To analyze the moulded luggage industry and its structure to highlight various kinds of pricing strategies followed by different brands.
To frame considerations to be taken into account while formulating the pricing strategies if a brand wants to launch soft luggage.
To establish specific and appropriate pricing strategies which may help a brand to formulate promotional strategies.
2. Overview of the Indian moulded luggage industry:.
The Indian luggage industry has evolved in a most unique fashion mostly due to the peculiarities specific to market conditions in India. From the era of cloth bundle commonly used up to 70 years ago (symbolized by Raj Kapoor in "Awara- and "Shree 420-), the Indian traveler has used various types of luggage to finally arrive at moulded and soft luggage in the past couple of decades. We first look at the evolutionary phases of this industry:.
2.1 Phases witnessed: .
Pre 1970: The pre-1970 era saw metal trunks (Metal Box), ply-board cases and hard leather cases (Durable Leather, etc.) being extensively used by the Indian traveler. These luggage were low on convenience and often heavy by themselves. Barring very few players, most of the demand in this market was catered to by the small scale unorganized - unbranded sector.
1970-1997: Moulded luggage started entering the scene from 1971 onwards, when VIP Industries was acquired by Dilip G. Piramal from Jal S. Engineer. After internal restructurings like closing of unviable product lines, the company came out with VIP Travelite range of moulded luggage and promoted it by heavy advertisements. At a time when consumer durables were not advertised much, the concept of moulded luggage started nudging out the older varieties of luggage from consumer's option list. Being the first entrant, VIP soon garnered the lion's share of the organized moulded luggage market.
In 1986, excise duty was imposed on inputs to moulded luggage sector and this led to a shakeout in the industry, which saw VIP buying out the competing Universal Luggage.