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In The Luggage Bags Segment, Value Products Have Taken Over Discount Selling The smart consumer of today knows how to explore price for value, the innovators and early adopters are more likely to shell out extra money

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Luggage has changed a lot over a period of time, traditionally, the most common types of luggage used were chests and trunks made either with wood or heavy materials. With new advances and accessibility of air travel, the global luggage industry has remoulded itself by offering small lightweight, colourful and stylish bags that cater to various needs of the travellers. The industry itself is witnessing a boom as like other items possessing more than one luggage has become a lifestyle need.

The New Ways

The luggage segment has proliferated itself both in retail and online selling across e-commerce sites. Both work on very different models and have their own consumer base and target areas. Selling a product on value involves extensive study and research of the given market and also a right balance of confidence in your product. Competition with technology can be challenging as it gives a peek into pricing and competitors. What most companies fail to take into consideration is that their products are likely aren't for everyone. The sales strategy of any company needs to take into consideration that unanimously dumping all information is not a good return on investment for their time and eventually the product.

The New Markets

Consumers are now becoming aware of the nature of value-based pricing for products, the right customer will be receptive to hearing why they should pay more for a certain product over another. The smart consumer of today knows how to explore price for value, the innovators and early adopters are more likely to shell out extra money. The first step towards this will be to understand the market segment one is catering to and their particular needs. The foremost step in creating a niche for your product as a value-based one is to educate your core internal team as to how your product is different from the rest in the market and also alternately reach out to the client by telling them about the history of the company which helps build their confidence in the brand and also the product. To build success stories for the brand and its product is by documenting testimonials from people who have used the product and give an honest opinion about the product, this can be used for future opportunities by being able to use the customers as future sales players.

The Criteria

A value-based product stands out of the league for its quality, material, craftsmanship and a host of other detailing which makes it different from its competition. The vacillating or negotiations on price should not be paid heed to when you are delivering nothing but the best, as the customer now understands also the whole shopping matrix and how it works. The competition for selling the product between you and competitor needn't get on the dirt patch by showing who is superior. The brand or the marketers should be able to effortlessly highlight why the product's value is worth the consideration over lower price-options that are flooding the market both offline and online.

The toughest job is selling the product value to the customer and getting them to picture all that your company and brands stand for and what really your company is offering. Value product is a long term thing where price is a short term one, very often the customers who are obsessed with the price of the product will either not opt for buying the product above their budget and even if they get to buying will negotiate on the price of the product, eventually making it a long-term headache for the product, brand and eventually the company. But customers who see a long term value in your product will also know that you will be around for delivering the customer service ensuring they have had a pleasant experience all along with the product. These long term futuristic goal will not only make the company survive in the face of competition the future may bring but also add credibility to the brand and company in times to come and face the competition of any nature.

Tushar Jain

Founder and MD, High Spirit Commercial Ventures Pvt Ltd

Tushar Jain has over 20 years experience in the bags industry and founded High Spirit Commercial Ventures Pvt Ltd (HSCVPL) in 2010, a bags manufacturer and exporter. The company also owns leading other brands like Priority, Hashtag, Humty Dumty to cater to multiple segments in the backpack segment.

Jain was able to identify the gaps in the bags industry and found there was a great need for fashionable bags. He immediately grabbed the opportunity and made really big in the sector by becoming the fourth largest bags company in the world.

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