Arne Borrey, president of Samsonite Europe – We see great potential in Serbian market

Source: eKapija Tuesday, 03.10.2017. 15:04
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Arne Borrey (Photo: Ivana Bezarević)Arne Borrey
The way in which traveling has changed was discussed throughout the day, and everybody from the company tried to provide answers about how they were adapting to the changes. If everybody does their job the best they can, the opportunities provided by the market will certainly benefit the company. For this reason, Samsonite, one of the leading producers of suitcases, constantly strives to innovate, and, in their efforts to expand their offer and their range of products offered to customers worldwide, they are also glad to learn from the experience of others.

The company produces in two continents (Belgium and Hungary in Europe and India in Asia), whereas a third one contains their biggest market, the USA. Recently, they further expanded their European capacities by opening a new factory in Hungary, in line with the company's aim of further strengthening its reputation of a European brand. The most competent person to tell us something about this is Arne Borrey, president of Samsonite Europe. Cordial and open for discussion, he met the press crews from the old continent together with his colleagues at the facilities in Szekszard, Hungary, where they were provided with an opportunity to witness the suitcase production process firsthand last week.

Aside from suitcases for passengers, Samsonite also offers business luggage, modern bags for men and women, products for children and accessories. Through acquisitions, the company further strengthens its market position, and they will continue to focus on the development of brands in a wide demographic and price range in the next period as well.

Arne Borrey confirms this in his interview for our portal. He has managed to find room in his tight schedule to answer a few of our questions, without hiding his excitement over the opening of a new factory in our neighborhood.

– Between 25 and 30% of the total production of Samsonite comes from the Szekszard factory. By opening another facility, we have increased our annual production from 1.2 to 1.7 million units, with the possibility of going up to 2.3 million units if necessary. This is a considerable increase, as the capacities have nearly doubled.

eKapija: Does this mean that you have big plans in Hungary?

– Absolutely. Especially regarding the products we make here. Let's not forget that suitcases made in Szekszard are sold worldwide – from Chile, Australia, China, through Japan, South Africa, to the entire EU.

eKapija: Over 40% of Samsonite's production is sold in the US market. Where does Europe fit into these statistics?

– In Europe, we sell 23%.

eKapija: You are also striving to increase the number of products bearing the “Made in Europe” tag. Does this mean that you are possibly considering opening another factory in the old continent?

– Not at the moment. We have realized a considerable increase in capacities in Hungary, we also have big plans for the plant in Oudenaarde in Belgium, and we are therefore not planning to expand further right now. We are very satisfied with our facilities in Szekszard, we cooperate well with the government, the local community, and our workers are extremely qualified, so we will continue to invest here in the future if there is need for it and if the market demands it.

From a facility in SzekszardFrom a facility in Szekszard


eKapija: How do you see the Serbian market?

– Serbia was not a simple market for us. When we look back, it was not easy finding a suitable distributor, which was a big challenge for us.

eKapija: Since last year, you have had a new local partner, Brand Point. Also, the first House of Samsonite store has opened in downtown Belgrade, whereas another two have been announced.

– That is correct and I therefore believe, despite the past difficulties, that we have a great future here now. Europeans travel 4 times a year on average, whereas Serbia is still far below that number. Still, we see great potential there, it's just that we need to take the step-by-step approach.

eKapija: Samsonite completed two big acquisitions last year by taking over the luxury premium brand Tumi, as well as eBags. What do they mean for the company?

– These two acquisitions are very important, as they have rounded up our portfolio in a truly strong way. As a company, we have been given an opportunity to learn a lot from the Tumi business model, which is very significant. The potential for the development and the growth of this brand in Europe is huge. On the other hand, eBags is a multibrand business model of electronic commerce which we are currently carrying out in the USA, and we will also see how successful it will prove to be globally.

eKapija: Are you considering another acquisition?

– Not to my knowledge. Each new acquisitions needs to fit into the company's strategy, and we are now quite busy with the acquisitions we have realized.

eKapija: How important is it for the company's vision and strategy that Samsonite is a multibrand corporation, considering that your portfolio includes other brands as well (American Tourister, TUMI, Lipault, Hartmann...)?


– It is extremely important, as we aim to meet the needs of all our customers. There's American Tourister with its price range of EUR 50-110 for younger customers, Samsonite, with products in the price range of EUR 110-500 for frequent travelers, and then there's also Tumi, as a luxury premium brand, for very frequent travelers and customers capable of setting aside EUR 600 for a piece of luggage. There are not a lot of those, but the market nevertheless continuously demands such products. These three brands, then, cover all the price ranges. Furthermore, there's Lipault, meant for female customers.

The store in BelgradeThe store in Belgrade
eKapija: Samsonite products are recognizable worldwide for their unique design. Which trends are current in the luggage industry and how will they develop further?

– First of all, the biggest trend is cabin luggage, which stimulates a good part of the growth in this industry. People simply travel more for a shorter periods of time, looking to always have their possessions with them, without losing additional time at airports by picking up luggage. Furthermore, there's an insistence on fashion trends. People want their luggage to be casual and modern, to suit them. You look a certain way today, and it three years your image will change and you will want your luggage to go through a similar transformation. The integration of intelligent solutions is also very important today. In the upcoming years, you will be able to see our smart solutions, such as luggage tracking, which enables you to be aware of where your luggage is at any moment. The technology which will enable this will be integrated in your luggage and will communicate with your phone through an app. Smart technology is certainly one of the biggest challenges and we are continuously working on keeping up with the future.

NEW STORES IN SERBIA


After the opening of the store in the Cika Ljubina Street in Belgrade last December, the company Brand Point, the exclusive representative of Samsonite for Serbia, announced the opening of another two stores in Serbia, one at the Mercator shopping center, the other in Novi Sad.

In addition to Samsonite passenger suitcases, Serbian stores also offer other top brands in various categories: American Tourister (traveling products), Disney by Samsonite (Disney traveling and school products for children), Lipault (French urban style for women), Andersen (shopping carts), Butterfly Twist (ballet shoes) and many others.

Ivana Bezarevic

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