Comments
Hidesign is getting ready to compete with international leather brands by re-entering the luxury segment. In the past, it had named its bags after designer Alberto Ciaschini, but now a fresh foray into the segment with a new brand name is being considered, which will have the Hidesign tag attached to it.
“We have to strengthen the Hidesign brand in the luxury segment.
“The market is ready for luxury bags, but we have to get it right this time since we will be competing with international brands such as Furla and DKNY,” said Dilip Kapur, founder and owner of the ₹150-crore Hidesign.
The price points for the new luxury bags will range from ₹12,000 to ₹25,000.
Besides, competition has been increasing in the luxury space with the entry of several international leather brands such as Coach, Gucci, Hermes and Prada. Hidesign’s earlier foray into the luxury segment more than a year ago did not succeed because of lack of sales in smaller cities. “Our luxury products under Alberto Ciaschini did not do well in towns and we did learn our lessons from it,” added Kapur.
However, Hidesign has an advantage since luxury brand Louis Vuitton already has a 5 per cent stake in the company and has been advising the leather company. Going forward, e-commerce is going to emerge as a significant revenue generator for Hidesign and Amazon is also expected to retail the brand on its global platform. “We expect e-commerce to generate 25 per cent of our revenue. Amazon will also help us take the brand to eight big markets across Europe and America,” said Kapur. Products such as writing instruments will be added under the Hidesign franchise and there are also plans to re-enter categories like footwear and jackets.
New funding sourcesHidesign is also expected to tap into new sources of funding as it intends becoming a ₹500 crore brand in the next five years. PE funds are likely to emerge as frontrunner for raising money rather than an IPO.
“PE funds have been approaching us for years and we will first go to them if we need funds. It will also depend on how much we need to raise according to our business plan and targets since we intend reaching ₹500 crore in five years,” said Kapur.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.