(Photo : Samsonite Products)

The world's largest travel luggage firm by retail sales volume, Samsonite International, is allocating around $1 billion in three years to acquire Chinese brands that are already well-established, the company's CEO announced.

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Samsonite CEO Tim Parker said the travel luggage company wants to diversify its range of products by acquiring brands in China that with the $1 billion investment fund. Parker said there are quite a number of good brands in China that can be acquired by Samsonite but he declined to name one brand.

China Expansion Plan

Although the $1 billion acquisition fund is meant for brands in China and Asia, Parker said the company could focus on China, where Samsonite has a good presence and is planning to add about 190 sales outlets this year.

Last year, the company announced that it plans to buy High Sierra, a US casual-bag company, for $110 million, and then bought Hartmann, a 135-year-old US luggage maker, for $35 million.

This year, Samsonite is targeting the Asia Pacific, particularly China, as part of its overall marketing driver to reinvigorate the Samsonite brand as an upscale luggage label. Parker said the company is confident that it can soon start talks with Chinese brands for possible acquisition, although he declined to reveal further details.

Declining Sales Growth in China

Parker said Samsonite's growth rate in China, which registered only just 10.3% in the first six months of this year, will no longer be within the 20% range but he is still optimistic due to the robust travel and tourism market in the country.

In 2012, Samsonite recorded sales growth of 23.1% in China and 18.3% in the whole region. During the first half of the year, however, its Asia Pacific growth slowed to 14%. In 2011, it tallied sales growth of 43%. Samsonite listed in Hong Kong in 2011.

The company, which is investing in a new China warehouse to capitalize on the booming online retail market in the country, has predicted a 5% online growth this year.