Shedding old baggage - Third Eyesight: leading management consultant - retail, consumer, fashion, food, textiles, home, strategy, India, business growth, marketing, ecommerce, omnichannel

Legacy luggage brand VIP Industries is undertaking a significant transformation to modernize its digital presence and supply chain, acknowledging past delays in e-commerce adoption. Managing Director Atul Jain stated the company is reinventing its online store and expanding into quick commerce channels to capture last-minute travel purchases and gifting opportunities. This strategic shift aims to align the company with evolving consumer behaviors while maintaining its position as a top-three player in the Indian luggage market. The company recently saw a change in ownership structure when the Piramal family sold a 32% stake to a private equity firm, yet it retains approximately 29-30% market share in the organized sector valued at ₹16,000 crore. Product innovation includes practical additions such as coffee cup holders and device compartments in cabin trolleys, designed to fit the role of a traveler’s companion. Additionally, VIP is revamping its 350 exclusive physical retail touchpoints to enhance the customer experience across the country. To address relevance among Gen Z buyers, the company is sharpening the positioning of its Skybags label, which boasts over 820,000 Instagram followers, through youthful colors and prints. Experts note that while digital-first players excel at embedding themselves in travel culture, VIP holds an advantage in trust and brand equity that unbranded competitors lack. Analysts recommend that the firm segment its market cleanly to ensure clear targeting across pricing, communication, and channels to maximize growth potential in the unorganized sector. VIP Industries is leveraging its legacy equity to counter the rise of digital-first competitors by modernizing its product features and retail experience. While the company maintains a dominant market share, experts suggest success hinges on clearly distinguishing its sub-brands to target specific consumer segments effectively. Future performance will depend on whether the organization can successfully communicate durability and value to offset the allure of trendy, lifestyle-focused alternatives. There remains uncertainty regarding how quickly the brand can shed perceptions of being outdated among younger demographics.