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French luggage-maker, Delsey, is playing its second innings in India via a joint venture with Kolkata-based Beauty Concepts. Delsey, one of the largest players in the luggage business worldwide, is treating India as its priority market. It had an agreement with VIP Industries, in early-2000, to stock its products at VIP's outlets. In 2010, the agreement was terminated. Eyeing the growth in an emerging economy like India, Delsey Group CEO Guenther Trieb tells Digbijay Mishra how the company plans to provide affordable luxury to Indians through shopper-focused marketing
How is it going in India and what are your plans ahead?
India is one of our key markets. Ten years back, Delsey was a brand that had its presence in India, but did not have growth you would expect in a dynamic country like India. We have formed a new JV with Beauty Concepts Private Limited and are looking to attain some spectacular growth.
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Our target audience includes male and female consumers, who appreciate the upper-end in products, ie. a little luxury, but affordable luxury. We have positioned ourselves for them in India.
How would you reach your consumer when other brands alreadyhave a strong foothold?
It is important to first understand the consumer's needs. There are two moments of truth. We win the first moment of truth when a shopper goes to a mall, sees our product and gets interested enough to walk in and buy it. The second is when the person travels with the product, is happy and decides that the next piece of luggage will be a Delsey as well.
You are eschewing traditional advertising on TV. Why?
Let's not confuse advertising with media. After 24 years with P&G, I can tell you that what you need is the right message. We are looking at shopper-focused marketing, which first helps the shopper to get to see our store. We will continue to invest in India. Right now we don't have the scale for a TVC.
How will you ramp up your stores?
At present, we have 18 single-brand stores out of the total 152 stores in the country. We will double the number of exclusive stores by December.
How do you see India shaping up?
Right now India is about less than 1 per cent, but we want to take it to 10 per cent in the next five years. Even if it takes six years to take India's contribution to 10 per cent, I won't be disappointed.
Which are your strong markets and where do you see India in that list?
Apart from France, actually we are very strong in West Asia (Dubai, Doha, Saudi Arabia). Frankly, Asia is where our future is. I am the first CEO of Delsey whose headquarter is in Hongkong. We also have a strong market share in Singapore.
Is the recession aftermath still being felt in premium product lines?
Delsey was hit by the worldwide recession in 2009-2010 but has been growing since then. This segment will grow at different speeds in different parts of the world. India might be slow now but is sure to pick up fast.
How big is the Indian luggage market and do you think the share of branded luggage will increase?
The Indian luggage market is about Rs 2,300 crore, out of which Rs 1,300 crore is the branded segment. I hope, and believe so, that this pie of branded luggage will get bigger. This is the kind of trend you witness in an emerging economy like India.
