Samsonite not rushing Ecommerce in India
Samsonite’s recently acquired Ecommerce portal ebags.com will not launch this year in India, as was initially planned. The U.S.-based online luggage retailer cost Samsonite $105 million last year, and the company had originally planned to have it live in India by the end of this year. That plan won’t be going ahead, as the company doesn’t feel that India is ready for ebags.com yet – instead, they’ll be pushing Samsonite’s own branded Ecommerce site, and using this year to get ebags.com right in the U.S.
Samsonite’s share price has risen by 53% over the last 12 months
SOURCE: Yahoo Finance
Anushree Tainwala, Samsonite South Asia’s executive director of marketing, told reporters: “2018 has become a little bit too early to launch ebags in India. The idea is to get the strategy absolutely right in the US first and then maybe try it out in a couple of key markets where we have large direct to consumer e-commerce market base. In India, the e-commerce market is still limited to third-party websites."
Samsonite is on a big push for growth, particularly online. Tainwala says that the company is currently generating around 10% of total sales through Ecommerce. By 2022, it wants a full 50% of its revenue to be coming from online retail.
It’s also planning to expand its Indian manufacturing capacity. Currently, Samsonite produces about 80,000 pieces of luggage per month in the country, but it’s wants that to more than double by 2022, to 200,000 per month.
Discussing how the company will look to meet this expanded manufacturing goal, Tainwala said: "We are currently looking to optimise the space that is currently available by streamlining the assembly lines. We have also ordered new machines that will be here by July. We have enough land in our current manufacturing facility premise which will enable us to construct a new shed as well to add to our manufacturing capabilities."
Dominion holds Samsonite in its Global Trends Luxury Fund.
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