US luggage maker Samsonite is allocating $1 billion to buy Asian brands.

The plan comes after its net profit grew 17 per cent during the first six months on the back of sales rise.

Asia accounted for 37.6 per cent of Samsonite’s global sales, of which 9.5 per cent were from China.

The company foresees the Chinese market to overtake the US market in three years, it says.

Having said that, the company thinks it is the right time to look at local brands.

“We have a strong balance sheet, a capacity (to do deals) up to probably a billion dollars. We think there are some fantastic opportunities out there,” said chairman Tim Parker.

Samsonite says the planned acquisitions are also part of its strategy to diversify product offerings.

“We’re still not in the handbag market. We have a small share of outdoor segment, not in the lower end of the luggage market, still a small player in the business category and have a lot to go in the casual products category,” says Parker.