Indian Smes ‘travel’ to the US
The United States (US) is one of the major export destinations for Indian SMEs across diverse industry verticals, and it is no different for the domestic luggage and travel bag industry. Indian small scale and mid-sized luggage manufacturers have been supplying their products to the US market since a long time. A large number of Indian exporters have already made huge profits through the supply of low-priced luggage and travel accessories to this vast market. Considering the strengthening demand for the luggage market, there still remains immense scope for SME luggage makers to gain a foothold in the US market.
According to analysts, the global luggage market is predicted to witness a compound annual growth rate (CAGR) of about 3.4% in the coming years. Research firms believe that despite the recession and the downswing in the travel and tourism sector, the US is likely to retain its position as the largest luggage market in the world. With sales projected to reach $18.8 billion by 2010, Indian small luggage items suppliers and travel bag makers should increase their operations in this market.
Given that durable and consumer goods manufactured by Indian companies are popular in the US, the luggage makers must cash in on this popularity and expand their business in this market. The considerable market size is also likely to help domestic luggage manufacturing companies to augment their revenues. In order to capture a large market share in the US, Indian companies need to focus on manufacturing soft luggage items, especially in the premium and economy categories.
Luggage is increasingly becoming a fashion accessory, and US buyers want their luggage items to be in line with their personality. They want travel bags and luggage items to have stylish trends, international designs and ample safety features. Given the high level of fashion consciousness among the US population, companies must focus on introducing luggage items and travel bags in trendy and bright colour combinations, ergonomic designs, textures and clean contoured lines.
To survive and succeed in the highly competitive luggage market in the US, Indian SMEs should focus on innovation. Earlier, buyers considered the durability before purchasing luggage items. People preferred luggage that would last long and was theft proof and sturdy. However, luggage is no longer looked at as a functional product but has transformed into a lifestyle product. Companies should bring out products that are in line with the demands in the market. For this, companies should keep in mind the ever changing buying preferences of the US consumers.
About the Author:
David Parks is a well known author and has written articles on B2b Portal, B2B Directory, suppliers, Buy Trade Leads, Manufactures and many other subjects.
