Final Hidesign (2) 1sem

7/31/2019 Final Hidesign (2) 1sem

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Fashion Marketing

Management

CEO Submission

Topic: Product development

Product: Hidesign Womens

Footwear

Presented By:

Romani Lakhani

Samiksha Yadav

Sugandha Singhal

(MFM-1)


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Acknowledgment:

We would like to thank our faculty member Dr. Sibichan Mathew for giving us the opportunity

to launch a new product in the market and carry out the market research.

We also thank our families and friends for their support.


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Product: Hidesign shoes (heels and flats) for women in the Indian market.

Reason for product selection:

Hidesign is known for its high quality leather bags for all walks of people, from professionals

to the youth, hence looking at the market demand of its leather products and the upcoming

fashion forecast showcasing the increasing trend of leather, it is high time that the company

introduces such high quality footwear for women. Since in the existing market such high

quality leather shoes are available only at luxury brand store which are not affordable by upper-

upper class or upper-middle class people which is the target market of Hidesign, thus to cater to

this demand and make optimum utilisation of the demand gap, we are looking forward to

introduce this product line in the brands existing leather products.

About the company:

Hidesign is a leather goods

manufacturer based

in Puducherry, India. The Hidesign

factory at Puducherry was designed

and built by Ray Meeker, a low cost

ecological building expert. The

factory includes ponds, waterfalls

and streams built into the layout. No

asbestos is used anywhere in the

factory and all waste water at the

factory goes through filtration and is

reused. All waste material is also

separated and reused or sold for

reuse.

Timeline:

1978: Hidesign begins with a two-person workshop, marketing through smallalternative shops in Australia and the United States.


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1982: Commences marketing in the UK.

1984: Development of solid brass buckles and subsequent discontinuation of zinc alloy

electroplated buckles.

1985: John Lewis in UK is the first department store to carry the full line of Hidesignleather goods that now includes handbags and wallets, as well as weekend, toiletry and

computer bags.

1988: Hidesign introduces leather garments including jackets and pants.

1990: Factory established in Puducherry.

1992: Accessory Magazine UK chooses Hidesigns Boxy Bag as the Accessory of the

Year.

1997: Hidesign opens its first international store in Moscow.

2000: Awarded Aksharam award for Outstanding achievement in Language

Technology.

2004: Alberto Ciaschini of Italy commences as lead designer.

2010: Launch of multi-story flagship in Puducherry.

2011: Hidesign operates 48 stores in India and is currently present in 23 countries.

Marketing Strategies:

Segmentation, Targeting and Positioning of the product:

Of the total customer base 54-55% of customers are women, and handbags were the biggest-

selling single item, it is suitable and feasible if the brand focuses on another product besides

bags for the same category (women). Hence extension of the product line into footwear for

women would be a wise choice.

A typical Hidesign retail customer was well-educated and typically was a service industry

executive. The newest addition to the target customers are people looking for resort wear and

party wear, hence increasing the versatility of the brand.

Since 53% of customers are in the age group of 25-35years more focus on comfortable office

wear heels and flats is done. Also the remaining 30% of customers between 35-45years of age

and 10% over the age of 45years are more comfortable in flats, thus the product range need not

be much diversified.

Also the positioning of the brand is such that it is one of the most high-end brands in the leather

and luggage market.


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Thus it would be an obvious that the footwear introduced for the women would also lie in the

same bracket.

And despite their positioning in the high-end market, the bags have been selling and are a

market favourite, so a diversification in the line and giving the customers a choice in the store

for their purchase would be beneficial to the revenues.

And as per the positioning of the brand it has a strong presence across all metropolitans in the

country.

4Ps:

Product:

The bags of Hidesign are made using the leather which has beentanned using traditional methods of soaking the hides in vegetable

extracts. The emphasis is on workmanship and making beautiful

affordable designs. 70% of the manufacturing is done by hand;

craftsmen carry out labour-intensive steps such as double-

stitching of pressure points that have been abandoned in the West.

Thus the effect of the leather on the bags is a unique one and not

slick or plastic-like as other leather products.

And following these production guidelines, the look of the

footwear will be similar to the bags.Leather skins used are crocodile skin, cow hide, snake hide,

classic vegetable tanned leather and oil tanned smooth Ranch

leather, full hide, split, top grain, nubuck, suede, bonded leather, corrected grain etc. Also very

high quality leathers are used. Leather having full grain (they havent been corrected to hide

defects), minimal colour or pigments are used, which gives a natural look and feel to the

products.

Price:

Since the positioning of the brand is that of the high-end market, the

pricing of the product will also be done accordingly.

Flats:Out of one skin of leather 2-3 pairs of flats can be made. The

production cost will be around Rs.800-1200.

Since the average mark-up of products in the Indian market is 200-

220% more than the production cost including VAT (4%).

So the price for flats would be from Rs.1960-2520.


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Heels:

Similar for the heels, one skin can produce 1-2

pairs of heels. The production cost for this would

be Rs. 2000-2700 depending on the quality if

leather used.

Also since production of heels is more labour-

intensive thus it is expensive. If the same mark-

up rate is maintained, the price of the heels

would range from Rs.4200-5800.

Place:

Currently Hidesign has a strong presence in the major cities in the country. There are 48 stores

in the country and a wide presence across 23 countries in the world.

The Hidesign products are displayed in separate department in stores like Shoppers Stop,

Lifestyle, The Bombay Store and Westside.

Apart from presence in these multi-brand stores there are several EBO (exclusive brand outlets)

across the country and available in high-fashion boutiques.

Promotion:

Hidesign drives traffic to its stores via advertisements in higher-end print media and extensive

public relations efforts. The 8 fashion shows it sponsors each year generated extensive

publicity. 60-100 articles about Hidesign appeared in Indian print publications and the company

was frequently mentioned on television as well.

Future Prospects of the Brand:

LVHM bought 20% stake in the company.

Introduction of Sunglasses, Pens, Jackets, etc. in the product line.

Bibliography:

http://fashiongear.fibre2fashion.com/brand-story/hidesign/advertisements.asp

http://www.akoshy.in/pdf_file/casestudy_5.pdf

http://www.slideshare.net/situ7682/presentation-on-hide-sign

http://www.theindiaexpert.com/indias-hidesign-sells-leather-handbags-globally


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Documents

Final Hidesign (2) 1sem