Luggage Makers look for new growth paths

Bobbin, Dec, 1999 by Jules Abend

"Acknowledging that we've had a couple of tough years," Korros reflects, "This year should end tremendous for us the way business is shaping up."

Even as consumers buy more smaller soft-sided luggage to carry on the aircraft, Korros maintains, they're also investing in hard-sided luggage because "as they are having to check more luggage, they're not so sure they want to put expensive apparel in a soft-sided suitcase and watch it fall in a puddle of oil."

With an eye to the future, Korros also stresses: "By no longer selling Samsonite to the lower channel, we have been able to raise the value of the product, and put it more in line with how the brand is perceived outside of the U.S. In Europe, the name for our leather goods, for example, has the same cachet as somewhere between a Coach and a Gucci. It is very high end. We think that's an opportunity here. But it's not something that is going to happen overnight."

Atlantic Luggage: Balancing Value with Bells and Whistles

While Atlantic Luggage Co. doesn't have the name recognition of Samsonite, the 80-year-old company does have an enviable stronghold on the department store channel, where it claims to be the largest luggage supplier.

In terms of overall U.S. market share, industry watchers rank Atlantic, perceived to be a department store promotional line, in third place, close behind JCPenney's Jaguar business. However, Atlantic considers itself the second-largest luggage supplier in the United States, behind Samsonite.

Says Anne C. Fleming, the firm's marketing director: "You may or may not know the brand when you go into a department store because we don't have an 'X' percent advertising fund to market to the public."

The company's niche is in luggage that offers a high features-to-value ratio, Fleming emphasizes. For instance, Atlantic's success in business cases comes from "adding value and making sure [the cases are] computer friendly, with padded compartments, both ballistic and nappa leathers, etc., but not at $200 price points," she states.

Those who monitor the industry say Atlantic came into the big time fairly recently, thanks to increased marketing and product development. As one insider puts it: "[Atlantic] was a sleepy little company that got a jumpstart a few years ago by bringing in marketing and sales heavy hitters, and branching out into hard-sided luggage and business cases, with innovations."

The bulk of the company's business is in soft-sided goods, including upright pullman luggage that sells for $99 to $249 at retail. The company's soft goods are manufactured offshore, while hard goods are produced in the United States.

Going forward, Fleming emphasizes that Atlantic, which has new products set to hit the market in February, will continue to focus on "innovation, not only in handles and wheels and fabric, but in coming up with new developments on the inside to make packing easier and more efficient for the user."

As for its response to carry-on luggage size restrictions, Atlantic has added a style to its lines that complies with the Delta and United specifications. Interestingly, while some major retailers have picked up the new SKU, others haven't.