Samsonite harnesses data to boost sales

The US luggage maker is boosting its online channel to drive revenue across Southeast Asia.

Samsonite is using data analytics to offer personalised product recommendations based on browsing behaviour and purchase history to connect with consumers more effectively.

The US premium luggage maker and retailer is intensifying its focus on e-commerce as it tries to boost sales across Southeast Asia, Satish Peerubandi, regional manager for Southeast Asia at Samsonite, told Retail Asia.

He said the company is also broadening its digital marketing reach, investing in platforms beyond Google, Meta, and TikTok to increase visibility and engagement.

Samsonite has also partnered with regional e-commerce giants like Shopee, Lazada, and Tokopedia to boost visibility in familiar online spaces, Peerubandi said. These efforts have helped it boost online sales, which account for 15–20% of total revenue.

Samsonite’s net sales rose 15.8% year on year to $948.5 million in the fourth quarter of 2023, spurred by a 40.6% revenue surge in Asia.

Sales growth in Southeast Asia, particularly in markets like Malaysia and Indonesia, have surpassed pre-pandemic levels. "Southeast Asia has sustained robust growth over an extended period, with post-pandemic demand further accelerating this trajectory," Peerubandi said.

Southeast Asia, with its rapidly growing e-commerce markets, has led them to prioritise omnichannel strategies to connect with consumers across both online and offline touchpoints, he added.

He noted that despite the rise of online shopping, traditional retail remains important, especially in the luxury and lifestyle segments. “Its enduring relevance lies in our ability to optimise physical stores by integrating experiential elements such as customisation options and endless aisle features.”

Samsonite’s products have been tailored to local tastes across Southeast Asia. In Indonesia, for example, there is a growing trend for clutches and crossbody bags, whilst in Singapore, where consumers value premium quality, the brand focuses on high-quality materials and longer warranties.

The luggage and bag market in Southeast Asia is expected to grow 5.44% annually to $17.37b in sales by 2029, according to German online data platform Statista.

Over the past year, Samsonite has seen a shift in consumer priorities toward high-quality, stylish travel products. “This trend is evident in their growing willingness to engage with high-quality travel brands, whether through social media interactions or immersive in-store experiences,” Peerubandi said.

“Whilst core expectations from travel brands have remained relatively consistent, the demand for premium quality, lightweight, durable, and fashion-forward luggage continues to gain momentum,” he added.

He also said consumers are increasingly prioritising products that combine functionality with style. "In Southeast Asia, a region known for its keen fashion sensibilities, luggage and bags are viewed as more than mere travel essentials; they serve as personal style statements.”

Products that align with contemporary fashion trends and reflect personal values, including sustainability, are in demand. "There is a growing preference for brands that inspire, foster a sense of belonging, and demonstrate environmental responsibility,” Peerubandi said.

“We are increasingly incorporating sustainable materials and practices into our product lines, as environmental consciousness is rising amongst consumers in Southeast Asia,” he added.

Whilst unbranded luggage remains prevalent in markets like Indonesia and the Philippines, he said the entry of more organised brands is professionalising the sector.

The region’s post-pandemic travel recovery presents a significant growth opportunity for Samsonite, Peerubandi, adding that they would continue to prioritise customer experience from retail outlets and online platforms to after-sales service.