Chinese trolleys edge out Indian brands

It is no surprise that loads of Chinese goods are dumped into the Ahmedabad market randomly but in a new development, luggage manufacturers from China are now studying local demand and distributing goods accordingly.

Sensing the spurt in sales of the soft luggage category, especially trolley bags, the Chinese goods suppliers have reportedly brought in attractive trolley models of various price ranges. Apparently, Chinese luggage now occupies around 20 per cent of the market share.

Luggage manufacturers say that hard luggage, which consists of heavy suitcases and briefcases have witnessed a steep decline in sales and this is playing into the hands of the Chinese manufacturers, who have better expertise in soft luggage rather than hard luggage.

"The branded market for luggage in Ahmedabad is around Rs 20-24 crore, while the unorganised segment can be anything between Rs 15-30 crore at a rough estimate. Currently, it is the trolley category through which we earn revenues. Now, with the Chinese goods taking up 20 per cent of the market, it has become very competitive," said Piyush Pushkar, branch manager, Samsonite.

With a new player entering the luggage market every day, luggage dealers say it is impossible to put a figure on the number of Chinese brands in the market.

However, it has been learned from market sources that major retail stores in Ahmedabad have tied up with many Chinese goods dealers adding to the woes of the branded goods.

Blowplast Industries' VIP brand is reportedly the market leader in the luggage category in the city capturing more than 55 per cent. Even as the price of the Chinese goods clashes directly with VIP's mid-segment range, officials from the company are not too perturbed.

"The demand for trolley luggage has definitely put the Chinese in good business but that should not be much of a worry as long as there is a section of people who prefer branded goods over the unbranded ones, " said Surojit Dey, branch manager, Blowplast, Gujarat.

"Inspite of Chinese luggage gaining ground in the market, the quality of the Chinese products are still a major concern for the customers", said Shaik Mohammad Aquil, proprietor of Masco Luggage, a city-based local manufacturer of luggage goods.

However, he admitted that the Chinese products are a threat to branded goods due to the price factor and trendy looks.