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Samsonite: The travel bag master

Published May 8, 2018 12:00 am
By Bernie Cahiles-Magkilat Subrata Dutta President of Asia Pacific and Middle East SAMSONITE INTERNATIONAL S.A. Subrata Dutta
President of Asia Pacific and Middle East
SAMSONITE INTERNATIONAL S.A. The Filipino lifestyle is one for the books. The hard life in a developing country fueled their ambition to do better. Lots of Filipinos found greener pastures overseas, most came home richer and knowledgeable of the ways of the world. This makes the Filipinos a magnet for the best in the world. Global brands followed them and established their presence here. Notably, one of the constant brands in the Filipinos’ journey is Samsonite, the world’s most trusted name it comes to quality luggage. Subrata Dutta, president of Samsonite International for Asia Pacific and Middle East, sees it fitting to ensure that Filipinos get all the entire range of its products to accompany them in their journey. The company With a heritage dating back more than 100 years, Samsonite International S.A. is the world’s largest travel luggage company. Founded by Jesse Shwayder in 1910 in Denver, Colorado, Samsonite began as a trunk manufacturing company. Over the last century, it has developed and widely commercialized numerous innovations in luggage, establishing key industry trends and adapting to evolving consumer needs. Samsonite is principally engaged in the design, manufacture, sourcing and distribution of luggage, business and computer bags, outdoor and casual bags, and travel accessories throughout the world. Its portfolio is a product of various brand acquisitions. Aside from its primary brand Samsonite, its portfolio include American Tourister®, High Sierra®, Hartmann®, Lipault®, Gregory Speck®, Tumi, and Kamiliant, among other owned and licensed brand names. Its core brand, Samsonite, is one of the most well-known travel luggage brands in the world. It has been central to the growth and success of its business since it was first introduced in 1941. The acquisition of US brands High Sierra and Hartmann enabled the company to attract new markets. High Sierra products are targeted at active lifestyle consumers and the acquisition enabled the company to expand into the casual outdoor and sport segments of the global luggage market. High Sierra is for very serious outdoor persons, who would like once in a while wants to go and do a little trekking. High Sierra is a very must companion for outdoor activities. The Hartmann brand, founded by Joseph S. Hartmann in 1877, is recognized as a mark of quality among American luxury consumers. With Hartmann, Samsonite was able to expand its presence in the high-end luggage and leather goods market in the US and abroad. Lipault is a chic and youthful French luggage brand known for its functional and fashionable products. Its entry into the Samsonite portfolio has paved the way for female consumers through Lipault’s signature Parisian style and vibrant colors. Speck, founded in Silicon Valley, California in 2001, designs and distributes slim protective cases for personal electronic devices. This acquisition enabled Samsonite to enter the fast-growing market for smart phone and tablet protective cases. American Tourister is one of the most well-known and respected brands in the luggage market. Gregory, a pioneer in its field for ergonomics and performance-setting standards, is a leading provider of premium technical backpacking, mountaineering, and trail running products and accessories. On August 1, 2016, Samsonite completed the acquisition of Tumi Holdings, Inc.  Founded in 1975, Tumi is a leading global premium lifestyle brand offering a comprehensive line of business bags, travel luggage and accessories.  The brand is consistently recognized as “best-in-class” for the high quality, durability, functionality and innovative design of its products, which range from its iconic black ballistic business cases and travel luggage synonymous with the modern business professional, to travel accessories, women’s bags and outdoor apparel. As of December 31, 2013, the group’s  products were sold at more than 46,000 points of sale in over 100 countries through a variety of wholesale and retail distribution channels. Samsonite, an ISO-certified company, is committed to manufacture world class luggage and luggage accessories, to satisfy the market and achieve customer satisfaction. Samsonite products undergo stringent quality tests before launch. For handle test, it jolts the handle for 35,000 times in a loaded condition; tumble test is where the bag is being carried out by tumbling it in a tumbler for 50 cycles in a loaded condition; lock test is where the lock’s durability is checked by operating it for 15,000 cycles in one go continuously; and, wheel test where wheels are being pulled for 32 kilometers in a loaded condition. The brand In Asia, Kamiliant is the group’s biggest bet. It is being endorsed by pop star Maine Mendoza. “Kamiliant is our biggest strategy for Asia. We believe that is the brand which is going to be useful and relevant at that price point. It already has a significant market shares in countries like Saudi Arabia, Kuwait, India, Indonesia, and the Philippines,” he adds. The group is also pushing for American Tourister, but Dutta clarified that American Tourister is not a cheaper alternative to Samsonite. American Tourister caters more for the family traveler who is on a holiday, while Samsonite is for the corporate traveler who is travelling mostly for business. American Tourister is colorful and more fashion forward. Kamiliant is of the same league as American Tourister. They are designed with the family on holiday in mind. Since Samsonite is more for the corporate traveler, it looks like it is a serious bag. And yes, more expensive than American Tourister.’ The market According to Dutta, the travel market in the Philippines is growing close to double digit. “Globally, the number is more like 5 to 6 percent growth. So, we’re doing better,” says Dutta. Asia where Dutta operates has a population of 4.4 billion. Dutta cited four countries in Asia – Philippines, Indonesia, India and Saudi Arabia – for their huge population. “These countries with big population come under my territory,” says Dutta. Dutta noted that roughly half of the 4.4 billion population is already at an age where they would be ready to use a luggage or buy one. The rest of around 2.2 billion would be infants and old people. Further segmented as to the ability to buy a branded product, meaning people with the purchasing power, then there could be 50 percent of 2.2. billion people or 1 to 1.1 billion of potential market for Samsonite. “These are the people that we have to provide a solution and they would be looking for good value. This group maybe currently using unbranded bags or maybe not be using a bag, they may be using a plastic shopping bag given free from a shop like what my mother used to do. And I can understand because I also come from similar background,” he says. This is the kind of customer profile that Dutta is targeting at in the country. He expressed confidence that once these customers see a proper branded good bag at a good price they would prefer to use it. Samsonite has a reasonably good presence of close to 30 percent market share in the Philippines. But in the branded goods market they have a higher share at 60 percent. Dutta said that the Philippines has been growing steadily in the past 10 years. Thus, it would be a perfect timing for Kamiliant and American Tourister to push their presence some more. “We expect growth in the Philippines to continue because as the base becomes larger, it would be more difficult to grow at the same percentage. But through our multi-brand strategy like we have Kamiliant, Samsonite, American Tourister, and the Tumi, we should be getting the same kind of percentage growth as what we’ve got in the past,” he adds. Travel What makes the travel goods business exciting is the fact that people have the propensity to travel. As the economy improves, people’s income also increases, empowering them to travel even if it is just within the country, initially. “Change is happening all the time. There are more roads to travel, more seas to cross and more flights to take,” he adds. But for Dutta, who is an engineer, what makes the travel-goods business exciting is how products have been engineered, combining technology and fashion. “Travel bags have to have strength and durability, which is all engineering. But if you make a boring engineered bag, the customer won’t like it. It should be fashionable, too. It should look stylish, but at the same time it must be sturdy enough. You cannot have a boring bag that will last a lifetime, so we need to combine the two. So, it’s like engineering meeting art,” says Dutta. Samsonite has the reputation to last very long and there are customers who have become so emotionally attached to their bags that they use the same bags for a long time. “But people also changed their bags for the same reason they changed their shoe, their shirts. They got tired with the look and changed into something new,” says Dutta. The life of Samsonite bag is further lengthened as the company extends product warranty of at least three to 5 years although many of Samsonite products come with a lifetime warranty. If a manufacturing defect surfaces 29 years after, Samsonite will have to correct and repair it. But how many pieces of luggage one must have? But, Dutta cannot exactly say how many, but his advice is to have a luggage to suit a particular trip. For business travel, he would say, carry a smart bag. A business travel luggage should be able to carry some files and some other stuff as well as few regular clothes. Then there has to be a bag for a holiday travel and it should be a little bigger. “If my son says he wants to put a football in my bag I may be able to carry it also,” he adds. For daily office work, one must have a backpack or a briefcase although Dutta prefers a backpack to free up his hands. “So, at home I’ll have 3 different bags. One would be carry on, a cabin bag for a day or two-day trip and mid-size bag for a seven-day trip and there would be a very large bag which I use for travelling on a holiday for 14 to 15 days, especially to a cold country,” he adds. Women The company’s products are suitable to all kinds of needs. But, the recent strategy is for the company to become more relevant to women as their products are admittedly geared towards the men. This shift in strategy is anchored on the fact that 70 percent of shoppers are women. “Right now, our big strategy is focused on women first and the products for women comes first. We need to, in a limited period of time, because 50 percent of our business come from women’s products,” he adds. He revealed that the brands Tumi and Samsonite appeal more to women. In addition, the company is now working on the retail environment to become more women friendly. The acquisition of Lipault, a Paris-based handbag brand, would be a good addition to its portfolio since Samsonite does not have women handbags. “It is a brand from Paris and therefore it has the heart of Paris. What we add to that brand is the Paris touch. We add the technology over there, it is the combination of art and engineering so we make sure it is not just a piece of art but also very tough, very strong and very durable,” says Dutta. According to Dutta, the bestseller Samsonite bags are Cosmolite and Lite-Shock. These two products are made of the lightest and strongest of material. Dutta noted that Cosmolite was launched when the average weight of a bag was 4 ½ kilos. Cosmolite has brought down the weight to 1.8 kilos only. “It means that if the luggage allowance is 20 kgs and you have 4.5 kg luggage, it means you could only carry 15.5 kg of pure material. Now that your bag is only 1.8 kg, you can carry now 18.2 kg and that’s a big change and it’s very, very strong,” he adds. Samsonite has sold close to as much as 3 million pieces of these particular bags. “When you go to airports, you can see this bag being used by so many people,” he adds. Dutta, who came from humble beginnings, said he was fortunate to have a Samsonite Oyster as his first luggage. It was made of plastic case with two wheels. “I still have that until now and once in a while I use that also. That was my first luggage. That luggage is 25 years old already,” says Dutta, proudly. Now, that he can afford all the best Samsonite models, Dutta carries Plutus, a Samsonite black label product with very fine interiors and very stylish looking. “It’s one of our newer launches,” he adds. Happiness Dutta joined the company in 2007. After serving a few years, he left and did some consultancy works only to rejoin Samsonite later. He became the general manager for India and the Middle East before becoming president for Asia Pacific. Overall, Dutta has been serving the Samsonite group for more than 10 years already. As president of Asia Pacific, he handles Japan, India, China, Southeast Asia, Australia, Middle East, Pakistan, Bangladesh, Sri Lanka, East Africa, lKenya and Tanzania and Egypt. As a manager, Dutta has only one special rule. He believes that a happy leader makes a happy follower. “I believe in being happy. I believe that if I am happy, I can keep my people happily working because in today’s corporate world many creative paths get lost and many hours of work get lost simply because people are unhappy in their workplace,” says Dutta, who finished electrical engineering from the Indian Institute of Technology, Kharagpur, India and a PGDM from the Indian Institute of Management, Bangalore, India. “All the stresses at the workplace become manageable if people are happy. People become more innovative and encouraged when they are happy.” As a manager, he lets his people do the work. He does not intervene in a jurisdiction unless things go wrong. “I may call it a happy management style. That is why I love coming back to Manila because people here are naturally happy, the happiest people I’ve ever seen in my life,” he adds. Fashion Dutta is confident the Philippines will continue to contribute to the company’s bottomline. This is because Filipinos are very fashion-conscious and young. They have been exposed to the world because they have been all over the world. The Philippines is also one of the emerging economies in the world. “You’ll find Filipinos not just in the Philippines, but also in Middle East, you’ll find them in Hong Kong and everywhere. They know fashion and they are exposed to the latest trends. Therefore, if they constantly live up to their fashion requirement, the trend, then the Filipinos should be our market,” he adds. Indonesia, by its sheer magnitude, is another financial contributor to the group. Like the Philippines, Indonesia is also a fashion-conscious country and Indonesians are also exposed to the world. “Other countries, they’re like a cocoon where people don’t want to go out. That’s why I love coming to the Philippines because I always find Filipinos knowledgeable; you’ll always find them always up-to-date. So, it is also a challenge because Filipinos always keep pace with global fashion,” he adds. “Like Kamiliant in the Philippines, you also have to keep pace. We have to anticipate tomorrow’s fashion today,” he adds. Masters With several new brands coming up, Dutta said it pays to trust the masters.  The group has been doing the travel bags for the last 110 years already. “We know the business of bags better than anyone else because all the innovations that you can see on the bags today have been done by Samsonite, be it with 4 wheels or even full-handed bag, all those innovations come from Samsonite. We are the pioneers. And the most important reason is we are in more than 100 countries. So, if we give a lifetime warranty, it is not just like when you buy in Manila you can get your warranty only in Manila. You buy in Manila and you take it to Jeddah or take it to Europe or USA, everywhere you can get a bag service. That is brand dependability,” says Dutta. Dutta is proud that its market-leading position is a product of its strong international brand presence, significant scale, sizeable investment, product innovation, global distribution and sourcing ability, and its market-leading, high quality technology rolled in with style. So, the next time you choose a travel bag companion: Trust the masters.
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