Research Gaps and solution

What are your recommendations to make the brand grow

at 25 per cent in India?

a) Women’s footwear as a category has a growth rate of 20.2

per cent y-o-y. However, footwear is not just a design-centric
product category. Functional attributes of comfort and the
durability of leather need to be addressed. Hidesign can
leverage its quality and design strengths and increase brand
share in this segment.
b) Luxury eyewear is growing at a rate of 24.8 per cent. India
has a wide range of distribution channels for eyewear.
Partnering with prominent multi-brand eyewear retailers in
the country, such as GKB, Lawrence and Mayo, and Vision
Express, can provide an opportunity to expand in this market
of designer sunglasses and designer leather eyewear frames.
c) Leather apparel: Apparel is a growing market and will be
an asset in a portfolio of products. This is a slight deviation
from the original brand, which stands more on the accessories
ground, to focus on lifestyle. However, if we look at who uses
leather jackets the most, we see that it is often used as an
accessory by bikers. Hence, one can keep the current brand
image intact even if we expand in this segment.
Additionally, designer leather jackets (given the brand’s
perception as a pioneer in design) are another area one can
explore. The EBOs at airports can feature designer travel and
multi-utility smart leather jackets. Partnering with prominent
designers, such as Shantanu & Nikhil and Ashish N Soni,
among others, can lend to the ‘reason to believe’ part of the
design aspect of the apparel as well as complement cross-
selling of accessories and feature entire looks for seasons.
Hidesign should expand its market share by entering low
priced market and position the brand accordingly

Positioning Strategy

  Design Oriented

Current
Positioning

Cheap Premium

New Sub-Brand Proposed

Needed Positioning

Utility Oriented

Hidesign’s core proposition is accessories with good quality leather. The first brand
association that comes to mind, when we think of Hidesign, is leather. Thus, moving away
from genuine leather to any other leather will not only kill the brand’s ideology, but also its
essence and value.

The current positioning is design-oriented (reflects in the name of the brand) and offers
emotional benefits for premium customers. However, once a brand ventures into the lower
segment, it is important for it to focus on functional benefits and have a benefit-based
approach.

Hidesign needs to focus it on utility bags and pouches in the lower segment and come out as a
brand that is value for money. This is in line with the current perception of Hidesign — high
quality leather at affordable prices. However, one needs to use a different brand name in the
lower segment market to avoid dilution of the premium brand. One could always use
something such as ‘XYZ by Hidesign’, where the ‘by Hidesign’ reinstates consumers trust on
the quality and authenticity of the leather used.

Hidesign must apply shadow endorser strategy rather than having a

flanking brand strategy

It is necessary to attack with sub-brands in the lower-priced segment to prevent brand

dilution. The key positioning for these sub-brands would be on the utility factor and they
need to be promoted mostly through multi-brand outlets. An endorser brand strategy, such as
‘sub-brand for lower-priced market’ by Hidesign, will lend to the quality aspect in the initial
stages, until the brand develops its own equity.

 A flanking strategy might lead to brand dilution. Hence, a shadow endorser strategy is
recommended. For the premium market, Hidesign can use brand extensions. More
importantly, it can leverage the eco-friendly aspect of the brand. With the trends going a
similar way, customers can be charged a premium. Customers are ready to pay extra amount
if the product line is eco-friendly. This caters to another niche market.

 DATA ANALYSIS
DATA ANALYSIS RESULT
ANALYSIS
The result obtained and data analysis is based on the questions framed in the questionnaire. These
questions are related to the attributes, characteristics and performances of Hidesign India Ltd
Footwear shoes.
Following are the questions used in deriving the customer satisfy Hidesign India Ltd level
Q.1. What were the reasons for selecting Hidesign India Ltd products?
Price
Quality
Brand name
Utility
Design
Q.2. Rating of overall attributes of the Hidesign India Ltd products like
Appearance
 Look
 Colour
 Quality
 Usage
Q.3. Rating of various characteristics of Hidesign India Ltd.

Price
Durability
Reliability
Efficiency
Performance
Dealers behaviour
Q.4. Are the customer satisfied with the efficiency?
Q.5. Are the Customer satisfied with after sales services?

Thus keeping all the above attributes in mind a sample of 150 customers was selected and then
intervened personally. The result has been analyzed and tabulated from the next page.
Q. Reasons for selecting Hidesign India Ltd Footwear.
In the questionnaire it was asked to the customer for what reasons they have purchased Hidesign India
Ltd Footwear.
The reasons may include price, reputed company, quality, utility, design.

With the following graph we can obtain the results. Thus it has been observed that most of the
customer’s have purchased Hidesign India Ltd Footwear because of better quality. The percentage of
customer bought Hidesign India Ltd Footwear because of better quality is 41%. Utility is at second
priority among the customer surveyed with 22%. The percentage of customers who purchases
Hidesign India Ltd Footwear because of reputed company is 19% has been given least priority with
8% only. Thus the efficiency is the main criteria for the selection of Hidesign India Ltd Footwear.

Q. Customer opinion about the overall attributes of the Hidesign India Ltd Footwear?
With this question I come to know about customer’s opinion regarding various factor appearance,
color, quality and usage.
1. Appearance The appearance of the shoe is based the two derivates that is interesting and boring.
The customers are required to give their opinion on these derivates weather the appearance is
interesting or boring. This can be derived from the following graph. From the above chart we can
derive that majority of customer say that appearance is interesting 49% of customer say that of the
appearance is very interesting while 35% finds it fairly interesting. Only 10% of customers finds it
Very interesting 49% Fairly interesting 35% Very boring 10% Fairly boring 3% Neither 3% very
boring and fairly boring respectively. Only 3% of the customers finds it newer boring the interesting.
So it can be concluded that almost all of the customers are satisfied with the appearance of the snocs.
2. Colour combination with the help of this attribute we can analyze whether the customer are
satisfied with the color of Hidesign India Ltd Footwear shoes produced by the company.

Are they satisfied with the color combination of the shoe they have purchased?
Thus attribute is based upon two criteria i.e. suitable and unsuitable.
This can be analyzed with the help of the histogram suitable and unsuitable. From the above
histogram we conclude that majority of customer are satisfy with the color combination of their shoe.
35% of customers found it very suitable whereas 31% of customers found it fairly suitable 16% of the
customer found it neither nor unsuitable 11% found it fairly unsuitable and 7% found it very
unsuitable.Very suitable Fairly suiable Neither Fairly unsuitable Very unsuitable Quality

The quality of the shoe can be determined on the bases of the two derivates i.e. good and bad.
The customers are asked to give their opinion whether the Hidesign India Ltd Footwear’s quality is
good or bad.
This can be analyzed with the help of the following pie chart. From the above graph it is concluded
that maximum number of customer are satisfied with the quality of their shoe in which 39% found the
quality fairly good whereas 31% found quality very good 12% quality neither bad nor good 11% of
the total customer found quality fairly bad and 7% of the customer found quality quality very bad.
Fairly good, 39% Very Good, 31% Neither , 12% Fairly bad, 11% Very bad, 7%

Q. Rate the characteristics of Hidesign India Ltd Footwear? It was asked by the customer to rate the
various characteristics of Hidesign India Ltd Footwear on the scale of satisfied, average and
dissatisfied. The characteristics are as follows:
Price Durability Performance Efficiency Reliability Dealer’s behavior The above
attributes are the tools in analyzing the satisfHidesign India Ltd level of the customer with the help of
chart and the graph. I have shown what the customer feels about shoe. In the upcoming pages each
and every attribute with the help of graphs.

Price Price is one of the main element of marketing, one always keep in mind about the price while
purchasing the product. In the same way the company should also keep in mind the price of that
product and quote the price of the product in such a way so that the customer easily accept it. With the
help of the following we can find whether Hidesign India Ltd Footwear has succeeded its customer
with its price tag. From the above graph we can see that only 40% of the customers are fully satisfy
with the price of the tractor while 13% find it average. Majority of Customer i.e. 47% are not satisfy
with the price. The majority of customers are mainly from rural markets and they find it quite hard to
spend such an amount on the shoe. So it is difficult for them to afford the heavy prices of the shoe.

Durability of the shoe can be analyzed on the bases of the three derivates i.e. satisfy average and
dissatisfied with the help of the following graph we can find out whether the customer are satisfied
with the durability of the shoe or not. From the above graph we conclude that 70% customer are find
durability of the shoe satisfactory while 18% customer finds the durability average. Only 12%
customer are dissatisfied with durability

RELIABILITY of the shoe should also be determined while analyzing the satisfHidesign India Ltd
level of the customer. This is also based on three derivatives as the above attributes are with the help
of the following graph of the following graph we can find Hidesign India Ltd Footwear reliable or
not. From the above graph we may conclude that 60% o the customer find the reliability of the shoe
satisfactory while 25% o the customer find the reliability of the shoe average. Only 15% of the
customers are dissatisfied with reliability of the shoe. Satisfied , 60% Average , 25% Dissatisfied ,
15%

EFFECIENCY
One of the characteristics of the any durable product is its efficiency so is in a shoe. It was asked to
the customers whether the shoes are efficient or not efficient in this case it can be analyzed on the
bases o three derivatives i.e. satisfied, average and dissatisfied. With the help o the following graph
we can find out what customer say about its efficiency. From the above graph we may conclude that
46% customer find the efficiency of the shoe satisfactory while 39% find it average. Only 15%
customers are dissatisfied with the efficiency. Satisfied 46% Average 39% Dissatisfied 15%

PERFORMANCE of the shoe should also be measured while analyzing the satisfHidesign India Ltd
level of the customer. With the help of the following graph we may find out whether the customers
are satisfy with Hidesign India Ltd Footwear’s performance or not. From the above graph we may
conclude that majority of the customer are satisfied with the performance of the shoe. The percentage
of the satisfied customer is 52%, 38% customer found performance average whereas only 10% of the
customers are dissatisfied with the performance.
DEALER’S BEHAOIOUR One of the components while determining level is dealer’s behaviour.
Whether the dealer is maintaining proper relation or not. From the following we can find out whether
retailers are satisfy with the dealer or not. From the above graph we may conclude that majority of the
retailers are dissatisfied with the dealers behaviour 22% retailers find the behaviour satisfactory while
11% finds it average but 67% of the retailers are dissatisfied with the dealer’s behaviour.

History & Marketing Strategies of Hidesign

Brand
Hidesign is a globally recognized brand operating from India. Though they entered the Indian market
quite late, they are picking up speed with the little time they had. They are offering a wide range of
products for niche customers. Hidesign as a brand is deeply loved and cared for by their customers
who swear by its design and craftsmanship.
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Company Name: Hidesign

Founder: Mr. Dilip Kapur

Hidesign is an internationally acclaimed brand based in Puducherry, India. The name was
coined with the words hide and design. Their products offerings include leather bags,
garments, small leather goods, belts, and various other leather products. Their products
are known for their classic yet contemporary designs and innovative approach towards
design.

How it all Started

Hidesign started its journey from a two men workshop in a small factory. Mr. Dilip Kapur
who was born in New Delhi moved to Puducherry at a young age. After completing his
Ph.D. at the University of Denver he started to work at a leather factory. While working
there he discovered his interest in leather designing.

He returned to India in 1977 and started Hidesign. In 1982 Hidesign opened its first stores
in the UK. Later they developed the concept of solid brass buckles for their leather bags.
After years of hard work and passion of one single person, Hidesign has opened its first
concept store in Puducherry. 
Launching
After starting its journey from a two men factory Hidesign has become one of the most
contemporary leather goods brand. Their products appeal to people all around the world
and their displays can be found at all the top stores. It has won numerous awards and has
opened its first flagship store. 

Their slogan “Real Leather crafted the forgotten way” reflects the brand’s aesthetic value
and appeal to the end users. The products are made from real leather with deft
craftsmanship and delicate style. Their bags are known for their simplistic design and
clean contemporary look and sturdiness. During all these years their brands Virgin,
Warhol 02 and Logo have become household names.

Hidesign Marketing Strategy and Reasons for its Great

Success 
Hidesign had humble beginnings for a brand with such tremendous recall value. The
products have the ability to fit into the contemporary needs of the consumer and with an
inspiring design they have created a strong identity for themselves. Here are a few
strategies employed by them for better market penetration:

 Direct Communication with the Customers

Hidesign believes in directly communicating with its consumers through word of mouth
campaigning and advertisement. Their stores remain a point of communication with
potential buyers. They have direct marketers who spread the message of their brand and
help to identify potential leads which can become an exclusive customer base. 

 Increasing online presence

Hidesign has increased its online presence and is constantly upgrading its social
networking strategy to reach out to the consumers. They have designed their own pages
on Facebook, Twitter, and Pinterest where customers can have a clear picture of their
products and accessories. They have multiple angles and zoom view shots that show the
intricate craftsmanship that goes in making these products.

 Creating a Strong Focus Group

Being a niche product that appeals to the upwardly mobile section of the society,
Hidesign has been successful in creating a successful focus group for its products. Their
target groups are between the ages of 25-40 with a strong sense of independence. They
are career focussed and belonging to a high-income group. They are not bothered by
changing trends of other brands and wants quality products that have a lasting impression.

 Strong Distribution Network

Hidesign has a strong distribution channel with presence in every part of the country and
also overseas. They distribute through high fashion retail chains in the international
market. In India, they have tied up with various retail stores like Westside and Shoppers
Stop. They have various franchise outlets as well to market and cater their products.
Initially, an export-oriented company Hidesign has now become a conglomerate.

 Creating New Products and Sustaining Excitement

The success of luxury items depends on the coolness quotient of the product and it’s
especially true for leather products. The smoothness and feel of the leather go a long way
in making or unmaking of a product. Therefore Hidesign was successful in creating a lot
of new products and maintaining a buzz around the brand. They also created distinctive
brands like Cathy for women and these were highly affordable.

 Shifting of Shopping Patterns

Hidesign bags were earlier priced upwardly. In a shift to move towards a more affordable
customer base, they have created more average products for the market. These had led
consumers to move their interest from cheap China bags to a little bit high priced
Hidesign bags. They are working with leading e-commerce brands and have created their
own sub-brand to generate a more decisive marketing strategy to sell their products. 
 

 Continuous Research and Development

As a leather brand, Hidesign continues to work seamlessly for creating a better brand and
upgrading to a high-end luxury experience. They continuously seek out better leather
quality and exclusive craftsmanship. Hidesign improvises and innovate on their product
which promotes a great value for their brand.

Hidesign Campaigns
Hidesign campaigns address the core lifestyle issues of on the move customers. They
have launched their new campaign with its core thought “Taking nature with you
wherever you go.” The campaign is contemporary, bright and free-spirited. Their
commercials appeal to the young generation and follow the mantra that if you are on the
move the bags will be with you.

Their commercials have won numerous awards in the market with their innovative
campaign strategies. Their advertisements showcase their brand value and commitment to
bringing the best leather to life.  

Hidesign doesn’t believe in promoting their brands with celebrity names. But lately, they
have included the famous actress Kalki Kolchin in their list of celebrity campaigners.

Conclusion
Hidesign is a globally recognized brand operating from India. Though they entered the
Indian market quite late, they are picking up speed with the little time they had. They are
offering a wide range of products for niche customers. Hidesign as a brand is deeply
loved and cared for by their customers who swear by its design and craftsmanship.

The brand will continue to prosper and thrive as they are now offering discounts and
facilities for the middle category leather goods buyers.  
Sustainable practices by
Hidesign
Consumers don't necessarily relate to these reasons, and our continued drumming on how it is
good for the world just turns off the customers"
Dilip Kapur, Founder and President, Hidesign
Hidesign traces its roots to India from 1978, and has become a
globally recognized brand today. Its sustainable actions have
been admired across the globe, especially in matters of leather.
One is bound to come across this brand in high profile retail
stores all over the world.
How important is sustainability for Hidesign? What measures
does Hidesign take to ensure sustainability in its products? Do
you think that goods made out of leather can be environment
friendly in nature?
 In 1990, Hidesign established its factory in Pondicherry.
At Hidesign, we use eco-friendly leather, which means they are
vegetable tanned, are 30% more expensive and take more than
double the time to produce. We believe our ideological choice
has to fit into what the customer relates to. It has to appeal to the
customers’ needs. We do it anyway because our values do not
allow private gain at public cost. But in the end consumers don’t necessarily relate to these reasons, and our continued
drumming on how it is good for the world just turns off the customers.
Vegetable tanned, natural grained leather looks more real and ruggedly beautiful. It is long lasting, i.e. it lasts longer
and weathers beautifully with age. Vegetable tanning feeds the leather and makes it stronger. It is healthier, i.e. it’s
better for your health as chemical chrome tanning can create allergies on your skin. What would you prefer?
Something natural, made using extracts of barks and seeds or something with chemicals in it?
The Hidesign factory is also ecological as you know: No asbestos. Only solid raw brick fired from local earth by Ray
Meeker, the well known low cost ecological building expert, himself. The place is all lush green - ponds, waterfalls
and streams. All waste water at our factory goes through filtration and is reused. All waste material is separated and
reused or sold for reuse. We do not burn anything.
We are pushing our international distributors to use only cloth bags. We use solid brass in all Hidesign bags instead of
heavily electroplated metals, again much better for your skin and the environment.
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.
Being a global retailer, how do you find consumer interest with regards to sustainable products in different parts of the
world? Can you elaborate your answer with respect to different countries?
This brings us back to the same question at the end of the day - should a brand be environment friendly or customer
friendly? After all people, believe being environment friendly is directly proportional to an increase in the price of the
final product. Most eco-friendly products available in the market come at a premium, or so we think. The reason
brands do things that are ecological but not necessarily commercial is for ideological reasons. Therein exists a conflict
between the ideology and the consumer. But to survive in the commercial world, we have to relate our personal
preferences to the consumers’ needs.
Customers do find it interesting if the product is beautifully done. Here the message becomes emotional and not just
intellectual. Facts turn into images which attract, when customers relate to the message and realize how the brand has
an effect on them directly, and when the customer buys a beautiful product that has a larger story to it than just design,
quality or price. That’s when an eco friendly product becomes more than the sum of its technology and becomes a part
of the customer’s belief and value system.
In a recent survey, Indians came up pretty much on top in terms of following an ecological lifestyle. Much of this will
change as a larger part of the country moves towards urbanization. Eco-awareness is a premium niche market right
now and the potential is huge. People need to be made aware of what makes their lifestyle work and how can they do
more; this will increase the market many folds.
Many feel using organic cotton, jute or using recycled products is a good start. Most of us don’t mind spending a little
extra on a greeting card that has a recycled stamp on it. But I doubt we will willingly shell out a few hundred extra to
compensate for carbon emission on our air tickets or buy eco friendly shirts which look the same as anything else sold
at half the price.
What advice would you give to other brand manufacturers with respect to practicing sustainability?
Brands should understand that sustainable business of fashion has to do with manufacturing of goods that use easily
replenishing raw materials, generate local employment and support the environment it is built in, and most important
we have to relate our personal preferences to the consumers’ needs and interests.

STP concept

Segmentation

a) 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.

b) Demographic Segmentation:

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 the
turnover 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.

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 25-35year, 30% were 35-
45year, and 10% over the age of 45. It is also represented in the pie chart below. One thing
that can be inferred 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 the past couple of years Hidesign has taken many initiatives in this regard such as the
pink campaign and offering products at slightly lesser cost to lure the young prospective
customer.

Sales

below 25
25-35
35-45
above 45

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.

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 groups;
internationally it would be around 30-40 year old.

The high per capita income, coupled with a brand-conscious lifestyle, ensures ongoing
demand and tremendous growth prospects for international brands such as Hidesign.

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 in the 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 ecological and natural our manufacturing process, and still believe
in high craftsmanship in modern designing.

The new brand image is more driven by luxury and exclusivity. The idea is to provide more
and more fashion through latest designs. We have found that men buy products that are
modern and have more functionality. On the other hand, women are more brand conscious
and buy to look beautiful. We have experimented with different kinds of colours in leather.
Colours like red or white symbolise class among women, unlike men’s accessories, where
black and brown still 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, globalisation and hard work.
Hidesign has never tried to outdo its competitors in terms of the sheer volume of advertising
but instead it focuses on reaching the right customers with the right value. They believe that
their products possess a certain uniqueness that helps them stand apart 10 from the crowd and
they have always tried to focus on this aspect in their marketing strategies.

Even though Hidesign is a domestic brand, it has positioned itself in the minds of Indian
consumers as an international brand. They are viewed as the most expensive leather bags in
the country.