174-177 Samsonite Bc Spread Def

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Samsonite - Bagging the competition Life’s a… journey Belgium, small though it may be, is home to one of the finest, most nuanced cuisines in the world, urban architecture that attracts millions of tourists each year and, more recently, a tennis player who is outmatching the competition with her high-quality ground-strokes and mental stamina. A good setting, therefore, to talk to the world’s top luggage manufacturer, Samsonite, which has quite simply beaten its rivals hands-down by delivering detailed, attractive, superior goods and remains the unchallenged leader in its sector. Damien Mignot, European Marketing Director talks about his brand with passion, and was originally attracted to the company after many hours spent travelling and the need for reliable goods. He explains…

CEO Marcello Bottoli | Number of employees Approx 5,000 | Company turnover $1.070b | Brand values quality, innovation, durability, functionality, style | Brand promise ‘Life’s a journey’ | Target group Top 40% of the population; business and leisure travellers | Primary advertising media Print

Coolbrands: Inge & Martyn in discussion with Damien Mignot

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Samsonite hasn’t changed its formula since its foundation in Denver Colorado almost 100 years ago: you ask a higher price and the client gets better quality, reliability, durability and a more innovative approach to luggage in return. It maintained the same approach when it moved into Europe some 40 years ago. Nowadays, Samsonite is easily the number one brand globally, with its nearest competitors a fraction of the size. Recently, however, the market has been changing, expanding by 4-5% each year due to increasing numbers of people trotting the globe, thanks to a decline in working hours and cheap airline tickets. Combined with an undisclosed market potential of consumers looking for luggage that meets their needs regarding a more fashionable approach fitting their lifestyle - quality, reliability and other product features had become commodities. Clearly a great opportunity to lift sales. Yet, at the same time, the number of competitors was increasing fast owing to the shift from hard suitcases to textile – making it easier to enter the market without the technical knowledge and moulds required previously. Even larger supermarkets had started selling luggage of all kinds and from all sources, giving rise to an overcrowded market with reduced standards of quality, prices and margins. Not one to take things lying down, Samsonite took on the challenge with a new tagline, ‘Life’s a journey …’. Paradigm shift … and an insight that would change the entire sector. With the arrival of former Louis Vuitton CEO Marcello Bottoli in 2004, Samsonite realised the time was ripe to shift from selling luggage that was simply strong and reliable to selling accessories to take on board a plane. This would mean making smaller, more versatile products, travel accessories rather than luggage, and items with higher consumer friendliness and emotional connectivity in terms of fashion that meet contemporary consumers’ lifestyles. Of course, this would mean maintaining the standard impeccable quality and reliability, but the new look and feel Samsonite should enable the consumer to express his or her personality. As the only one with sufficient budget for media and innovation, Samsonite realised it was going to be able to change the category’s rules, lifting itself from the masses at the lower regions of the market and filling the gaping

hole between the lower regions and the high luxury brands, Louis Vuitton, Gucci, etc. at the top. To do so, it would have to introduce a new global and design-based strategy. First steps in implementing this new approach were to hire a new head of creative design – another category novelty – and open the new global executive offices in fashion metropolis London. Next they took to: 1. U  pgrading and diversifying the product portfolio.This included the introduction of innovative materials, new product features, higher pricing, new types of products such as bags and footwear and, most importantly, the new sub-brand Black Label. The main creative designer of this sub-brand, Quentin Mackay, was to lift the whole Samsonite brand. In addition, the ‘standard’ Samsonite pro­ ducts were given a smart design edge that resulted in light and strong luggage, thereby meeting new airline regulations. Designers from the worlds of fashion and design were brought in to take new interpretations on luggage; including Marc Newson and Alexander McQueen. 2. More selective advertising. Samsonite narrowed its scope to 20% of the top income earners for its Black Label and 40% with their classic label. They elimi­ nated mass media TV ads and replaced them by a more targeted approach through print. The campaign featured several celebrities including Jean Reno, Isabella Rossellini and Richard Branson. The idea behind selecting these specific char­ acters was to match their lifestyles with the Samsonite brand tagline. Alexander McQueen featured in the campaign alongside a suitcase he designed. This novel approach again shifted the limits within the industry, discarding the traditional ads that focus on the products and entering lifestyle and fashion territory. 3. Controlling retail. In order to control its retail, Samsonite opened its own shops – some original Samsonite, but mostly Black Label. The latter are situated in top locations in top cities, have special colour coding, design and architecture. The result is that Samsonite has absolute control over the communication of its brand values and the best seat in the house to asses the shopping experience of its customers. These shops not only helped lift the brand and were great sources of information – they were also used as a benchmark to show other retailers how to communicate in Samsonite style. Finally, to underline its new positioning, Samsonite has got involved in events. Its own event ‘House of Samsonite’ featured talks with top fashion magazines about style, novelties and new trends. Attending the famous Pitti fair for men’s fashion in Florence broadcast its new positioning further. Back the black The result of this new approach has dramatically changed Samsonite’s brand awareness and equity, pushing it upmarket. While reliability remains critical, desirability and design are catching up fast. Samsonite has entered a new market of customers that are into design and anything that’s hot, with products selling at men’s fashion departments or fashion stores and in design shops. Margins are up also, with customers spending more on luggage than they used to. Flagship subbrand Black Label and the new strategy seem to have lifted the whole Samsonite brand to new heights. Holidays are calling…

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