Companies

Bagging overseas deals with affordable tag

Purvita Chatterjee Mumbai | Updated on November 25, 2017

Da Milano collecton of handbags   -  Business Line

Hidesign’s Winter Magic leather bag   -  Business Line

Leather handbag makers confident of offering good quality

Indian leather handbag makers are competing with international brands in the overseas markets, with ‘affordable pricing’ being their biggest USP (unique selling proposition).

Hidesign and Da Milano are actively scouting for new markets overseas and aiding them are also international e-commerce platforms such as Amazon.

“Our prices are a third of international luxury brands and this gives us an edge in the overseas markets,” says Sahil Malik, owner of Da Milano.

“Since we have got leather manufacturing capabilities being a vertically integrated company, we can afford to give similar leather quality as the international brands at a fraction of their prices.”

With a sales turnover of ₹100 crore, the 25-year-old Da Milano leather brand intends to setg up almost 30 stores in the next three years across South-East Asian and West Asian markets.

Seeking partners

Besides, Da Milano’s Italian inspired name is also an edge for the brand in the European markets.

“The name of Da Milano has been licensed to us from Italy and since we have been already exporting all these years, it should help us gain a foothold in the overseas markets,” says Malik.

Da Milano is seeking strategic partners more than equity infusion to scale up its outlets in the international markets.

“We are a bridge to luxury brands and want to be like Zara and H&M in the upper fast fashion segment with new designs everyday. Global e-commerce sites such as Amazon will also help us take our brand to the international markets,” he adds.

Further distribution

Meanwhile, the ₹150-crore Puducherry-based Hidesign brand has already tapped into the international markets in more than 20 countries. “The Hidesign brand has done well in Belgium where it has the highest sales and now we are looking to enhance distribution across the US and the UK with the help of global sites like Amazon,” said says Dilip Kapur, Founder Hidesign. New handbag brands such as Lavie from Bagzone Lifestyles are also nurturing global ambitions.

Promoted and funded by the CEO of Samsonite, Ramesh Tainwala, Lavie is also distributing its brand across SAARC and West Asian countries.

“Indian handbag leather brands are priced between ₹6,000 and ₹12,000 and can never match the prices of most luxury leather brands, which are upwards of ₹80,000,” says Sandeep Goenka, Brand Head, Lavie, Bagzone Lifestyles.

Export knowledge

According to Shilpa Bhattar, analyst at Reevolv Advisory Services (a boutique consulting firm): “Most Indian leather handbag makers have been leather exporters in the past and this gives them an edge in the international markets.”

Published on September 03, 2014

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