India's largest and oldest travel wear maker VIP Industries will soon witness a major makeover, even as it ramps up its focus on the fashion baggage and accessories segment going ahead.
The company, engaged in the travel products business, is looking at launching an array of products in the ladies fashion bag segment and ramp up its product portfolio in the accessories category, Chairman Dilip Piramal told PTI here.
"The demand for soft luggage is growing by the day and so is the handbang segment. The travel luggage category is not a volume driven business as people do not buy the products often, may be once in a year...So we are now planning to enter into the fashion wear segment, which is more of a volume game," Piramal said.
Currently, accessories segment, that includes bagpacks, laptop bags, small sling travel bags and pouches, contribute around 20% to VIP's overall sales, which is expected to grow significantly, once the company enters into the ladies bag segment.
"Revenues will definitely go up with the sales of ladies bags and other accessories, which people use everyday," he said, adding the target consumers would be college and office-goers.
The ladies handbag market, pegged at Rs 1,500 crore, is growing at 15% y-o-y and is already flooded with several domestic and international players.
While domestic players like Mochi, Baggit, Hidesign and Bulchee have a major market share, designer and high-end brands are also entering the Indian market in a big way.
Besides, several Indian retailers sell their own private brands in their outlets.
"We are not competing with anyone. VIP is a brand that people of all class and age associate with. It has a good brand value with 60% market share and we want to cash on that further," Piramal added.
He, however, would not divulge any further details on the manufacturing, branding and pricing of the upcoming products.
On its current business, Piramal said he expects a 20% growth in the luggage and a 50% growth in its bottomline for the company's overall business in the next fiscal.
The growth would be driven by marriage seasons and a spurt in tourism, he added.
