Hidesign: Marketing Leather Products

The success of a luxury product depends as much on its 'coolness factor' as on an appropriate distribution network. Therefore, Hidesign put in a lot of effort into creating new products and a buzz around the brand.

In November 2002, Hidesign launched Cathy -a range of high class trendy ladies' handbags, as part of its City range. These were designed for daily use and were priced at Rs. 895, making them quite affordable. With a wide range of color options like black, biscuit, tan, light blue, dark blue, red, etc., the range was targeted at young working women who might find it interesting to match the range of bags with their wardrobe...

The company remained optimistic about the prospects for further growth in the domestic market. Kapur felt Indians were as choosy about quality and style as the westerners and didn't shy away from buying something that appealed to them. And the sales figures seemed to support his views. In 2000-2001, when the firm started retailing in India, the domestic market contributed only 6% to its total business whereas in 2004-2005, the figure was 35%. Analysts were of the view that the non-apparel market, comprising categories such as handbags and footwear, was likely to log high growth rates in the near future as a result of easy purchase opportunities and the growth of organized retailing.