RM Project

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

A CASE STUDY ON HIDESIGN


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



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



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


http://en.wikipedia.org/wiki/Friction

http://en.wikipedia.org/wiki/Zipper

http://en.wikipedia.org/wiki/Brass_instrument

http://en.wikipedia.org/wiki/Ammunition

http://en.wikipedia.org/wiki/Doorknobs


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



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.



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



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.



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



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!



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



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



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



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.



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



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.



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



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



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



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



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



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.



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.



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.



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


http://www.hidesign.com/


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.



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



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



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





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!)



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”.



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


http://hidesign.com/store


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:



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:



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



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



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



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:



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.



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



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.



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.



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.


http://en.wikipedia.org/wiki/Product_differentiation


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.



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.



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.



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



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


RM Project

Documents

Transcript of RM Project