India’s luggage market poised for growth: Brand Concepts eyes expansion amid rising demand and challenges – CNBC TV18

As the retail and travel appetite grows in the country, the Indian luggage and bags market is emerging as a niche but promising segment. Industry players estimate that this market will generate ₹1,504 crore by 2024, with an annual growth rate of 5.01% (CAGR 2024–2029). Globally, the United States leads this market with ₹3,000 crore in 2024, but experts note that India is steadily increasing its share.

In India, 87% of sales are attributed to non-luxury segments. However, the rising middle class, increasing travel, and growing fashion consciousness are driving demand for luxury luggage.

Over the past two years, the market has experienced strong growth, fueled by evolving consumer preferences for stylish yet functional and affordable luxury products, accelerating expansion in both domestic and international markets.

Brand Concepts Ltd, which houses global iconic brands like Tommy Hilfiger, United Colors of Benetton, and Aéropostale, is also fostering homegrown labels such as Sugarush and The Vertical, redefining affordable luxury.

Prateek Maheshwari, Managing Director of Brand Concepts Ltd, shared, “This year, we achieved a significant milestone of almost ₹500 crore in retail sales, and over the past two years, Brand Concepts Ltd. has seen remarkable revenue growth, with a 45% increase from ₹172 crore in FY 2022-23 to ₹250 crore in FY2023-24. This growth is driven by the strong performance of Tommy Hilfiger, which contributed 90% of the retail revenue in 2023-24, down from 98% the previous year. We also introduced United Colors of Benetton and Aéropostale, with UCB contributing 7% and Aéropostale 1% to our overall sales, marking a significant expansion in our brand portfolio. And as the market is expected to grow further, the next two years look even more bullish in terms of sales and revenue generation.”

Discussing demand in this segment, Maheshwari added, “The demand for luggage in India is expected to remain stable despite a projected decline in overall revenue growth in FY25, with a slower increase of 8-10% after the significant boom in FY22-24. This steady demand is primarily driven by the continued penetration of hard luggage, which has gained significant preference among consumers for its durability and quality. Additionally, steady tourism and corporate travel are crucial factors supporting this stability.”

However, he also noted some challenges: “While the industry faces challenges like increased competition and lower average selling prices in the economy segment, a strategic shift towards domestic hard luggage manufacturing and the rising share of organised players in the market continue to provide a foundation for sustained demand and growth.”

With Indians increasing their spending in this space, the industry expects global brands to expand their presence in this segment through licensing in India. Estimates suggest that the Indian licensing industry is on a rapid growth trajectory, projected to reach $14.8 billion by 2027. This presents a golden opportunity for global brands to enter one of the world’s largest and most dynamic consumer markets.

The question remains: Will India’s young, growing population, rising disposable incomes, and strong affinity for international brands, combined with the booming e-commerce and organised retail sectors, provide avenues for heightened brand exposure? Only time will tell.