Samsonite working hard to attract the ladies
Samsonite International is planning to overhaul the physical stores that make up its luggage empire in an effort to become more attractive to female customers. The company says it will refit and renovate its stores – all 65,000 of them, over 140 continents – to make them more inviting, in an effort to achieve its strategic goal of 25% revenue from female-led purchases by 2021.
Samsonite’s share price has appreciated by 56% in 2017 so far
SOURCE: Yahoo Finance
The company’s CEO, Ramesh Tainwala, said: “Women are becoming an important deciding force, even for male buyers,” and that ignoring them would be like “leaving money on the table.” He expects women to account for as much as 50% of total sales within the next ten to fifteen years.
Samsonite, which is taking its lead from its own research showing women are responsible for two thirds of all sales, claims that it is already seeing positive results from its refitted outlets, with European growth doubling to 15% since October.
Tainwala explained: “In the past, women were only looking for fashion, and functionality was not important for them. There are changes happening. Women care as much about functionality, maybe even more than men, but they do not want to compromise on aesthetics.”
Along with its expansion into other brands by way of acquisition and focusing more on Ecommerce sales, appealing to women is one of the major plays in Samsonite’s play for further growth. Tainwala says that the company is not looking for any other options in the near future. However he also says that: “that does not mean if an opportunity presents itself we will walk away from it.”
Dominion holds Samsonite in its Global Trends Luxury Fund.
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