Leather accessories brand, Hidesign, is pushing ahead its domestic retail business through a segmentation strategy. 

The Pondicherry-based company, which has INR900m (US$20m) in annual sales, began as an exporter of leather accessories. It now also sells its products under its own brand both in India and overseas, including at European department stores.

The company recently announced the launch of two new brands targeting distinct segments.

'Salsa by Hidesign' will cater to young consumers of between 16 and 25 years of age). The company sees enormous potential for trendy leather products under the retail price point of INR1,000 and the brand will compete head-on with unbranded products.

The second brand, 'Hidesign Coutier,' is to compete in a segment described by the company's CEO as "the affordable end of the luxury segment."

The company was attracted to this segment by the entry of international luxury brands such as Louis Vuitton into India, and is looking to build on its experience in international markets.

The company says that while the international brands are selling at prices on a par with those elsewhere, 'Hidesign Coutier' will sell at lower prices in India.