Delsey Paris Traxler is planning to establish India as its manufacturing hub
Monday, 13 November 2023, 11:33 IST
Delsey Paris, a premium European luggage brand, plans to make India a crucial manufacturing hub in line with its global strategy to move 50% of its production away from Mainland China. The company's global CEO, the French brand, views India as one of its fastest-growing markets and currently earns 5% of its total revenue from the country. The company aims to double its revenue in the next three years. Traxler expressed his positive outlook for India's economy, noting that it is one of the economies where the company has a very optimistic outlook for the next five years. He emphasized that India has a vast market and population, and the company intends to enhance its presence, invest, source, and purchase raw materials there.
Despite a high baseline effect of 40% growth in the last fiscal year, the luggage industry revenue in India is expected to increase by 5% this fiscal year. This growth is attributed to the rise in the usage of hard luggage made by the organized sector and the continuous growth of tourism and corporate travel. As part of a rebalancing strategy, the company has shifted production from mainland China to other Southeast Asian countries, including India. The demand for luggage is directly related to how much people travel, and the growth in travel has been consistent for the past 30 years. Traxler, the company representative, stated that India is doing well and is part of the trend that has more than doubled the company's turnover in the past two years. The consumer approach towards purchasing luggage has changed.
There is a noticeable change in the travel industry, as consumers now demand luggage that serves its practical purpose and complements their personal style. As a result, people are seeking luggage that matches their preferred color and shape. As a consequence, the traditional grey and black luggage is being replaced by more colorful options, such as ivory, green, or brown. Delsey Paris has collaborated with United Colors of Benetton to create a co-branded luggage and travel accessories range. The collection will be available on both brands' websites and through their sales outlets worldwide. More licensing agreements are expected in the future.
Delsey Paris produces around four million pieces each year and aims to gradually increase production in India. The market potential for sales and production is enormous. In the beginning, the brand will produce only for the Indian market, but the plan is to export their products in the future. However, the main challenge is the restriction on travel, which is affected by geopolitical issues. Many countries are still uncomfortable to visit, and that hinders the exchange and learning about different cultures. Delsey Paris markets its collections both online and in over 6,000 shops across 110 countries.
Despite a high baseline effect of 40% growth in the last fiscal year, the luggage industry revenue in India is expected to increase by 5% this fiscal year. This growth is attributed to the rise in the usage of hard luggage made by the organized sector and the continuous growth of tourism and corporate travel. As part of a rebalancing strategy, the company has shifted production from mainland China to other Southeast Asian countries, including India. The demand for luggage is directly related to how much people travel, and the growth in travel has been consistent for the past 30 years. Traxler, the company representative, stated that India is doing well and is part of the trend that has more than doubled the company's turnover in the past two years. The consumer approach towards purchasing luggage has changed.
There is a noticeable change in the travel industry, as consumers now demand luggage that serves its practical purpose and complements their personal style. As a result, people are seeking luggage that matches their preferred color and shape. As a consequence, the traditional grey and black luggage is being replaced by more colorful options, such as ivory, green, or brown. Delsey Paris has collaborated with United Colors of Benetton to create a co-branded luggage and travel accessories range. The collection will be available on both brands' websites and through their sales outlets worldwide. More licensing agreements are expected in the future.
Delsey Paris produces around four million pieces each year and aims to gradually increase production in India. The market potential for sales and production is enormous. In the beginning, the brand will produce only for the Indian market, but the plan is to export their products in the future. However, the main challenge is the restriction on travel, which is affected by geopolitical issues. Many countries are still uncomfortable to visit, and that hinders the exchange and learning about different cultures. Delsey Paris markets its collections both online and in over 6,000 shops across 110 countries.
