Interview with Dilip Kapur

Dilip Kapur
Dilip Kapur
Founder & Chairman
Hidesign
Hidesign

We aim to have over a 100 exclusive boutiques in India alone
From its artisan roots of a two man workshop to a company of 3000 spread all over the world, Hidesign has stayed true to its strong heritage of craftsmanship and innovative design. Dilip Kapur, founder and chairman, Hidesign, discusses the Indian leather industry and the company's expansion plans with Fibre2Fashion.

What is the size of the leather industry in India? What is the contribution of India in the global leather industry?

India's leather industry is the second largest in the world. It occupies a place of great prominence and it is known for its massive potential for employment, growth and exports. It makes for 10 per cent of the world's leather production and close to 80 per cent of the business of this industry comes from SMEs, which are an important segment of this sector. The total production of the Indian leather industry stands at over $12 billion with great potential for exports and a huge domestic market.

In which segments - shoes, bags, apparel is leather most used in India?

Footwear is where leather is most used in India and is the second largest footwear producer after China annually producing about 2065 million pairs. India has a huge domestic retail market too. Footwear export accounts for 42.83 per cent share in India's total leather and leather products export.

Where does Hidesign source most of its leather from?

We source hides from both within India and imports. The hides are vegetable tanned at our tannery in Ranipet.

From a bag brand to other accessories like glares, footwear etc which category is faring the best, and which category is proving to be very challenging?

Though the growth from one accessory to another seems a natural progression, it was by no means easy. Footwear has been big for us. It is the women's line that the brand found challenging as the style is meant to be sophisticated and contemporary. It was clearly against the grain with the market being flooded with cheap imports and glitzy shoes.

Where do you source the accessories like buckles and thread etc for your product categories?

The brass buckles and rings are individually sandcast and hand polished in a tradition that goes back to the old European style of saddle making in Hidesign factory. Threads and other smaller accessories are sourced from some of the best suppliers in the market or directly imported.

What has been the growth story at Hidesign in the last two years? What is the target set for the next two years?

The last two years have been particularly busy as it delivered several 'firsts'. For instance, we unveiled the footwear collection for men and women; the sunglasses were launched and also started offering discounts for the first time ever. The brand has also set in place plans for the next five years as the brand has to go beyond bags, the product group with which it is most closely associated. We realise that the biggest hurdle in the development of a brand is to get stuck on one product. Gucci, Louis Vuitton… they all went beyond bags. I do not want Hidesign to be just a bag brand; it has to extend into a lifestyle brand. Over the next two years, the footwear line is expected to contribute 12-15 per cent of the company's turnover.

What are the future plans at Hidesign?

We are looking at brand extensions such as footwear, pens and stationery those appeal to the same consumer base and expanding our airport stores and emphasizing a lot on international expansions. We know and are clear that we need to build a brand and this can happen only if you know your customers and connect with them directly and the best and traditional way of doing it is opening stores.

Do you plan to expand to tier II and tier III cities in India?

We aim to have over a 100 exclusive boutiques in India alone. Aiming for complete market saturation, we will cover all important areas and points, with wider expansion into tier II and tier III cities. We understand the growing demands of the consumer in various and upcoming regions of India, the upwardly mobile and discerning in its taste.

How do you incorporate sustainability in production and in your products at Hidesign?

Hidesign is natural and does not cover its leathers with layers of pigments and paint or emboss it with artificial patterns to hide defects in low quality materials. Nor does Hidesign use electroplated steel or zinc fittings that do not age well. It believes in the highest ecological values and is a leader in research on using vegetable extracts from seeds and barks for tanning to replace heavily polluting chemicals.
Published on: 05/08/2016

DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.