With an increasing graph in profit, Tumi is now getting HOT.Tumi, a high end company that produce luxurious travel carriers, has been on a steady rise in profits. Tumi now has expanded to 1600 stores worldwide including wholesale partners having 750 locations in the U.S.A. , 375 in Asia, 525 in Europe, Africa and Middle East.
Photo Credit: coolhunting
Amazingly, with Tumi’s consistency on keeping their tradition in management, their 2nd quarter profits rose 182 percent.
“From an operational perspective, there hasn’t been much change at all. We’re still doing what we’ve been doing the last few years,” said chief executive officer and president Jerome Griffith.
Ironically, Tumi makes most of their profit in business cases and day bags instead of their main focus of travel related items.
Interestingly enough, less than half of the brands sales and roughly a quarter of the units sold are travel related items! Most of the profits made are in small leather goods, technology accessories, eyewear, and outerwear. With these items on the rise, the 2012 projected sales are in the range of $390 – $395 million.
At the heart of the growth in the United States: the Flatiron District in New York City, Pioneer Place in Portland, Ore., and Pentagon City in Virginia. So you get an idea of the increase in business for this company, sales per square foot of the store went from $972 on December 31st to $1,014 on June 24th.
“We will only do around $400 million in sales this year. We have a long way to go before we reach any scale. We have several years of great growth in front of us. It will be the same company — focused on business and travel lifestyle — but it will just be larger with a lot more controlled distribution,” Griffith said
Over the next five years Tumi will be following a five-part growth stragety. The first part incudes expanding the retail base. The idea behind this is to open more and more stores in more locations, resulting in 16 new stores a year. With this increase in location Tumi will see their store base triple on a global scale.
The second part is to include expansion overseas. Tumi is currently sold in 70 countries outside of the United States including Europe, the Middle East, Africa, and the Asia Pacific area (currently growing the fastest of any market).
The third includes designing and developing new products. Some of the new cutting edge Tumi products will include lightweight hardcased Vapor and Tegra-Litecollections, and collaborations with amazing artists such as Dror and Anna Sui. Out side of these physical elements, the digital frontier will not be left untouched!
The idea of branded content online is at an all time high with the development of Facebook and Youtube. Stores located in the United States, U.K., Germany, and Japan are very active on Twitter / Instagram and have begun translating all posts in Chinese, Korean, and German.
“[We’re] increasing awareness mostly through social media. These numbers have gone up and we continue to get our name out there, but we still don’t think that we’re well known [enough] yet around the world,” Griffith said. “We have a lot of opportunities to increase brand awareness through more stores because the more stores you open the more people are aware, but we’ve also embarked on an aggressive social media campaign. A year ago we didn’t really have a social presence at all, [so] we’ve put marketing efforts into that.”
Lastly making the brand on a personal level with all of the above elements is key in successful marketing.
“This is the anti-celebrity digital campaign. These are real people that truly love our brand.”
Tumi has done this in the past and with the new tools developed and utilized will no doubt continues to in the future! Look out for a new Tumi store near you!