R&D and Product innovation
As noted earlier, Samsonite sold two basic types of suitcases: hard-side and soft-side. Most of the R&D was initially done in the United States, but the need to develop products for the European market led the company to establish R&K facilities in Europe. Samsonite invested heavily in R&D and in the manufacture of specialized machinery to help maintain a competitive edge. To facilitate the transportation and storage of suitcases, Samsonite located its production facilities close to the centralized warehouse.
Soft – side luggage is less complex technologically than hard – side, and Samsonite purchased Oda, the Belgium soft – side luggage company, to enter that market. Then it licensed its technology to other European companies. By the mid – 1990s, 48 percent of Samsonite’s sales came from hard – side luggage, 22 percent from soft – side, and 30 percent from attaché cases and travel bags, some of which were hard – side and others soft – side. However, by fiscal 2000, soft – side luggage comprised 51 percent of European sales, In 2001 and 2002, sales of soft-side luggage continued to increase as a percentage, and hard – side luggage dales declined.