Legacy brands have begun to fade into the darkness with the rise of the Indian D2C wave, caused by the incursion of countless new brands. A case in point is VIP Industries, which despite its 50-year-old legacy in the Indian Luggage & Bag market appears to be losing market share with projected revenues of $3.32 bn by 2029, growing at 11% CAGR from 2024 onwards.

According to a Forbes report published earlier this year, VIP Industries, the country's largest luggage and travel accessories manufacturer, has been losing market share for five consecutive financial years.

While Safari Industries increased its market share to 24 per cent in April-December 2022 from 16.7 per cent in the year ended March 2019, VIP Industries declined 7.5 per cent to 44 per cent in the same period.

Now, there is no denying that companies like VIP Industries, Safari Industries, American Tourist, Aristocrat and Samsonite have grabbed most of the space of Indian luggage and bags. However, it is the growing D2C wave in India that is now posing a challenge to their dominance.

The reality is that new-age brands such as Mokobara, Acefour Accessories, Nasher Miles, EUME and Assembly - all flush with investment capital - are becoming the new travel companions of Indians. These brands are riding on innovation and conquering Indian hearts with unique designs, global styles and new-age consumer preferences.

An untapped part of this growing market is seen by ICON, a D2C luggage and bag brand launched in 2023, which claims to be bridging the industry's innovation gaps.

Incorporated by Mohammed Patel, Poojan Shah, Fazal Lakhani and CA Akash Mehta, the founders of My Fitness (now acquired by Mensa Brands), Icon is the first D2C brand on the internet to produce premium products in the luggage and travel accessories segment such as hard luggage, backpacks and handbags.

Exploring nearly 30 countries, the co-founders found that the Indian luggage market lacked innovation in multiple areas, which ultimately led them to take the reins of innovation in this segment.

We have seen a lot of white space in the luggage segment in terms of innovation over the decades by office bearers like VIP and Safari. Our aim was to go beyond the traditional black and blue designs and make luggage a lifestyle product, "Shah said.

With global trends favouring 70% hard case luggage, unlike India's preference for soft cases, we have entered the Indian market with innovations like wide handles and PC shells," he added.

The founders say that the startup's incorporation in 2023 was strategically in line with their vision to capitalize on the post-pandemic boom in travel

Recently, the startup raised $1.2 Mn (INR 10 Cr) in a seed funding round led by DSG Consumer Partners and a group of angel investors.

Icon's iconic products

Icon's diverse product portfolio includes hard luggage, backpacks, and handbags, and the brand's unique selling point is its wide handle design, unlike traditional narrow handle options.

"The wide-handle design, inspired by global brands like Louis Vuitton, offers distinctive aesthetic appeal and enhanced functionality," Mehta said.

In addition to this feature, cofounders use 100% PC material, which is known for its durability compared to ABS.

Currently, the startup offers 10 SKUs in three colour variants. Initially launched with three primary categories - suitcases, backpacks and handbags - the startup is now focusing on expanding its suitcase range and diversifying into accessories.

"Our products are priced in the range of INR 4,000 to INR 10,000 and make us competitive in the mass premium segment right after American Tourister and between Nasher Miles and Mocobara in the start-up landscape," Shah said.

According to the co-founders, they have surpassed their investors' expectations in the last five months. They are currently facing stockouts in two SKUs, which they see as a good challenge.

Currently selling products through its website and marketplaces like Amazon, Flipkart, Myntra and Ajio, the startup's primary focus is to establish a strong online presence.

With 40% of sales coming from the website and 60% from e-commerce platforms, the startup has shown significant growth since February, with a five-fold monthly surge in website traffic. The website has recorded traffic from 9 lakh users since its launch.

However, according to Shah, the brand faced several challenges early on, be it in the areas of resources, manpower or capital, or establishing trust.

Shah said that despite all the possible risks, they were able to stay ahead in learning and opportunity. Talking about the study, the cofounder said that the startup continuously collects customer feedback to refine its products. They also interact with non-recurring customers to understand the gap.
In addition, cofounders work closely with influencers and leverage performance marketing and educational campaigns to raise awareness about the quality of products.

In addition, cofounders work closely with influencers and leverage performance marketing and educational campaigns to raise awareness about the quality of products.

"Initially, in the first one to one-and-a-half years, we aim to dominate the online market with the playbook and experience we gained from our previous venture My Fitness," Shah said.

"In the Rs 20,000-25, 000 crore market, even if we can capture just 1%, we are still on the surface," he added.

Shah emphasised on the rapid evolution of India's luggage and travel accessories market and the shift from the unorganised sector to the organised sector through increased leisure travel.

With the organised segment now accounting for a significant 60% share, brands such as Mokobara, Nasher Miles and Ikon are set to capitalise on this trend.

Despite the dominance of legacy companies in this space, ICON sees significant opportunities in the Tier II and Tier III sectors and aims to establish itself as a leading brand for Bharti in the next five years. Still in the pre-earnings stages, the startup is optimistic of overtaking the competition in its unique product range and gaining a foothold in the country's luggage and bag industry.