Samsonite aims to double turnover in next few years

Luggage manufacturer Samsonite aims to double its turnover in the next four years. One of the ways to do so, is the acquisition of its American competitor Turni Holdings at a cost of 1.8 billion dollar (1.6 billion euro).

Growth in new areas

The company managed a decent growth over the past few years, but CEO Ramesh Tainwala does not want things to slow down. His goal is to have a 5 billion dollar (4.4 billion euro) turnover by 2020, which means the company will need to double its 2015 turnover and an annual turnover growth of 12 to 14 % will be required if Samsonite is to reach its lofty goal. Tainwala looks to gain market share in areas where it is not a top player right now.

He mainly targets a strong growth for the Indian middle-class and an online sales surge. Considering the younger generation’s increasing devotion to travel, the CEO hopes to attract a younger audience as well. “The World Tourism Organization expects an annual 5 to 6 % growth over the next five years for the industry. That is in part because younger people have shifted their primary focus away from cars and homes towards travel”, Tainwala told the Indian Economic Times.

“If we can keep up that strategy, we will reach our goal. Backpacks and briefcases also have to contribute to the company’s continuous growth. Obviously, online sales are important too. It now represents 6 % of our overall turnover, but I expect that share to possibly grow to 25 % over the next 3 to 5 years.”