Samsonite RED extension
As Samsonite RED is introduced in Singapore just early 2014, not many people are aware of the brand name and its presence in Singapore. In fact, the awareness among the respondents is just 22%. On top of that, RED presence is exclusive stores is limited and there is only one RED exclusive store in Singapore. Also there is no association of the Samsonite brand to fashion, which leads to the conclusion that RED would need hardwork on the brand identity to make people understand the new extension and its association with causal and bunisess wear.
Core Brand
According to the survey findings, there are few shortcomings in the brand identity which translated to a low level of brand loyalty. First of all, approximately 40% of survey respondents are not aware of the presence exclusive Samsonite showrooms. Also only 10% of current Samsonite users are loyal to brand and will not shift to another brand. Another significant issue with the core brand is that it is seen particularly as a functional brand. Most of the survey respondents use their Samsonite products for travel only and very few use it on a daily basis.
Future Trends
According to research report on bags and luggage trends from Passport, EUROMONITOR, luggage segment has seen a negative CAGR of -0.5% during 2008-13, while Bags category recorded a CAGR of 1.5% during the same period. Bags category contains Backpacks, Handbags, Duffel Bags, Crossbody Bags etc., The forecasts depict similar picture with luggage category during 2013-18.
According to world bank forecasts, 2013 on the GDP growth, Asia region is expected to grow at 5-6% in foreseeable future, which results in the rise of burgoing middle class segment. Samsonite should be aware of the changing landscape and the trends in the market so as not miss the opportunity in a fast changing world. Some of the notable trends visible with high confidence are listed below.
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A rise in disposable incomes associated with the economic growth in the region.
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12% CAGR in tourism travel fueled by low-cost carriers and new travel destinations.
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A trend towards personalization of high technology gadgets with cases, bumpers etc.,
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Increase in the influence of social media in the lives of people.
Competition from the market
Several competing brands in luggage and bags category cater for various needs of people and offer a variety of products from luggage, carry-on bags, computer bags to travel accessories. Most notable brands in the industry have patented designs and product warranties similar to Samsonite. The product range of the competing brands also compares with that of Samsonite on such attributes as functional aspects, design and color. Also, the competing brands present a whole range of product lines at a single shop with large shooping area to give a holistic experience to propsective buyers. In fact, most competing brands have closed in on Samsonite on all aspects except Global reach.
According to survey findings and exploration study, Samsonite is perceived as a purely functional brand in the minds of consumers. The most prominent identifiers that respondents chose for Samsonite were functional aspects such as durability, strength, reliability and quality. Respondents do not associate Samsonite with fashion or colorfulness.
On the other hand, Samsonite ‘Red’, which is positioned as fashionable and trendy for causal and business usage, is not known to majority of the respondents. Additionally, Samsonite is only associated with luggage even though the brand carries several product lines such as backpacks, wallets, women handbags,travel accessories etc.,
Brand Perception
Challenges
The Samsonite brand currently consists of core Samsonite brand as well as the Samsonite RED extension.