Ahalli is an Indian manufacturer company, that produces leather goods in an environmentally and socio-economically sustainable manner. The company was founded in 2007 in Bangalore. The company is involved in Tanning and dressing of leather, manufacture of luggage handbags, saddlery & harness.
Ahalli is based in Bangalore, India but delivers worldwide and is working closely with a global partner network. The main sales items are purses, bags, handbags, backpacks, and wallets which can be produced according to specific wishes of the end consumer. The production is made with grain leather from local market cows, goats, buffalos, and sheep, and the coloring process is handmade using sustainable vegetable-based material. After coloring, the product is ready to receive the designs and impress according to the client’s requests. The creation of these qualified and sustainable products gives their craftsmen a chance of a better life and their clients an opportunity to generate a positive social impact in the Indian society.
The increasing awareness of environmental and social concerns on customers, especially in Germany, got the attention of the company Ahalli. Due to this trend in the German and Greater European market, Ahalli saw a good business opportunity and therefore wanted to enter the market with their products. The high-quality bags combined with the companies’ ethical and sustainable values was a good starting point.
Germany is the third largest leather manufacturer in Europe and has a long history of leather. Currently, there are about 80 tanneries in Germany with about 3.000 employees. Thus, it is an even bigger attempt for an unknown label from India to enter and penetrate one of the most powerful markets in Europe and even in the world.
Ahalli biggest challenge was to get direct contact with potential German distributors and wholesalers for their products in Germany. In addition, the company wanted a framework of possible elements and solutions that can help them initiate the process and that promises a maximum effect with a rather low budget. If the campaign is successful, Ahalli plans to open a subsidiary in Germany.
Ahalli wanted to understand and validate the German market and needed a solution that covered the market research and entry strategy, including brand communication and the operative target contact. Ahalli found in Market Expansion Services its perfect match for a partnership. Our specialty is to help foreign companies and their products enter the German market.
The solution of MES consisted of six components or deliverables. The project started with a detailed market overview and a draft of an action plan for later activities. The market overview showed an upward trend in the leather goods market in the past 15 years, which proved the growth potential to Ahalli, especially in their manufactured articles. Another important analysis of the competitors gave the team significant insights into the unique selling points and business development strategy.
After interviewing the client and understanding the company’s message, ME.S. “translated” it to the German market and designed the new company branding and communication concept for Germany. From the insights collected at the interviews, we were able to identify a target group on the distributors’ market. Inside this group, a list of 100 potential partners was identified and reached out for a partnership proposal. The approach was made via phone call, in German, aiming to present the products and give further information about the company.
The handout with information from the company and its products were created and sent to the potential clients. For its creation, it was required a strong branding conception with the purpose of attracting the distributor's awareness and presenting the value proposition of the company. This approach guaranteed a good reception of the offer among the prospected clients, which improved the chances of success for the market entry of Ahalli.
The project ran for an approximate period of 3 months. During the project, MES contacted all identified targets personally. The range of the contacted targets from market leaders to small independent companies. Always in mind that possible cooperation between the Partner and Ahalli is realistic. More than 85% of the contacted companies showed interest in the products and two listings of the brand at distributors. At the moment, we are also still in negotiations with some interested parties which we believe will lead to a successful entry in the German market after the negotiations.
Because of the high demand for the targets, MES created a second portfolio and hand out for Ahalli. The handout - including a photo shooting with the latest collection of the Ahalli leather products - was made for the end consumer. Thus, the distributors and wholesalers had the opportunity to pass the collection overview by mail or flyer to the customer, increasing the product’s orders.
Ahalli has been fully satisfied with the target generation and contacting that MES did. MES had shown its expertise in the German market not just with the utilization of marketing automation tools, also with its data acquisition, segmentation strategy, digital communications, and telephone conversation within its lead management for Ahalli.
We wish you continued success in the German market.
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