SM Project

STUDY ON MARKETING MIX AND SWOT ANALYSIS ON HIDESIGN

CHAPTER 1COMPANY OVERVIEW-HIDESIGN

1.1 INTRODUCTION:

Hidesign is an Indian high fashion leather house. It started itsoperations 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 multiculturalgroup 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 in the fastest growing economies of the world in Asia, Africa and Russia has positioned it for rapid growth in the future.

1.2 THE BRAND

Hidesign is an internationally successful brand in the “affordable luxury” category. !efeeling of luxury comes from providing an exclusive product and service through:The Exclusive Ambeiencethe product. Hidesign shops are made from high quality materials that are natural: solidbrass, 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, advisesthe customer of what is best suited to his needs and in case of a problem promptly solveshis problem.

VIVEK COLLEGE OF COMMERCE Page 1


1.3CORE VALUES

Hidesign’sbrand values are always consistent and provide Hidesign a unique identity andgreat customer loyalty.

1.4 NATURAL

Hidesign sees great value in natural beauty. Our soft, sensuous leathers and smooth solidbrass fittings speak of the highest quality natural materials. Hidesign does not cover itsleathers with layers of pigments and paint or emboss it with artificial patterns to hidedefects in low quality materials. Nor does Hidesign use electroplated steel or zinc fittingsthat does not age well.

1.5 ECOLOGICAL

Hidesign believes in the highest ecological values. Hidesign is a leader in research onusing vegetable extracts from seeds and barks for tanning to replace heavily pollutingchemicals.

1.6 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 overyears.

1.7 INNOVATION

Hidesign products are unique. !e multicultural design team has won several internationalawards for its excellence and design leadership. True to its values, Hidesign constantlyinnovates to stay in touch with the continuing fast moving changes in the lifestyleof its customer.

1.8 THE HIDESIGN TIMELINE:

1978A 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.

1982HIDESIGN IN UK

Hidesign starts in UK and fast becomes a counter culture icon in the independent stores.

1984SOLID 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.

1985First 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.

1988HIDESIGN INTRODUCES GARMENTS

Hidesign successfully introduces leather garments including edgy jackets and thigh hugging long pants.

1990Hidesign 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.


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


1992ACCESSORY OF THE YEARAccessory 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 marketThe emerging markets of Malaysia, South Africa, China and eventually India will become a major growth area for Hidesign.

1999HIDESIGN LAUNCHES IN INDIA

Hidesign enthusiastically launches in India! Hidesign’s annual fashion shows to launch the new collection are a “Social Event”.

2000AWARD WINNING Advertising Campaign

Marks the launch of Hidesign’s award winning campaign both in Europe and India.

2004ALBERTO 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.

2007THE AGE OF COLLABORATION

Louis Vuitton becomes a partner with Hidesign!



200830 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.

2010HIDESIGN EXPANDS RAPIDLYHidesign expands its reach into tier 2 and tier 3 cities in India

2011HIDESIGN LAUNCHES THE ART OF REUSE

2012HIDESIGN 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

2012HIDESIGN 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.

1.9 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.

1.10 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 2STP ANALYSIS

2.1. Segmentation

Segmentation by Hidesign:

2.1.1 Psychographic 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.

2.1.2 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.

2.1.3 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.



2.2. 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-consciouslifestyle, ensures ongoing demand and tremendous growthprospects 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 ecologicaland natural our manufacturing process, and still believe in highcraftsmanship 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.



CHAPTER 3PRODUCT STRATEGY

3.1 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

3.2 LINE EXTENSIONHidesign is trying out new product lines. In 2006, to keep itsproducts fresh, Hidesign hired former 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.

3.3 BRAND EXTENSIONIn 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 thanHidesign’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.

3.4 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 productsoccupied 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 workoriented 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.

CHAPTER 4



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 product 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.

4.1 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 beingattached to Hidesign’s products would only add to its exclusivityfactor and to it being niche and eventually would lead to theincrease in the brand value of the jacket.

4.2 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.



4.3 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.

4.3.1 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?

4.3.2 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.

4.3.3 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



STUDIO INDIACONNAUGHT PLACE

SHOPPERS STOPRAJOURI, SHIVAJI PLACE, DISTRICT CENTER, RAJA GARDEN

AMBI MALLAMBIENCE MALLNELSON MANDELA MARGVASANT KUNJ

WESTSIDEDELHI ALANKAR,FEROZE SHAH GANDHI ROAD,LAJPAT NAGAR - IIIIn order to cover the entire Delhi market and make the shops withinthe reach of most of the target segment, shops are selected indifferent regions of Delhi. One of the shops that has been chosen iscentrally located in CP, other in North-West Delhi i.e. Rajouri. Andsince the maximum market share for Hidesign at present comesfrom South Delhi, so two locations are chosen, one is the high endambience mall in Vasant Kunj and the other in the Lajpat NagarMarket.Depending upon the sales registered in 6 months, the number of stores displaying and selling the new product could be increased. If the market response to the new product beats the expectation, Hidesign can come up with new showrooms exclusively for the newproduct i.e. the leather jackets.



CHAPTER 5PROMOTION 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:

5.1 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”

5.2 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


http://www.hidesign.com/


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.

5.3 PR & DIGITAL

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. Thesepress 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 DayFather’s Day CollectionMother’s Day CollectionRaksha BandhanFriendship Day CollectionTeachers Day CollectionFestive collectionParty CollectionDiwali CollectionValentines 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!)

5.5 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

5.6 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


http://hidesign.com/store


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:

5.6.1 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.

5.6.2 Exhibits: Hidesign has campaigned for Breast cancer and hasmanufactured 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.

5.6.3 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.

5.6.4 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.



5.7 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 6DISTRIBUTION 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 anddelivering 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 fulfillingexport contracts to selling through distributors and then throughhigh-fashion retail chains like Selfridges. In later years, it even started wholly-owned concept stores.

On the other hand, in India, Hidesign started its distributionoperations by opening wholly-owned stores (in 2000). This wasfollowed by tie-ups with retail chains like Westside in 2003 andsubsequently 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 beganretailing in India, they have registered a 60% annual growth everyyear.

6.1Recent 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.

CHAPTER 7PRICING STRATEGY

7.1 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.

7.2 PotentialStrategies

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 mustcontinue to increase demand for their product if they wish to keepprices 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 premiumover conventional produce decrease as more companies enter themarket. Understanding this phenomenon is important as a producerexamines the potential profitability of a new market or nicheproduct, as it is important t



o understand that the price of theproduct will likely change over time, and that strategies to continueto differentiate their niche product from the products of othersuppliers must be considered in advance. If the product catches onand more customers enter the market simultaneously with newsuppliers, then prices and quantities may remain stable.

7.2.1 Potential StrategiesFirst Strategy:

A first strategy to consider is maintaining currentcustomers by developing customer loyalty. This is often donethough product differentiation. Patents, trademarks, geographicalindication and 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.

7.2.2 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.

7.2.3 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.

7.2.4 ConclusionsNiche 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 pursued, it is important to look atpotential profitability and how different assumptions affect theprofitability of the product.

CHAPTER 8PLACE OF WORK AND RETAIL

8.1 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.

8.2. 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:

AHMEDABADNo. 1 Ground floor 3rd eye Panchavati cross C.G Rd t: +91 79 30421468Shop No: G4 Gulmohar Park Mall S.G Highway Satellite Rd AhmedabadBANGALOREShop No. 14 Shrungar Shopping Center M.G Road t: +91 80 41325901109 1st Floor Garuda Mall Magrath Rd t: +91 80 66141055A-6 Leela Galleria The Leela Palace Hotel No. 23 Airport Rd t: +91 8041153335CHANDIGARHTaj Chandigarh Shop 2A Block Sector 17A t: +91 172 6570330BARODACentre Square Mall Shop No: 11 Ground Floor Genda circle opp to Vadodara Circlet:+91 265 3052650

CHENNAI123/124 Ispahani Center Nungambakkam high Rd t: +91 44 42141497S 120 II floor Spencer Plaza III Phase Anna Salai t: +91 44 42141487Ampha Sky Walk Mall No.1 Nelson Manikkam Rd Ponnamalle HighwayITC Hotel Park Sheraton & Towers No. 132 TTK Road Alwarpet t: +91 44 24994101COCHINVI/63 Jew Town Mattancherry t: +91 484 22110878 Ground floor Baypride Mall Marine Drive t: +91 484 4025310COIMBATORE105 BDD Rd R.S Puram t: +91 422 4366164DEHRADUN49 Rajpur Rd Uttranchal t: +91 135 2650373DELHI



Studio India 49 G Connaught Circus t: 91 11 23327544Janta Stores N10 N Block market Greater Kailash 1 t: 91 11 29236034Vinnies 49 - A Khan Market t: 91 11 24615314S-04 II Floor MGF Metropolitan Mall Mehrauli Gurgaon Rd t: +91 124 4019446Shop No. 51 Ground floor The Great India Place Noida t: +91 120 2455163Shop No. 67 I floor Select City Walk District Centre Saket t: +91 11 40548821Shop No 76 Ground floor Ambience Mall NH 8 Gurgaon t: +91 124 4029013Shop 252 I floor DLF place A4 District Centre Saket t: +91 11 46018772

CHAPTER 9SWOT ANALYSIS

9.1 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.

9.2 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.

9.3 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


9.4 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 10Conclusion

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 hisleadershipagenda.



CHAPTER 11

BIBILOGRAPHY

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


SM Project

Documents

smooth soft

hong kong

suppliers

leading malls

small alternative

green leather

vegetable

high income