By Inc42 Media
Eyeing a juicy chunk of this growing market is ICON, a D2C luggage and bags brand launched in 2023, which claims to be plugging the innovation gaps of the industry
ICON’s diverse product portfolio includes hard luggage, backpacks and handbags, with a unique selling point of a wide-handle design that distinguishes it from traditional narrow-handle options
Recently, the startup raised $1.2 Mn (INR 10 Cr) in a seed funding round led by DSG Consumer Partners and a clutch of angel investors
The rise of the Indian D2C wave, triggered by the influx of uncountable new brands, has started to push legacy brands into a tight corner. A case in point is VIP Industries, which despite its 50-year-old legacy in the Indian luggage & bags market appears to be losing its share in the market expected to generate a revenue of $3.32 Bn by 2029, growing at a CAGR of 11% from 2024.
Per a Forbes report published earlier this year, the country’s largest luggage and travel accessories manufacturer, VIP Industries, has been losing its market to smaller players for nearly five straight financial years.
The report adds that while Safari Industries bloated its market to 24% in April-December 2022 from 16.7% in the year ended March 2019, VIP Industries took a 7.5% hit during the same time to settle around 44%.
Now, there is no denying that players like VIP Industries, Safari Industries, American Tourister, Aristocrat, and Samsonite have captured most of the Indian luggage and bags space. However, their dominance is now being challenged by the growing D2C wave in India.
What would substantiate the statement is that new-age brands like Mokobara, Acefour Accessories, Nasher Miles, EUME, and Assembly — flush with investor capital — are becoming the new travel companions for Indians. These brands are riding on innovation and winning Indian hearts with unique designs, global styles and new-age customer preferences.
Eyeing a juicy chunk of this growing market is ICON, a D2C luggage and bags brand launched in 2023, which claims to be plugging the innovation gaps of the industry.
Incorporated by the founders of MyFitness (now acquired by Mensa Brands) Mohammad Patel, Poojan Shah, Fazal Lakhani and CA Aakash Mehta, ICON is an internet-first D2C brand catering to the mass premium segment in the luggage and travel accessories category through its product portfolio of hard luggage, backpacks, and handbags.
Having explored nearly 30 countries, the cofounders found that the Indian luggage market lacked innovation on multiple fronts, ultimately nudging them to take the reins of innovation in this segment in their hands.
“We saw a lot of white space in the luggage category with incumbents like VIP and Safari sleeping in terms of innovation for decades. Our goal was to go beyond the traditional black and blue designs, transforming luggage into a lifestyle essential,” said Shah.
“With global trends favouring hard case luggage at 70%, contrasting with India’s preference for soft cases, we entered the Indian market with innovations like wide handles and PC shells,” he added.
Speaking with Inc42, the cofounders said that the 2023 incorporation of the startup was strategically in line with their vision of capitalising on the post-pandemic surge in travel.
Recently, the startup raised $1.2 Mn (INR 10 Cr) in a seed funding round led by DSG Consumer Partners and a clutch of angel investors.
ICON’s Iconic Product Play
ICON’s diverse product portfolio includes hard luggage, backpacks and handbags, with a unique selling point of a wide-handle design that distinguishes it from traditional narrow-handle options.
“The wide-handle design, inspired by global brands like Louis Vuitton, offers a distinctive aesthetic appeal and improved functionality,” Mehta said.
Apart from this feature, the cofounders use 100% PC material, which is renowned for its durability compared to ABS.
Currently, the startup offers 10 SKUs in three colour variants. Initially launching with three primary categories — suitcases, backpacks, and handbags — the startup is now focussing on expanding its suitcase range and diversifying into accessories.
“Our products are priced in the range of INR 4,000 to INR INR 10,000 and place us competitively in the mass premium segment, next only to American Tourister and somewhere between Nasher Miles and Mokobara within the startup landscape,” Shah said.
According to the cofounders, they have surpassed their investors’ expectations in the last five months. They are currently facing stockouts on two SKUs, which they view as a positive challenge.
ICON’s Near-Term Ambitions
Currently running the show via its website and marketplaces like Amazon, Flipkart, Myntra, and AJIO, the startup’s primary focus is on establishing a robust online presence.
With 40% of sales from its website and 60% from ecommerce platforms, the startup has shown significant growth since February, boasting a fivefold monthly surge in website traffic. Since its inception, the website has served over 9 Lakh customers.
However, according to Shah, the brand had to face several challenges at the outset, be it securing resources, manpower or capital, or establishing trust.
Shah said that despite every possible pitfall, they were able to stay ahead of the learning and opportunity curve.
Talking about learning, the cofounder said that the startup continuously gathers customer feedback to refine its products. It also engages with its non-repeat customers to understand the gap.
Additionally, the cofounders closely engage with influencers and leverage performance marketing and educational campaigns to raise awareness about the quality of products.
“Initially, for the first one to one and a half years, we aim to dominate the online market using the playbook and experience we gained from our previous venture, MyFitness,” Shah said.
“Out of the INR 20,000-25,000 Cr market, even if we can capture just 1%, we will still be scratching the surface,” he added.
Shah emphasised the rapid evolution of India’s luggage and travel accessories market, shifting from unorganised to organised sectors driven by rising leisure travel.
With the organised segment now holding a significant 60% share, brands like Mokobara, Nasher Miles, and ICON are poised to capitalise on this trend.
Despite the dominance of legacy players in this space, ICON sees substantial opportunities in Tier II and Tier III regions and aims to establish itself as a leading brand for Bharat in the next five years. While still in its pre-revenue stages, the startup is optimistic about establishing its foothold in the country’s luggage and bags industry, outdoing the competition with its unique product range.
[Edited by Shishir Parasher]