Pondicherry-based fashion label and leather accessory manufacturer, Hidesign, has come a long way since it came into being in 1978. The brand has lined up some aggressive plans to further grow its business both in India and in the international market.
Hidesign currently had 33 stores in India and planed to open 17 more, taking the number of stores to 50 in the next 14-15 months, informed Kunal R Sachdev, CEO, Hidesign.
Positioned as stylish, yet at the affordable end of the luxury spectrum, Hidesign, is betting big on opening exclusive stores both in India and in the international market.
In India, besides opening new stores in the cities it is already present in, Hidesign is also looking at adding Ahmedabad, Ludhiana, Lucknow, Baroda and Madhya Pradesh to its roster.
As far as the international market is concerned, Hidesign has plans to open six exclusive stores in the next one year, out of which three will be in Russia. Besides, Mauritius, Colombo and South Africa are also the sought after places for the brand. Hidesign is also in talks with a Saudi Arabian group to open two exclusive stores in Riyadh. The company is also contemplating to get into Norway, Sweden, Denmark and France.
Hidesign, which has in its portfolio products like bags, jackets, accessories (belts, wallets), recently unveiled Hidesign Couture. The premium brand has got a flagship store at MG2 in the Capital, which will be followed by exclusive stores in Mumbai and Bangalore.
There are also plans to set up exclusive stores for its product range, Salsa, by October this year.
The company notches up 56 per cent of its sales from ladies’ handbags, while accessories account for 12 per cent of its total portfolio. Sharing his insights on the performance of the brand over the past few years, Sachdev, said, “The growth has been fairly aggressive, while India continues to grow on one hand, our international market is also doing a lot better, which is why we are focusing on creating our own exclusive stores. There is no better way to create our own brand identity.”
The handbags market in India, which is mostly unorganised at present, is estimated to be in the region of Rs 1,200 crore, out of which Hidesign is eyeing a 25-30 per cent share in 2006-07. “We are looking at 25-30 per cent growth in 2006-07, but if our international operations expand much faster in terms of our international stores then we might even end up with a growth in excess of 35 per cent,” said Sachdev.
In order to meet its objectives in terms of expansion, the company will be investing around Rs 10 crore in India, while internationally Hidesign will be spending close to $500,000.