VIP’s first Skybags campaign hopes to increase the style quotient of the brand among young professionals
VIP Industries has been at it for quite some time. To appeal to the youth — and therefore increase frequency of purchase — the Mumbai-headquartered company has been working overtime to position its brands as fashion accessories rather than utilitarian products. In line with this strategy, VIP — which claims to be Asia’s largest and the world’s second-largest luggage company — has launched a new television commercial (TVC) for its sub-brand Skybags with Hindi movie star and its new brand ambassador John Abraham as the protagonist.
The TVC opens with the shot of Johnny the bear, who wants to make it big as a movie star. But his old and ugly bag is cramping his style. He is lonely and depressed. He spots a new luggage store which gives him some hope and he decides to give it a shot. With his fingers crossed, Johnny walks into the Skybags store, and walks out as… no prizes for guessing… the dashing John Abraham. In a way, the plot exaggerates the transformation, and conveys the message that a Skybags can truly transform one’s style. The film ends with the voiceover saying, “Change the way the world sees you.”
As travel starts becoming increasingly demanding, luggage is becoming sophisticated. Ask a frequent traveller and she will tell you she is looking for convenience and comfort in the product she carries, she wants her luggage to be lightweight, have softer touchpoints and organised interiors, and smooth wheeling.
With this in mind, luggage makers are looking at ways to go beyond the functional attributes of luggage and harping on product aesthetics to appeal to consumers. Manish Vyas, vice-president (marketing), VIP Industries, says, “With Skybags, we want to target the young professionals who are on the go. This target group travels a lot, and needs a stylish brand that is also affordable. So the communication doesn’t show the features of the product, but depicts luggage as a fashion accessory. John Abraham conveys the fact that the brand is cool and contemporary.”
Standalone branding
The Rs 635-crore VIP Industries has big plans with Skybags, which retails in the Rs 2,000-3,000 price bracket. First, it wants to promote it as a standalone brand — and not just a VIP sub-brand — and make it the second biggest in its portfolio. So next time when you board a flight, don’t be surprised if you get airline baggage tags with Skybags ads on them or watch its ads flashed on in-flight television. For the record, this is Skybags’ first-ever television commercial. VIP will double its advertising spend this year — from Rs 50 crore it spent last year.
VIP’s creative brief to O&M, that handles the advertising for the VIP portfolio, was to “increase brand awareness among the young generation of today (20-35 years in the socio-economic class A)”, says Abhijit Avasthi, national creative director. He adds, “Traditionally luggage advertising has been very functional where brands talk about features and benefits. Here we are taking about style, something which brings a fresh perspective into the category. The soul of the communication emerges from the human truth that what you are seen with defines how you are seen by the world.”
The film was shot over a period of two weeks in Cape Town (South Africa) and India. The commercial will be on air for about six weeks. Besides TV and print, VIP will organise below-the-line activities at the point of travel targeting flights and airports. “While we will zero in on the point of travel promotion for Skybags, our economy brand, Alfa, will address the marriage market of Uttar Pradesh, Bihar and Madhya Pradesh,” says Vyas of VIP.
Lead from front
VIP says being the market leader it has the onerous task of category expansion and creating awareness for branded products. The luggage market is estimated at Rs 3,500 crore currently, of which around 65 per cent is unorganised. VIP claims to be the leader with 65 per cent share of the organised sector. According to estimates, the Rs 2,000-3,000 price range comprises the biggest chunk of the organised luggage segment with almost 50 per cent of the revenue coming from this segment. The sub-Rs 2,000 segment accounts for 20 per cent, and the balance comes from the premium segment with prices upwards of Rs 3,000.
With a keen eye on the changing needs of consumers, VIP has reworked its portfolio over a period of time. Currently, VIP Industries’ travel luggage business comprises six brands, namely, Carlton, VIP, Alfa, Aristocrat, Footloose, and Skybags of which VIP is the largest, contributing almost 70 per cent to the company’s turnover. Its biggest competitor is Samsonite Corp, the world’s leading luggage maker, which is also gung-ho about India — hoping to double its turnover in India every two years, according to various reports. Indeed, luggage is a unique industry worldwide in that in the organised sector, there is room for only one or two big players.
VIP has traditionally been strong in the hard luggage segment. In the 1990s, when the Indian economy opened up and consumer preferences shifted to soft luggage, VIP forayed into the soft luggage space. Over a period of time it started importing soft luggage from China and stopped making it in-house. For the first time in 2009-10, VIP’s soft luggage sales matched its hard luggage sales. This year, the company expects soft luggage to account for 60 per cent of its turnover.
Analysts agree VIP’s strength lies in its distribution network. As many as 9,000 retail outlets sell VIP products now. The company has 100 distributors, each of whom connects to around 60 retailers; the company serves another 2,000 retailers directly. Of this 2,000, 450 are exclusive VIP showrooms, mostly located in upmarket shopping areas.
