Hidesign opens store in Sarajevo, Bosnia; targets ₹200 crore turnover this year
Hidesign chairman Dilip Kapur says the firm plans to open flagship stores in Indonesia and at Singapore’s Changi airport
New Delhi: Hidesign India Pvt Ltd, the Puducherry-based leather products company which has turned 40, has launched a new c in Sarajevo, Bosnia in a bid to expand its global presence. The 1,800 square-feet two-storeyed store is located in the city’s high street area and showcases the entire range of the brand including bags, sunglasses and footwear. This is company’s seventh international store which also has presence in countries including Kenya, Czech Republic, South Africa, Russia, Bhutan and Nepal.
“We are aiming to become a more viable brand internationally. Our immediate focus is to expand our luxury range Atelier Hidesign—made from ostrich and deer leather—starting at ₹30,000 by adding new colours and designs to the existing women’s range and launching men’s collection,” said Hidesign founder and chairman Dilip Kapur.
Kapur said the company is planning to open flagship stores in Indonesia and at Singapore’s Changi airport. It is also planning to unveil new Hidesign boutiques planned in locations such as UAE, Saudi Arabia, Lebanon and Kuwait this year.
Recovering from the after effects of key reforms such as Goods and Services Tax (GST) and demonetization, the company said it is growing at 30% and is targeting to achieve ₹200 crore revenue this fiscal. The company will be opening 12 new airport stores in the next two months across cities such as Kolkata, Jaipur, Varanasi, Lucknow, Goa and Indore among others. There are seven stores across various malls in the pipeline as well. Hidesign is also betting big on e-commerce sales as they contribute 25% of its overall sales in India. “Our growth is led by new stores as well as e-commerce platforms where consumers from several big and small cities now have access to Hidesign. Discounted products online are also one reason that consumers are buying Hidesign online,” Kapur added.
The company currently distributes through 84 standalone stores in India with a presence at 14 international and domestic airport stores in India.
The leather goods industry in India is projected to cross $27 billion by 2020, from around $13 billion in 2014, estimated The Council of Leather Exports. Rajat Wahi, partner at consulting firm Deloitte India said that Indian brands are doing a good job, especially in categories liked women’s hand bags and accessories, which are highly cluttered and dominated by grey imports and unbranded products. “It is also great to see many Indian brands expand internationally by opening up flagship outlets in large cities — this again shows the growing awareness of Indian brands and the appetite of Indian promoters to look beyond India. However, international expansion comes at a high cost and should be done with a view to opening multiple outlets in that market to justify the costs and efforts involved,” he said.
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