The company’s promotional expenses for this fiscal stood at Rs 112.51 crore compared to Rs 35.52 crore in the previous period
Luggage manufacturer VIP Industries’ advertisement and publicity expenses for the year ended March 31, 2023, grew by 216%. The company spent Rs 112.51 crore for the year ended March 31, 2023, as compared to Rs 35.52 crore in the previous fiscal year.
In its annual report for the year 2022-23, the company shared that in an ever-evolving retail landscape, the company is committed to fostering lasting connections with customers.
“Through targeted marketing and advertising initiatives, we elevate our brand attributes, forge emotional bonds and ensure our brands are top of mind during crucial purchasing decisions. With a keen understanding of shifting consumer behavior, we have expanded our digital footprint and roped in well-known celebrities to promote our products. Collaborations with social media influencers have further extended our brands’ digital reach, ensuring a compelling connection with our valued consumers.”
Last year in November, the company announced Bollywood actor Kartik Aaryan as a brand ambassador for its brand- Skybags.
Dilip G. Piramal, Chairman, VIP Industries, said that the company has delivered a strong performance, with growth being broad-based across brands and channels.
“Furthermore, we have made significant strides in executing our transformation plan. This journey is of paramount importance, and we are steadfast in our commitment to drive this transformation, solidifying our foundation for long-term business sustainability.”
He highlighted that the luggage & backpacks market in India is estimated to be around Rs 10,000 crores with branded players constituting 56%of the market, while the remaining portion is dominated by the unbranded segment.
“In recent years, factors such as the implementation of GST, supply chain disruptions caused by the pandemic, and a shifting consumer preference towards branded products are reshaping the industry landscape. To provide a better perspective, while the overall industry is growing at an average rate of 8-10%, the organised segment, synonymous with branded offerings, is outpacing this growth with an impressive rate of 15%. This highlights the strong momentum and promising expansion opportunities within the organised segment.”
He also added that the company’s consistent investments in strengthening business fundamentals will enable them to cater to the expanding aspirations of our customers and drive growth.
