Hidesign: Building India's First Global Fashion Brand
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Case Code: BSTR405 Case Length: 22 Pages Period: 2005-2011 Pub Date: 2012 Teaching Note: Not Available |
Price: Rs.500 Organization: Hidesign Industry: Leather Countries: India; Asia; Europe; US; Global Themes: Globalization, International Business, International Marketing |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
About Hidesign
Hidesign, founded by Kapur, manufactured and marketed leather products such as briefcases, computer bags, handbags, travel bags, wallets, and small accessories like coin purses, key chains, and passport cases. As of 2011, it had four manufacturing facilities, one at Baddi in Himachal Pradesh, two in Puducherry, and one tannery in Chennai in Tamil Nadu. The company laid emphasis on product design and the manufacturing process, which was done using genuine leather and traditional processing like vegetable tanning and handcrafting...
Global Expansion
Hidesign had grown from a mere investment of Rs. 25,000 to a business worth over Rs 1 billion in 2011, with a distribution network of over 2,000 stores in over 23 countries. Many celebrities, executives, models, and big names like Nelson Mandela, Steven Spielberg, and Indira Gandhi were among the ones who loved the stuff Kapur designed. Hidesign, based on the values Kapur believed in, had come a long way. Hidesign valued natural beauty. The leathers used were full grained and vegetable-tanned using natural seeds and barks, which enhanced the intrinsic characteristics like strength and durability...
Hidesign Customers
Initially, Hidesign was a product out of the mainstream and was featured in stores that had built a cult following within their geographies. Being an Indian brand was also a disadvantage where the growth of the brand was concerned, as distributors and retailers were reluctant to place it in their stores. So, it had to target stores which emphasized the fashion aspect more. However, all this changed when a Hidesign bag won the 'Accessory of the Year' award from a British magazine, Accessory Magazine, in 1992. Princess Diana handed over the award...
Promoting the Brand
According to Kapur, each country was a separate exercise in brand building. As the company sold mostly through distributors in international markets, brand building activities were few. However, the company also invested in advertising to enhance its brand image. Hidesign products began featuring in higher-end print media and on television. The company also generated extensive publicity through eight fashion shows it sponsored each year. Hidesign took up advertising and extensive public relations efforts, which drove traffic to its stores...
Strategic Partnerships
In addition to the classic collection of bags, Hidesign added its seasonal collection of bags twice every year. For the purpose, Hidesign had setup three multi-cultural design teams based in Milan, London, and Puducherry through strategic partnerships with renowned fashion designers to keep its designs fresh and current. In 2001, Hidesign forged a strategic alliance with Chennai-based Qwiky's Coffee Pub to sell its merchandise at Qwiky's outlets across the country....
Maintaining the Focus
At one point when Kapur's hobby had become a business, he had come close to giving it up. But what kept Kapur going and his excitement alive were the customers' likes and dislikes that threw challenges at him and his creativity. "I am very hands-on with my business, even now. I have always been told that's wrong. But I got a big boost when LVMH (the French luxury brand Louis Vuitton) invested in us and I looked at its president Yves Carcelle. He is worse than me....
Product Portfolio Expansion
Expanding Hidesign's portfolio, in 2004 and 2005, Kapur and his German-born wife Jacqueline opened two boutique hotels in Puducherry. The concept of hotels carried the same aura of Hidesign, as Kapur said, "My first hotel, The Duplex, was the result of my desire to conserve my heritage. It was our house in Pondicherry where we had started Hidesign. Once we moved to Auroville, it was lying vacant and we didn't know what to do with it. So a group of us worked on it together, in an attempt to showcase what was best in Pondicherry...
Challenges Ahead
According to McKinsey, India's consumer market was expected to grow five-fold to US$1.5 trillion by 2025, with a boost in the personal incomes of the country's youth. The boom in the retail industry had increased the visibility for lifestyle products and growing consumer awareness had developed an appreciation for what accessories could do to their looks, raising the demand for fashion products. Of the Rs 1.1 billion turnover of Hidesign, international markets contributed about 40% and though the Indian market was targeted by the company much later, it contributed 60% of the revenue...
Exhibits
Exhibit I: World Import of Leather and Leather Products and India's Share 2005-09
Exhibit II-A: List of Products Exported by India in the Category: Raw Hides and Skins (other than furskins) and Leather (in US Dollar thousand)
Exhibit II-B: List of Products Exported by India in the Category: Articles of Leather, Animal Gut, Harness, Travel Goods (in US Dollar Thousand)
Exhibit III-A: List of products imported by India in the Category: Raw hides and skins (other than furskins) and leather (in US Dollar Thousand)
Exhibit III-B: List of products imported by India in the Category:Articles of leather, animal gut, harness, travel goods (in US Dollar Thousand)
Exhibit IV: Indian Leather Industry Map
Exhibit V: Greening of Leather Industry in India
Exhibit VI: Hidesign: A Timeline
Exhibit VII: Hidesign's Print Ads
Exhibit VIII: Hidesign's Art of Reuse
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