Samsonite Middle East, Dubai — a subsidiary of Samsonite South Asia, is eyeing $100 million (Rs 447.28 crore) of revenues from the Gulf region markets on the back of runaway growth in sales of its mid to premium range, American Tourister brand of luggage.

“At present we are earning revenues of $65 million (Rs 290.73 crore) in retail value terms in Samsonite Middle East. We have invested a large amount in building the American Tourister brand particularly amongst the large South Asian community in this region. As a result we are seeing sales of this brand grow by 160 per cent year on year powering our revenue growth,” said Subrata Dutta, MD at Samsonite South Asia. Samsonite South Asia is a 60:40 JV between Samsonite of USA and the Tainwala family controlled entities in India.

The JV’s remit covers markets such as gulf region, SAARC countries including India, African countries such as Ethiopia, Kenya, Tanzania and Egypt and some Central Asian countries. In India the company expects to see its revenues rise to Rs 850 crore from Rs 650 crore in the financial year ending March 2011. “We expect to make an EBITDA margin of 20 per cent on sales (Rs 170 crore of operating profit) in calendar year 2011,” said Dutta.

In India too, its American Tourister brand, which accounts for roughly half of its sales is growing much faster than the premium Samsonite brand. “The American Tourister brand is benefiting from the rising numbers of middle class consumers,” said Dutta.

In its Samsonite brand, the company now derives 32 per cent of revenues from non luggage category such as shoes, wallets, belts, backpacks, toilet kits and locks. “These travel items help us reduce the cyclicality of the business,” he said. Samsonite now comprises around 150 products. Until four years ago the non-luggage segment brought in just seven per cent of the brands revenues.

Samsonite is focussing on leveraging the digital medium to engage with its upmarket audience in India and plans to set aside almost 12-15 per cent of its Rs 50 crore ad spend on this medium. “Next year we plan to allocate 20 per cent of our ad spend for this medium,” said Dutta. Atul Hegde, CEO at Ignitee Digital Solutions said a number of telecom service providers and automobile majors were now allocating substantial spends on digital marketing.

Samsonite recently tied up with cricket commentator Harsha Bhogle who will interact with fans on the Samsonite Facebook page and the YouTube channel Step Out with Harsha. “We are in the process of launching a new campaign online where we will ask customers to make a TV commercial for Samsonite on their handycams. The most creative videos will win exciting prizes,” said Sudip Ghose, director, marketing at Samsonite South Asia.

The company hopes that interacting with customers online will lift it from a low involvement category.