VIP Industries, the luggage maker has set target on growing the premium segment through its brand-Carlton‘ and is looking to open 25 stores in 2016-17.
“There is a renewed focus on the premium segment with our brand Carlton and we are looking at opening 25 stand-alone stores for the brand in the coming fiscal with significant investment toward the brand promotion,” Radhika Piramal, MD, VIP Industries told PTI.
The company is focusing on two big categories, including Skybag backpacks, and ladies handbags under its brand, Caprese. “We bought the brand in 2004 but launched it in India in 2011. In keeping with the times, our goal in the last five years has been to transform the company from luggage to lifestyle categories. Products in these categories are purchased more frequently than luggage so the growth as well as sales will be larger for these categories, defining our focus on them,” she said.
VIP Industries has over 200 company managed stores, another 200 franchise outlets and work with over 2,000 multi-brand retailers. It is also looking at increasing its shop-in-shops in multi-brand stores to promote Carlton. The company is witnessing huge sales and have grown 15 per cent (up to December) with a profit of about 33 per cent, and expects to retain if not grow its market share.
With the current categories, the brand focuses on scaling up rather than new acquisitions over the next few years. VIP Industries is a market leader in the branded luggage segment with about 50 per cent market share, presently, with more than half the players in the market operating in the unbranded segment. The company also exports its products, across West Asia, the UK, the US, Germany, Spain, Italy and select African and South-East Asian countries under the brands of VIP, Carlton, Skybags, Caprese, Alfa and Aristocrat.