1) What are your recommendations to make the brand grow at 25 per cent in India?
We propose a three-pronged strategy:
- Reinforce the ‘luxury’ element: To sustain growth it is imperative that Hidesign retain its exclusivity and association with excellent craftsmanship and a rich heritage that legitimises its premium positioning. It can also venture into customisation in the form of embossing, personalised etching on leather products and add-ons, as is the case for competing brands. Design collaborations, exclusive outlets at upscale locations, and product innovations will contribute to this aspect.
Kabir Jain
Yash Jain
Further, it must modify the website. The sales tab should appear in the last instead of first in the menu bar. The website must provide more convenient filter options and simplify its convention for naming products under various collections and collaborations to provide more consistency.
- Diversify the revenue streams: In order to reach the proposed growth rate, Hidesign must display its products in retails stores such as Central and Shoppers Stop, to utilise the untapped lower-price segment market. It must also build B2B, institutional partnerships with organisations to be a part of an employee reward system.
- Review the distribution channel: Based on the analysis of its current activities and channels, Hidesign is situated at the right places: spaces near international flight departure gates, malls, and exclusive shops (offline), and online (its own website and on other e-commerce portals).
2) If Hidesign decides to expand its market share by entering the lower-priced market, what should its positioning strategy be? Should it make synthetic leather bags?
If Hidesign has to stay true to its strong heritage of craftsmanship and innovative designs, it cannot enter the lower-priced market with same name — Hidesign — as it will diminish the brand equity and image of premium leather craftsmanship. It must do so by introducing a different brand, such as Holii, that is suitable for lower-price point coverage and allows it to introduce synthetic leather if the market desires it. This is feasible because risk transmission from Hidesign to Holii and vice versa is minimum as they appear as two distinct brands to customers.
3) Should Hidesign have a flanking brand strategy, with different brands for various markets, or attack different markets with the same Hidesign brand?
Hidesign should opt for the flanker brand strategy, which provides offerings at various price points, to tap maximum revenue from various market segments. Under Holii, it must provide for unique sub-brands that have a standalone presence. The sub-brands should cater specifically to:
- Men and women
- Taste of design (elegant, simple, master-pieces vis-à-vis colourful and vibrant designs)
These sub-brands must form a cohesive whole and fit under the umbrella brand of Holii, such that product extension of Hidesign to shoes and sunglasses can be used by these brands too.
(The second runners-up are second-year PGP students from IIM Indore.)