After acquiring the Carlton brand two years ago, VIP is planning to aggressively promote the brand. In India, the company has planned to set up 20 exclusive brand outlets in the six metros in one year.
At present there are two Carlton outlets in Mumbai and Chennai.
EP Suresh Menon, who has recently joined the company as vice-president-international business, VIP and CEO, Carlton, said the brand would not be retailed through multibrand outlets although it would be available at select VIP Lounges.
These stores will range from 300-1,200 square feet and the company is in the process of working out a retail identity for the brand. The range is positioned in the premium segment, priced in the Rs 4,500-6,500 bracket.
The market for premium luggage in India is still small, pegged at about Rs120 crore (Rs 1.2 billion) and estimated to grow at 15-20 per cent over the next year.
While the ad spend is not likely to be very high, Menon said the company would invest in the point of purchase and retail infrastructure instead.
Menon said internationally the retail strategy for Carlton would be different from that followed in India. "We want to strengthen the brand in Europe and we will work strategically to provide something different," he added.
This is where the retail strategy of setting up exclusive brand outlets fits in as most luggage companies sell through MBOs. This is another reason why the company is on the look out for retail acquisitions in the international markets.
The brand has a significant presence in UK and Holland where it will look at adding more exclusive outlets. In addition to these markets, West Asia is another country where Carlton will establish a stronger presence.