 "Vikas Kapur,CEO, Hidesign America Inc")
My biggest learning has been the importance of marketing. All brands need a story, but it's really very hard for every brand to have a different story, Vikas Kapur tells Alokananda Chakraborty
Some of the oldest and the best known family-owned businesses across the world have one thing in common - they owe their success to visionary founders and pioneers in their time. But as they go through the generations, what are the common challenges they face?
I would imagine that challenges include the founder's willingness to change and the subsequent generations' drive, ability and interest in the business. Another obvious challenge is the relationship between the founder and subsequent generation, and the relationship among the subsequent generations.
The family-owned-and-run business model can be superior to the structure followed by listed companies, says John Davis, lecturer at Harvard Business School. Do you subscribe to the view?
It depends on the individual case. The "family" might bring in greater passion and dedication, I would like to think. The "family" would have grown up with the business as part of their childhood, and that would bring a greater level of attachment to the business. As for myself, I have amazing childhood memories of Hidesign: falling asleep in the back of a van piled high with leather after our trips to the Chennai tanneries; being awed and scared by the large tannery machines, among many others.
Above everything else, "families" might also have a greater interest in the long-term sustainability of the brand and the business.
What challenges do family businesses face as the ownership passes from one generation to the other? What has been your own experience?
In our case, the management has not transitioned. I am involved in the business, but it's a little early as we are not even sure that management should transition to a member of the family or if we would be looking at professional management.
In one of his interviews, Hidesign founder Dilip Kapur had admitted to three hurdles he faced early on - he didn't know the Indian customer well; he didn't know how to deal with foreign distributors; and he picked up the ropes of pricing quite late into his journey. What lessons have you learnt from your father's early experiences?
I don't know that I can relate very strongly to any of these early challenges. We complement each other in terms of interests and personality, and so often he is skilled at something at which I don't have a natural ability. I have learned other lessons from him along the way.
What new marketing lessons have you picked up in these three-four months since the launch of Hidesign America?
I have learned foremost the enormous importance of marketing. A brand needs a story, and it's really very hard to have a different story among all the brands competing for attention.
As a host of international footwear and accessories players set up shop in India and Indians get a taste of global brands, what are the three key ways in which Indian customers appear to have changed?
First, Indian consumers appear to be much more aware of global fashion trends. Second, Indian consumers are increasingly aware of the value of original design, and can identify which products merely knock off Chinese imports. Third, Indian consumers may start moving towards a cleaner, less detailed aesthetic.
Is Hidesign still perceived to be a premium product in India? Has the perception issue helped or hindered your growth trajectory in India in any way?
Many international luxury brands have entered India, but that has not changed Hidesign's market positioning as a premium brand. We still use some of the best leathers in the market. Our brand still carries immediate credibility among customers, and stands for fashion and quality. Customers and the media understand that our brand is an original brand with a unique brand story and a true heritage. Our heritage adds to the premium perception of the brand, and our marketing, for instance, the Art of Re-Use, the Icon Collection and the ongoing Green Story marketing campaigns, are really among the best and most interesting marketing initiatives.
When it comes to family-run businesses, there's a common saying that the first generation creates a business, the second builds it and the third squanders it away. Do you subscribe to that view? How do you visualise the future of Hidesign?
We do need to be aware and careful of this possibility. In our case, we still do not know if in the future the business will be managed day to day by the family or if it will be run by professional management.
