Companies

Hidesign changes pricing strategy; affordable products soon in multi-brand stores

Abhishek Law Kolkata | Updated on April 21, 2014




Premium international leather accessory-maker Hidesign is looking to increase its product portfolio in the entry-to-mid range price points targeting Indian multi-brand outlets (MBOs).

These offerings will compete with private labels (of MBOs) and other accessory-makers who provide deep discounts.

According to Dilip Kapur, Founder and President of Hidesign, its standalone stores, however, would stock mostly premium and high-end offerings. New offerings, he said, are for the “price-sensitive customer” at MBOs like Shoppers Stop, Westside, and Lifestyle, among others.

“We are not creating a sub-brand or lowering the price. But we will increase the product basket. For example, if there was one bag between ₹1500 - ₹2,000, we will now have two more at the same price. Our exclusive outlets will mostly stock premium products,” he told Business Line.

Globally, Hidesign is retailed at premium multi-brand retail outlets like John Lewis, Selfridges and House of Fraser in the UK, Myers and David Jones in Australia, Stuttafords in South Africa, Parksons in Vietnam and Robinsons in South-East Asia.

Based out of Puducherry, the company’s product bouquet includes handbags, clutches, briefcases, wallets, sling bags, laptop cases and brief cases.

Discounting for rivals

The reason for this differentiated strategy – different products across multi-brand outlets and standalone stores – is because of the extended discount sales impacting demand for premium accessories.

Hidesign, traditionally, is not known for deep discounts. As other brands compete through discounted offerings, high-end and international names are known to take the hit if they are averse to such schemes.

“If premium brands offer deep discounts then it impacts their image. Hence, it makes sense to have differentiated offerings,” said a competing accessory-maker who did not wish to be named.

Hidesign’s new products would be priced around ₹1,000 - ₹1,500 at the entry level.

Offerings are normally priced between ₹1,100 and ₹2,700 for smaller products like wallets; handbags cost between ₹3,500 and ₹14,000 while laptop covers, briefcases and so on are priced upwards of ₹6,500.

According to Kapur, the brand will look to set up a new manufacturing facility in Guwahati (Assam) at an estimated investment of ₹4 crore. Expected to be operational over the next four to five months, the unit is likely to cater to demand in the eastern region. The company has three plants in Puducherry and one in Baddi (Himachal Pradesh).



Published on April 21, 2014

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