Hidesign`s Positioning Challenge in India

Abstract:

In 2018, Dilip Kapur (Kapur), founder and president of Hidesign, was on the horns of a dilemma. Over the last 40 years, he had built up Hidesign, which was considered to be one of the first brands from India to have succeeded in the global fashion marketplace. While his global ambitions remained intact, Kapur felt that India was where the real action lay when it came to the future of Hidesign. But the Indian market posed its own set of challenges though it was growing at 15% per annum compared to the global rate of 3-5%. Kapur’s aim was to grow at 25% but he was still thinking about where that growth would come from. Should Hidesign focus on other channels? Should it go upward on the pyramid where it would face established global brands such as Michael Kors, Coach, and so on, vying for a market that was smaller and very tough? Or, should it go downward on the pyramid into a larger market with a less expensive sub-brand? How would he maintain the positioning then? Would it come at the cost of diluting the Hidesign brand for regular customers?

Issues: » Understand the concepts of brand equity, brand concept management, brand extension, etc. » Understand the issues and challenges in vertical brand extension. » Understand the significance and challenge posed in positioning while extending a brand vertically online and offline. » Explore ways in which Hidesign can employ a product/brand strategy to grow at a rate faster than the market. Introduction In 1978, when Dilip Kapur (Kapur), founder and president of Hidesign, started making leather goods as a hobby, little did he dream that he was taking the first step toward building a company that would go on to become one of the first brands from India to succeed in the global fashion marketplace. Forty years on, while his global ambitions are still intact, Kapur felt that India is where the real action is when it comes to the future of Hidesign. But the Indian market posed its own set of challenges. “We are at the top of the pyramid. The growth of the industry is 15% and Hidesign is growing faster than this. We want to grow at 25%. Where does the growth come from? Expansion into areas such as malls is not always profitable...

Key words:
Brand management; brand extension; vertical brand extension strategy; extending brand upmaket; extending brand downmarket; brand equity; brand concept; brand concept management; Function-oriented brand concept; Prestige-oriented brand concept; brand dilution; Product line strategy; positioning; business strategy; competitive advantage; e-commerce; Global fashion; Growth strategy; Global luxury brand; Hidesign"

* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.