Summary of Case Study : Desi Hangover
The case study of Desi Hangover outlines the journey of two Indian university students, Hitesh Kenjale and Lakshya, who met in Cairo, Egypt, in August 2012. They shared a common ambition to start their own business and a passion for footwear, specifically Kolhapuri Chappals.
Key Highlights:
Inception and Inspiration: The idea for Desi Hangover emerged from Hitesh’s experiences during his travels, where he recognized the global demand for Kolhapuri Chappals. He shared his insights with his professor, Abha Agrawal, who later became the COO of the company. They emphasized the importance of identifying business opportunities through thoughtful observation and insights , .
Market Validation: Hitesh’s discussions about the potential of Kolhapuri Chappals in foreign markets led to a deeper understanding of the product’s appeal. The team reflected on the reasons consumers would be interested in their footwear, which helped them validate the demand for their products , .
Business Philosophy: The founders believe in creating businesses that either reduce pain or increase delight for customers. Their approach is rooted in understanding customer needs and the value they attach to products .
Strategic Considerations: The case study also touches on the challenges and strategies Desi Hangover is considering, such as the “Fake Door Strategy,” which involves testing market demand before fully launching a product .
Overall, Desi Hangover represents a blend of cultural heritage and modern entrepreneurship, aiming to create jobs and change lives through innovative footwear solutions. The case study serves as a testament to the power of insights and the importance of understanding market needs in building a successful business.
What inspired Hitesh and Lakshya to start Desi Hangover?
Hitesh and Lakshya were inspired to start Desi Hangover during their time in Cairo, Egypt, where they connected over their shared aspirations of entrepreneurship. Hitesh recognized a global demand for Kolhapuri Chappals, a traditional Indian footwear, and saw an opportunity to introduce this product to international markets. His experiences during his travels and discussions with his professor, Abha Agrawal, further fueled their ambition to create a business that showcased Indian craftsmanship and culture. The motivation behind the name “Desi Hangover” was to evoke a sense of nostalgia for Indian products in a world saturated with international brands, aiming to create a unique identity for their offerings , .
How did their experience in Cairo contribute to their entrepreneurial journey?
Hitesh and Lakshya’s experience in Cairo significantly contributed to their entrepreneurial journey in several ways:
Cultural Exchange and Networking: While in Cairo, they met another Indian, which helped them realize the potential of Indian products, particularly Kolhapuri Chappals, in foreign markets. This networking experience broadened their perspective on global demand for culturally significant products .
Market Insights: Hitesh’s travels allowed him to observe and understand the craftsmanship behind Kolhapuri Chappals. He recognized the unique appeal of these traditional shoes and their potential to attract international customers, which laid the groundwork for their business idea .
Validation of Ideas: Upon returning to university, Hitesh shared his insights with Abha Agrawal, which led to discussions about the viability of their business concept. This exchange of ideas helped them validate their assumptions about the market and the demand for their product , .
Eureka Moment: Their experience culminated in a pivotal moment when they decided to create a small batch of shoes and present them at a fair in Canada. The rapid sale of all 20 pairs in just half a day confirmed their belief in the opportunity and the market’s interest in their product .
Overall, their time in Cairo was instrumental in shaping their vision, validating their business concept, and igniting their passion for entrepreneurship, ultimately leading to the establishment of Desi Hangover.
Note: A “Eureka Moment” refers to a sudden, often unexpected, realization or discovery that usually results in a significant breakthrough or a solution to a problem. This term originates from the Greek word “heurēka,” meaning “I have found it,” famously attributed to the ancient Greek mathematician Archimedes.
Archimedes reportedly exclaimed “Eureka!” when he realized that the volume of water displaced by an object could be used to determine its density, which he discovered while taking a bath. This moment of sudden clarity and insight is what we now refer to as a “Eureka Moment.”
In modern usage, it represents any moment of sudden, impactful understanding or inspiration, often leading to innovative ideas or solutions.
What are the key insights shared by the CEO and COO of Desi Hangover?
The key insights shared by Hitesh Kenjale, the CEO, and Abha Agrawal, the COO of Desi Hangover, include:
Global Demand Recognition: Hitesh emphasized the importance of recognizing that the product they were creating had a global demand. He noted that not every opportunity is overtly visible; some must be identified through thoughtful and conscious observation .
Business Types: Abha highlighted the distinction between two types of businesses: those that reduce pain and those that increase delight. She pointed out that the origin of both types of companies stems from insights gained about customer needs and preferences .
Importance of Insights: Both leaders stressed that insights are crucial for identifying business opportunities. They believed that understanding the market and consumer behavior is essential for building a successful venture .
Cultural Significance: Hitesh’s motivation for naming the brand “Desi Hangover” stemmed from a desire to create a nostalgic connection to Indian craftsmanship in a world dominated by international brands. This reflects their commitment to promoting Indian culture and heritage through their products .
Validation Process: The founders underscored the significance of validating their assumptions and ideas before fully launching their products. This approach helped them ensure that they were meeting real market needs and expectations .
These insights collectively illustrate the founders’ strategic thinking and their commitment to creating a business that resonates with both cultural identity and market demand.
What is the genesis of the business venture?
The genesis of the business venture, Desi Hangover, can be traced back to the experiences and observations of its founders, Hitesh Kenjale and Lakshya, during their time in Cairo, Egypt. Here are the key elements that contributed to the inception of the business:
Cultural Inspiration: While in Cairo, Hitesh and Lakshya recognized the potential of Indian products, particularly Kolhapuri Chappals, in international markets. This realization stemmed from their discussions and interactions with other individuals, which highlighted the appeal of traditional Indian craftsmanship , .
Shared Ambition: The two students shared a common ambition to start their own business. Their conversations about entrepreneurship and the unique qualities of Kolhapuri Chappals sparked the idea of creating a brand that could showcase these traditional shoes to a global audience .
Market Validation: Upon returning to their university, Hitesh sought guidance from Abha Agrawal, a professor with entrepreneurial experience. She encouraged him to validate the market demand before developing a product. This advice led to a strategic approach of first understanding customer needs and preferences .
Initial Experimentation: The venture began with a small batch of 20 shoes, which were shipped to Canada for a fair. The rapid sale of all pairs in just half a day confirmed their belief in the market opportunity and validated their business concept .
Cultural Identity: The name “Desi Hangover” was chosen to evoke a sense of nostalgia for Indian products in a world dominated by international brands. This reflects the founders’ desire to create a unique identity for their offerings while promoting Indian craftsmanship.
Overall, the combination of cultural inspiration, market validation, and a strategic approach to entrepreneurship laid the foundation for the establishment of Desi Hangover.
How did DH identify the market opportunity?
Desi Hangover (DH) identified the market opportunity through a combination of personal experiences, market validation, and strategic insights. Here are the key steps in their process:
Cultural Observation: Hitesh Kenjale and Lakshya’s experiences in Cairo exposed them to the potential appeal of Indian products, particularly Kolhapuri Chappals. Their discussions with others highlighted a gap in the market for authentic Indian craftsmanship in international settings .
Market Research and Validation: Upon returning to their university, Hitesh sought advice from Abha Agrawal, who emphasized the importance of validating market demand before creating a product. This approach encouraged them to focus on understanding customer needs and preferences rather than rushing into product development .
Initial Testing: To test their assumptions, they created a small batch of 20 Kolhapuri Chappals and presented them at a fair in Canada. The quick sale of all 20 pairs within half a day served as a strong indicator of market interest and demand for their product .
Feedback and Insights: The positive response from customers at the fair provided valuable insights into the market’s appetite for their product. This feedback reinforced their belief that there was a viable opportunity to introduce traditional Indian footwear to a broader audience .
Strategic Positioning: Hitesh and his team recognized that there was a growing global demand for unique, culturally significant products. They aimed to position Desi Hangover as a brand that not only offered quality footwear but also celebrated Indian craftsmanship and heritage , .
Through these steps, Desi Hangover effectively identified a market opportunity that combined cultural significance with consumer demand, leading to the successful launch of their brand.
Which kind of market would you categorize the footwear industry?
The footwear industry can be categorized as follows:
Segmented Market: The footwear industry is segmented into various categories based on consumer demographics, including men’s, women’s, and children’s footwear. Each segment has distinct preferences and needs, which influences product design and marketing strategies .
Organized vs. Unorganized Market: In India, the footwear market is predominantly unorganized, accounting for approximately 85% of the total market. This segment includes small manufacturers and local artisans who often compete on price and accessibility. In contrast, organized players are emerging, leveraging branding, quality, and distribution channels to capture market share .
Global Market: The footwear industry operates on a global scale, with significant exports to countries in Europe and other regions. The demand for footwear is influenced by fashion trends, cultural preferences, and economic factors across different markets .
E-commerce Driven: With the rise of internet penetration and e-commerce, the footwear market is increasingly driven by online sales. Companies are utilizing e-commerce platforms to reach consumers, monitor buying behavior, and offer personalized shopping experiences .
Lifestyle and Fashion Market: Footwear has evolved from being merely functional to becoming a significant fashion accessory. This shift has led to an increased focus on style, branding, and consumer experience, making the footwear industry a part of the broader lifestyle and fashion market .
Overall, the footwear industry is a complex and dynamic market characterized by segmentation, a mix of organized and unorganized players, global reach, and a strong influence from fashion and lifestyle trends.
What is the Key Problem – The Job to be Done that DH is attempting to solve?
The key problem, or “Job to be Done,” that Desi Hangover (DH) is attempting to solve revolves around the need for authentic, high-quality, and culturally significant footwear that resonates with both domestic and international consumers. Here are the main aspects of this problem:
Cultural Representation: DH aims to address the lack of representation of traditional Indian craftsmanship in the global footwear market. By promoting Kolhapuri Chappals, they seek to celebrate and preserve Indian heritage while providing consumers with a unique product that tells a story .
Quality and Authenticity: There is a growing demand for quality footwear that combines traditional craftsmanship with modern design. DH is focused on delivering authentic Kolhapuri Chappals that meet international quality standards, thereby filling a gap in the market for consumers seeking both style and substance .
Consumer Awareness: Many consumers may not be aware of the cultural significance and quality of traditional Indian footwear. DH aims to educate potential customers about the value of their products, thereby creating a market for footwear that is not only functional but also meaningful .
Market Accessibility: By leveraging e-commerce and modern retail strategies, DH is working to make traditional footwear more accessible to a global audience. This addresses the problem of limited availability of authentic Indian products in international markets .
Sustainability and Ethical Production: As consumers become more conscious of sustainability and ethical production practices, DH is positioned to offer products that are crafted by skilled artisans, thereby supporting local economies and promoting sustainable practices in the footwear industry .
In summary, Desi Hangover is addressing the key problem of providing authentic, high-quality, and culturally significant footwear while enhancing consumer awareness and accessibility in both domestic and international markets.
From a customer’s perspective how would you categorize the problem? – one for which a solution is good to have / or need to have? If it is the latter, do you think it males business sense to go after a product that a customer does not attach critical value to?
From a customer’s perspective, the problem that Desi Hangover (DH) is addressing can be categorized as one for which a solution is “need to have.” Here are the reasons for this categorization:
Cultural Significance: For customers who value cultural representation and authenticity in their purchases, the need for products that reflect their heritage or offer a unique cultural experience becomes critical. This is particularly relevant for consumers in markets where there is a growing interest in artisanal and culturally significant products .
Quality and Durability: Customers often seek footwear that is not only stylish but also durable and of high quality. The need for reliable footwear that can withstand daily use makes this a necessity for many consumers, especially those who prioritize both function and fashion .
Sustainability and Ethical Consumption: With increasing awareness of sustainability and ethical production practices, many consumers are looking for products that align with their values. Footwear that supports local artisans and sustainable practices addresses a critical need for socially conscious consumers .
Fashion and Identity: Footwear is a significant aspect of personal style and identity. For many customers, having access to unique and culturally rich footwear is essential for self-expression, making it a need rather than just a want .
Regarding the second part of the question, if a product does not attach critical value to customers, it may not make business sense to pursue it. Here are some considerations:
Market Viability: If customers do not perceive the product as essential, it may struggle to gain traction in the market. Businesses typically thrive when they address pressing needs or desires of consumers .
Brand Loyalty and Repeat Purchases: Products that are seen as “nice to have” rather than “need to have” may result in lower customer loyalty and fewer repeat purchases. This can impact long-term profitability and brand sustainability .
Resource Allocation: Investing time and resources into a product that lacks critical value may divert attention from more promising opportunities. Businesses should focus on products that fulfill genuine customer needs to maximize their chances of success .
In conclusion, Desi Hangover’s focus on providing culturally significant, high-quality footwear aligns with a “need to have” perspective, making it a viable business opportunity. Pursuing products that do not hold critical value for customers may not be a sound strategy for long-term success.
How did Desi Hangover validate the demand for their products?
Desi Hangover validated the demand for their products through several strategic steps:
Initial Market Testing: They created a small batch of 20 handmade Kolhapuri Chappals and presented them at a fair at Flo’s University in Canada. The rapid sale of all 20 pairs within half a day demonstrated immediate consumer interest and demand for their product .
Engaging Early Adopters: After the initial sales, the founders reached out to the early customers to understand their motivations for purchasing the footwear. Through multiple phone calls, they gathered insights into why these customers chose to buy from an unknown brand, which helped them identify key selling points such as versatility, quality, and cultural significance .
Customer Feedback: The conversations with early adopters provided valuable feedback on customer preferences and perceptions. This qualitative data helped them refine their product offerings and marketing strategies to better align with consumer expectations .
Market Research: By analyzing the responses and motivations of their customers, Desi Hangover was able to assess the broader market potential for their products. They recognized that there was a growing interest in authentic, handmade footwear that represents Indian craftsmanship .
Leveraging Social Media and Online Presence: Although not explicitly mentioned in the provided text, many modern brands validate demand through social media engagement and online marketing strategies. By building a community around their brand and showcasing their products online, they can gauge interest and gather feedback from a wider audience.
Participation in Events and Fairs: By participating in fairs and events, Desi Hangover was able to directly interact with potential customers, observe their reactions, and adjust their offerings based on real-time feedback .
Through these methods, Desi Hangover effectively validated the demand for their products, confirming that there was a market for their unique footwear that combined cultural significance with quality craftsmanship.
What is the Fake Door Strategy that Desi Hangover is currently debating? What’s your take on it?
The Fake Door Strategy that Desi Hangover is debating involves creating an impression of a product’s availability to gauge consumer interest and validate demand before actually producing the product. This strategy allows businesses to test the market without the need for significant upfront investment in inventory. Here’s how Desi Hangover applied this strategy:
Market Validation: Hitesh and his team decided to implement the Fake Door Strategy during an exhibition in Chandigarh, India. They showcased a new design of footwear but retained one pair to collect pre-orders. This approach allowed them to assess consumer interest in the new designs without having to produce a full batch beforehand .
Pre-Order Collection: By asking customers to pay a percentage of the amount as a pre-order for the footwear, they could validate organic demand. This method not only provided insights into customer interest but also generated advance cash flow, which is crucial for a startup .
Feedback Loop: The strategy also creates a feedback loop where the company can gather insights from potential customers about their preferences and willingness to pay, which can inform future product development and marketing strategies .
My Take on the Fake Door Strategy:
The Fake Door Strategy can be a highly effective tool for startups like Desi Hangover for several reasons:
Cost-Effective Validation: It allows businesses to validate product ideas without the financial risk of producing large quantities of inventory. This is particularly beneficial for startups with limited resources .
Consumer Engagement: Engaging customers early in the product development process can foster a sense of community and loyalty. Customers who feel involved in the creation of a product are more likely to become repeat buyers .
Data-Driven Decisions: By collecting pre-orders and feedback, companies can make informed decisions about which products to pursue further, reducing the likelihood of launching products that may not resonate with the market .
Flexibility: This strategy allows for quick pivots based on consumer feedback, enabling the company to adapt its offerings to better meet market demands .
However, there are potential downsides to consider:
Customer Trust: If not executed transparently, customers may feel misled if they believe a product is available when it is not. This could damage brand reputation and trust .
Limited Scope: The strategy may not capture the full spectrum of consumer preferences if the sample size is too small or if the marketing does not reach a diverse audience .
In conclusion, the Fake Door Strategy is a valuable approach for Desi Hangover to validate demand and engage with customers, provided it is implemented thoughtfully and transparently. It can help the company minimize risks while maximizing insights into consumer preferences.
Note: This blog is meant for students educational reference purpose only.