VIP finalising plans to stem Alpha's market share decline

Blow Plast Ltd, the marketing arm of luggage-maker VIP Industries, is finalising plans to stem the decline of its economy brand VIP Alpha. The company will launch soft luggage sourced from China in this segment, besides upgrading current designs to match the premium brands.

Leaning on this, VIP targets to up Alpha's revenues past the Rs 100 crore mark over the next 18 months, from around Rs 40 crore now, according to Videh Kumar Jaipuriar, vice president (sales), Blow Plast, VIP's parent.

That however will be pretty stiff as the organised segment has shrunk in the past two years, thanks to the explosion of the unorganised market.

The unorganised sector that sources cheaper economy segment luggages from China will grow 25 per cent this year. Officials said, the decision to pick up soft luggage from China is primarily to match the costs.

In the premium segment, VIP will position the Carlton brand along with its existing VIP Premium and Delsey ranges in April. While 'Premium' is a home grown brand, the company is the licensee for the French label 'Delsey' in India.

VIP expects Carlton to rake in as much as Delsey or about Rs 10 crore in the first year. 'Carlton' is among the three biggest luggage brands in Europe. VIP acquired the brand and machinery from the bankrupt UK-based Carlton in March 2004 for Rs 10 crore.

Also, riding on Carlton, VIP is nursing its ambition to enter the European markets, VIP targets to end the fiscal at Rs 425 crore, with the bulk of revenues coming from the flagship VIP and VIP Premium brands.

Jaipuriar added that the company saw a 100 per cent growth during Diwali period selling six lakh pieces , thanks to the exchange offer.

Logo to change

VIP is going in for a brand logo makeover. The company is trying to address the 'staid' look of its existing logo and replace it with a one that will appeal to the youth. Creative agency Lowe's design cell is currently working on the logo.

Videh Kumar Jaipuriar, vice president-sales, Blow Plast said, "The company will make all efforts to retain the inherent characteristics." The redesigned company symbol is likely to be unveiled by April-May.