INTRODUCTION TO SAMSONITE

Samsonite International S.A. is an American luggage manufacturer

and retailer, with products ranging from large suitcases to small

toiletries bags and briefcases. It was founded in Denver. The

company's registered office is in Luxembourg and it is listed on

the Hong Kong Stock Exchange.

 HISTORY OF SAMSONITE

The company was founded in Denver, Colorado, USA on March 10,

1910 by Blackhawk, Colorado-born luggage salesman Jesse Shwayder

(1882-1970 as the Shwayder Trunk Manufacturing Company. A

religious man, Shwayder named one of his initial cases Samson, after

the Biblical strongman, and began using the trademark Samsonite in

1941 for its tapered vulcanized fiber suitcase, introduced in

1939. In 1965 after the Samsonite suitcase became its best-selling

product, the company changed its name to Samsonite. For many

years the subsidiary Samsonite Furniture Co. made folding

chairs and card tables in Murfreesboro, Tennessee.

The Shwayder family sold the company to Beatrice Foods in 1973.

The Denver factory, which employed 4,000 at its peak, closed in May

2001. Samsonite headquarters moved from Denver to Mansfield,

Massachusetts, USA after a change of ownership in May 2005. CVC

Capital Partners Ltd. in July 2007 became Samsonite's fifth owner

in 21 years.

Samsonite moved its US marketing and sales offices from 91 Main

Street in Warren, Rhode Island, to Mansfield, Massachusetts,

effective September 1, 2005.

In 2005 the company was acquired by Marcello Bottoli, former chief

executive of Louis Vuitton as president and CEO, to pull them out of

a long slump. Bottoli left the company in 2009.

In July 2007 finance investor CVC Capital Partners took over

Samsonite for $1.7 billion.

On September 2, 2009 Samsonite Company Store LLC (U.S. Retail

Division), formally known as Swainsonite Company Stores Inc,

filed Chapter 11 Bankruptcy. It planned to close up to 50% of its

stores and discontinue the "Black Label" brand in the United States.

In June 2011 Samsonsite raised US$1.25 billion in an initial public

offering in Hong Kong.

In August 2012 Samsonite paid $35 million in cash to buy the high-

end luggage brand Hartmann, which was founded in 1877.

In March 2016 Samsonite agreed to buy luxury baggage maker Tumi

for $1.8 billion in its largest ever acquisition.

MILESTONES
Forty percent of all Samsonite hard luggage is manufactured at its plant

in Nashik, India.

BRANDS OF SAMSONITE

Samsonite American Tourister

Hartmann Luggage High Sierra

Lojel eBags

Lipault Speck Products

Tumi Inc. Kamiliant

Gregory Mountain Products Samsonite Red

 INTRODUCTION TO VIP INDUSTRIES

VIP Industries Ltd is worlds 2nd largest and Asias largest luggage

maker based in Mumbai, Maharashtra, India. The company

manufactures plastic moulded suitcases, handbags, briefcases,

vanity cases and luggage. It has acquired UK luggage brand Carlton in

2004. It provides travel products, hard and soft-sided luggage,

bags, backpacks, duffels, shoulder bags, waist pouches, sling bags,

duffel trolleys, vanity cases, office bags and satchels, suitcases, and

briefcases.

The company offers its products primarily under the VIP, Carlton,

Footloose, Alfa, Aristocrat, Skybags, and Buddy brands.

It also manufactures moulded furniture under the Moderna brand.

 VIP History

The very first VIP Suitcase was manufactured in the year 1971.

Since then, VIP Industries has sold over 60 million pieces of luggage

to people around the world and have subsequently become the

foremost manufacturer of hard and soft luggage in Asia, with a goal

to make travelling simple.

VIP manufactures an array of products and provides numerous

different services with an aim to make travel simple and convenient

for millions of people around the world. There products and services

are carefully designed to help people experience the delight of

travelling. A team of professional, skilled designers constantly

innovate and explore new technological aspects and materials to

craft luggage which is at-par with the worlds highest standards.

The Product Portfolio of VIP Industries Ltd. today, consists of a

diverse range of hard-sided and soft-sided luggage. The moulded

furniture range includes strollys, suitcases, duffel-bags, backpacks,

executive cases, overnight travel solutions and school bags. VIP

Industries Ltd. is the parent of many renowned brands like VIP,

Aristocrat, Alfa, Footloose, Skybags and Carlton which cover the

entire spectrum of travel products.

VIP Industries Ltd. has more than 8000 retail outlets across India

and with a network of over 1300 retailers across 27 countries. With

a product range which includes Injection Moulded PP Cases and

Furniture, Vacuum formed PC and ABS cases and Soft sided luggage

in Nylon, Polyester and EVA material, VIP Industries Ltd has several

innovations in product design and technology.

AWARDS & RECOGNITION

1997: The Industrial Safety and Health Council presented VIP

Industries with The Safety Award.

1997: The Ministry of Science and Technology awarded VIP

Industries with an award in recognition of their in-house Unit

by R&D, by DSIR.

1998: VIP Industries was presented with the award for 'Best

Paper Value Engineering - Invest' by the Indian Value

Engineering Society.

1999: VIP Industries are the proud winners of the NIMA

Excellence Award conferred upon by 'Nasik Industries

Manufacturers Association.'

2000: The Nasik Industries Manufacturers Association

(NIMA) awarded VIP Industries with an award for 'Excellent

Display - Nima Index 2000'.

2000: 'Indian Value Engineering Society' bestowed VIP

Industries with the second place for presenting a paper, titled,

'A Case Study on Optimization Cost and Enhance Aesthetics of

PVC Outer Strips'.

 2000: 'Council of EU Chamber of Commerce' presented VIP

Industries with the 'European Union Impresa Award for

Export Performance.'

Lakshya Award (2000): VIP Industries are the proud winners

of the prestigious Lakshya Award from NITIE (National

Institute of Industrial Engineering) for 'Best Project' in the

field of 'Supply Chain Management' in the year 2000.

The Lakshya Award is considered to be esteemed, as it is

conferred upon visionaries and is recognition of those who have

helped to revolutionize the future of the Indian business

setting.

Gold Peacock National Quality Award (2001): Golden Peacock

Awards are regarded as the benchmark for corporate

excellence all over the world. VIP Industries was presented

with this significant award in the year 2001, for achieving

'Total Quality Management'.

Lakshya Award (2001): VIP Industries was the proud receiver

of the Lakshya award, yet again in the year 2001. They were

lauded for their efficient and superior manufacturing over a

large scale.

This award is the testimony of VIP's innovative and productive

business setting.

Lakshya Award (2002): VIP The ability to understand everyday

demands and fulfil the same with optimized cost plays a crucial
 role in the manufacturing industry. In 2002, VIP Industries

was bestowed upon with the prestigious Lakshya Award in the

'On The Job Achievers' segment for presenting the best

project in 'Supply Chain Management Module.'

Rajiv Gandhi National Quality Award (2003): VIP Industries

were the joint winners of the 'Rajiv Gandhi National Quality

Award' in 2003, for being one of the best Large Scale

Manufacturing Industries in India.

Lakshya Award (2004):Lakshya Award is a unique endeavour by

NITIE (National Institute of Industrial Engineering) bestowed

upon in the honour of corporate excellence.

In the year 2004, VIP Industries were awarded the second

place for the 'Best Project' segment in the 'On The Job

Achievers' category.

Golden Peacock Award (2004): In 2004, VIP Industries were

conferred with the Golden Peacock Award for Innovation.

VISION, MISSION & VALUES
 Samsonite vs VIP

American Tourister and VIP have been going head-to-head over the

past couple of decades as popular luggage brands. They both have

had their fair share of ups and downs in the industry, oftentimes

competing against each other. We have created this American

Tourister vs VIP comparison so that you can get a better idea of

what is going on with these brands and how they stack up against

each other.

The Competition Between VIP And Samsonite

VIP is an Indian luggage brand that has been around for at least 40

years. They had 70% of the Indian luggage market in the late 90s

and early 2000s. Since then, they have come down to 50%. And a

part of this reason is that they are competing against more

international brands like Samsonite.

Samsonite is the parent company of American Tourister, which is

part of their mid level range luggage models. They are generally

more expensive than the VIP luggage, and offer roughly the same

quality.

One of the reasons why VIP has been hitting a slump is that it is

being seen as outdated, particularly by younger consumers. One of

the reasons for this is the fact that customer demand for hardshell

luggage has definitely been down in recent years. And the problem is

that traditionally, VIPs forte was in hardshell luggage.

In response to this, VIP released their Skybags line. Skybags

backpacks and luggage pieces came in a variety of styles and colours.

You can definitely tell by looking at Skybags products that VIP has

made much progress and in creating hip and young looking products.

The Skybags line came out in the 80s, but not enough was invested in

this line. In effect, they lost some of their popularity.

Sometime after the late 90s, VIP began to lose their market share

to Samsonite. It was at this point that Samsonite had launched

American Tourister in order to compete against VIP. At this time,

the profitability of VIP fell to the single digits.

A 36 year old Harvard Business graduate, Radhika Piramal, was

brought in to enhance the VIP offering. The goal was to offer a

more variety and appeal to todays generation of younger people. The

Skybags brand was relaunched in 2012, which had most of their

appeal in the youth. Unfortunately, VIP had already lost a lot of

steam against Samsonite.

Fortunately for VIP, they have begun offering the Carlton line as a

premium option that is aimed at professionals who prefer

international brands. The Carlton line has been growing by 30%

every year. A part of their strategy is to only offer Carlton luggage

at exclusive stores.

Another initiative on the part of VIP is to offer handbags. This is

due to the fact that the luggage market is not growing very rapidly,

which means that they need to diversify. One of VIPs handbag

initiatives is the Caprese. It is the hope of VIP to double the

companys turnover in the next five years. In the meantime,

Samsonite has decided to move into the specialized luggage market

segment.

Only time will tell what will happen to these brands in the future.

Comparing The Quality And Price

Generally speaking, Samsonite is seen as being the more high-end

brand compared to VIP luggage. This is likely due to the fact that

they offer their luggage pieces at a slightly higher price than VIP.

However, their American Tourister line is a mid range product line

that is not come at as high of a price tag as their professional

traveller luggage.

While American Tourister appeals to the younger crowd, they are

also professional looking enough for the professional traveller. They

come at a quality that is almost on par with their higher-end lines. In

comparison, the VIP luggage is very similar in quality to the

American Tourister luggage. Some say that VIP luggage is generally

a little lower priced than most American Tourister luggage. But

looking at current prices, we see that they are comparable.

The Verdict

While VIP has made much headway in terms of making their brand

more modern, they have mostly made their changes in the handbag
industry. Comparing the look of their standard luggage pieces to

American Tourister luggage, we feel that American Tourister is

superior when it comes to attractiveness and style. This is, of

course, our subjective opinion and is not based on customer reviews.

While pricing is very similar, we feel that American Tourister has

disappear brand when it comes to softshell and hardshell luggage.

This is purely based on style, and the fact that both brands are very

similar in quality.

If you have your own opinion concerning American Tourister and VIP,

please dont hesitate to leave your comment below. Would love to

start a discussion about both of these awesome luggage companies!

Six Reasons Businesses Go Global

ADDING (acronym):-

1. Add volume or growth to your company through global

expansion: If something is selling very well in your home

country, why not expand your sales by entering a new

marketplace? Offering your product to new customers can

generate continued repeat business and build your brand

reputation on a global scale.

2. Differentiate yourself by being a global player: If you

differentiate yourself by becoming an in-demand product on an

international scale, you may notice a difference in the

 willingness of customers to pay for your products. Creating

something that sets you apart can increase desirability.

3. Decrease costs by finding the most efficient ways to do

business: You may find that one of your new international

markets proves to be a source of cheaper labor or raw

materials. The benefit of doing business globally is being able

to find the pricing combination that works best for you, within

a variety of locations.

4. Improve bargaining power: As you grow in size, so does your

bargaining power with your distribution channel and your

suppliers. The sheer size of your international operation will

mean you command more power and the ability to strike

potentially more beneficial deals.

5. Normalizing (or optimizing) shift in consumption patterns: In

other words, dont put all your eggs in one basket. While the

economic crisis is affecting developed countries, many

undeveloped countries remain unaffected. They are still

growing and want a variety of goods and services. Doing

business in more countries can help normalize shifts in

consumption patterns, such as the decreased market in

developed countries due to economic crisis.

6. Generating knowledge, and other resources and

capabilities: Knowledge sources exist in every country by

 going global, you can tap all of them, and gain the power that

comes from knowing.

8 Reasons Why Companies Stay Domestic

There are many reasons that companies decide not to go global. Here

are some common thoughts:

1. We are doing great in our home market! There is no reason to go

global.

2. Our company is struggling with the domestic market; there is no

way we can take on anything else.

3. We are a small business and dont have the resources to go global.

4. We dont have the time, or expertise, to establish an exporting

plan.

5. Our company is struggling to compete in the domestic market; we

cant focus on international markets.

6. Trade barriers are difficult to overcome in many countries and it

is too much of a headache.

7. We cant handle the risk and uncertainties. It is too unfamiliar.

8. It is too expensive to do market research and get the information

we need to make decisions.

These are common reasons why companies stay at home. Going global

is scary, and it can involve risks. Sometimes, you just dont know

where to start and the task seems extremely daunting. This is

understandable. Your company needs a strong commitment; lots of

research, stay organized and remain flexible.

Exporting is also huge commitment

 FINDINGS

1. Around 80% of the respondents think we can/should go global.

Thus it is assumed that we can survive & outperform the competition

at the global level.

2. (40 % YES - 60% NO) out of 60%, 30% think product related

changes are required while other 70% said advertising & promotion

related changes are required to get good response from overseas

market.

3. 20% home country nationals, 40% host country nationals, other

40% third country nationals. Thus, majority of the respondents

neglect staffing from home country.

4. 10% said 20-30%, 50% said 31-40%, and other 40% said 41-50%

capital should be allotted for overseas operations & expansion. Thus,

majority of the respondents prefer investment bracket of 30-50%

of total capital available.

5. 35% are in favour of standalone introduction of company to

overseas market while remaining said to go for partnership with

already established firm.

6. 30% favours online expansion while others favour physical

existence in the overseas subsidiaries with majority saying that

there is moderate level of irrecoverable cash outlays for the same if

it fails.
7. 100% of the population agrees that cultural differences &

linguistic barriers will affect our growth & many of them favour

using cultural assimilation & intercultural experience, language

instruction, sensitivity training (dos {generally acceptable &

accustomed behaviour} & dont {offensive/rude/bad behaviour} &

field experience should be given to the expatriates going for

international work assignments.