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Dilip Kapur, Founder & President of premium leather goods brand, the Puducherry-based Hidesign, says that growth has come roaring back post-Covid and its premium products too are doing very well across markets.
In an email interview with businessline, Kapur says that he expects a growth of around 75 per cent over the previous year while online sales too are surging.
How has the preceding festive season been for Hidesign? Is there a good revival after the two Covid years?
The growth has been excellent at over 30 per cent over pre-Covid.
What do you expect FY2023 to finish at in terms of revenues over FY2022 for Hidesign?
A growth of around 75 per cent.
Hidesign has opened three new stores. In terms of own stores and franchises, how many stores do you have now in India?
We have 95 company-owned and one franchisee store.
Have you seen a shift to online purchasing due to the Covid years or is physical shopping bouncing back?
We still see continuing growth in e-commerce as well, so it is not one or the other.
What is the proportion of online sales to physical store sales for Hidesign now?
Online stands at 35-38 per cent.
Is your growth primarily driven by ladies bags or gents bags, and is it happening at higher price points rather than lower?
Handbags and men’s bags’ growth are at average selling points that are 40 per cent higher than pre-Covid.
What products are driving sales in your top stores now in India? Is premium doing well?
All areas keep doing well but the main thing that keeps shocking us is the demand for higher prices. Our new atelier collection in ostrich and deer leather at prices that are up to ₹50,000 have been flying.
Surprisingly, the south, which doesn’t normally love luxury as much as in the north, has seen the best sales with even Chennai doing very well.
New atelier collection in ostrich and deer leather
What about overseas sales?
Covid did hurt but it is bouncing back but there has been a redistribution of sales increasingly away from multi brand outlets to online.
Will your focus be on domestic markets more or overseas as well?
Yes. But we would like overseas to be increasingly direct to the consumer though, stores and online, and not wholesale.
Any new investor do you plan to bring into Hidesign? Do you need the funds to expand or you are comfortable with your internal accruals to fund growth?
No new investors and yes we have the surpluses needed for growth.
Have you done a brand valuation exercise for Hidesign recently?
No, the last was when LV did the investment, and nothing since then.
Lastly, I know you are not going anywhere, but have you put a succession plan in place for Hidesign?
Yes, I have two sons and my wife is involved.
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