Hidesign eyes growth in US market?

Source: PTI 

  Aiming to diversify globally, India-based leather goods manufacturer Hidesign is bullish on growing its presence in the US market and is seeking to capture the niche segment with its range of men's and women's range of bags. Pondicherry-based Hidesign launched its US operations in December 2014, making an initial investment of between a quarter and half million dollars. The company plans to make more investments as it undertakes expansion of the brand in the US market. “The US market is gigantic and we are looking for a niche representation in this market, that itself will be very significant in terms of numbers and value. It is a good opportunity to diversify and build the brand outside India,” Hidesign America CEO Vikas Kapur told PTI in an interview. The company markets and distributes competitively priced bags and small leather goods in the US and sells online as well as through high-end independent retailers. The brand has also participated in major trade shows in the US to showcase its products and expand its market base. Kapur said the company had entered the US market with the men's range and is now in the process of expanding their women's range. “In the US, Hidesign has a niche product range that reflects the original brand identity,” he said. In the second year of its operations, the company expects to double growth on the back of further increases in sales as it expands its footprint and brings in additional product categories. Sales and revenue for all Hidesign branded product in the US is currently in the $1-5 million range, the company said. While the men's category is its strong point in the US, going forward, the company expects that the women s range will contribute more to the sales. Outlining the strategy to grow the product in the US market, Kapur said the company is undertaking measures to educate people about the brand. In March, the company will be exhibiting at the popular Travel Goods Association trade show in Las Vegas where it will display its range of briefcases, messengers, handbags, small leather good and men's bags, Kapur said adding that the show will provide a platform to showcase to large department and luggage stores. As the company seeks to expand in the US, Kapur said the challenge will be to “tell your story as there are already many brands and products here.” The company is open to partnerships and in future is looking at selling directly in the US instead of going through distributors. Kapur said Hidesign is also targeting the Indian-American community, since they are more aware of the brand, having seen and heard about it in India. “We want to get our story out to the Indian-American population also. They know the brand but they should also know that we are in the US,” he said. Founded over 35 years ago, Hidesign has 80 exclusive branded stores and sells in hundreds of independent stores and major department stores in international markets.  

January 12, 2016 | 03:20pm IST