Published on : Mar 04, 2016
Unorganized luggage market across the developing countries such as India and China has emerged as a key challenge for the key players in the global luggage market. Counterfeit products launched by the local players at cheap prices in these regional markets are cutting down the profits of the global players. The low and medium-income populations in developing countries are the largest consumers of such relatively inferior products.
The key players in the global luggage market are launching new product lines with advanced features. For example, in March last year, Samsonite announced the launch of GeoTrakR, a new line of suitcases equipped with a cellular-enabled baggage tracking system. Rimowa GmbH, in partnership with Airbus Group and Deutsche Telekom AG, is developing Bag2Go, a smart suitcase line that would interact with sensors in the cargo holds of Airbus aircraft to identify their location.
Samsonite Acquires Rival Tumi Holdings for US$1.8 bn
Some of the prominent brands in the global luggage market are Tumi Holdings Inc., Samsonite International S.A., VF Corporation, VIP Industries, Rimowa GmbH, Briggs & Riley Travelware, Louis Vuitton Malletier S.A., MCM Worldwide, Goyard, and ACE Co. Ltd. The key players are focussing on developing smart luggage while looking out for acquisitions. This week, Samsonite International confirmed that it has agreed to acquire rival Tumi Holdings Inc. for US$1.8 bn. This is Samsonite’s biggest acquisition since listing its shares in 2011. Samsonite is the largest luggage manufacturer across the globe. Through this tie-up, the Luxemborg-based company will gain a foothold in the premium luggage segment while Tumi Holdings will get a chance to expand across Europe and Asia with the help of Samsonite’s distribution channels. It is estimated that after the deal, Samsonite will gain a combined 14% share of the overall luggage market. In the past, Samsonite has acquired other high-end luggage makers such as High Sierra, Rolling Luggage, and Hartmann and Lipault.