175

174
 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 mil-
lions 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 travel-
CEO Marcello Bottoli | Number of employees Approx 5,000 | ling and the need for reliable goods. He explains…
Company turnover $1.070b | Brand values quality, innovation,
durability, functionality, style | Brand promise ‘Life’s a journey’ | Samsonite hasn’t changed its formula since its foundation in Denver
Target group Top 40% of the population; business and leisure Colorado almost 100 years ago: you ask a higher price and the client gets
travellers | Primary advertising media Print 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.
Coolbrands: Inge & Martyn in discussion with Damien Mignot
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 un-
disclosed 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 ow-
ing to the shift from hard suitcases to textile – making it easier to enter the
market without the technical knowledge and moulds required previously.
176
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 con-
nectivity 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 con-
sumer 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 introduc-
tion 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
177
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, desir-
ability 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 sub-
brand Black Label and the new strategy seem to have lifted the whole Samsonite
brand to new heights. Holidays are calling…