Leather goods maker Hidesign is expanding its business in Africa by setting up a store in Nairobi, Kenya, in July. It has had a store in South Africa for many years now. In its push into other emerging markets, it is opening two stores in Dubai in September.
The company’s Founder and Chairperson Dilip Kapur told BusinessLine that Hidesign products are already sold in parts of Africa through the Nakumatt department store in Kenya, Uganda, Tanzania and Rwanda. Kenya will also have more of Hidesign shops-in-shops, he added.
The Kenya market is as big as that of Karnataka or Maharashtra. Hidesign expects to sell 1,000-1,200 bags a month there.
Emerging market plansHidesign is also eyeing Indonesia for expansion. “There is lots of room for new brands in emerging markets and in some ways, we have an advantage over European brands. We understand these markets better than they do,” Kapur said.
A new factory at Sikkim has opened to cater to the growth in the export and domestic market.
Business abroadThe brand is present in the US, the UK and a few European countries. In the US, its men’s products account for 80 per cent of the sales. The women’s segment is so competitive there that no one notices smaller brands, Kapur said.
In the emerging markets, sales patterns are very similar to the Indian market, where women’s products account for 60 per cent. Abroad, prices are double that in India. Briefcases start at $250, while women’s bags start at $150.
Hidesign is a ₹170-crore company. This figure does not take into account sales of its products outside India.
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