Académique Documents
Professionnel Documents
Culture Documents
Hyderabad
Master of Fashion Management
2013 2015
Global Marketing
International Launch
Submitted to:
Prof. GHS Prasad
Submitted by:
Gayatri Vs
Jayveer Deo
Sara Mahdi
Vishal Kerkatta (MFM III)
Contents
Statement showing global import of leather goods & accs viz-a-vis Indias export and share
during 2007 to 2011 is given below:
(Value in Million US$)
Leather Goods & Accs
WORLD IMPORT
INDIA'S EXPORT
% SHARE OF INDIA
2007
2008
2009
2010
2011
16388.49 18117.82 14376.65 17059.43 22216.93
800.46
873.44
757.02
855.78 1089.71
4.88%
4.82%
5.26%
5.01%
4.90%
2011
3442.41
1748.82
1764.83
1105.43
855.10
893.25
949.24
234.65
302.43
276.47
3862.78
2934.81
2016.83
1558.11
1223.17
1112.29
1055.44
863.67
757.56
604.38
Country
USA
Hong Kong
Japan
France
Germany
Italy
UK
China
Korea Rep
Singapore
These 13 countries together accounts for a share of 77.95% in global leather goods &
accs. important
Top Exporting countries of Leather Goods & Accs
(Value in Mn$)
Country
China
Italy
France
Hong Kong
2007
3407.65
3358.86
2585.48
2033.47
2011
4693.80
4331.55
3405.22
3348.99
Germany
USA
Singapore
UK
Netherlands
Switzerland
500.41
348.70
121.89
257.05
152.88
290.59
701.76
408.82
401.23
335.39
326.22
321.73
Indian Scenario
Leather Goods form an important segment of the leather industry in India. Leather goods
production capacity is estimated to be 63 million pieces annually.
The different types of Leather Goods and accessories are manufactured in India i.e., Trunks,
suit-cases, vanity-cases, executive-cases, brief-cases, school satchels, traveling bags /
luggage, Portfolio and similar such items, Hand Bags, shopping bags and similar such items,
Wallets, Purses, Pouches, Passport Holders, Credit Card Holders, Diary covers and similar
such items, Leather Belts, Caps etc. India also produces Leather Upholstery Sofa Seat
Covers, Car Seat Covers etc.
Most of the units manufacturing leather goods are located in Kolkata, Chennai, Mumbai,
Kanpur, Bangalore and Puducherry. Industry is situated in few other clusters also.
India is the fifth largest exporter of leather goods and accessories (inclusive of Gloves) in
the world.
Leather Goods and accessories manufactured in India bear brand names like Coach, Pierre
Cardin, Yves St Laurent, Etienne Aigner, Geoffery Beene, Harrods, Marks & Spencer, Liz
Caliborne, Guess, Next, Tommy Hilfiger, Kieffer, Waldhausen, Biemen, Nederinum, Zaldi,
Kallquists, Shires, GFS, Millers, Eisers, Weco, Ukal and Decalthon.
2008-09
800.46
2009-10
873.44
2010-11
757.02
2011-12
855.78
2012-13
1089.71
1178.96
Source: DGCI& S
Indias export of Leather Goods & Accessories including Gloves touched US$ 1178.96
million in 2012-13, holding a share of 23.59% in Indias total export of US$ 4996.91 mn
2008-09
183.26
232.05
2009-10
121.22
2010-11
165.63
2011-12
238.62
Source: DGCI& S
MAJOR MARKETS
The major markets for Indian Leather Goods & Accessories are USA with a share of 19.12%,
Germany 14.84%, UK 13.10%, France 5.69%, Italy 5.32%, Spain 5.77%, Netherlands 4.57%,
UAE 3.65%, Australia 3.08%, Denmark 2.85%,
2007-08
122.65
123.86
133.92
56.96
36.07
3.37
59.93
1.02
36.51
28.48
2.25
2008-09
132.08
155.02
125.77
67.51
45.04
4.22
52.33
1.01
41.91
32.72
2.02
2009-10
2010-11
117.75
137.97
123.08
44.82
38.90
5.77
51.47
0.57
38.12
26.00
1.56
2011-12
135.34
162.90
131.74
46.57
48.16
8.71
62.82
0.97
40.86
26.27
2.35
639,908
2,342,290
107,678
(upholstery)
Diary Covers / Cheque Book Covers
Pet Accessories
Portfolio / Briefcases
Desktop materials
Covers for
1,266,241
760,102
204,901
434,451
291,274
172.24
196.83
137.14
67.02
59.09
11.49
79.12
2.45
49.39
34.17
3.34
2012-13
174.90
225.47
154.39
62.67
67.05
9.77
67.98
2.74
53.90
36.30
3.32
Camera
, Calculator etc
Leather Toys
Other Leather Goods
Total
78,754
40,999,396
138,631,21
3
Industrial Bags
Fancy / Fashion Bags
Sports Bags
Other Leather Bags
Total
2011-12
108,706,24
9
1,704,898
150,139
839,703
111,400,989
Central
East
North
South
West
Total
CLE Membership Records
2011-12
17,866,725
60,591,235
31,189,464
25,713,413
3,270,376
138,631,213
REGION
East
North
South
West
Total
2011-12
108,135,469
106,421
3,151,599
7,500
111,400,989
A homegrown brand, with the brand value to create products using the countrys
FOCUS
Hidesign etc.
A mix of tradition, practicality and trendy deigns
BRAND IDENTITY
Ethical
Practical
Innovative
Smart
Premium quality
BRAND IMAGE
Stress on natural
leather
processing to
show
authenticity &
differentiation
Focus on
uniqueness &
innovation
Retailed through
premium chains
like Lifestyle,
Westside,
Shoppers Stop
SWOT ANALYSIS
STRENGTHS
Good Distribution Network: Tie-ups with popular Multi Brand Outlets like
WEAKNESSES
OPPORTUNITIES
THREATS
COMPETITORS' ANALYSIS
The Indian leather goods market is still hugely unorganized. There are a number of
individual shops selling products made by individual craftsmen. Talking about the
competitors nationally, there is regional competition, but no national competitors.
Hidesign
Da Milano
Kara
Hidesign & Da Milano position themselves as affordable luxury, targeting age
groups upwards of 25 years, with Da Milano priced from Rs. 5,500 upwards
to Rs. 15,500 for ladies bags and Hidesigns leather bags for women & men in the
range of Rs. 1,995 to Rs. 8,895
SEGMENTATION
Psychographic segmentation:
Our segment are those people who value style and that is, those who want to make personal
statement of their style and value the evolved nature of their preference. Thus we target
young college students
Generation, Social class and Income Segmentation:
The brand is aimed at young and middle income group and it is priced accordingly.
Our focus is the mid-to-mass market segments.
TARGETING
insist on high quality products without having to pay through their nose.
Further, our customer would be anyone who is globalized, cosmopolitan, young
and experimental.
Basta targets customers who are primarily in the 18-25 age-group, students &
POSITIONING
Values are still the same that we are ecological and natural in our
manufacturing process, and still believe in high craftsmanship in modern
designing.
The brand image is more driven by style & exclusivity. The idea is to provide
PRODUCT STRATEGY
PRICING STRATEGY
PRICE RANGE
We will start selling our products through the multi brand outlets.
Tie-Ups with Multi-Brand Outlets like Lifestyle, Westside & Shoppers Stop.
Online Selling through portals like Jabong, FashionAndYou, Bagskart and other
PROMOTION STRATEGY
FUTURE STRATEGIES
Global companies today face the problem of initiating a global product launch, the
situation of which has been further complicated by the changing global structure. A
central characteristic of this is varied cultures, and, more importantly the multicultural
situation of nations today. Companies are under more and more pressure to speed up
the commercialization of new products in order to increase product lifetime and costeffective value, at the same time keeping up with the changing trends of the industry.
The major challenge in an international product launch is to ensure you deliver current
and accurate product marketing materials to distribution channels, retailers and salesteams securely and cost effectively.
Other challenges in an international product launch include:
Addressing costs associated with a decentralized, in-country model
Bastas global launch plan provides a clear vision and roadmap to facilitate execution
by cross-functional and cross-regional teams. It will to be developed and delivered at
least 4-5 months prior to launch to ensure effective execution through timely adoption
of messaging, strategies, and production of deliverables. Drafting Bastas global
launch plan also provides the opportunity to engage teams worldwide. Basta team will
ensure early input from key functional and country teams who will drive global and
local marketing, communication, and sales readiness activities. Objectives,
milestones, and success metrics will be realistic, time-sensitive and locally adaptable.
The launch manager will collaborate with teams and ensure early participation in
launch efforts. In addition to key
objectives,
strategies,
and
tactics, the plan will include a
timeline and a checklist of core
deliverables
that can be
reviewed for country marketing
and localization needs.
3. Designing an effective
launch process worldwide
Bastas market success will be
dependent upon its internal
infrastructure and its ability to
coordinate a centralized strategy
with local execution. This will
be determined by its ability to
build a launch management
framework and process where it
will leverage internal team
knowledge, manage project
flow, and effectively deliver product on time and on budget in every part of the world.
Not a small task! Basta will build a global roadmap that accounts for key milestones
in the global readiness areas of product, marketing, communication, and sales. Basta
will then utilize project management tools to develop key roles, responsibilities, tasks,
and timelines that support the roadmap including the critical dependencies for
meeting global launch objectives. Our deliverables matrix will include key
globalization, localization, and translation dates for completion of marketing and sales
tools required for local markets. And we will now be ready to execute.
4. Engaging launch teams across cultures | Networking strategies
When launching Basta, a successful outcome will always be dependent on team
alignment. We will ensure understanding, participation, and ownership from crossfunctional and cross-regional team members. Building our network of team members
across functions and cultures takes careful planning and relationship building. A
constant Check in with our team members around the world and create a networking
strategy is the first and foremost step. Bringing out the organization chart and identify
our key drivers and influencers for the following: 1) Strategy Team (Executive