Samsonite to refit stores to make them more inviting to women, appealing to half of humanity

Samsonite International said it’s planning to refit and renovate its 65,000 sales outlets in 140 countries to make them more inviting to female customers, part of the strategy by the world’s largest luggage maker to increase the revenue share by women to 25 per cent by 2021.

“Women are becoming an important deciding force, even for male buyers,” said Samsonite’s chief executive Ramesh Tainwala, in an interview in Hong Kong with the South China Morning Post. Not catering for them would be “leaving money on the table,” he said. Women could account for half of total sales in the next 10 to 15 years, he said.

Almost two thirds of all purchase decisions are made by women, according to research by Samsonite, founded in 1910 and listed in Hong Kong in 2011. The company is already seeing improved sales in its refitted outlets, with growth in Europe doubling to 15 per cent since October.

A successful example can be found at Tumi, the high-end brand that Samsonite bought in March for US$1.8 billion, where women’s share of its sales revenue has risen to 18 per cent, from zero five years ago. Recognising the potential, Samsonite already has a line of luggage that caters specifically to women, called Lipault.

“In the past, women were only looking for fashion, and functionality was not important for them,” said Tainwala. “There are changes happening. Women care as much about functionality, maybe even more than men, but they do not want to compromise on aesthetics.”

Similar trends are seen in Hong Kong, where sales had been lacklustre due to the dwindling arrival of Chinese tourists. Two refitted Hong Kong stores in the IFC and Pacific Place shopping malls, out of 50 outlets in the city, are the only ones currently showing positive sales. Sales rose for the first time in November after a two-year decline, growing 8 per cent.

“Lipault’s French heritage may offer meaningful potential for female business bags,” said Mariana Kou, head of China education and Hong Kong consumer research at CLSA. “Tumi’s female products could potentially gain more traction in Europe and Asia.”