Ad expenses fall to ₹138 crore as VIP Industries pushes premium strategy
For the year ending March 31, 2025, VIP Industries reported a revenue from operations of ₹2,169.66 crore, a decrease of 2.96% compared to ₹2,244.96 crore in the previous fiscal year.
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VIP Industries, a key player in India's luggage sector, is in the midst of a significant strategic shift towards premium products and brand enhancement. A closer look at the company's financial report for the fiscal year 2024-25 reveals a calculated adjustment in its advertising and publicity expenditures.
The annual report shows that advertising and publicity expenses for the year ending March 31, 2025, totaled ₹138.33 crore. This represents a notable decrease from the previous year's figure of ₹184.82 crore. This spending was part of a broader financial picture, where the company's total expenses reached ₹2,291.73 crore against a revenue from operations of ₹2,169.66 crore, a 2.96% decline from the previous year.
Despite the reduction in ad spend, the company's marketing strategy remained robust and targeted. The annual report emphasizes a "comprehensive marketing approach" aimed at enhancing brand perception and reaching a wider audience. This included strategic premium print placements, high-visibility outdoor campaigns, and focused digital content. The company's outdoor media efforts were particularly extensive, covering over 500 locations including buses, metros, and airports to maximize brand visibility.
Neetu Kashiramka, Managing Director of VIP Industries said, “The Indian luggage market continues to offer compelling growth potential, driven by rising travel, increasing consumer spend, and evolving lifestyle aspirations. This promising outlook has also drawn a wave of new entrants, especially online-first brands backed by investor capital. Aggressive discounting and rapid product proliferation in the mid-price segment have intensified competition and exerted downward pressure on pricing across the industry.”
Kashiramka said, “Offline channels, which continue to contribute over 70% of revenues, remained a core pillar. We reinforced our in-store value proposition through loyalty programs, buyback offers, extended warranties, and exclusive product lines.”
A core component of the marketing push was to support a shift towards a more premium product portfolio. For the first time, both the VIP and Skybags brands introduced collections priced above ₹7,000, a move the company says was well-received by consumers. The marketing for the premium Carlton brand was specifically tailored with a refreshed retail identity, print ads in high-end publications, and digital storytelling to highlight its innovative design.
For the year ending March 31, 2025, VIP Industries reported a revenue from operations of ₹2,169.66 crore, a decrease of 2.96% compared to ₹2,244.96 crore in the previous fiscal year. Total expenses for the year stood at ₹2,291.73 crore.
A key highlight of the year was the robust growth in the e-commerce segment, which grew by over 40%. This growth was propelled by targeted product launches and the implementation of a minimum operating price (MOP) framework, which helped protect brand equity and maintain retailer confidence.
