Luggage makers VIP and Safari are a bet on travel surge and premiumisation as MOSL initiates with Buy calls

The mass market of sub-Rs 4,000 luggage makes up the bulk of first-time buyers of brands at around 60 percent of the market, said MOSL, which translates into Rs 10,200 crore of turnover.

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26 Aug, 2025 12:21

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Domestic luggage makers VIP and Safari are now on Motilal Oswal's coverage list after the brokerage initiated with Buy recommendations on September 12, backing the post-pandemic demand surge to continue, with premiumisation and e-commerce driving the expansion.

The note said India's luggage industry is poised to reach Rs 26,700 crore turnover by CY28 at a CAGR of 12% between CY23-28, with established players driving the growth. "Branded players, holding a 52% market share in CY23, are expected to outpace overall industry growth, propelled by rising disposable incomes, rapid urbanization, and resurgence in both domestic and international travel," said MOSL.

The shift from unbranded to branded will be driven by innovation, premiumization and e-commerce, said Motilal, spurring both volume and value growth in the organized segment. MOSL cited industry observers who believe that luggage is now increasingly being seen as A 'status symbol', helped by social trends. The leading brands in India - VIP, Samsonite and Safari - together command around 33% of the market share.

Motilal Oswal said it is initiating coverage on VIP and Safari Industries with Buy ratings and targets of Rs 530 per share and Rs 2,700 per share respectively. Over the last six months, shares of VIP Industries are higher by 54 percent, while those of Safari Industries are higher by 13 percent.

The mass market of sub-Rs 4,000 luggage makes up the bulk of first-time buyers of brands at around 60 percent of the market, said MOSL, which translates into Rs 10,200 crore of turnover. This category is driven by brands like Safari, Aristocrat and Kamiliant with aggressive pricing and strong distribution network. The mid-market segment is dominated by VIP (21% share via VIP and Skybags) and American Tourister (around 17% shares), which have 'strong brand recall and omnichannel presence'. These players are targeting 'upwardly mobile, value-conscious consumers', with smart designs, seasonal launches, and curated retail formats, said MOSL.

The premium segment, which is about 10% of the market, is dominated by legacy brands like Samsonite and Carlton - commanding 20 percent and 8 percent market share - that are maintaining leadership in the business and international travel segments. "...premium luggage is evolving into a lifestyle accessory — blending status, style, and self-expression — fuelled by rising incomes, social aspirations, and the growing influence of digital culture," said Motilal Oswal. The segment is seeing new D2C entrants like Mokobara and Uppercase leveraging a digital-first strategy and influencer marketing to resonate with millennial and Gen Z consumers.

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