing the share of hard luggage market. Slide 24: Repeat customers of VIP is 90% and for others it is 21%. Customer loyalty for VIP is maximum in comparison to other brands. Slide 25: AVERAGE FOOTFALL Average footfall for VIP is 29 and for SAMSONITE it is 22. Luggage industry is mainly depend upon marriage season Slide 26: 52% of the luggage shops are located on S.P verma road Slide 27: CUSTOMER SURVEY Slide 28: Consumer preference for branded luggage is 77%. And for non branded it is 23% Slide 29: Brand awareness of VIP is 100%. Slide 30: Although brand preference for VIP is maximum With 52% Slide 31: 50% of the customers do repeat purchase in 3 years Slide 32: 30% of the customers spend 2k to 4k for one time luggage purchase and 34% spend more than 8k. Slide 33: Price preference by consumers shows that the consumers have preference for mid range luggage. Slide 34: 44% of the consumers have preference for exclusive business outlets and 30% have preference for mbo’s. Slide 35: Weighted average rank for price is 1.6 and for quality is 2. Slide 36: FINDINGS THROUGH SURVEY Retailer survey Although the share of unorganized market is less than organized but still organized market is growing at a very fast pace in Patna. Consumer have maximum preference for soft 2 wheel strolley , duffle, wheel duffle and hard suitcase. VIPIL with its brands VIP , ALFA and ARISTOCRAT is a big fish in market because of its wide distribution channel. Soft luggage market is eating up the share of hard luggage. There is a shift in demand of the customers for luggage As VIP is in the luggage business from very long time. So, the loyalty for VIP is maximum in Patna also. In Patna, luggage industry mainly depends upon marriage season. Most preferred place to open a store in Patna is S.P verma road. Slide 37: Consumer survey Considering luggage is a one time purchase consumer preference for branded luggage is more. Brand awareness of VIP is maximum. Although brand preference for VIP is maximum but others brand are also growing in Patna. Repeat purchase is maximum for once in 3 year which shows that customer frequency will be less than in this industry. Price preference by consumers shows that the consumers have preference for mid range luggage. Consumers have maximum preference for exclusive business outlets. Slide 38: SUGGESTIONS Existing brands other than SAMSONITE and VIP can widen their product range and can launch new products and new brands catering to different segments. Reason: A) Because of duopolistic nature of this industry consumers don’t have much choice in choosing brands Slide 39: 2) There is a good scope for any new brand targeting mid segment customers to come into Patna and start the business. Reasons: A) Development and growth in Patna. B) Because of duopolistic nature of this industry consumers don’t have much choice in choosing brands Slide 40: THANK YOU You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.