VIP BAGSWhen you are very important

- Maitri Borundia

Maitri Borundia

INTRODUCTION

• Established in 1971• Headed by Mr. Dilip G. Piramal• Now, by Radhika Piramal – more professional brand• World's second largest and Asia’s largest luggage

maker based in Mumbai, Maharashtra, India• Products range over strolleys, suitcases, briefcases,

vanity cases, duffles, business bags, backpacks and accessories• Spread across Middle East, the UK, USA, Germany,

Spain, Italy, African and South East Asian countries

Maitri Borundia

Offerings and Competitors• V.I.P offers 5 luggage brands• Skybags – young (25-35 years)• Carlton -(acquired in ’04 to enter UK market)• Caprese -women range• Aristocrat- premium end• Alfa (1.5 lakhs pieces/month) , durability

• Main competitors:• Samsonite• Delsey• Safari

Maitri Borundia

• Indian market share declined from 70% in 2000 to 50% in 2015• During the financial year 14-15, revenue from Operations

& Other Income was Rs.1050.29 crores, representing an increase of 7.66% over the previous year• Profit before exceptional items and tax amounted to 62.44

crores• Sold in about 8,000 retail outlets with 400 Exclusive V.I.P.

outlets spread across India• Spread across 1300 retail stores in 27 countries• Wide range of market segment – 295 to 7000 a piece

Present Situation

Maitri Borundia

Brand nameAsia’s no.1Market leader (60%)Huge product range

Excessive employee baseHigh transportation costImproper distribution

Tie-ups with CarltonYouth segment and high class

Low demand industryExcessive competitionPrice war

SWOT

Maitri Borundia

"VIP is an old and trusted brand but I don't find it sleek. It's a brand my father swears by.”

- Common youth

Maitri Borundia

Hurdles faced and solved

• Samsonite, which came in 2005, stole much market share• Had to shut down factories in India and import from

China – to improve profitability• Rise in economy and production costs• No compromise in advertising just for better bottomline• Brand image as a heritage and not a youth brand• Small and casual Luggage market

INNOVATIONS

Maitri Borundia

CELEBS- ADS

Maitri Borundia

Maitri Borundia

Future Growth Strategies• Creating a fashionable perception• Advertising aggressively among youth• Improve innovative solutions of four-

wheeler luggage• Having a clear brand portfolio for all

segments• Avoid aggressive discounting of premium

brands• Open separate stores for premium

segment(Carlton)• Advertise in premium communication

channels

Maitri Borundia

• More focus on international market• Currently second rung players• Have to position themselves as strong

players• Good international styling inline with

international market trends

Maitri Borundia

Happy JourneyThanks for travelling with me