VIP Industries aims to increase market share
Bags and accessories maker VIP Industries is eyeing a larger market share in India’s branded bags segment and is currently in the process of revamping the brand to cater to younger consumers for growth.
As part of its rebranding strategy, VIP has signed Bollywood couple Saif Ali Khan and Kareena Kapoor Khan as brand ambassadors and expects strong growth with an increase in market share going forward.
Currently, VIP owns around 22 percent market share in India with its fashion and accessories brands like Carlton, Skybags, Caprese, Aristocrat, and Alfa.
“In the branded segment we have about 60 percent market share. In that 60 percent, we want VIP to become at least 40 percent among our other brands by end of this FY20,” Sudip Ghose, managing director at VIP Industries, told Moneycontrol.
For the year ended 31 March 2018, VIP Industries posted sales of Rs 1416 crore (approx $204 million) with a 10 percent growth.
VIP is also planning to strengthen its retail presence in tier 3, 4 cities through franchise route and company-owned stores.
“The company usually spends 5-5.50 percent of the total company’s turnover for promoting the brand. VIP Bags is largely targeted at the mid-premium segment. We already have a distribution network in tier 1 and tier 2 and planning to make its tier 3 and tier 4 network strong,” Ghose added.
VIP currently has around 550 exclusive retail locations and over 9,000 touchpoints/doors in trade with a network of 90 distributors. It also sells through retail chains Shopper’s Stop, Lifestyle, Central, Big Bazaar and e-commerce players Flipkart, Amazon and Myntra.
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