Post on 17-May-2017
VIVEK COLLEGE OF COMMERCE
CHAPTER 1
INTRODUCTION
Hidesign is an Indian high fashion leather house. It started its operations in 1978 as a small
workshop in Auroville in 1978. Hidesign was set up by Dilip Kapur in 1978 as a “one man
artisanshop” which he operated from his house. It was a kind of homecoming for Hidesign,
which Mr. Dilip Kapur started as a hobby when he returned to India to live on a commune after
his education in the US.
From its artisan roots of a two man workshop to a company of 3000 spread all over the world,
Hidesign has stayed focused on innovation based on its strong heritage of craftsmanship.
Hidesign stands out for the sensuous naturalness of its high quality leathers and the smooth soft
glow of its solid brass fittings in its leather goods. Hidesign is a recognized leader in the research
of the ecological use of vegetable tanned Leathers for its leather goods.
Learning from the centuries old skills of tanning with natural seeds and barks, Hidesign has
created fashionable leathers that age exceptionally well. The heritage of fine hand craftsmanship
is visible in the details that make Hidesign products stand out and exclusive.
The history of Hidesign has been defined by the rebellion against uniformity and synthetic
flatness of the mass market. Starting in 1978, it has been driven by the passion of a multicultural
group of a design oriented team.
From small alternative shops in San Francisco and London, it moved to the first adventurous
department stores in the early 1990s in London, California and Australia. From the first
exclusive boutique in 1998, Hidesign has grown to over 80 exclusive stores and a distribution
network in 23 countries that has placed its product in over 2000 stores. Hidesign’s rapid growth
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in the fastest growing economies of the world in Asia, Africa and Russia has positioned it for
rapid growth in the future.
THE BRAND
Hidesign is an internationally successful brand in the “affordable luxury” category. !e
feeling of luxury comes from providing an exclusive product and service through:
The Exclusive Ambeience
the product. Hidesign shops are made from high quality materials that are natural: solid
brass, real leather and wood.
The Personalised Service provided at our stores and shop in shop counters. This personalised
service informs the customer on the exclusive nature of Hidesign, advises
the customer of what is best suited to his needs and in case of a problem promptly solves
his problem.
CORE VALUES
Hidesign’s
brand values are always consistent and provide Hidesign a unique identity and
great customer loyalty.
NATURAL
Hidesign sees great value in natural beauty. Our soft, sensuous leathers and smooth solid
brass fittings speak of the highest quality natural materials. Hidesign does not cover its
leathers with layers of pigments and paint or emboss it with artificial patterns to hide
defects in low quality materials. Nor does Hidesign use electroplated steel or zinc fittings
that does not age well.
ECOLOGICAL
Hidesign believes in the highest ecological values. Hidesign is a leader in research on
using vegetable extracts from seeds and barks for tanning to replace heavily polluting
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chemicals.
CRAFTSMANSHIP
Every Hidesign product is uniquely handcrafted. !ere is no mass manufacture at Hidesign,
and the great traditional skills of our craftsmen are encouraged to be perfected over
years.
INNOVATION
Hidesign products are unique. !e multicultural design team has won several international
awards for its excellence and design leadership. True to its values, Hidesign constantly
innovates to stay in touch with the continuing fast moving changes in the lifestyle
of its customer.
THE HIDESIGN TIMELINE:
1978
A BABY IS BORN
Hidesign begins with a two-person artisan workshop. The first markets are small alternative
shops in Australia and the United States reflecting the brand’s rebellion against uniformity and
mass production.
1982
HIDESIGN IN UK
Hidesign starts in UK and fast becomes a counter culture icon in the independent stores.
1984
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SOLID BRASS BUCKLES in the factory Commitment to craftsmanship and ecology leads to
the development of our new solid brass buckles – no more zinc alloy electroplated buckles for
Hidesign. Hidesign goes back to the old traditional skills of making bronze statues to sand cast
solid brass buckles.
The premium position enjoyed by Brass:
Brass is a substitution alloy. It is used for decoration for its bright gold-like appearance; for
applications where low friction is required such as accessory fittings, locks, gears, bearings,
doorknobs, ammunition, and valves; for plumbing and electrical applications; and extensively in
musical instruments such as horns and bells for its acoustic properties. It is also used in zippers.
Today almost 90% of all brass alloys are recycled.
1985
First department store JOHN LEWIS John Lewis in UK is the first department store to the carry
the full line of Hidesign leather goods that now includes handbags and wallets, travel bags as
well as weekend, toiletry and computer bags.
1988
HIDESIGN INTRODUCES GARMENTS
Hidesign successfully introduces leather garments including edgy jackets and thigh hugging long
pants.
1990
Hidesign establishes its FACTORY IN PONDICHERRY
Hidesign establishes its first custom designed factory in Pondicherry, India. This exciting
milestone confirms our commitment to innovation, fashion, technical excellence and local
community employment. The factory expresses the brand values of Hidesign: beautiful natural
ponds and waterfalls encircle raw brick architecture designed by ecological architect Ray
Meeker.
1992
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ACCESSORY OF THE YEAR
Accessory Magazine UK chooses Hidesign’s “Boxy Bag” as Accessory of the Year.
Princess Diana awards Hidesign this prestigious prize.
1997
Hidesign’s First International exclusive store in MOSCOW Hidesign opens its first exclusive
international store in Moscow.
1998
SOUTH AFRICA First emerging market
The emerging markets of Malaysia, South Africa, China and eventually India will become a
major growth area for Hidesign.
1999
HIDESIGN LAUNCHES IN INDIA
Hidesign enthusiastically launches in India! Hidesign’s annual fashion shows to launch the new
collection are a “Social Event”.
2000
AWARD WINNING Advertising Campaign
Marks the launch of Hidesign’s award winning campaign both in Europe and India.
2004
ALBERTO CIASCHINI joins as Hidesign’s Lead Designer
Hidesign introduces new lead designer, Alberto Ciaschini of Italy. Their multi-cultural design
team continues to expand on the Hidesign signature look – creating classic styles with a
contemporary edge.
Alberto’s first bag designed for Hidesign – Ayesha named after founder Dilip Kapur’s daughter.
2007
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THE AGE OF COLLABORATION
Louis Vuitton becomes a partner with Hidesign!
2008
30 YEARS OF HIDESIGN
30 years down, one man’s passion has transformed a two-man artisan workshop of edgy,
alternative leather bags into the iconic leather goods brand Hidesign.
2010
HIDESIGN EXPANDS RAPIDLY
Hidesign expands its reach into tier 2 and tier 3 cities in India
2011
HIDESIGN LAUNCHES THE ART OF REUSE
2012
HIDESIGN LAUNCHES THEIR LUXURY LINE
Fulfilling a long dream, Hidesign launches its premier luxury line – Alberto Ciaschini,
Handcrafted by Hidesign. This line is designed by Dilip Kapur and Hidesign’s lead designer –
Alberto Ciaschini
2012
HIDESIGN STARS IN BOLLYWOOD
Hidesign sees itself being places is some major Bollywood movies such as Ladies vs. Ricky
Bhal, Ek Deewana Tha, No One Killed Jessica and English Vinglish.
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THE MAN BEHIND THE BRAND: MR. DILIP KAPUR
Dilip Kapur, President of Hidesign, was born in New Delhi and moved to Pondicherry at the age
of six. He grew up in Sri Aurobindo Ashram, went to school at Phillips Academy, And over, and
Massachusetts. After graduating from Princeton University, Princeton, New Jersey, USA in
International Affairs, Mr. Kapur completed his PH.D at University of Denver, School of
International Studies in International Affairs.
Mr. Kapur took up a job in a leather company while pursuing his PH.D. It was during those nine
months when he recognized his passion towards the art of crafting leather.
He returned to India in 1977 to live in Auroville and started Hidesign, a one-man artisan shop, as
a hobby in 1978 and has since masterminded Hidesign to its current leadership position.
He still teaches students at Auroville on International affairs.
PRODUCT PORTFOLIO: HIDESIGN
All Hidesign product lines reflect the Hidesign concept and when displayed together in our shop
or corners, create a harmonious image that reflects the sophisticated lifestyles of our customers.
BAGS:
Our core classic range of briefcases, handbags, wallets are made from vegetable tanned “Classic”
leather and our oil tanned smooth “Ranch” leather. These styles are always contemporary,
sophisticated and ideal for the successful executive lifestyle. The fashion ranges change four
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times a year reflecting Hidesign’s continuous innovation and respond to the constantly changing
lifestyles of our international customers. A variety of leathers and colors are constantly
developed by our designers and research labs for these ranges.
LEATHER GARMENTS:
A wide range of garments reflects a continuous adaptation to the latest fashion tendencies.
Lightweight leathers reflect a casual but sophisticated lifestyle.
SMALL LEATHER GOODS:
An extensive range of classic small leather goods and a constantly changing range of fashion
accessories complement the handbags. Used along with the bags, the effect is stylish and
harmonious.
BELTS:
Hidesign’s ranges of classic and casual belts are made out of full grain cowhide and solid brass
buckles. The high quality of the full grain leathers (as against regenerated leathers) and solid
brass buckles instead of electroplated buckles clearly identifies the hidesign belt as luxurious and
sophisticated.
LEATHER
Hidesign uses only the highest quality leathers. Our leathers are full grain (they have not been
corrected to hide defects) have minimal color or pigments to cover the leather’s natural beauty.
The feel, the look and smell of our leathers is sensuous and natural.
LUXURY BAGS
Known for its singular design and a legacy of craftsmanship, lifestyle brand Hidesign has
proudly introduces its luxury label designed by Alberto Ciaschini. Celebrating 34 years of
unwavering quality, Hidesign’s luxury arrival showcases quintessential Italian style brought to
life by master designer, Alberto Ciaschini. A striking and sophisticated collection marks the
debut of Hidesign in the luxury arena with limited edition day and night bags for women.
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The brainchild of Dilip Kapur, President, Hidesign, this new label is the result of collaboration
amongst creative stalwarts Alberto Ciaschini, Hidesign and House of Swarovski.
Milanese designer Alberto Ciaschini, who has been leading the design department of Hidesign
since 2004, has partnered with the finest couture embroiders in France, the House of Swarovski
along with the best artisans at Hidesign to bring together this line of minimalist bags, with
modern shapes, soft structures and stylish colours.
Alberto studied at Instituto Marangoni one of Italy's best known design colleges. After starting
his career with Costume Nationale he has worked with Giorgio Armani, Loewe, Trussardi, Hugo
Boss & Alberto Guardiani. Alberto mentors the other designers at Hidesign on designs, styles,
concepts, finishes, fittings, leather, texture and feel.
As Hidesign grew, the need of the hour was to infuse design inputs from the luxury sector of
Italy. Alberto brings with him the great heritage of Italian luxury. He brings to the brand his
education, his sensitivity and his experience in luxury. Alberto says he is excited about working
with Hidesign to create the future of luxury in India. “It is one of the most exciting countries in
the world right now.” The challenge lies in his ability to understand the new markets and new
tastes as he brings home the experience of Italian luxury.
The handcrafted luxury line features handbags, evening bags, clutches and mobile phone
holsters. “Alberto Ciaschini, Handcrafted by Hidesign” is made with the finest leathers,
luxurious hardware and designed with a sophisticated woman in mind. Each piece is a unique
testimony to the ethos of Hidesign, which are unrivalled craftsmanship and a passion for detail.
Using archival elements, intricate surface detailing and contemporary embroidery patterns with
embellishments, the bags exude modern elegance and simplicity. The new label will be available
at select Hidesign stores and hand-picked multi brand stores across major metros in the country.
HAND PAINTED BAGS: BLUE NILE
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As soft leaves unfold and flowers bloom in the Hidesign gardens, the leading leather accessories
brand brings you lush springtime glamour at its best. Introducing the hand-painted BLUE NILE
collection, Hidesign once again beautifully portrays their commitment to workmanship which
they proudly patronize. This limited edition range from Hidesign has a very special attribute-
each bag in this collection is hand-painted on vegetable-tanned leathers! These bags have been
meticulously painted at the factory by their team of artists in Pondicherry.
Nature’s inimitable elegance is the muse for this range, as fresh springtime colours play prettily
on the bags that do all the talking. With tan woven straps that exude an earthy finish, the soft
leather bags are your perfect companion for a day around town. The Blue Nile Hobo is just the
right size for a gorgeous yet convenient day bag. Sprinkle a dash of spring into your day with the
Blue Nile wallets and try the Blue Nile Large Tote when you need to carry your world with you!
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CHAPTER 2
ANALYSIS - I
MARKET RESEARCH:
SegmentationPsychographic segmentation:
It is an example of segmentation based on the lifestyle of its consumers. The brand is targeted at
people who value style and elegance in a classical sense, that is, those who want to make
personal statement of their style and value the evolved nature of their preference. Thus they are
able to target a wide range of customers ranging from young college students to successful
business professionals.
Demographic Segmentation:
I) Gender Segmentation:
Hidesign started out as a very strong brand for men – more rational, rugged and product feature
oriented. When they first launched in India, 80 per cent of theturnover came from the men’s
products. The brand worked extremely well for professionals and executives, both at work and
leisure. However, over the years, it had acquired a touch of femininity-a quality of touch and feel
with strong aesthetic appeal that evoked a sense of beauty within the individual.
Generation, Income, Social Class Segmentation:
The brand is aimed at young upper class people and it was priced accordingly.
A typical Hidesign retail customer was well-educated and typically was a service industry
executive. 53%were age 25-35, 30% 35-45, and 10% over the age of 45. It isalso represented in
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the pie chart below. One thing that can beinferred from this data is that Hidesign needs to work
on its image in the eyes of the young crowd, which sometimes perceives Hidesign as a classy but
non trendy brand. Over thepast couple of years Hidesign has taken many initiatives in thisregard
such as the Pink campaign and offering products at slightly lesser cost to lure the young
prospective customer. Their laptop bags have been a surprising hit, which has been attributed to
the increasing numbers of working Indian women who are seeking functionality and fashion. The
target market consists of people belonging to high income households, who
travel frequently, often internationally, and insists on high quality products. Hidesign has created
a new brand, Holii, aimed at the mid-to-mass market segments, with products costing a third less
than Hidesign’s existing wares.
Targeting
The target market consists of people belonging to high income households, who travel
frequently, often internationally; and insists on high quality products
Further, their customer would be anyone who is career-driven,
globalised, cosmopolitan, who is well read and well travelled.
Hidesign targets customers who are primarily in the 25-35 age-group; internationally it would be
around 30-40 year old. The high per capita income, coupled with a brand-conscious
lifestyle, ensures ongoing demand and tremendous growth prospects for international brands
such as Hidesign.
2.3. Positioning
The name Hidesign was formed by merging the words “hide”
and“design”. The brand was initially promoted in travel and fashion magazine. But the brand
was initially perceived as a boring one inthe Indian market.
Different campaigns and advertising went into changing this notion.
The brand identity is more luxury oriented and more feminine. However, the core values are still
the same – that we are ecological and natural our manufacturing process, and still believe in high
craftsmanship in modern designing. The new brand image is more driven by luxury and
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exclusivity. Theidea is to provide more and more fashion through latest designs. Wehave found
that men buy products that are modern and have more functionality. On the other hand, women
are more brand consciousand buy to look beautiful. We have experimented with differentkinds of
colours in leather. Colours like red or white symbolize class among women, unlike men’s
accessories, where black and brownstill sells.Hidesign started out as a brand which appealed to
the rebels but over the course of time it has evolved into a brand which reflects a culture of
innovation, globalization and hard work. Hidesign has never tried to outdo its competitors in
terms of thesheer volume of advertising but instead it focuses on reaching
theright customers with the right value. They believe that theirproducts possess a certain
uniqueness that helps them stand apart from the crowd and they have always tried to focus on
this aspect intheir marketing strategies.Even though Hidesign is a domestic brand, it has
positioned itself inthe minds of Indian consumers as an international brand. They are viewed as
the most expensive leather bags in the country.
PRODUCT STRATEGY
PRODUCT LEVELS AND HIERARCHY
The product hierarchy stretches from basic needs to particular items that satisfy those needs. The
six levels of hierarchy are:
Item
Brand
Product Type
Product Line
Product Class
Product Family
Need Family
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LINE EXTENSION
Hidesign is trying out new product lines. In 2006, to keep itsproducts fresh, Hidesign hired forme
r Armani designer AlbertoCiaschini, who is based in Milan. The company was planning to
design a new top-end product line of evening bags for ladies.
BRAND EXTENSION
In 2005, Hidesign created a new brand of bags and accessories forits stores, Salsa, aimed at the
16-25 age groups and priced much lower than the premium bags which sold for $125-$250 in
overseas markets.
Hidesign partnered with Future Group, India’s largest retailer, tolaunch Holii, an affordable line
of bags with louder colours andornate trimmings that is geared towards young consumers.
The plan here is to create a new brand, Holii, aimed at the mid-to-
mass market segments, with products costing a third less than Hidesign’s existing wares.
Hidesign to set up a joint venture with Italy’s Braccialini to launch the brand in India. They will
set up a new production line at one of its manufacturing units to make Braccialini bags and other
leatheritems. The Braccialini products are very colourful.
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Hidesign: The Evolution of a Brand
During its initial stages, hidesign as a brand resembled the personality of its president and
founder mr. Dilip Kapur . During his college days mr. kapur was actively involved in the cultural
revolution that was sweeping the world in the 1970’s. he participated in the anti Vietnam war
demonstration and led a life that reflected the rebellious culture of the youth of that period. The
design of the products reflected the spirit of the Cultural Revolution happening in US at that
time. The designs appealed to people who were in same way extreme radicals and who rebelled
against the standard conservative norms of society. According to Mr. Kapur , the leather bags
that he crafted “ sold themselves due to the uniqueness of the design”. No marketing efforts were
undertaken to sell the products at that time.
The Cultural Revolution and youth rebelliousness were slowly fading. The product therefore also
needed to migrate from boutiques, non-commercial stores and street markets to departmental
stores. One such opportunity came when John Lewis from UK bought the product. The buyer
himself was, in some ways, rebellious in thinking and approach and the designs matched the
philosophicalorientationof the buyer. This relationship led to a strong commercialpartnership and
the upmarket John Lewis departmentalstores became preferred customers. By 2002, Hidesign pr
oductsoccupied about 60 per cent of the briefcase and luggage sections of stores.
The brand, as conceptualised by Mr. Kapoor, reflected a culture of innovation, globalisation and
hard work. It was an "edgy" brand -- atthe cutting edge of change. Over the years, it moved from
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being a"rebel" to being a "cutting edge" brand. It was not run by rules, but
by ethics and values and represented a concern for the environment.
It was a hard working person's accessory – a work
oriented brand. It was not a "party" brand, and certainly not aglamorous one. It was a brand that
was stylish in a classy and elegant way; not showy or dowdy -- never a cheap -- look brand.
Thedesign and manufacturing processes ensured this character andpersonality of the brand
consciously and seriously.
Now the brand focuses on its traditional manufacturing process todifferentiate it from the crowd.
This is also illustrated in the latestadvertising campaigns of the brand. The advertisement shown
onthe next page goes with statement:
“We still make leather bags using the same process Italiansabandoned years ago. Quitters”
The superiority of Hidesign products is largely due to the uniquenessof the design and
manufacturing process. The company focuses onits traditional methods of manufacturing
and tanning. The traditionalmethods reflects a care for the craftsmen, craftsmanship and
theenvironment using processes which had long since disappearedfrom the modern leather
industry.Each Hidesign product goes through a natural vegetable tanningprocess -- one that is
more time-consuming than chrome tanning,but that leaves every product with a rich beautiful
patina which getsbetter with time. Unlike chrome tanning, vegetable tanning has alsobeen proven
to have minimal effect on the environment. It is non-toxic and safe for those with sensitive skin.
The brand goes one step further to keep its leather goods natural,using only solid brass fittings
for buckles and buttons, which giveseach product that special rugged 'HIDESIGN' look.
One other differentiating feature of Hidesign’s bags was the use of solid-brass fittings, unlike
many other bags which opted for plated-metal fittings.
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It is the exquisite craftsmanship that goes into products which setsHidesign apart from other
leather goods retailers. Their products areconstructed, not just stitched, with constant input from
their designteams in Europe and Asia. The attention to detail that they give toeach and every
HIDESIGN product, whether it is a leather jacket or awallet, is unparalleled.
PRODUCT LIFE CYCLE
Apparel and other consumer products can be classified by the length of their life cycles. Basic
products such as T-shirts and blue jeans are
sold for years with few style changes. Businesses selling basicproducts can count on a long prod
uct life cycle with the samecustomers buying multiple units of the same product at once or
overtime.
Fashion product life cycles last a shorter time than basic product lifecycles. By definition,
fashion is a style of the time. A large number of people adopt a style at a particular time.
When it is no longeradopted by many, a fashion product life cycle ends. Fashionproducts have a
steep decline once they reach their highest sales.
The fad has the shortest life cycle. It is typically a style that isadopted by a particular sub-culture
or younger demographic groupfor a short period of time.
The overall sales of basic products are the highest of the three typesof products, and their life
cycles are generally the longest.
Apparel products often have a fashion dimension, even if it is justcolour. As fashion features
increase in a product, the life cycle willdecrease. Therefore, if you are designing a fashion
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product, you willwant to have multiple products in line for introduction as eachfashion product's
cycle runs its course.
Hidesign build their lines to include basic, fashion, and fad productsin order to maximize sales.
For example, with a jacket line, abusiness may have four styles that have classic styling and
coloursand are always in the line. Four additional styles may be modifiedevery two years to
include silhouette, length, and collar changesbased on the current fashion. One or two short-cycle
fashion or fadstyles based on breaking trends may be introduced once or twice ayear. Styles that
a popular celebrity or sports hero is wearing are examples of fashion and fad styles.
We can also look at the number of fashion product adopters againsttime.
Different marketing strategies should be used to reach each of these consumer types.
Fashion innovators adopt a new product first. They are interested in innovative and unique
features. Marketing andpromotion should emphasize the newness and distinctivefeatures of the
product.
Fashion opinion leaders (celebrities, magazines, earlyadopters) are the next most likely adopters
of a fashionproduct. They copy the fashion innovators and change theproduct into a popular
style. The product is produced by morecompanies and is sold at more retail outlets.
At the peak of its popularity, a fashion product is adopted
bythe masses. Marketing is through mass merchandiser’s andadvertising to broad audiences.
As its popularity fades, the fashion product is often marked forclearance, to invite the bargain
hunters and consumers, thelate adopters and laggards, who are slow to recognize andadopt a
fashionable style.
NEW PRODUCT DEVELOPMENT STRATEGY
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Hidesign caters mainly to women with high disposable income
(esp.A1, A2 and B1 in SEC classification) and who have a need for exclusive products.
The decision to stop catering to men was takenin 1989 because the profitability in catering to
female populace wasmore than three times when compared to catering to fashion needsof men.
But the times have changed since then with men becomingmore fashion conscious; we live in the
age of ‘metrosexual’ menwho don’t mind spending extra money for high quality fashion
accessories.
Thus a need for catering to new segment arises and consequently aneed for a new product is felt.
The best strategy for Hidesign is tostart creating a new men’s line by producing leather jackets
for menand it is the best bet because of two reasons viz.
Hidesign has had prior experience, before 1989, in creatingleather jackets. The experience
gained in the past years canbe leveraged in creating high quality new jacket.
Leather jackets have historically been associated with bike-
riders and cowboys from the ‘wild west’ and it generally perceived to be masculine. Hence this
product targets not onlymen with fashion conscious but also the other end of the spectrum as
well.
Taking a cue from major fashion houses, Hidesign should hire a well-known fashion designer
who with his/her invaluable inputs wouldhelp Hidesign in creating the jackets. One of the
fashion designersthat hidesign should target is Sabyasachi Mukherjee as he is one of the few
Indian designers who is globally renowned. His name being attached to Hidesign’s products
would only add to its exclusivity factor and to it being niche and eventually would lead to the
increase in the brand value of the jacket.
Packaging
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The jackets need to be packaged in superior quality bags, which addto the high class, the brand
stands for. The bags can be made fromeco friendly material. High quality packaging materials
will ensuresafety on a ride.
Brand Name
ARIES – “Greek God of War”
A leather jacket symbolises energy and enthusiasm. It showcases afeeling of sturdiness. ARIES
as a brand name will go well with thesection of society looking to portray that image. It will give
them afeeling of fighting it out in this present competitive world andemerging a true winner.
Pricing Strategy
Driving cost out of a product by accepting adequate quality maywork for a mass-market brand,
but luxury branding is built on afoundation of quality, even if it means a higher price. A
mediocrehigh-priced product will never achieve luxury status. Thus, thepricing strategy to be
followed in case of men’s jackets would besimilar to that followed by Hidesign in case of bags.
It has to beensured that the jackets are made out of the best raw material available in the market.
If some people aren't complaining about the prices, it's said, theyaren't high enough. That may be
true for general market productsand services, but luxury products are, at least in part, defined
bytheir higher price. Still, trust is key to luxury brands, and if the pricesare perceived to be
artificially high the strategy will backfire.
Bargain sales and discounts are antithetical to the concept of aluxury brand. If a quality product
is worth the price, then how canthat price be reduced without sacrificing quality?
Promotion Strategy
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High-volume mass advertising and hard-sell verbiage may work forgeneral products, but for
luxury brands, image ads and targetedpublicity convey the right message.
The leather jackets would be easy to promote because they wouldbe of unusual superior quality.
Reading about the leather jackets inupscale fashion magazines would not only add to the
perception of luxury, it would make customers subtly endorse the brand as
noadvertisement would.
Target Market Description
The two different types of products, targeting high end - class A1, A2and B1 customers, would
be offered are:
Men's Suede Jacket
A wide range of Men's Suede Jackets manufactured using high graderaw material to ensure
quality can be produced. Designed as perlatest market trends, the range would be made available
in different colors, sizes and patterns. Moreover, the team of quality controllers
PROMOTION OF HIDESIGN PRODUCTS
As Hidesign enjoys its premium position as a leader in their market space, they take huge efforts
to retain their position. To cover a full communication cycle, they take the support of different
mode of promotions to keep their brand in the news, and to successfully manage its reputation.
The channels of promotion they use have been enlisted below:
Advertising
Hidesign releases two ad campaigns per season – spring/summer and autumn/winter
PR
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Hidesign works with two PR agencies in India to launch their new collections, create brand
awareness, manage brand reputation, profiling of their management etc.
Digital
Hidesign has recently hugely elevated their digital presence
Marketing
Each region has a brand manager who looks after marketing initiatives
Point of Sale
Hidesign does a lot to maintain a favorable point of sale with the help of merchandising and
visual aids.
In this project, I have taken each channel and explored it individually as below:
TRACING ADVERTISING
All the adverting campaigns of Hidesign are done in-house. Tospread the exclusivity and
preciousness of the product, they havecertain photographers who understand what luxury
products are allabout. That is why they have their advertisement shoots done inParis to portray
the values of the brand. All their campaigns showthe warmth and sensuousness of the brand.
To begin with Hidesign used only print media for advertisements. This was done as a result of
the nature of the target market andretail coverage. During the year 2001-02, advertisements
focussedmore on the product and its features. During the next year therewas a change in the
focus though. Media choice was decided basedon different parameters, including the match
between the targetaudience and the profile of readership of the print media.
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In addition to mass media advertisements, merchandising anddisplay in the retail environment
was another important means tocommunicate the brand value. Care was taken to ensure that
theproducts displayed in the retail shops reflected the premium imageof the brand. Specially
designed display racks were made availablein multi-brand outlets. In 2001, ‘new look’ boutiques
were made,which were a combination of stone, glass, wood and brass. All theexisting
showrooms were also standardised in a similar pattern.
Hidesign has its presence on the Social Networking sites as well. Ithas used the overwhelming
response on such sites to design itspromotional campaigns.
Facebook – Hidesign has a facebook page which is used to advertise the Brand. At present it has
11,322 likes by facebook users. Incelebration of World Environment Day it launched the “Art of
Reuse”contest, an Eco-Project in partnership with Femina, to support acause very close to their
heart, where they are giving people all themeans to help them create their first “Green leather
creation”
ADVERTISING
Below are the examples of the advertisement campaign organized by the company through
Advertising Agency.
Hidesign’s AW 2012 campaign
Hidesign launches Autumn-Winter 2012 Advertising Campaign
Introducing Lady Godiva
Mumbai, Aug 2012: Capturing the bare and sensuous beauty of handcrafted leather, Hidesign
launches its A/W 2012-13 AD campaign, Lady Godiva.
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The campaign conveys the power and elegance of a woman as she carries her Hidesign bag. This
new series of ads feature models Kanishtha Dhankhar – Ex-Miss India-World, Ivana and Nitin
Gupta. This season’s campaign brings together writer and conceptualizer Beverley Bathija, and
art director Vrushali Gurjar. The duo is part of the same team that worked on Hidesign’s award
winning campaign in 2001, which brought to the fore the story of Hidesign’s excellence in the
hand-crafting of leather. Through irreverence in copy and captivating imagery, the models posed
skin-to-skin with leather bags. The duo created an iconic campaign that won Hidesign much
acclaim worldwide and a loyal following. For the current campaign, Hidesign has once again
collaborated with ace French photographer Dinh Thi Tien, who has redefined the brand’s
imagery over the last seven years. “Lady Godiva is a legend and the photography must be
surrealistic to push the concept. The lighting was inspired from «claire-obscure» painting to give
a sensuous atmosphere. My vision was to inspire a real artistic and aesthetic way to rise up the
brand image as the art of handcrafting,” says Dilip.
Beverley shares, “The concept has evolved from the brand’s original campaign on the making of
a bag, now to the emotional high that is unique to owning a handcrafted Hidesign bag.” The
campaign strongly evokes the values that Hidesign is recognized for - a strong connect to nature,
the romance of adventure, exquisite craftsmanship and an interest in all things off-beat. “The
result,” says Vrushali, “a lush, surrealistic and sensorial spread.” Hidesign does not follow
trends, but staying true to its ethos, reinvents itself season after season. Dilip Kapur, President of
Hidesign says, “Hidesign connects to the young and self-confident, internationally, through the
raw sensuousness and beauty of natural leather and great craftsmanship. Dinh’s powerful
photography reignites the sense of adventure and wonder that our first ad campaign had
experienced!”
The surreal background depicts Lady Godiva’s larger-than-life character. Kanishtha brings to life
the passion of Godiva’s character, reiterating the spirit of her rebellion in the old fable. Dinh has
beautifully captured the strength and individualism of the models through his photography. “She
has a powerful and radiant charm and reflects a natural and sensuous beauty,” he says while
describing his Godiva.
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The modern styling and slick construction of these vegetable tanned leather bags give them a
contemporary appeal that Hidesign has become well known for. Available in the colours of fall,
such as nude, midnight blue, forest green, tan and aubergine, the collection includes an array of
elegant totes, clutches, grabs, wallets, travel bags and belts.
The campaign will be introduced on Hidesign’s website www.hidesign.com, at all exclusive
Hidesign stores, and will appear in leading fashion & lifestyle magazines, online portals and
outdoor hoardings. Hidesign has recently launched exclusive stores in emerging metros such as
Mysore, Aurangabad, Kanpur, Nagpur and Dimapur, and the campaign will be showcased in
these cities through hoardings and print ads to boost awareness.
The Concept Evolves:
The brief from Dilip Kapur was to ‘nudge’ the brand from the original campaign to make it more
relevant to the brand's position today that now reflected the aspirations of modern Indian woman,
while staying true to its natural, hand crafted, eco-friendly heritage.
On one hand, the idea for the campaign came from the brand itself - its glorious attention to
detail, the hand-crafted heritage, use of vegetable tanned and hand polished leather, its people
and its international design sensibility. On the other hand, it came from the consumer's
experience with the brand. The making of the campaign was a collaborative interpretation of the
concept behind the campaign - Lady Godiva - her passion, spirit and individualism that reflects
the connection the brand has with its consumers across the world. With president and founder of
Hidesign, Dilip Kapur and the Brand Manager, Dipen, in Pondicherry, Art Director, Vrushali, in
Delhi, writer/conceptualizer, Beverley, in London and photographer, Dinh, in Paris - the final
campaign emerged seamlessly, as each individual creatively and strategically contributed to the
original Godiva idea.
PR & DIGITAL
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The below are the days when the company has released their product on different occasions. To
introduce the different product launches in the market they have to prepare the press releases.
These
press releases are prepared by the Public Relation Agency. These agencies are been hired by the
company for promoting of their brand and the product introduced by the company time to time.
Occasion/Festival based collections:
Hidesign releases several festival / occasion based collections each year to keep themselves in
the news. Below are some examples:
Independence Day
Father’s Day Collection
Mother’s Day Collection
Raksha Bandhan
Friendship Day Collection
Teachers Day Collection
Festive collection
Party Collection
Diwali Collection
Valentines Day Collection
Case Study: The Valentine Collection by Hidesign
February 1, 2012
Hidesign celebrates Love at first sight this Valentines day with a collection of fabulous satchel
bags and wallets in our delicious lizard & croco print vegetable tanned leathers. The gorgeous
BERG collection with over sized lock and brass rod handle adds vintage glamour to your
evenings and days. Look out for RITA, our irresistible range of wallets and pouches.
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Case study: The Art of Reuse
The Art of Reuse is an initiative by Hidesign, which is a good example of PR, Digital promotion
and marketing. For the first year, Hidesign tied up with Femina, and in the second year, with
Outlook magazine
Below are details:
Hidesign pioneers “The Art of Reuse”
Join the eco-project. Reuse, reduce, and recycle. Go green!
Pondicherry, June 2011: Hidesign is excited to announce the launch of the eco-project Art of
Reuse in partnership with Femina. This project to be launched on June 5th, 2011 to mark World
Environment Day is part of Hidesign’s year long effort to push its Green Campaign.
Hidesign, an eco friendly leather goods brand, has today carved a niche for itself amongst luxury
goods. As a brand Hidesign has consistently tried to create space in its consumers’ mind on the
importance of being eco friendly, on using things that are natural and has always impressed upon
the beauty of the handcrafted. Taking the mandate further Hidesign would like to stress on the
need to recycle and reuse.
“We believe the best way to get an idea across is to engage people through participation”, says
Dilip Kapur, President of Hidesign.
The Art of Reuse is an engagement project to support the practice of converting waste materials
or redundant goods into new materials / products of better quality with a higher environmental
value. In this contest, participants will be encouraged to create new designs out of leather scrap
provided in the “Art of Reuse kit”; available at all Hidesign stores pan India. These designs
would be submitted at Hidesign stores and winners will be selected through votes on Hidesign’s
page on Facebook. On 1st August 2011, Hidesign and Femina will choose three winning
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products and the selected contestants will receive Hidesign gift vouchers worth Rs. 15000,
Rs. 10000 and Rs. 5000 respectively.
This is a laudable small step by Hidesign to reach out to a larger audience by introducing the
simplicity in recycling and increasing the appreciation of handcrafted products. At Hidesign, we
believe this initiative could take on a much larger form if we get your support.
The GREEN CAMPAIGN
Since its inception in 1978 Hidesign has always pushed for a greener way of doing things.
Today, Hidesign is a recognised leader in the research of the ecological use of vegetable tanned
leathers for its leather goods. Learning from the centuries old skills of tanning with natural seeds
and barks, Hidesign has created fashionable leathers that age exceptionally well.
Hidesign realizes the importance of creating awareness towards conserving the environment, and
with the GREEN CAMPAIGN, hopes to lend support towards promoting afforestation and
bringing to light the importance of reuse. The Art of Reuse project will be followed by the
launch of Hidesign’s “Green Collection”, which will be in stores later this year, and “Everyday
Green” where Hidesign will design and create usable art pieces such as waste baskets, stools,
trays and other innovative products out of scrap leather which will be displayed in their stores
across India.
5.4 MARKETING
Below shared is the best example for the marketing strategy applied by the company for
maintaining their level and stability in the market.
Hidesign has its own marketing team to advise them on different marketing changes and
fluctuations.
Case study: Hidesign introduces innovative schemes and incentives such as gift cards
HIDESIGN LAUNCHES THE PERFECT GIFT
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Introduces flexible denomination gift cards
December 23, 2011: Gift someone their ideal Hidesign product - even if you aren’t sure what it
is! Hidesign is proud to launch the perfect gift – Hidesign’s flexible denomination Gift Cards
that can be redeemed at any Hidesign store across India.
These bearer Gift cards can be partially redeemed and recharged again and again! With no wear
and tear unlike gift vouchers, the Hidesign Gift cards can be recharged with any amount from Rs.
100/- upto Rs. 15,000/-. Gift the most luxurious gift. Gift them the freedom to choose. Available
at all Hidesign stores across India and on www.hidesign.com
HIDESIGN BRINGS ANOTHER SPECIAL OFFER FOR YOU !
This festive season WIN a Hidesign Gift Card worth Rs. 500 FREE!!
With every purchase of Rs. 5000 or more on www.hidesign.com upto 2nd Jan, 2012
Case study: Hidesign releases educatory write ups on how to maintain your leathers
Looking after your leather in the Monsoons was never this easy!
How often has an unexpected shower left you fretting over a wet leather bag? Do you stop
carrying your leather bags every time the monsoons hit town? Well worry no more, because we
have a couple of heavy duty myth breakers on how to take care of your leather.
Getting your leather bag wet is not such a huge issue especially when it’s a vegetable tanned
leather bag. Natural oils and extracts from barks & seeds replace the original fats in the hide
giving a unique look to vegetable tanned leathers with deep colors, good body and long lasting
strength. This age old natural technique also ages your leather bag beautifully. Rain water just
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becomes another natural element and the leather reacts the way all natural things do – it lets the
water evaporate on its own.
That’s right the next time your vegetable tanned leather bag catches a few drops of rain or a bit
of that heavy shower, just empty it out and leave it in an airy dry place for a few days or in an
air-conditioned room which would actually be the best way to dehumidify the bag. Never leave
your bag near a heater or under direct sunlight, because it will dry out the natural oils in the
leather, leaving your bag looking dull. In the long run this could make the leather hard and
develop cracks on the surface.
Yes, like your skin your leather needs moisturizing too. You should buy an appropriate cream or
wax for your leather bag that contains natural oils that seep into the leather and nourish it. Most
products available in the market give a gloss to the surface but do not nourish the leather.
Alternately you could take your vegetable tanned Hidesign leather bag to the nearest Hidesign
store. The sales manager will be more than happy to help you out.
After drying the bag, a light rub with a little bit of the cream and a soft cloth will moisturize your
leather bag and replenish its natural oils. During the monsoons a light rub every other day will
keep your leather supple and prevent the growth of fungus. If you’ve already started giving your
bag a light rub, you’ll notice by the time you finish that it looks as good as new.
Remember
Pat your wet leather with a soft dry cloth.
Leave it in a warm dry place to naturally dry. Never leave your bag near a heater or in direct
sunlight!
Use an appropriate leather cream/wax after drying your bag to restore the balance of natural
oils and enhance the leather’s natural shine.
Always store your leather bag in a cloth bag to protect it from dust and moisture especially in
a humid environment.
Periodically take out your leather bag and air it (now you know why it’s cool to change your
bags often!)
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POINT OF SALE
Hidesign takes lot of efforts to maintain a favorable environment in existing and new stores.
Below are some details on some of their newer stores.
Case study: Hidesign opens at Palladium
HIDESIGN ANNOUNCES THE LAUNCH OF ITS NEW EXCLUSIVE STORE
IN MUMBAI AT PALLADIUM MALL IN LOWER PAREL
Mumbai, June 16, 2011 - Adding another feather to its cap, India’s leading luxury leather brand
Hidesign proudly announces the launch of its new exclusive store at the Palladium Mall in
Mumbai. With the opening of its new store, Hidesign has moved from its earlier address on the
high street at neighbouring Phoenix Mills to a strategically positioned space amidst other luxury
brands at the Palladium Mall in Mumbai.
The new Hidesign store spread over an area of over 600 square feet is ideally located on the
Level 3 of the Palladium mall. Hidesign’s trademark Orchard design welcomes shoppers at the
entrance of the store, in a new avatar made in delicately etched glass. On entering the store you
are greeted by an impressive vertical poster that curves to meet the gold niche in the ceiling. The
store’s elegant white walls offset the tan leather panels and teakwood floor. Sleek metal shelves
made in solid brass brighten the store while tall mirrors add depth. The stone wall closer to the
cash counter adds texture to the space and the warm lights create an inviting ambience.
Dilip Kapur, President of Hidesign says, “We are excited to launch our latest store in Mumbai at
Palladium which reflects our brand values and evolving customer profile. The clean lines, use of
natural materials like stone, brass, wood add warmth and create an exclusive experience for the
Hidesign customer. Mumbai is a key market for us. The Palladium store will cater to a wide
range of consumer profiles. We hope they enjoy the new styles we have launched for the store
opening”.
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The store showcases an extensive collection of bags ranging from handbags for women, duffels
and travel bags on wheels, laptop bags, messengers, cross bodies and briefcases for men. An
extensive range of small leather goods is also available at the new Hidesign store including
wallets, belts, and card holders. The new store has also created a beautiful display of orchard
tables that showcase newly launched styles from Hidesign as soon as you enter the store. Come
indulge in the company of beautiful, hand crafted bags at Hidesign and luxuriate in an experience
that’s truly unique!
Case study: Hidesign opens first exclusive store in Nepal
Hidesign, the luxury leather brand with a presence of about 60 independent stores across India, is
pleased to announce the opening of its first exclusive store in Kathmandu, Nepal. The Hidesign
store spread over 500 square feet, is located in the heart of Nepal’s commercial district
Pulchowk.
“Hidesign is increasingly focusing on expansion into the countries neighbouring India,” says
Vikas Kapur, International Director. “Residents of these neighbouring countries read the same
magazines, travel frequently to India and as a result are already aware of the Hidesign brand. In
addition, these countries are seeing strong growth, as opposed to the developed markets in
Europe and the United States.”
In Sri Lanka, Hidesign has been present for a long time across multiple locations in Colombo
and Pellawate. Hidesign is now looking at ways to enter Bangladesh. “Bangladesh is a very
interesting market,” says Vikas Kapur. “Its growth rate is strong, it has a young and very large
population, and it is important to enter the market at an early stage and develop brand
recognition.”
Hidesign also has exclusive stores in Carmel USA, Ha Noi Vietnam, Johannesburg South Africa,
Moscow Russia, Montego Bay Jamaica and Berlin Germany. For complete address details of the
Hidesign store in Kathmandu, please visit: http://hidesign.com/store
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TRACKING PROMOTIONS
As a requirement to study the promotional strategy of Hidesign, wemade a visit to Hidesign
Exclusive showroom and Shoppers stopshowroom at DLF, Ambience Mall, New Delhi. Also, to
know moreabout the different brands of Hidesign, we visited Holii and Ayeshashowroom.
Hidesign was the first one to introduce luxury retailing in India interms of leather products.
Hidesign is a brand in itself and most of the product offerings comeunder this brand name only.
Hidesign has created new brand of products, Salsa, Ayesha and Holii. These three brands have
theirown showrooms of products and don’t feature in the exclusive Hidesign store.
A recent promotional campaign by Hidesign was launched in twoparts. The first part
was released in September 2010 and the secondpart was unveiled in October to coincide with the
festive season.Developed by Contract, Chennai, the new advertising focused ongiving the brand
a more “cool' image. The second segment of thecampaign, focussed on promoting Hidesign's
products as a "gifting option".
Promotional Campaigns of Hidesign can be categorised into:
Discount: Hidesign exclusive retail showroom hasn’t offered anydiscounts from the past two
years. But, their franchisees and factoryoutlets do offer a discount of 10-20% once in six months.
On the other hand, Shoppers stop offers 10-20% discount onHidesign products at the end of
season.
Holii showroom, also, offers a discount of 10-30% on a range of itsproducts.
Exhibits:
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Hidesign has campaigned for Breast cancer and has manufactured bags in the signature Pink
colour for spreading the awareness. In anticipation of Breast Cancer Awareness Month,Hidesign
launches the Pink Ribbon collection - a Hot Pink line of accessories to help further the cause.
With 20% of the sales directed to raising awareness and prevention,
this Limited Edition from the Fall / Winter collection was available at
all Hidesign stores nationwide and online through October and November, last year.
The styles range from signature Hidesign handbags, to cross bodies, travel bags and wallets.
According to the store manager, there was a significant spurt incustomers visiting the showrooms
which helped in creating brandawareness. Further, this helped in increasing the sales.
Premiums and Gifts: Hidesign offers vanity kits as reward to thosecustomers who purchase
items worth more than 5,000. A vanity kit consists of toiletries and accessories.
Contests: To mark the World Environment Day, Hidesign, inpartnership with Femina, organises
a contest named “The Art of Reuse”.
The Art of Reuse is an eco-project which gives a contestant all themeans to make their first
“Green leather creation” and let thementer it into a step contest on Facebook where the top three
entriescan win Hidesign Gift Vouchers of different denominations.
This, further, helps to create the brand awareness among differentclasses of population.
When we visited the Hidesign store, top three entries were ondisplay at suitable location.
In addition to above sales promotions events, press conferences by
the President of the company and other company achievements receive wide coverage in the
press.
Impact:
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Most of the above schemes were quite successful in the past andhas helped to increase the sales
of the products.The store managersinformed that the average sale increased by 10-15% on
account of these sales promotions.
For example- Shoppers stop personnel told that when no discountswere offered 3-4 customers
out of 10 who visited the store actuallypurchased the product. But, when 10-20% discounts were
offered,on an average 5-6 customers out of 10 actually purchased theproduct.
CHAPTER 3
ANALYSIS - II
DISTRIBUTION STRATEGY
Hidesign has 65 exclusive stores internationally and distribution network in 23 countries. The
brand enjoys a considerable presencein markets like South America, the Middle-East and Russia.
It hasplaced its products in over 2,000 stores globally. Malls, high
streetsand airports are some of the preferred locations for openingHidesign outlets.
In the early 1980s, Hidesign entered the UK through localdistributors. However, initially, the
leather and luggage shops in theUK were not keen on stocking an Indian brand. And, the 'Made
inIndia' tag didn't help either.
Initially, Hidesign was an exclusively export-oriented outfit, fulfillingorders from European and
American distributors. It concentrated ontaking small orders and fulfilling them to high quality
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standards and delivering on time. This proved crucial in building its reputationamong high-
end overseas customers and in gaining their initialgoodwill.
In its overseas markets, Hidesign graduated from a firm fulfilling export contracts to selling
through distributors and then through high-fashion retail chains like Selfridges.
In later years, it even started wholly-owned concept stores.
On the other hand in India, Hidesign started its distribution operations by opening wholly-
owned stores (in 2000). This wasfollowed by tie-ups with retail chains like Westside in 2003 and
subsequently Shoppers' Stop, Landmark, etc.
In late 2005, it announced plans to open exclusive franchised outlets. The Indianmarket too
proved receptive to the high quality leather goods of Hidesign and the business boomed.
Ever since Hidesign began retailing in India, they have registered a 60% annual growth every
year.
Recent strategies of Expansion
The company recently entered into an agreement to pick up 35 percent stake in its retail business
in Russia — Hidesign LLC — for$200,000 on a partnership basis.
Till now, Hidesign LLC was only a franchise for the Russian marketand managed by its
distributor. The infusion of capital would enableHidesign to further accelerate its retail footprint
across key marketsin Russia, including St. Petersburg, from the 5 stores it has now inMoscow.
To enhance its brand presence overseas, Hidesign will open anexclusive brand store at the
Hong Kong airport and another in KualaLumpur this year. The brand's market presence has
grown in SouthAfrica as well, and the company is in talks with five leading malls toset up its
exclusive shops.
PRICING STRATEGY
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Niche Market Characteristics and Price Behaviour
In general, niche markets have a few important characteristicsthat make their prices behave
differently than in larger markets. Bydefinition, niche markets are relatively small markets, but
this doesnot mean that niche markets are unimportant or unprofitable. In thissense, even
relatively small niche markets can be important. Thefact that a relatively small number of
persons may make up thecustomers for a niche market product and that these customers
areusually willing to pay above, and sometimes far above, averagemarket prices for the product
is a phenomenon in economics called“inelastic demand.” Inelastic demand means that people
buying theproduct are not very sensitive to price, or that they will buy aboutthe same amount of
the product even as the price changes.
The less flexibility there is in the market to price (i.e. the number of people buying the product
doesn’t change much as pricesgo up and down, meaning demand for the product is
inelastic), themore set the market is, so something aside from price must be usedto “grow” the
market. It also means that if competitors enter thesame market with the same or a similar
product, prices for theproduct might drop considerably. Having an inelastic product meansthat on
the upside, people purchasing the product may be willing to pay a premium.
However, on the downside, in order to sell a greater
quantity, the price would have to decrease dramatically, or the market would need to be
expanded.
Potential Strategies
As niche markets tend to exhibit inelastic demand, Hidesignwhich is engaged in niche marketing
need to determine a strategyto keep competitors from entering the market, or they must continue
to increase demand for their product if they wish to keep prices and sales stable and/or growing.
There are numerous examples of niche markets that started small, with just a few producers and
high price premiums, and then became more main
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stream as additional suppliers entered the market, eventually driving the price (or price premium)
down.
Many items from fashion houses have seen the price premium over conventional produce
decrease as more companies enter the market. Understanding this phenomenon is important as a
producer examines the potential profitability of a new market or niche product, as it is important
to understand that the price of the product will likely change over time, and that strategies to
continue to differentiate their niche product from the products of other suppliers must be
considered in advance. If the product catches
onand more customers enter the market simultaneously with new suppliers, then prices and
quantities may remain stable.
Potential Strategies: First Strategy
A first strategy to consider is maintaining currentcustomers by developing customer loyalty.
This is often donethough product differentiation. Patents, trademarks, geographicalindication an
d branding are strategies that should be used by.
Hidesign to maintain their price premiums as new competitors enterthe market; however, the
costs of these strategies usually make them infeasible for small producers. Small producers can
achievesimilar results through less costly options such as unique productionpractices (i.e. natural,
organic, humane), location of production (i.e.local, state, region), story of the product or
producer, etc. Thesestrategies help to define the product as unique, and communicate
tocustomers that even though there are close substitute products,they are not the same. Ambathur
leather is an example of a animalproduct that is defined by both location and production practice.
Second Strategy:
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A second strategy is to innovate to stay aheadof the curve by continuing to find new products
that are valued by aniche market. This may mean looking for new varieties of leather adifferent
production practice, or different packaging/processing. Topursue this strategy, it is easier to find
new products that an existingcustomer base will value, which will eliminate the marketing
costsassociated with finding a new customer base.
Third Strategy:
A third potential strategy is to grow the market ata rate that keeps it ahead of new entrants. This
involves finding newcustomers that want the product. If the awareness of the productspreads and
new customers are found for the product, the newdemand may keep pace with the new supply
and prices would bestable. However, it must be noted that even with new customers,their pace of
consumption must meet or exceed increasing suppliesor else prices and/or price premiums will
still decrease.
Conclusions
Niche markets by definition have unique characteristics thatcan affect the price of the product
and price premiums over time.Under good conditions this means that the prices can be quite
high,but small changes in the supply of the product can cause muchlarger decreases in price. So
over time, as more suppliers enter themarket, price premiums usually go down. Strategies that
Hidesign might consider include product differentiation, which helps a productto maintain its
unique quality even as other suppliers enter themarket, growing the market by continuing to find
new customers a tan equal or greater rate than the supply expands,
so that price premiums can still be earned, and continuing to innovate to develop
products niche markets may find compelling. Regardless of thestrategies or ideas that are pursue
d, it is important to look atpotential profitability and how different assumptions affect theprofitab
ility of the product.
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PLACE OF WORK AND RETAIL
HIDESIGN FACTORY
They believe that the way you work should reflect your brand – Hidesign does not have a system
of mass manufacture. There work is a craft, and each bag is individually handcrafted by a team
of 3-6 artisans. The premises where the work reflects their brand values – their factory is
constructed from bricks made of local earth and fired in kilns that were made on the premises.
Hidesign has established its first custom designed factory in Pondicherry, India in 1990. This
important milestone confirms their commitment to innovation, technical excellence and local
community development.
You will not find asbestos anywhere in the factory. You will see minimal use of paint; only solid
raw brick fired from local earth by Ray Meeker, the well known low cost ecological building
expert, himself. The place is all grass. Ray built ponds, waterfalls and streams into the layout of
the factory. They try to reduce the amount of pollution they generate and try to find ways to
reuse resources. All waste water from the tannery is filtered using RO before it is let out. All
water in the factory goes through a natural process of filtration in the water bodies they have
built as a part of the landscaping and is reused. They use only vegetable extracts for tanning as
far as possible. All waste material is separated and reused or sold for reuse. They do not burn
anything. Lunch time at Hidesign is pretty much outdoors, under the trees, sitting on rock
benches and tables.
At Hidesign no work space holds more than 100 people at a given time with ample organized
workspace for every artisan. They prefer to call it a workshop and not a factory. For them the
concern for ecology is an ongoing search for better healthier ways to live and work. It comes out
of believing in it and making it a core value.
HIDESIGN: A RETAIL OVERVIEW
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Hidesign has successfully maintained its growth of retail by opening several retail shop all over
the world. This year the company has opened 11 more stores in India and 3 stores in abroad. The
above additions have made the total retail shop of 28 in India and 9 in abroad.
The hidesign has made its retail more powerful by making retail service more reachable to their
ultimate customer by maintaining their online services highly active.
They have given importance to their ultimate consumer by considering the consumers
suggestions and designing their products more consumer friendly rather than trendy and market
kind products.
Hidesign has managed consider their consumers suggestions through different networking sites
like facebook, twitter, and their home networking sites. These sites have been proven to be very
helpful in building their brand not only in India but also in overseas market.
Hidesign have steadily and beautifully expanded its retail in India and overseas. Below is a list of
their key retail outlets in India:
SWOT ANALYSIS
STRENGTH
Hidesign is recognized worldwide and now sells leather bags and garments under its own
name in Australia, Greece, India, New Zealand, Scandinavia, Slovakia, South Africa, the
United Kingdom, and the United States.
They have the expertise to create a product that is excellent.
They do not compromise on quality of the products.
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They have stayed focused on innovation, based on the heritage of craftsmanship
They stand out for the sensuous naturalness of its high quality leathers and the smooth
soft glow of its solid brass fittings.
They have loyal customers.
International standards are very strict.
WEAKNESSES:
They are very weak management wise.
Their products are only for the higher income class people and very few for middle class
people.
They have concentrated market i.e. only in metro cities.
They follow traditional ways of production and through these ways it is very difficult to
compete with the competitors.
They are highly dependent on craftsmanship.
The rate of up gradation of technology is very slow.
OPPORTIUNTIES:
Abundant scope to supply finished leather to multinationals setting up shops in India.
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Growing fashion consciousness globally.
Product diversification in leather garments and goods.
Growing domestic and international market.
Perceived level of product differentiation
Number of substitute products available in the market
Ease of substitution. Information-based products are more prone to substitution, as online
product can easily replace material product.
Substandard product
Quality depreciation
Demand of the leather products is very high in domestic as well as in international
market.
They can expand their market share providing more range of products at lower price
mainly for middle class people.
They can reduce the production time by using the advanced technologies.
They can market their products in 2nd tier cities instead of marketing in only metros.
Hong Kong airport and another in KualaLumpur this year. The brand's market presence
has grown in SouthAfrica as well, and the company is in talks with five leading malls
toset up its exclusive shops.
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THREATS
Problems of Tanneries
Environmental pollution due to lack of facilities for treatment and disposal of hazardous
wastes.
Lack of financial assistance
High cost of semi-tanned leather
Unhygienic working conditions leading to health hazards for the workforce.
No facilities for quality testing.
Environmental Threats:
Soil contamination by the sludge produced thereby affecting the agriculture of the
adjoining region.
Water pollution by the by-products and solid wastesdisposed by the tanneries and leather
manufacturingindustries thereby affecting water life and pisci-culture.
Using cheap imported synthetic rubber from China thereby resulting in poor quality
products which can have adverse effects on skin/body.
Rampant slaughtering of wild animals to procure authentic leather thereby affecting
wildlife and eco structure of nature.
Disposal of untreated wastes into land and water bodies from tanneries results in air and
water pollution as well as emission of greenhouse gases like methane and carbon dioxide.
Competition is quite high in this industry.
Threats from the competitors as they are using new technologies in production and
hidesign is still following the traditional way.
Threats from some organizations like PETA as they are negatively advertising the leather
industry.
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Environmental threats as the waste from these industries are very harmful.
CHAPTER 4
SUMMARY, CONCLUSION & RECOMENDATION
OBSERVATION & FINDINGS
By mid-2013, Hidesign’s revenues were reported as being in the vicinity of growing at 25% per
year. Within a few years, Hidesign penetrated all the likely locations it wished to occupy in
India, so international expansion remains the key to growing this business.
Kapur and his German-born wife Jacqueline had opened twoboutique hotels in Pondicherry in
2004 and 2005, and Kapur hadmused in the press that Hidesign’s joint venturein China
mightprovide the right vehicle for the firm to diversify into apparel.However, it was clear to the
Hidesign president that acceleratingthe pace at which the firm opened stores abroad
and establishinga truly international brand stood at the top of his leadership agenda.
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RECOMMENDATIONS
Company should focus on advertisement as it makes consumer aware about the product.
Company should give more schemes and offers to the consumers.
C o m p a n y s h o u l d d o m o r e p r o m o t i o n a l c a m p a i g n s .
Company should regularly do market research to know the changing needs and demands
of consumers. This will also help in better understanding of consumer behaviour.
C o m p a n y s h o u l d t r y t o r e t a i n t h e c u s t o m e r s b y c r e a t i n g loyalty
among the existing customers as brand switching is very common today.
CONCLUSION
After completing my project and collecting various information and facts I came to the following
conclusion:
Consumers look for quality while purchasing a particular brand.
The second important parameter is price as the consumers look for economy.
Company is not conducting any promotional campaign to make consumers aware about
their products.
Consumers are looking better offer and schemes which the Companies are looking for
extra benefit in the product.
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BIBILOGRAPHY
Books
Marketing Human Resource Management. By Michael Vaz, published by Manan
Prakashan, Mumbai.
Strategic Management M.Com Part I. By Micheal Vaz, Published by Manan Prakashan,
Mumbai.
Research Methodology in commerce M.Com Part II. By Micheal Vaz, Published by
Manan Prakashan, Mumbai.
Websites
Official Company Website: www. hidesign.com
www.sabyasachi.com
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http://www.business-standard.com/india/news/qa-dilip-kapur-founderpresident-
hidesign/406606/
http://articles.economictimes.indiatimes.com/keyword/hidesign
http://www.facebook.com/hidesign?sk=app_2309869772
http://www.inonit.in/categories/vprofile/919
http://www.chennaibest.com/cityresources/Fashion_and_Beauty/hidesign.asp
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