Samsonite "well positioned" to reap travel rebound with new Singapore hub

WITH travel returning as Covid-19 border curbs relax, 112-year-old luggage manufacturer and retailer Samsonite considers itself well positioned to ride the uptrend – not least thanks to its new office in Singapore, its Asia-Pacific and Middle East president Paul Melkebeke told The Business Times.

"Samsonite has a long history in Asia. We already started in the 1960s," said Melkebeke. "But as the business grows, it's good from time to time to take a step back and take a look at how you should be organised."

This led to the setting up of a brand development and sourcing hub in Singapore this January, with support from the Singapore Economic Development Board (EDB). From this new office, the company manages its business in Asia-Pacific and the Middle East, as well as sourcing activities in North America, Latin America, and Asia-Pacific.

The Republic was chosen due to its proximity to other South-east Asian markets, with the region growing as both a consumer market and production hub, with "a big shift to set up factories in South-east Asia".

"For us as a company, it's very important to be close to these factories, to go there, work with the teams there on product development – also to oversee what is going on to make sure that there is consistent quality delivered from these factories," he added.

As the pandemic wanes and travel resumes, Melkebeke is “very bullish about the future”.

Surviving the initial stages of the Covid-19 outbreak required brutal decisions. With sales falling about 80 per cent in the first month of the pandemic, the company had to shed some 40 per cent of its headcount.

But as travel luggage accounts for about half its product range, other products such as backpacks, business cases, and wallets helped Samsonite see some business even during the worst of the pandemic.

The pandemic even allowed Samsonite to increase its market share, which Melkebeke attributes to the company's stronger crisis management capabilities and connections.

From once cutting headcount, Samsonite is now building up. Fifteen people, mostly department heads previously based in Hong Kong, were moved to Singapore for the new office, including Melkebeke himself.

Samsonite aims to grow its Asia regional team to about 80 members, mostly based in Singapore. It already has over 30 staff overseeing the Singapore and South-east Asia markets.

Beyond the Republic's ideal location, the Singapore government's vision is aligned with Samsonite's in many aspects, including innovation, digitalisation, and sustainability, said Melkebeke.

Since 2018, some 68 million discarded 500ml PET plastic bottles have made their way into Samsonite products thanks to its use of Recyclex, a fabric made from such post-consumer plastic bottles.

The company has launched more than 50 collections that include sustainable materials such as recycled plastic, recycled nylon, post-industrial recycled polypropylene, wood waste and cork.

Samsonite also pursues sustainability in the areas of supply chain responsibility and reducing its carbon footprint, where its new Singapore office also plays a role. Being closer to both factories and consumers helps to minimise the carbon footprint from logistics and transport, said Melkebeke.