India: Hidesign looks to tier II cities
An overwhelming response on social networking sites has prompted India-based leathergoods manufacturer Hidesign to explore cities like Aurangabad, Mangalore and Guwahati and reach out to buyers who may not be very visible but show great purchasing power.
“More people from tier-II and tier-III cities aspire towards luxury lifestyles,” said Dilip Kapur, president of Hidesign. “Hidesign saw an increase in the feedback on social networking sites like Facebook as well as in the number of online sales from these regions, so it is essential that we go to the customer rather than expect customers to visit us.”
This is not the brand’s first attempt to enter smaller cities – it already has a presence in Pondicherry, Goa and Cochin, mainly because of the huge footfalls of foreigners visiting these places.
But this is its first major expansion plan as it feels Indian consumers in emerging cities are looking beyond essentials, with high-income households in particular showing strong buying intention, thus making a strong impact on sales growth for retail brands.
Hidesign currently has 56 stores in India. When Mr Kapur founded the label, he did not start retailing from India but the UK and Australia. It was only in the late 1990s that the Indian market became the focus.
But since early 2000, the brand gauged the growing economic scene in India and started to promote their brand vigorously.
“We have always taken innovative steps in reaching out to our target group through concentrated campaigns in the early 2000s instead of going mass with advertising, or directing marketing activities towards airports way before other luxury lifestyle retailers saw the opportunity,” he said.
The brand also plans to open stores in Nagpur, Surat, Kanpur and Indore.
