COLOGNE, GERMANY – Rimowa CEO Hugues Bonnet-Mazinbert says travel will not return to pre-pandemic levels anytime soon. that’s ok.
While social media may make it seem like people are traveling more than ever before, the reality is that the industry is in a “new normal” that by some measures is still below pre-pandemic levels. ” is starting to settle down. In Europe, international tourist arrivals in the first half of this year remained 4% lower than in 2019. Global air traffic is on track to inch above pre-pandemic levels in 2024, but passenger numbers are still about 1 billion fewer than the 10.5 billion trips previously predicted by industry group Airports Council International. It’s not enough. Although personal travel is on the rise, “business travel is probably not going to fully recover,” Bonnet-Massimbert said.
Despite the prolonged downturn, RIMOWA has “returned to its pre-COVID-19 growth trajectory.” Despite most luxury brands reporting declines in revenue, the brand’s sales have nearly quadrupled in five years, with double-digit growth this year, Bonnet Maginbert said. said.
Owner LVMH does not report sales for individual units, but RIMOWA is one of just three brands called out as “confirming solid momentum” along with Loro Piana and Loewe in the conglomerate’s latest financial results. It was one of them.
Bonnet-Mazinbert said the brand is still growing in China, a key market where many luxury goods companies stall. Rival group Richemont reported a 27% drop in sales in China in its half-year results released last Friday. “Our growth so far[in China]has been out of this world, so it’s probably been affected, but we still see a strong positive trend,” he said.
Bonnet-Mazimbert succeeded LVMH scion Alexandre Arnault (one of conglomerate chairman Bernard’s five children) as Rimowa’s CEO in 2021; moved to New York to help steer the relaunch of jeweler Tiffany & Co. Arnault had been at the helm of Rimowa since 2017, when the French luxury conglomerate bought an 80% stake in the company.
During Arnault’s tenure, the luggage maker has fundamentally repositioned itself in the luxury space, using sleek, minimalist branding and openings in bustling shopping districts to outpace rivals such as Tumi and Samsonite. to differentiate itself from the more practical spirit of . The brand has honed its influence, breaking into the cultural conversation with a series of celebrity-driven campaigns and collaborations with trending brands like Off-White.
marketing mix
Bonnet Machinevale has sought to maintain its momentum while adapting its strategy for a bigger business in a changing market.
The brand continues its collaboration strategy by partnering with Italy’s top-of-the-line coffee machine manufacturer La Marzocco under Bonnet Mazimbert and New York’s cult menswear brand Aimé Leon d’Or.
But the partnership is just one marketing tool among many, and highlighting the enduring value of the RIMOWA brand is key.
“Durability is our most demanding goal,” said Bonnet-Masinbert, emphasizing the long-term element of RIMOWA’s strategy and the longevity of the suitcase itself. To that end, RIMOWA introduced an unconditional lifetime warranty in July 2022.
Rimowa has entered the lucrative world of sports marketing with ambassadors such as Kylian Mbappé and Lewis Hamilton, and its tone remains fresh. However, there is a renewed focus on maintaining the brand’s German identity, with a design rooted in practicality and benefiting from the “Made in Germany” quality seal (40 percent of all suitcases are made in Cologne). (with the rest produced in the Czech Republic or Canada).
Rimowa also continues to regain control over where and how its suitcases are sold. “Over the past few years, RIMOWA’s distribution has fundamentally evolved from primarily multi-brand wholesale led to almost exclusively mono-brand retail,” Bonnet-Mazinbert explained. 20% of our sales come from our own e-commerce shop.
The move to retail allowed Rimowa to recoup markups from wholesale and eliminate discounts, which not only increased the brand’s appeal but also further fueled its growth. Rimowa does not disclose figures, but industry sources estimate annual revenue at around 1 billion euros.
“Functional luxury”
Another driver of Rimowa’s success is strong demand for what Bonnet-Massinbert calls “functional luxury,” which has held up even as luxury fashion sales have declined. “Our customers are amazed by design and purpose,” says Bonnet Mazimbert, emphasizing the brand’s technical and practical ethos.
Brands selling luxury travel accessories, wellness trackers, and sportswear are all riding a similar wave. “Outerwear and sportswear are doing well in Asia, rather than traditional luxury goods,” said Erwan Lambourg, global head of consumer and retail research at HSBC.
Rimowa may be sold on the same streets as Chanel and Ferragamo, but its dual appeal as a status symbol and super-functional workhorse for frequent travelers is its cold plunge, premium coffee It overlaps with emerging luxury goods such as machines and LED face masks. A convenient splurge.
“We are at a pivotal moment where the very concept of ‘luxury’ is being redefined,” said Sebastian Manes, former buying and merchandising director at Selfridges (Manes himself worked in Suits (Harper Collective, co-founded with Jaden Smith in 2023) looking to grab momentum in the travel category with Case Brands). “Luxury is about purpose, innovation, sustainability and meaningful connections with the products we use,” says Maness.
With momentum in the travel accessories sector strong, LVMH stablemate Louis Vuitton is highlighting its heritage as a luggage maker by showing its trunks on the runway (and in sponsorship numbers at the Olympics). Rival Gucci has relaunched its Valligeria line, opening dedicated stores and hiring Ryan Gosling to lead the marketing drive.
Category expansion
RIMOWA has also worked to change its perception as a product company.
The brand promotes iPhone cases, backpacks, packing cubes, and $550 “luggage harnesses” (think nylon carry-on belt bags with pockets for liquids and laptops). I did.
While these travel-related additions are closely related to RIMOWA’s core business, they slowly laid the foundation for the brand’s latest release, the Original, RIMOWA’s first-ever handbag, which debuted in September of this year. .
The top-handle bag looks like a cross between a lunchbox and a small suitcase, and is made from the brand’s signature fluted aluminum. This is the brand’s first major initiative outside of the travel goods world.
When asked about the rationale for introducing a product into the notoriously unbreakable handbag category, Bonnet-Masinbert smiles. “We are humbled by this challenge,” he said. True to Rimowa’s slow-but-steady-functional approach, the bag is currently only available in silver and black. Looks like Rimowa. ”
The new product line has the advantage of creating buzz for traditional brands like Rimowa, but sales have also been impressive, Bonnet Mazimbert said. “We are seriously struggling to keep up with the demand for these bags in our supply chain, which is a headache as the holiday season approaches.”
Its core business remains luggage, but fashion efforts like the original could eventually expand. After all, Louis Vuitton, the world’s largest luxury brand, started out as a bag maker.
