Hidesign: Marketing Leather Products

            
 
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Case Details:

Case Code : MKTG146
Case Length : 16 Pages
Period : 1980-2006
Organization : Hidesign
Pub Date : 2006
Teaching Note :Not Available
Countries : Worldwide
Industry : Leather

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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"We are looking at moving from the shop-in-shop model to setting up our own exclusive brand stores which would help establish the brand overseas." 1

- Kunal Sachved, CEO, Hidesign, in April, 2006.

"We have stopped thinking of ourselves as manufacturers; instead, we are looking at ourselves as designers." 2

- Dilip Kapur, President, Hidesign, in November, 2005.

"The Hidesign brand has tremendous quality and price advantages in Austria. In spite of the strong competition, Hidesign has created a niche for itself." 3

- A Hidesign distributor for Austria, in 2002.

Introduction

In July 2006, Hidesign, an Indian manufacturer and marketer of leather products, unveiled what it claimed was the world's biggest leather bag. The bag was made of vegetable tanned cowhide and used 1,096,200 sq. cm of leather. It took 198 man-days to stitch the massive bag. Hidesign hoped that this feat would find mention in the Guinness Book of World Records.

The organization planned to use the bag in its promotional campaigns. According to Dilip Kapur (Kapur), founder and President of Hidesign, the bag would be taken on a tour across India and displayed at Hidesign retail outlets. It would also to be displayed on special occasions, like new store openings.

Marketing Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

Hidesign started as a small workshop in the late 1970s. Gradually the business expanded with the company winning a number of export contracts. Although initially, the firm experienced hiccups in developed markets like the UK and the US, its good quality, distinctive designs, and aggressive marketing strategy helped it succeed in carving out a niche for itself.

It went in for marketing tie-ups with distributors and high-fashion retail chains. Later, it entered into joint ventures and sold its products through franchised outlets in several overseas markets.

In the 2000s, with business expanding, it started opening wholly-owned exclusive retail outlets in overseas markets.

In 2000, Hidesign decided to exploit the growing Indian domestic market. It first opened wholly-owned exclusive retail outlets and then moved toward selling its products through organized retail chains to increase volumes.

Hidesign aimed to establish itself as a "luxury brand" across the world. The brand was promoted worldwide in fashion magazines and trade journals.

As of 2006, Hidesign employed over 2,300 people in its tannery, buckle factory, and leather goods manufacturing units. It sold a wide range of products including briefcases, work casuals, travel bags, handbags, computer bags, wheeled luggage, backpacks, and accessories such as belts, jackets, and wallets, through 2,500 outlets in more than 18 countries (as of April 2006).4



Hidesign: Marketing Leather Products - Next Page>>


1] Priyanka Sangvi, "Hidesign to ramp up global presence," www.rediff.com, April 21, 2006.

2] T.Krithika Reddy, "Hide and chic," www.hinduonnet.com, November 23, 2005.

3] "Hidesign penetrates European market," www.chennaionline.com, June 21, 2002.

4] "I fell in love with the product," Interview with Kunal Sachdeva, www.indianretailer.com, April-March 2006, Vol. 1, No.2.


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