Da Milano Case Study Essay Example

the leather industry is attributed to abundant raw material, a skilled workforce, compliance with environmental standards, and the progress of associated industries. Exhibit 1 highlights the strengths and emerging trends in the Indian leather industry.

The leather industry in India has various units classified into large, medium, small, and household units where the small and household units dominate production by contributing approximately 80%. Large and medium units are typically tanneries or big footwear manufacturing companies. India has a long history of leather production dating back to prehistoric times (around 3000 B.C) although modern production was introduced by the English and French in 1857. Traditionally, the industry produced hides and skins which were then used to make shoes, garments, bags, gloves, wallets, belts etc. Nonetheless, the country underwent a significant change from being a raw material exporter in the early sass and 1 sass period to becoming an exporter of finished leather products by 2011. This achievement was due to various policy initiatives implemented by the Indian government such as prohibiting the export of raw or partially processed hides and skins to strengthen the domestic industry. With nearly one-fourth of the world's cattle population, India possessed a robust raw material base contributing to its large leather industry.

Annually, 185 million hides and skins are processed, with 85% of the sourcing taking place domestically. Cows make up 28 million pieces, obtained from fallen carcasses and illegal slaughterhouses. Buffalo accounts for 8 million, sheep for 30 million (obtained from organized and mechanized slaughterhouses), and goats make up the largest number at 82 million. Despite this majority, there is a continual growth in the import of raw hides,

skins, and wet-blue. Additionally, tanning materials, finishing substances, dyes, chemicals, and machinery are also imported.

The manufacturing units in the inorganic sector present numerous challenges for the industry, such as expensive labour costs, a lack of innovative products, and little presence in the global fashion market. Although India's government has provided various initiatives for support such as de-licensing the sector, permitting 100% FED and duty-free imports, providing funding assistance to manufacturing units, aiding promotions through industrial parks and implementing several industrial development programs.

Looking at the historical performance, government support and current strength of the sector indicates that the Indian leather industry is ready to grow exponentially. From being a mere raw material supplier to becoming an exporter of value-added goods has led to robust growth in Indian's leather industry exports.

Exhibit 1 shows that almost half of India's leather business comes from international trade, with major markets including Germany, the US, the ELK, Italy, France, Hong Kong, Spain, the Netherlands and AJAX. Exhibit 2 demonstrates that India's leather exports experienced substantial growth in 2013-14, with Fox leather accounting for 43% of total exports and leather goods/accessories and finished leather comprising 23% and 22%, respectively. Exhibit 3 displays the share percentages of leather and leather products. Dad Milan Leathers Private Limited is a family-owned Indian company established in 1956 by Mr. Surrender Mali, as illustrated in Exhibit 4.The Mali family has painstakingly cultivated a prominent leather retail brand, which now boasts a team of accomplished professionals - including some from elite Indian institutions - that markets it as a premier leather brand. Dad Milan originated as a production unit for leather goods,

but it has since expanded to include three industrial units and two specialized vendors in India. In 1989, it had only two retail outlets in Delhi's most prominent hi-street markets, but now boasts 45 locations situated in the best areas, malls, and airports across more than ten Indian cities, with over 60,000 square feet of prime retail space. Dad Milan exemplifies the quintessential characteristics of a leading international luxury brand: Italian style, high fashion, and traditional craftsmanship. It is renowned for its high-quality leather and offers an impressive range of fashion accessories, from leather handbags, iPad cases, and stylish file folders to wallets, trolley bags, belt, key chains and card holders. While Dad Milan sources its exclusive leather designs from its parent company in Italy, its distinctive designs set them apart.The brand specializes in crafting women's handbags and clutches, men's bags, wallets and accessories, luggage, travel bags and trolleys for two main seasons. Additionally, the brand caters to corporate needs with their business gifts collection. Their archetypal creations offer a vintage aesthetic with contemporary fashion that gives customers a sense of pride and individuality comparable to royal couture. One of their competitors, Hiding, manufactures leather goods and accessories in Benedictory. The company sells over 40,000 bags monthly and experienced 35% growth in 2013, which is significantly higher than their average yearly growth rate of 20%. Leave is another lifestyle brand that entered the handbag market in 2010 and is currently available in 20 cities in India. Cappers is a new brand imported and marketed by PIP Industries, sold in over 100 cities in retail outlets and PIP Lounges that number around 400. The pricing for

these products is competitive and ranges from RSI 2,000 to RSI 25,000 for Hiding's products and RSI 2,000 to RSI 7,000 for Cappers' products.

Dad Milan faces competition from Lion proper, Baggie, Laid, Pepperoni, and Kara, but has established a strong presence in India. Mall owners favor Dad Milan because they generate high turnover per store and are unmatched in pricing, quality, freshness, and offerings. In 2000, almost 80% of the company's RSI 25-core revenues came from exports. However, last fiscal year, 80% of its RSI 135-core revenues came from retailing in the home market - close to rival Hiding's revenues of RSI 150 core despite having half the number of stores. Despite a deluge of international luxury bags flooding the Indian market due to globalization in the sass's, Dad Milan maintains their brand values of using India's heritage of craftsmanship to create their products. This brand consciousness has grown among consumers due to a rise in propensity to spend on lifestyle products, growth in retail culture, and economic growth.

Dad Milan stands out for its unique design, Indian influence and use of Italian leather as the primary differentiating feature. The brand offers a diverse range of top-quality leather products at affordable prices, catering to consumers seeking variety. Product differentiation is crucial in any business, as demonstrated by economic principles in every market. Dad Milan constantly introduces new products, releasing 8-10 items per week in their stores to keep customers engaged. The brand entered the Indian market in 1989 with leather handbags and has since expanded to laptop bags, footwear, file folders, trolley bags and essential accessories such as key chains and card holders. With

a design studio based in Italy, Dad Milan stays current with global fashion trends while exhibiting originality, style and flair in their collections. Furthermore, the brand has identified a new product category - designer luggage - in response to the growing trend of Indian couples traveling right after their weddings.Dad Milan has launched a new premium wedding collection specifically for brides-to-be. The collection includes smart tote bags and bright luggage trolleys, designed to keep the bride's trousseau in perfect condition for her big day. The collection also features items such as sparkly clutches and romantic veils for the ceremony, as well as pieces for honeymoon travel. The range is a harmonious blend of international design sensibilities, incorporating bright colors and unique designs that allow every woman to make their personal style statement. The collection has been designed to suit the needs of both men and women, with clean cut shapes and versatile designs that look chic with any ensemble. Dad Milan also offers a line of leather accessories for home and office under the sub-brand Dad Milan Home. Online shopping is available on http://www.Denominations.Mom for both the wedding collection and office professional range.Dad Milan offers a range of products including lamps, photo frames, coffee tables, wall clocks, planters, rugs, cushions, drapes, coasters, and desktop sets for office tables. With the increasing importance of customer satisfaction and value for money in the retail industry, pricing strategy is crucial. Dad Milan's pricing policy is customer-oriented and seeks to maximize satisfaction. The brand has implemented a unique regional customization strategy in India with customized prices for the price-sensitive South Indian market. Dad Milan Leather's Managing Director, Shall Mali,

explains that the brand differentiates between the two regions in various ways including price and color.Mali, a representative for the company, noted that while subtle colors are popular in the South of India, fashion colors are preferred in the North. With such diversity in cultures and tastes throughout the nation, customization is essential for successful retailing. Dad Milan products reflect this need for personalization, with customized sizes and designs for the South. Lady's bags range from RSI 6,000 to RSI 15,000, while men's computer bags and luggage cost between RSI 8,000 and RSI 14,000. The brand is expanding its global reach and currently has 45 retail stores across India. In addition to these storefronts, Dad Milan products are popular in Indian airports such as Delhi Domestic Terminal-3, Delhi International departure, Iambi Domestic departure Terminal IA and Terminal B, Amanda ;Kola Domestic Airport. The company plans to expand into other international markets in Southeast Asia and Europe. Airport retail is also a significant area of growth for the brand.

Airport retail is viewed as a way for brands to reach an international audience and test consumer tastes in various countries, without physically establishing stores. This permits for real-time market research. Positive feedback can inspire brands to set up shops in new global locations. Dad Milan is exploring growth opportunities in India by targeting cities and towns that have yet to be penetrated by other brands. The Managing Director, Shall Mali, stresses that Dad Milan is highly selective when it comes to location, only choosing high streets and malls that are fashion hubs for the city, and the niche audience of a particular area will be targeted.

When it comes to communication and marketing strategies, the company relies heavily on print media for sales promotion through advertisements in fashion magazines, newspapers, print publications, etc. A "Dalai Campaign" was launched in 2013 by the company to extend brand exposure and interaction. The campaign was built around the festive season of Diwali and targeted mainly women on social media platform Facebook, encouraging them to shop, share best wishes, and exchange gifts.

Via Backbone APS, the company created the "SEND DALAI GREETINGS" app to tap into the desire for a shared holiday experience. This resulted in an increase in Backbone likes from 12,320 fans to a POS campaign reach of 17,196 fans. The brand positions itself as affordable luxury, targeting urban audiences aged 23-35 in Tier I and II cities. DAD Milan values quality, putting each product through stringent checks before delivery. To cater to the burgeoning middle class market, the sub-brand Fire was launched with products priced modestly at Rs. 1800-3000. In 2009, the company entered into a 50:50 joint venture with Papers Foresight Smart Ventures to retail Staccato, an international fashion footwear brand in India.

Dad Milan, a company specializing in leather products like garments, bags, and wallets originated in Italy with Staccato being a Hong Kong-based brand that produces both men's and women's footwear. Staccato products are sold in at least 800 retail outlets across the globe. A partnership between Foresight and Papers resulted in PASV, a joint venture that has exclusive retail rights to sell Staccato products in Europe and Asia. PASV launched a women's collection through eleven stores in 2009. However, Dad Milan pulled out of the venture within a

year to focus on their own brand, Ross Bordello - a premium fashion footwear brand for men and women. To boost their presence in the retail market, Dad Milan entered into a tie-up with lifestyle chains and introduced a sub-brand 'Fire', priced in a way to target a larger customer base. "We exited the venture as it did not meet with our expectations," said Mr. Shall Mali, Managing Director of Dad Milan.

Dad Milan, a premium leather accessory brand, has been recognized and felicitated by The Indian Retail and Fashion Forum with the highly prestigious F-assign Accessory Retailer and Most Admired Fashion Accessories Retailer awards for the year 2014. This marks the brand's third consecutive year win, reinforcing its status as a leader in the industry. Mr. Shall Mali, Managing Director of Dad Milan, expressed his excitement and pride at the accomplishment, stating that the brand's vision of delivering high quality leather products has been realized and they are now focusing on providing innovative designs to dazzle their customers. The hard work put in by everyone at Dad Milan has led to their brand becoming the most admired retail brand in India. With a presence in every distinguished mall across the country, Dad Milan has grown exponentially in size and scope.