Professional Documents
Culture Documents
Hidesign is an Indian high fashion leather house. It started its operations in 1978 as a small workshop in Auroville in 1978. Hidesign was set up by Dilip whi#h %r. Dilip apur in 1978 as a !one man for Hidesign$ artisanshop" whi#h he operated from his house. It was a kind of home#oming his edu#ation in the &'. (rom its artisan roots of a two man workshop to a #ompany of )*** spread all over the world$ Hidesign has stayed fo#used on innovation based on its strong heritage of #raftsmanship. Hidesign stands out for the sensuous naturalness of its high +uality leathers and the smooth soft glow of its solid brass fittings in its leather goods. Hidesign is a re#ogni,ed leader in the resear#h of the e#ologi#al use of vegetable tanned -eathers for its leather goods. -earning from the #enturies old skills of tanning with natural seeds and barks$ Hidesign has #reated fashionable leathers that age e.#eptionally well. /he heritage of fine hand #raftsmanship is visible in the details that make Hidesign produ#ts stand out and e.#lusive. /he history of Hidesign has been defined by the rebellion against uniformity and syntheti# flatness of the mass market. 'tarting in 1978$ it has been driven by the passion of a multi#ultural group of a design oriented team. (rom small alternative shops in 'an (ran#is#o and -ondon$ it moved to the first adventurous department stores in the early 199*s in -ondon$ 0alifornia and Australia. (rom the first e.#lusive bouti+ue in 1998$ Hidesign has grown to over 8* e.#lusive stores and a distribution network in 1) #ountries that has pla#ed its produ#t in over 1*** stores. Hidesign2s rapid growth
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THE HIDESIGN TIMELINE: 1978 A :A:; I' :839 Hidesign begins with a two<person artisan workshop. /he first markets are small alternative shops in Australia and the &nited 'tates refle#ting the brand2s rebellion against uniformity and mass produ#tion. 1981 HID6'I=9 I9 & Hidesign starts in & and fast be#omes a #ounter #ulture i#on in the independent stores. 198>
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the full line of Hidesign leather goods that now in#ludes handbags and wallets$ travel bags as
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THE MAN BEHIND THE BRAND: MR. DILIP KAPUR Dilip apur$ 7resident of Hidesign$ was born in 9ew Delhi and moved to 7ondi#herry at the age of si.. He grew up in 'ri Aurobindo Ashram$ went to s#hool at 7hillips A#ademy$ And over$ and %assa#husetts. After graduating from 7rin#eton &niversity$ 7rin#eton$ 9ew Dersey$ &'A in International Affairs$ %r. apur #ompleted his 7H.D at &niversity of Denver$ '#hool of International 'tudies in International Affairs. %r. apur took up a @ob in a leather #ompany while pursuing his 7H.D. It was during those nine months when he re#ogni,ed his passion towards the art of #rafting 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 sin#e masterminded Hidesign to its #urrent leadership position. He still tea#hes students at Auroville on International affairs.
PRODUCT PORTFOLIO: HIDESIGN All Hidesign produ#t lines refle#t the Hidesign #on#ept and when displayed together in our shop or #orners$ #reate a harmonious image that refle#ts the sophisti#ated lifestyles of our #ustomers. :A='5 8ur #ore #lassi# range of brief#ases$ handbags$ wallets are made from vegetable tanned !0lassi#" leather and our oil tanned smooth !3an#h" leather. /hese styles are always #ontemporary$ sophisti#ated and ideal for the su##essful e.e#utive lifestyle. /he fashion ranges #hange four
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amongst #reative stalwarts Alberto 0ias#hini$ Hidesign and House of 'warovski. %ilanese designer Alberto 0ias#hini$ who has been leading the design department of Hidesign sin#e 1**>$ has partnered with the finest #outure embroiders in (ran#e$ the House of 'warovski along with the best artisans at Hidesign to bring together this line of minimalist bags$ with modern shapes$ soft stru#tures and stylish #olours. Alberto studied at Instituto %arangoni one of ItalyJs best known design #olleges. After starting his #areer with 0ostume 9ationale he has worked with =iorgio Armani$ -oewe$ /russardi$ Hugo :oss K Alberto =uardiani. Alberto mentors the other designers at Hidesign on designs$ styles$ #on#epts$ finishes$ fittings$ leather$ te.ture and feel. As Hidesign grew$ the need of the hour was to infuse design inputs from the lu.ury se#tor of Italy. Alberto brings with him the great heritage of Italian lu.ury. He brings to the brand his edu#ation$ his sensitivity and his e.perien#e in lu.ury. Alberto says he is e.#ited about working with Hidesign to #reate the future of lu.ury in India. !It is one of the most e.#iting #ountries in the world right now." /he #hallenge lies in his ability to understand the new markets and new tastes as he brings home the e.perien#e of Italian lu.ury.
/he hand#rafted lu.ury line features handbags$ evening bags$ #lut#hes and mobile phone holsters. !Alberto 0ias#hini$ Hand#rafted by Hidesign" is made with the finest leathers$ lu.urious hardware and designed with a sophisti#ated woman in mind. 6a#h pie#e is a uni+ue testimony to the ethos of Hidesign$ whi#h are unrivalled #raftsmanship and a passion for detail. &sing ar#hival elements$ intri#ate surfa#e detailing and #ontemporary embroidery patterns with embellishments$ the bags e.ude modern elegan#e and simpli#ity. /he new label will be available at sele#t Hidesign stores and hand<pi#ked multi brand stores a#ross ma@or metros in the #ountry.
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and!design". /he brand was initially promoted in travel and fashion maga,ine. :ut the brand was initially per#eived as a boring one inthe Indian market. Different #ampaigns and advertising went into #hanging this notion. /he brand identity is more lu.ury oriented and more feminine. However$ the #ore values are still the same ? that we are e#ologi#al and natural our manufa#turing pro#ess$ and still believe in high #raftsmanship in modern designing. /he new brand image is more driven by lu.ury and
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uni+ueness that helps them stand apart from the #rowd and they have always tried to fo#us on this aspe#t intheir marketing strategies.6ven though Hidesign is a domesti# brand$ it has positioned itself inthe minds of Indian #onsumers as an international brand. /hey are viewed as the most e.pensive leather bags in the #ountry.
PRODUCT STRATEGY 738D&0/ -6F6-' A9D HI63A30H; /he produ#t hierar#hy stret#hes from basi# needs to parti#ular items that satisfy those needs. /he si. levels of hierar#hy are5 Item :rand 7rodu#t /ype 7rodu#t -ine 7rodu#t 0lass 7rodu#t (amily 9eed (amily
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LINE E-TENSION Hidesign is trying out new produ#t lines. In 1**L$ to keep itsprodu#ts fresh$ Hidesign hired forme r Armani designer Alberto0ias#hini$ who is based in %ilan. /he #ompany was planning to design a new top<end produ#t line of evening bags for ladies. BRAND E-TENSION In 1**C$ Hidesign #reated a new brand of bags and a##essories forits stores$ 'alsa$ aimed at the 1L<1C age groups and pri#ed mu#h lower than the premium bags whi#h sold for M11C<M1C* in overseas markets. Hidesign partnered with (uture =roup$ India2s largest retailer$ tolaun#h Holii$ an affordable line of bags with louder #olours andornate trimmings that is geared towards young #onsumers. /he plan here is to #reate a new brand$ Holii$ aimed at the mid<to< wares. mass market segments$ with produ#ts #osting a third less than Hidesign2s e.isting
Hidesign to set up a @oint venture with Italy2s :ra##ialini to laun#h the brand in India. /hey will set up a new produ#tion line at one of its manufa#turing units to make :ra##ialini bags and other leatheritems. /he :ra##ialini produ#ts are very #olourful.
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H".e$"gn: T'e E/#+0 "#n #1 ! B(!n. During its initial stages$ hidesign as a brand resembled the personality of its president and founder mr. Dilip apur . During his #ollege days mr. kapur was a#tively involved in the #ultural revolution that was sweeping the world in the 197*2s. he parti#ipated in the anti Fietnam war demonstration and led a life that refle#ted the rebellious #ulture of the youth of that period. /he design of the produ#ts refle#ted the spirit of the 0ultural 3evolution happening in &' at that time. /he designs appealed to people who were in same way e.treme radi#als and who rebelled against the standard #onservative norms of so#iety. A##ording to %r. undertaken to sell the produ#ts at that time. /he 0ultural 3evolution and youth rebelliousness were slowly fading. /he produ#t therefore also needed to migrate from bouti+ues$ non<#ommer#ial stores and street markets to departmental stores. 8ne su#h opportunity #ame when Dohn -ewis from & bought the produ#t. /he buyer himself was$ in some ways$ rebellious in thinking and approa#h and the designs mat#hed the philosophi#alorientationof the buyer. /his relationship led to a strong #ommer#ialpartnership and the upmarket Dohn -ewis departmentalstores be#ame preferred #ustomers. :y 1**1$ Hidesign pr odu#tso##upied about L* per #ent of the brief#ase and luggage se#tions of stores. /he brand$ as #on#eptualised by %r. apoor$ refle#ted a #ulture of innovation$ globalisation and apur $ the leather bags that he #rafted ! sold themselves due to the uni+ueness of the design". 9o marketing efforts were
hard work. It was an NedgyN brand << atthe #utting edge of #hange. 8ver the years$ it moved from
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by ethi#s and values and represented a #on#ern for the environment. oriented brand. It was not a NpartyN brand$ and #ertainly not aglamorous one. It was a brand that was stylish in a #lassy and elegant wayA not showy or dowdy << never a #heap << look brand. /hedesign and manufa#turing pro#esses ensured this #hara#ter andpersonality #ons#iously and seriously. 9ow the brand fo#uses on its traditional manufa#turing pro#ess todifferentiate it from the #rowd. /his is also illustrated in the latestadvertising #ampaigns of the brand. /he advertisement shown onthe ne.t page goes with statement5 !Ee still make leather bags using the same pro#ess Italiansabandoned years ago. Ouitters" /he superiority of Hidesign produ#ts is largely due to the uni+uenessof the design and manufa#turing pro#ess. /he #ompany fo#uses onits traditional methods of manufa#turing and tanning. /he traditionalmethods refle#ts a #are for the #raftsmen$ #raftsmanship and theenvironment using pro#esses whi#h had long sin#e disappearedfrom the modern leather industry.6a#h Hidesign produ#t goes through a natural vegetable tanningpro#ess << one that is more time<#onsuming than #hrome tanning$but that leaves every produ#t with a ri#h beautiful patina whi#h getsbetter with time. &nlike #hrome tanning$ vegetable tanning has alsobeen proven to have minimal effe#t on the environment. It is non<to.i# and safe for those with sensitive skin. of the brand
/he brand goes one step further to keep its leather goods natural$using only solid brass fittings for bu#kles and buttons$ whi#h givesea#h produ#t that spe#ial rugged JHID6'I=9J look. 8ne other differentiating feature of Hidesign2s bags was the use of solid<brass fittings$ unlike many other bags whi#h opted for plated<metal fittings.
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PRODUCT LIFE CYCLE Apparel and other #onsumer produ#ts #an be #lassified by the length of their life #y#les. :asi# produ#ts su#h as /<shirts and blue @eans are sold for years with few style #hanges. :usinesses selling basi#produ#ts #an #ount on a long prod u#t life #y#le with the same#ustomers buying multiple units of the same produ#t at on#e or overtime. (ashion produ#t life #y#les last a shorter time than basi# produ#t life#y#les. :y definition$ fashion is a style of the time. A large number of people adopt a style at a parti#ular time. Ehen it is no longeradopted by many$ a fashion produ#t life #y#le ends. (ashionprodu#ts have a steep de#line on#e they rea#h their highest sales. /he fad has the shortest life #y#le. It is typi#ally a style that isadopted by a parti#ular sub<#ulture or younger demographi# groupfor a short period of time. /he overall sales of basi# produ#ts are the highest of the three typesof produ#ts$ and their life #y#les are generally the longest. Apparel produ#ts often have a fashion dimension$ even if it is @ust#olour. As fashion features in#rease in a produ#t$ the life #y#le willde#rease. /herefore$ if you are designing a fashion
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Hesp.A1$ A1 and :1 in '60 #lassifi#ationI and who have a need for e.#lusive produ#ts. /he de#ision to stop #atering to men was takenin 1989 be#ause the profitability in #atering to female popula#e wasmore than three times when #ompared to #atering to fashion needsof men. :ut the times have #hanged sin#e then with men be#omingmore fashion #ons#iousA we live in the age of Pmetrose.ual2 menwho don2t mind spending e.tra money for high +uality fashion a##essories. /hus a need for #atering to new segment arises and #onse+uently aneed for a new produ#t is felt. /he best strategy for Hidesign is tostart #reating a new men2s line by produ#ing leather @a#kets for menand it is the best bet be#ause of two reasons vi,. Hidesign has had prior e.perien#e$ before 1989$ in #reatingleather @a#kets. /he e.perien#e gained in the past years #anbe leveraged in #reating high +uality new @a#ket. -eather @a#kets have histori#ally been asso#iated with bike<
riders and #owboys from the Pwild west2 and it generally per#eived to be mas#uline. Hen#e this produ#t targets not onlymen with fashion #ons#ious but also the other end of the spe#trum as well. /aking a #ue from ma@or fashion houses$ Hidesign should hire a well<known fashion designer who with hisQher invaluable inputs wouldhelp Hidesign in #reating the @a#kets. 8ne of the fashion designersthat hidesign should target is 'abyasa#hi %ukher@ee as he is one of the few Indian designers who is globally renowned. His name being atta#hed to Hidesign2s produ#ts would only add to its e.#lusivity fa#tor and to it being ni#he and eventually would lead to the in#rease in the brand value of the @a#ket. P!&3!g"ng
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pre#iousness of the produ#t$ they have#ertain photographers who understand what lu.ury produ#ts are allabout. /hat is why they have their advertisement shoots done in7aris to portray the values of the brand. All their #ampaigns showthe warmth and sensuousness of the brand. /o begin with Hidesign used only print media for advertisements. /his was done as a result of the nature of the target market andretail #overage. During the year 1**1<*1$ advertisements fo#ussedmore on the produ#t and its features. During the ne.t year therewas a #hange in the fo#us though. %edia #hoi#e was de#ided basedon different parameters$ in#luding the mat#h between the targetaudien#e and the profile of readership of the print media.
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In addition to mass media advertisements$ mer#handising anddisplay in the retail environment was another important means to#ommuni#ate the brand value. 0are was taken to ensure that theprodu#ts displayed in the retail shops refle#ted the premium imageof the brand. 'pe#ially designed display ra#ks were made availablein multi<brand outlets. In 1**1$ Pnew look2 bouti+ues were made$whi#h were a #ombination of stone$ glass$ wood and brass. All thee.isting showrooms were also standardised in a similar pattern. Hidesign has its presen#e on the 'o#ial 9etworking sites as well. Ithas used the overwhelming response on su#h sites to design itspromotional #ampaigns. (a#ebook ? Hidesign has a fa#ebook page whi#h is used to advertise the :rand. At present it has 11$)11 likes by fa#ebook users. In#elebration of Eorld 6nvironment Day it laun#hed the !Art of 3euse"#ontest$ an 6#o<7ro@e#t in partnership with (emina$ to support a#ause very #lose to their heart$ where they are giving people all themeans to help them #reate their first !=reen leather #reation" ADVERTISING :elow are the e.amples of the advertisement #ampaign organi,ed by the #ompany through Advertising Agen#y. Hidesign2s AE 1*11 #ampaign
Hidesign laun#hes Autumn<Einter 1*11 Advertising 0ampaign Introdu#ing -ady =odiva M0m4!"* A0g 2512: 0apturing the bare and sensuous beauty of hand#rafted leather$ Hidesign laun#hes its AQE 1*11<1) AD #ampaign$ -ady =odiva.
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Hidesign releases several festival Q o##asion based #olle#tions ea#h year to keep themselves in the news. :elow are some e.amples5 Independen#e Day (ather2s Day 0olle#tion %other2s Day 0olle#tion 3aksha :andhan (riendship Day 0olle#tion /ea#hers Day 0olle#tion (estive #olle#tion 7arty 0olle#tion Diwali 0olle#tion Falentines Day 0olle#tion
0ase 'tudy5 /he Falentine 0olle#tion by Hidesign (ebruary 1$ 1*11 Hidesign #elebrates -ove at first sight this Falentines day with a #olle#tion of fabulous sat#hel bags and wallets in our deli#ious li,ard K #ro#o print vegetable tanned leathers. /he gorgeous :63= #olle#tion with over si,ed lo#k and brass rod handle adds vintage glamour to your evenings and days. -ook out for 3I/A$ our irresistible range of wallets and pou#hes.
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7ondi#herry$ Dune 1*115 Hidesign is e.#ited to announ#e the laun#h of the e#o<pro@e#t Art of 3euse in partnership with (emina. /his pro@e#t to be laun#hed on Dune Cth$ 1*11 to mark Eorld 6nvironment Day is part of Hidesign2s year long effort to push its =reen 0ampaign. Hidesign$ an e#o friendly leather goods brand$ has today #arved a ni#he for itself amongst lu.ury goods. As a brand Hidesign has #onsistently tried to #reate spa#e in its #onsumers2 mind on the importan#e of being e#o friendly$ on using things that are natural and has always impressed upon the beauty of the hand#rafted. /aking the mandate further Hidesign would like to stress on the need to re#y#le and reuse. !Ee believe the best way to get an idea a#ross is to engage people through parti#ipation"$ says Dilip apur$ 7resident of Hidesign. /he Art of 3euse is an engagement pro@e#t to support the pra#ti#e of #onverting waste materials or redundant goods into new materials Q produ#ts of better +uality with a higher environmental value. In this #ontest$ parti#ipants will be en#ouraged to #reate new designs out of leather s#rap provided in the !Art of 3euse kit"A available at all Hidesign stores pan India. /hese designs would be submitted at Hidesign stores and winners will be sele#ted through votes on Hidesign2s page on (a#ebook. 8n 1st August 1*11$ Hidesign and (emina will #hoose three winning
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/hese bearer =ift #ards #an be partially redeemed and re#harged again and again4 Eith no wear and tear unlike gift vou#hers$ the Hidesign =ift #ards #an be re#harged with any amount from 3s. 1**Q< upto 3s. 1C$***Q<. =ift the most lu.urious gift. =ift them the freedom to #hoose. Available at all Hidesign stores a#ross India and on www.hidesign.#om HID6'I=9 :3I9=' A98/H63 '760IA- 8((63 (83 ;8& 4 /his festive season EI9 a Hidesign =ift 0ard worth 3s. C** (36644 Eith every pur#hase of 3s. C*** or more on www.hidesign.#om upto 1nd Dan$ 1*11
0ase study5 Hidesign releases edu#atory write ups on how to maintain your leathers -ooking after your leather in the %onsoons was never this easy4 How often has an une.pe#ted shower left you fretting over a wet leather bagR Do you stop #arrying your leather bags every time the monsoons hit townR Eell worry no more$ be#ause we have a #ouple of heavy duty myth breakers on how to take #are of your leather. =etting your leather bag wet is not su#h a huge issue espe#ially when it2s a vegetable tanned leather bag. 9atural oils and e.tra#ts from barks K seeds repla#e the original fats in the hide giving a uni+ue look to vegetable tanned leathers with deep #olors$ good body and long lasting
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POINT OF SALE Hidesign takes lot of efforts to maintain a favorable environment in e.isting and new stores. :elow are some details on some of their newer stores. 0ase study5 Hidesign opens at 7alladium HID6'I=9 A998&906' /H6 -A&90H 8( I/' 96E 6G0-&'IF6 '/836 I9 %&%:AI A/ 7A--ADI&% %A-- I9 -8E63 7A36%umbai$ Dune 1L$ 1*11 < Adding another feather to its #ap$ India2s leading lu.ury leather brand Hidesign proudly announ#es the laun#h of its new e.#lusive store at the 7alladium %all in %umbai. Eith the opening of its new store$ Hidesign has moved from its earlier address on the high street at neighbouring 7hoeni. %ills to a strategi#ally positioned spa#e amidst other lu.ury brands at the 7alladium %all in %umbai. /he new Hidesign store spread over an area of over L** s+uare feet is ideally lo#ated on the -evel ) of the 7alladium mall. Hidesign2s trademark 8r#hard design wel#omes shoppers at the entran#e of the store$ in a new avatar made in deli#ately et#hed glass. 8n entering the store you are greeted by an impressive verti#al poster that #urves to meet the gold ni#he in the #eiling. /he store2s elegant white walls offset the tan leather panels and teakwood floor. 'leek metal shelves made in solid brass brighten the store while tall mirrors add depth. /he stone wall #loser to the #ash #ounter adds te.ture to the spa#e and the warm lights #reate an inviting ambien#e. Dilip apur$ 7resident of Hidesign says$ !Ee are e.#ited to laun#h our latest store in %umbai at
7alladium whi#h refle#ts our brand values and evolving #ustomer profile. /he #lean lines$ use of natural materials like stone$ brass$ wood add warmth and #reate an e.#lusive e.perien#e for the Hidesign #ustomer. %umbai is a key market for us. /he 7alladium store will #ater to a wide range of #onsumer profiles. Ee hope they en@oy the new styles we have laun#hed for the store opening".
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E9'"4" $5
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addition
to
above
sales
promotions
events$
press
#onferen#es
by
the 7resident of the #ompany and other #ompany a#hievements re#eive wide #overage in the
%ost of the above s#hemes were +uite su##essful in the past andhas helped to in#rease the sales of the produ#ts./he store managersinformed that the average sale in#reased by 1*<1CB on a##ount of these sales promotions. (or e.ample< 'hoppers stop personnel told that when no dis#ountswere offered )<> #ustomers out of 1* who visited the store a#tuallypur#hased the produ#t. :ut$ when 1*<1*B dis#ounts were offered$on an average C<L #ustomers out of 1* a#tually pur#hased theprodu#t.
CHAPTER , ANALYSIS - II
DISTRIBUTION STRATEGY Hidesign has LC e.#lusive stores internationally and distribution network in 1) #ountries. /he brand en@oys a #onsiderable presen#ein markets like 'outh Ameri#a$ the %iddle<6ast and 3ussia. It haspla#ed its produ#ts in over 1$*** stores globally. %alls$ high streetsand airports are some of the preferred lo#ations for openingHidesign outlets. In the early 198*s$ Hidesign entered the & through lo#aldistributors. However$ initially$ the leather and luggage shops in the& inIndiaJ tag didnJt help either. Initially$ Hidesign was an e.#lusively e.port<oriented outfit$ fulfillingorders from 6uropean and Ameri#an distributors. It #on#entrated ontaking small orders and fulfilling them to high +uality were not keen on sto#king an Indian brand. And$ the J%ade
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end overseas #ustomers and in gaining their initialgoodwill. In its overseas markets$ Hidesign graduated from a firm fulfilling e.port #ontra#ts to selling through distributors and then through high<fashion retail #hains like 'elfridges. #on#ept stores. operations by opening wholly< In later years$ it even started wholly<owned
8n the other hand in India$ Hidesign started its distribution subse+uently 'hoppersJ 'top$ -andmark$ et#.
owned stores Hin 1***I. /his wasfollowed by tie<ups with retail #hains like Eestside in 1**) and
In late 1**C$ it announ#ed plans to open e.#lusive fran#hised outlets. /he Indianmarket too proved re#eptive to the high +uality leather goods of Hidesign and the business boomed. 6ver sin#e Hidesign began retailing in India$ they have registered a L*B annual growth every year. Re&en $ (! eg"e$ #1 E9)!n$"#n /he #ompany re#ently entered into an agreement to pi#k up )C per#ent stake in its retail business in 3ussia U Hidesign --0 U forM1**$*** on a partnership basis. /ill now$ Hidesign --0 was only a fran#hise for the 3ussian marketand managed by its distributor. /he infusion of #apital would enableHidesign to further a##elerate its retail footprint a#ross key marketsin 3ussia$ in#luding 't. 7etersburg$ from the C stores it has now in%os#ow. /o enhan#e its brand presen#e overseas$ Hidesign will open ane.#lusive brand store at the
Hong ong airport and another in uala-umpur this year. /he brandJs market presen#e has grown in 'outhAfri#a as well$ and the #ompany is in talks with five leading malls toset up its e.#lusive shops. PRICING STRATEGY
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onand more #ustomers enter the market simultaneously with new suppliers$ then pri#es and +uantities may remain stable.
P# en "!+ S (! eg"e$: F"($ S (! eg% A first strategy to #onsider is maintaining #urrent#ustomers by developing #ustomer loyalty. /his is often donethough produ#t differentiation. 7atents$ trademarks$ geographi#alindi#ation an d branding are strategies that should be used by. Hidesign to maintain their pri#e premiums as new #ompetitors enterthe marketA however$ the #osts of these strategies usually make them infeasible for small produ#ers. 'mall produ#ers #an a#hievesimilar results through less #ostly options su#h as uni+ue produ#tionpra#ti#es Hi.e. natural$ organi#$ humaneI$ lo#ation of produ#tion Hi.e.lo#al$ state$ regionI$ story of the produ#t or produ#er$ et#. /hesestrategies help to define the produ#t as uni+ue$ and #ommuni#ate to#ustomers that even though there are #lose substitute produ#ts$they are not the same. Ambathur leather is an e.ample of a animalprodu#t that is defined by both lo#ation and produ#tion pra#ti#e. Se&#n. S (! eg%:
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C#n&+0$"#n$ 9i#he markets by definition have uni+ue #hara#teristi#s that#an affe#t the pri#e of the produ#t and pri#e premiums over time.&nder good #onditions this means that the pri#es #an be +uite high$but small #hanges in the supply of the produ#t #an #ause mu#hlarger de#reases in pri#e. 'o over time$ as more suppliers enter themarket$ pri#e premiums usually go down. 'trategies that Hidesign might #onsider in#lude produ#t differentiation$ whi#h helps a produ#tto maintain its uni+ue +uality even as other suppliers enter themarket$ growing the market by #ontinuing to find new #ustomers a tan e+ual or greater rate than the supply e.pands$ so that pri#e premiums #an still be earned$ and #ontinuing to innovate to develop produ#ts ni#he markets may find #ompelling. 3egardless of thestrategies or ideas that are pursue d$ it is important to look atpotential profitability and how different assumptions affe#t theprofitab ility of the produ#t.
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HID6'I=9 (A0/83; /hey believe that the way you work should refle#t your brand ? Hidesign does not have a system of mass manufa#ture. /here work is a #raft$ and ea#h bag is individually hand#rafted by a team of )<L artisans. /he premises where the work refle#ts their brand values ? their fa#tory is #onstru#ted from bri#ks made of lo#al earth and fired in kilns that were made on the premises. Hidesign has established its first #ustom designed fa#tory in 7ondi#herry$ India in 199*. /his important milestone #onfirms their #ommitment to innovation$ te#hni#al e.#ellen#e and lo#al #ommunity development. ;ou will not find asbestos anywhere in the fa#tory. ;ou will see minimal use of paintA only solid raw bri#k fired from lo#al earth by 3ay %eeker$ the well known low #ost e#ologi#al building e.pert$ himself. /he pla#e is all grass. 3ay built ponds$ waterfalls and streams into the layout of the fa#tory. /hey try to redu#e the amount of pollution they generate and try to find ways to reuse resour#es. All waste water from the tannery is filtered using 38 before it is let out. All water in the fa#tory goes through a natural pro#ess of filtration in the water bodies they have built as a part of the lands#aping and is reused. /hey use only vegetable e.tra#ts for tanning as far as possible. All waste material is separated and reused or sold for reuse. /hey do not burn anything. -un#h time at Hidesign is pretty mu#h outdoors$ under the trees$ sitting on ro#k ben#hes and tables. At Hidesign no work spa#e holds more than 1** people at a given time with ample organi,ed workspa#e for every artisan. /hey prefer to #all it a workshop and not a fa#tory. (or them of believing in it and making it a #ore value. HID6'I=95 A 36/AI- 8F63FI6E the #on#ern for e#ology is an ongoing sear#h for better healthier ways to live and work. It #omes out
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S2OT ANALYSIS
STRENGTH Hidesign is re#ogni,ed worldwide and now sells leather bags and garments under its own name in Australia$ =ree#e$ India$ 9ew Vealand$ '#andinavia$ 'lovakia$ 'outh Afri#a$ the &nited ingdom$ and the &nited 'tates. /hey have the e.pertise to #reate a produ#t that is e.#ellent.
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/hey stand out for the sensuous naturalness of its high +uality leathers and the smooth soft glow of its solid brass fittings.
/heir produ#ts are only for the higher in#ome #lass people and very few for middle #lass people.
/hey follow traditional ways of produ#tion and through these ways it is very diffi#ult to #ompete with the #ompetitors.
OPPORTIUNTIES:
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=rowing domesti# and international market. 7er#eived level of produ#t differentiation 9umber of substitute produ#ts available in the market 6ase of substitution. Information<based produ#ts are more prone to substitution$ as online produ#t #an easily repla#e material produ#t.
Demand of the leather produ#ts is very high in domesti# as well as in international market.
/hey #an e.pand their market share providing more range of produ#ts at lower pri#e mainly for middle #lass people.
/hey #an redu#e the produ#tion time by using the advan#ed te#hnologies.
/hey #an market their produ#ts in 1nd tier #ities instead of marketing in only metros.
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THREATS 7roblems of /anneries 6nvironmental pollution due to la#k of fa#ilities for treatment and disposal of ha,ardous wastes. -a#k of finan#ial assistan#e High #ost of semi<tanned leather &nhygieni# working #onditions leading to health ha,ards for the workfor#e. 9o fa#ilities for +uality testing.
6nvironmental /hreats5 'oil #ontamination by the sludge produ#ed thereby affe#ting the agri#ulture of the ad@oining region. Eater pollution by the by<produ#ts and solid wastesdisposed by the tanneries and leather manufa#turingindustries thereby affe#ting water life and pis#i<#ulture. &sing #heap imported syntheti# rubber from 0hina thereby resulting in poor +uality produ#ts whi#h #an have adverse effe#ts on skinQbody. 3ampant slaughtering of wild animals to pro#ure authenti# leather thereby affe#ting wildlife and e#o stru#ture 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 #arbon dio.ide. 0ompetition is +uite high in this industry.
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/hreats from the #ompetitors as they are using new te#hnologies in produ#tion and hidesign is still following the traditional way.
/hreats from some organi,ations like 76/A as they are negatively advertising the leather industry.
6nvironmental threats as the waste from these industries are very harmful.
OBSERVATION 6 FINDINGS
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RECOMMENDATIONS 0ompany should fo#us on advertisement as it makes #onsumer aware about the produ#t. 0ompany should give more s#hemes and offers to the #onsumers. 0ompany should do more promotional #ampaigns. 0ompany should regularly do market resear#h to know the #hanging needs and demands of #onsumers. /his will also help in better understanding of #onsumer behaviour. 0 o m p a n y s h o u l d t r y t o r e t a i n t h e # u s t o m e r s b y # r e a t i n g loyalty among the e.isting #ustomers as brand swit#hing is very #ommon today.
CONCLUSION After #ompleting my pro@e#t and #olle#ting various information and fa#ts I #ame to the following #on#lusion5 0onsumers look for +uality while pur#hasing a parti#ular brand.
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BIBILOGRAPHY B##3$
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www.sabyasa#hi.#om
http5QQwww.business<standard.#omQindiaQnewsQ+a<dilip<kapur<founderpresident< hidesignQ>*LL*LQ
http5QQarti#les.e#onomi#times.indiatimes.#omQkeywordQhidesign
http5QQwww.fa#ebook.#omQhidesignRskWappX1)*98L9771
http5QQwww.inonit.inQ#ategoriesQvprofileQ919
http5QQwww.#hennaibest.#omQ#ityresour#esQ(ashionXandX:eautyQhidesign.asp
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