VIPs management is it’s moat over Samsonite and hence why VIP will win. Sometimes it makes sense to study the competition in these kind of scenarios. I’ve studied Samsonite and the management seems a bit off
- In 2018 their then CEO Ramesh Tainwala had to resign on being accused of falsifying his resume!
- Samsonite were charged with profiteering regards gst last month and were fined 25 crore in a time when every rupee counts
- Samsonite’s per store revenue is double that of VIP and they are forced to close 100 of them
- As of September Samsonite had a huge debt of 3x.
- They ended on the wrong side of the USA china trade war since their supply chain was affected and trump raised taxes on their imports
It’s a company that is really struggling. On the other side you have VIP with a Blue chip Piramal management, a shift to Bangladesh which decreases dependence on China and low fixed costs who are sitting in a position to come out a lot stronger and aggressively with their established brands(VIP, skybags, capresse) and their fledgling brands in the premium and mass market sectors with an improved bottom line. @arjunbadola