Back in May, Samsonite International reported net sales of US$852.1 million for the three months ended March 31, driven by an almost 90 per cent jump in net sales in Asia, and almost 40 per cent in China. In the same period, the luggage maker increased its gross profit margin to 58 per cent, up from 54.7 per cent in the prior corresponding period. Again, this was mainly driven by Asia, the region with the highest gross profit margin. As a result, Samsonite registered an adjusted net income of US
of US$81.2 million for the three months ended March 31, a nearly 250 per cent year-on-year increase from the first quarter of 2022.
Sustainability is key
According to Kim Hee Jeong, senior marketing director at Samsonite APAC, the company is working to use more sustainable and innovative materials while reducing its carbon footprint.
“The company is guided by its global sustainability strategy, ‘Our Responsible Journey’, which lays out the company’s sustainability goals for 2025 and 2030 across three pillars: product, planet and people,” she told Inside Retail.
The strategy is focused on making products last, reducing the brand’s impact on the planet and supporting the people, partners and communities where the brand operates.
“One important area is to advance our participation in the circular economy; here, the brand focuses on four aspects — design for durability, innovative materials, promoting recycling and reuse, and championing repair,” she added.
She went on to say that the brand is able to repair most accidental damage or wear-and-tear through a global network of over 160 owned and third-party repair centres in 48 countries and in-store repair in almost 500 stores across 19 countries.
Discerning customers
Kim explained that the growing awareness around sustainability has inspired the brand to adjust its retail approach to cater to consumers by creating products that are durable and repairable, and also expanding the range of eco-friendly luggage it offers.
For example, Samsonite’s ‘Magnum Eco’ range has luggage shells that are produced using post-consumer recycled food packaging equivalent to 483 large yoghurt cups and eight plastic bottles for the interior lining.
“In 2022, we diverted the equivalent of approximately 100 million 500ml plastic bottles from landfill through our use of rPET. This total represents a sharp increase over previous years, where we estimated slightly more than 100 million bottles from 2018 to 2021,” she noted.
The times are changing
According to Kim, the pandemic has put a spotlight on sustainability, and younger travellers, especially Gen Z and Millennials, are now placing a greater emphasis on this aspect.
“As they become more aware of the environmental impact caused by consumer product waste, consumers also have greater expectations for companies to be engaged and make an impact when it comes to sustainability, social and environmental matters,” she said.
As a result, sustainability is an important element of the brand’s long-term strategy. By using special hashtags and point-of-sale materials, the brand is promoting products with sustainability attributes. It also runs trade-in-campaigns in the APAC regions.
“In these campaigns, customers can bring in their old luggage, regardless of the brand, and enjoy a special price on a new purchase. Part of the profit generated from these campaigns goes towards supporting NGOs like WWF,” she explained.
Additionally, the brand is working to make its retail spaces more energy and resource-efficient. The brand has several offices and stores in third-party certified environmentally friendly buildings and shopping centres.
Evolution not revolution
Since 2018, the brand has been using Recyclex material technology, which encompasses rPET, recycled nylon, recycled polycarbonate and recycled polypropylene, thereby reducing the use of virgin materials.
“We enjoy a significant competitive edge in sourcing. While using sustainable materials can often lead to increased costs, we have managed to keep it at a reasonable level due to our high volume. As a result, the impact on consumer prices has not been significant,” she added.
In 2022, Samsonite launched a range containing Sorplas, which is made from used water bottles and waste optical discs. The brand developed two lines of hard-side suitcases with this material.
“We also collaborated with our Italian supplier to develop an innovative new alternative to leather made from agricultural by-products, including spent grapes from winemaking. This year we deployed it in our new Samsonite ‘Work Folio’ range of business accessories in Asia,” she noted.
Innovation rules
Last year, on top of the annual trade-in campaign across APAC, the Samsonite team in Singapore worked with sustainable design firm Studio Dam to upcycle pre-loved luggage into coasters, which consumers could redeem across Samsonite outlets.
The brand also committed to donating S$10 per product sold to WWF Singapore’s ‘No Plastic In Nature’ initiative, a programme that empowers companies to adapt their business models and processes to be more resource-efficient.
“We recognise that sustainability is a pivotal aspect of our brand values, and as such, stories highlighting Samsonite’s sustainability efforts will be seamlessly integrated across all facets of our retail strategy,” she concluded.