New Delhi: In a strategic shift from multi-brand luggage outlets to exclusive luggage shops-Samsonite Travel World-Samtain Sales Ltd plans to develop an extensive chain of franchised outlets across the country.``We'll add 50 more franchised Samsonite Travel World stores in around 20 towns by June 2001,'' says Mr N P Singh of franchisee and key account division, Samtain Sales Ltd. ``The franchised operations (80 stores) are expected to contribute between 15 per cent and 20 per cent of our domestic turnover in the first year.''
The joint venture company is targeting to take its domestic turnover up from Rs 60 crore in 2000 to Rs 85 crore by the year-end. Its exports turnover is also likely to rise significantly from around Rs 60 crore in 2000 as the company has plans for some major launches this year. It is also hoping to break-even by the year-end.
Under the new franchisee development initiative for Samsonite Travel World, which was kicked off in July 2000, the joint venture company has already set up a network of 30 Samsonite Travel stores in 15 towns. The new channel is intended to complement its distribution network of 500 multi-brand retailers in over 100 towns.
Says Mr Singh: ``The objective of setting up exclusive stores is to create brand awareness that we deal in a variety of products related to travel like soft and hard luggage, casual bags and accessories. These stores will never offer discounts and act as a catalyst to boost sales in other neighbouring non-exclusive retail outlets.''
To make the brand experience richer, each exclusive showroom will have some basic promises: access to parking space; highly-motivated sales consultants at the stores; and a simple, soft and inviting ambience for consumers.
``Our sales consultants will help consumers find, for instance, the right size of luggage that can go into an aircraft cabin, or suggest an old lady to go for light-weight yet sturdy suitcases,'' says Mr Singh.
In metros like Delhi, the exclusive showroom is expected to be around 650-700 sqft, which will entail an investment of around Rs 10 lakh towards interiors and inventory. In towns like Kanpur, the showrooms will occupy around 500 sqft of area and require investment of around Rs 5-6 lakh.
Says Mr Singh: ``We assure minimum guarantee to our franchisees which covers operational costs and offers strong sales incentives.''
Samtain Sales Ltd has four brands in its portfolio: Samsonite (priced at Rs 2,000-Rs 7,000 and targeted at upper middle and elite class); Sammis (priced at Rs 350-Rs 2,000 for children); Trunk & Co (Rs 800-Rs 2,000 for the youngsters) and American Tourister (Rs 1,500-Rs 2,500 for the price-conscious segment).The Samsonite brand accounts for over two-third of overall Samtain sales.
The brand will be further strengthened in the market with the launch of a new hard luggage product Crusair, which has been developed in India.
According to company sources, the first stock of Crusair, has already been sent to Belgium. The $800 million Samsonite Inc plans to source Crusair - a light-weight, durable ABS material - from the Indian joint venture company for other markets.
The joint venture has invested around Rs 85 crore in the Indian manufacturing plant, including over Rs 10 crore for the development of Crusair line, since its operation in 1997-end.
Samtain manages over 300 SKUs and launches between five and 10 SKUs every alternate month.
The company plans to enhance its advertising budget marginally to Rs 6 crore from Rs 5.5 crore in 2000. Positioned as `Samsonite World Proof', the brand's campaign will continue to be handled by TBWA Anthem.
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.