High-end leather accessories brand Hidesign is charting out a plan to enter the Chinese market in a big way. It has drawn up plans to offer a complete portfolio.
Has already set up shop in Shanghai and at Hong Kong airport
KOLKATA: High-end leather accessories brand Hidesign is charting out a plan to enter the Chinese market in a big way. It has drawn up plans to offer a complete portfolio that would include jewellery, watches and sunglasses, sourced from third-party suppliers.
But these new products will be targeted only at the Chinese and not be considered for other overseas markets, at least for a year.
Hidesign’s core competency lies in manufacturing leather bags, garments, belts and footwear.
Though things are likely to take a more concrete shape from the beginning of next calendar, Hidesign president Dilip Kapur has already initiated quiet moves to make a Chinese foray by setting up his first store in Shanghai and another at the Hong Kong airport recently.
“These two stores were set up as part of a branding exercise,” Kapur told DNA Money.
Hidesign is planning to roll out 12 stores by next year. Kapur also hinted that if funding is needed for its China venture, it would first draw into internal resources, though he has not ruled out private equity or an initial public offer, if the requirement arises in future.
While offers from New Zealand and Turkey are being studied, Hidesign is also present in Russia, the US, UK , Malaysia, UAE and South Africa. At present, overseas business contributes 65% to the company’s turnover.
Hidesign began with an overseas presence, around 1990, selling its products under its brand name in the US, UK and Australian markets, through distributors. In 2000, the brand started in India using the same business model.
However, at that juncture, Kapur realised, India lacked the right retail environment for high-end goods. “There’s an emotional side to selling luxury which India lacked. This forced me to set up my own stores,” said Kapur.
Recently, luxury goods behemoth LVMH took a 20% stake in Hidesign. LVMH has brought to the table technical advice and has researched the company for better quality products.
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