VIP Industries reduces FY25 ad spend by nearly 29%: Report

VIP Industries has reported a significant reduction in its advertising and publicity expenditure to Rs 138.33 crore in FY 2024-25, down from Rs 184.82 crore in the previous year, recording a 28.7% drop, according to the company’s annual report. The move comes as part of a broader strategic shift towards premiumisation and brand enhancement.

For the year ending March 31, 2025, the company reported revenues of Rs 2,169.66 crore from operations, a 2.96% decline from Rs 2,244.96 crore in FY24, while total expenses stood at Rs 2,291.73 crore.

Despite lowering its ad budget, the company reportedly maintained a focused marketing approach with premium print placements, high-visibility outdoor campaigns across more than 500 locations and targeted digital content. The push supported its premium portfolio, including new VIP and Skybags collections priced above Rs 7,000 and a refreshed retail identity for Carlton.

Managing Director Neetu Kashiramka was quoted in media reports saying that the Indian luggage market continues to show strong growth potential but faces heightened competition from online-first players and price pressures in the mid-segment. She added that offline channels, contributing over 70% of revenues, remained a core focus through loyalty programs, buyback offers and exclusive product lines.