Vip Industries
A VERY INTRIGUING PACKAGE
ABSTRACT: VIP industry has sway for over two decades in the organized luggage market. Its customers perceive value for money. VIP’s economically price brand, Alfa sells 1.5 lakhs pieces a month. Market Research shows that an average Indian family pulls out the suitcases merely for a outstation travel a few times a year. VIP has a wide range of market segment starting from Rs 295 to Rs 6000 a piece. Competition from the unorganized sector hurts the company most. VIP’s Alfa imitated and sold at much lower price. This enables the unorganized sector to typically sell 20 times more than VIP. The lower price threshold is 225 which is impossible for VIP. In the range of Rs.1500(premium) the main competitor is Samsonite.
INDUSTRIAL ANALYSIS: The luggage industry in India is currently undergoing a consolidation phase. Competition in the sector is expected to intensify with the entry of foreign players like Delsey of France. Companies with good research and development facilities are expected to survive while others may end up as contract manufacturers for the bigger players. The luggage market comprises of three segments namely the premium segment with 15% of total market share, the popular segment and the standard segment. Samsonite (International) and VIP are the dominant players in the premium segment with a market share of 52% in the popular segment. V.I.P. industries and Universal dominate the low-end standard segment. The luggage market is dominated by the unorganized sector with 50% market share. Northern and western India are the biggest markets in the country. V.I.P. and Samsonite are focusing on developing their distribution networks. Both players are also into exports. V.I.P.’s export touched Rs.134 million in 1997-98 and is mainly targeted at Gulf and West European Markets. Samsonite posted an export turnover of Rs.150 million for the year ended December ’98. Luggage
ABSTRACT: VIP industry has sway for over two decades in the organized luggage market. Its customers perceive value for money. VIP’s economically price brand, Alfa sells 1.5 lakhs pieces a month. Market Research shows that an average Indian family pulls out the suitcases merely for a outstation travel a few times a year. VIP has a wide range of market segment starting from Rs 295 to Rs 6000 a piece. Competition from the unorganized sector hurts the company most. VIP’s Alfa imitated and sold at much lower price. This enables the unorganized sector to typically sell 20 times more than VIP. The lower price threshold is 225 which is impossible for VIP. In the range of Rs.1500(premium) the main competitor is Samsonite.
INDUSTRIAL ANALYSIS: The luggage industry in India is currently undergoing a consolidation phase. Competition in the sector is expected to intensify with the entry of foreign players like Delsey of France. Companies with good research and development facilities are expected to survive while others may end up as contract manufacturers for the bigger players. The luggage market comprises of three segments namely the premium segment with 15% of total market share, the popular segment and the standard segment. Samsonite (International) and VIP are the dominant players in the premium segment with a market share of 52% in the popular segment. V.I.P. industries and Universal dominate the low-end standard segment. The luggage market is dominated by the unorganized sector with 50% market share. Northern and western India are the biggest markets in the country. V.I.P. and Samsonite are focusing on developing their distribution networks. Both players are also into exports. V.I.P.’s export touched Rs.134 million in 1997-98 and is mainly targeted at Gulf and West European Markets. Samsonite posted an export turnover of Rs.150 million for the year ended December ’98. Luggage