Republic of the Philippines

University of Cabuyao
(Pamantasan ng Cabuyao)
College of Education
Katapatan Mutual Homes, Brgy. Banay-banay, City of Cabuyao, Laguna 4025

ENT101: The Entrepreneurial Mind

CASE STUDY #1

Name: Kirsten Anne T. Barba Year and Section:2BEED-A

Date: 13/03/2024 Instructor: M.A Esmeralda

1. What is the genesis of the business venture?

DESI HANGOVER has become famous for its amazing handmade leather products, all thanks to the
unique experiences of its founders, Hitesh and Lakshya. Back in 2012, these two friends embarked on a
volunteering project with AIESEC and ended up in Cairo, Egypt. They were working on a project at a local
school with other volunteers from around the world.

One day, during a welcome party, Hitesh and Lakshya stood out because of their footwear - Kolhapuri
Chappals. These sandals attracted a lot of attention and compliments from everyone at the party, which
surprised the duo.

Curious about just how much attention their shoes were getting, they came up with a clever idea. They
used a Tally Counter to keep track of how many compliments they received. By the end of their short 60-
day stay in Cairo, they were amazed to find that they had received over 200 compliments!

This unexpected discovery got them thinking. They realized there might be a market for traditional
Indian footwear abroad. Inspired by this positive response, they decided to start their own business, DESI
HANGOVER. Their goal was to blend their love for traditional Indian culture with modern style and share
it with people all over the world. And so, DESI HANGOVER was born, driven by their passion and
eagerness to introduce their heritage to a global audience.

2. How did DH identify the market opportunity?

DESI HANGOVER identified the market opportunity through a combination of personal experiences,
observations, and innovative thinking. Initially, while volunteering in Cairo, Egypt, as part of a project with
AIESEC, the founders, Hitesh and Lakshya, wore traditional Indian footwear called Kolhapuri Chappals
which attracted significant attention and garnered numerous compliments from attendees.

This experience opened Hitesh and Lakshya's eyes to a potential market opportunity. They noticed a
demand for authentic, handmade Indian products, especially those reflecting cultural heritage, in
international markets. The positive feedback on their traditional footwear abroad sparked the idea of
leveraging their cultural background for a business venture. They saw a chance to merge traditional
Indian craftsmanship with modern design, appealing to a global audience seeking unique, culturally rich
products.

By combining personal experiences, consumer observations, and entrepreneurial drive, Hitesh and
Lakshya identified the market niche for DESI HANGOVER. This significant moment laid the groundwork
for their venture into handmade leather footwear and accessories, showcasing India's heritage while
targeting a worldwide audience.

3. Which kind of market would you categorize the footwear industry?

The footwear industry falls under the consumer goods market, mainly within the fashion and apparel
sector. It's all about shoes, serving different groups like casual wearers, formal folks, sports enthusiasts,
and those with specialized needs. This industry is huge, worth billions globally. It's a real battlefield out
there, with brands fighting for attention, especially with trends changing all the time, and people being
picky about what they wear on their feet. Plus, there's a lot of cool tech stuff happening in how shoes are
made nowadays. What's cool is you've got everything from mass-produced kicks to those handmade
artisanal ones, catering to everyone's tastes and budgets.

4. What is the Key Problem (The Job to be Done that DH is attempting to solve?)

The key problem is that DESI HANGOVER's main goal is to meet the demand for top-notch, genuine,
and culturally significant leather footwear and accessories worldwide. They understand that people want
items that showcase traditional Indian craftmanship while still being trendy. By mixing old-school Indian
 Republic of the Philippines

University of Cabuyao
(Pamantasan ng Cabuyao)
College of Education
Katapatan Mutual Homes, Brgy. Banay-banay, City of Cabuyao, Laguna 4025

techniques with modern design, DESI HANGOVER wants to give shoppers unique and fashionable
choices that highlight India's rich culture.

In simple terms, DESI HANGOVER is all about letting customers show off their love for Indian culture
through their fashion sense. People are looking for footwear and accessories that not only look good but
also have a deeper meaning, connecting them to a broader cultural story. DESI HANGOVER's job is to
provide high-quality, handmade products that capture the essence of Indian craftsmanship and heritage,
giving customers a way to express themselves through their style.

5. 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 point of view, DESI HANGOVER's products are more like a "nice to have" rather than
a "need to have." They’re not like food or shelter, but they're still pretty cool to have in your wardrobe.
People who dig DESI HANGOVER stuff are into expressing their own style and showing off their love for
Indian culture. Sure, you don't absolutely need a pair of their leather shoes or accessories, but they can
definitely add some flair to your outfit and make you feel good about repping cultural heritage.

Just because something's not a must-have doesn't mean it's not valuable. DESI HANGOVER's products
still mean a lot to their customers. They're all about self-expression, appreciating culture, and just looking
darn good. And let's be real, feeling good about how you look is pretty important too.

From a business perspective, it still makes sense to go after products like these. DESI HANGOVER's
target customers are all about unique, culturally rich stuff, and they're willing to pay for quality. As long as
there's enough demand and people are ready to spend, DESI HANGOVER can totally make it work. With
some savvy marketing and a killer brand story, they can tap into what their customers want and keep the
sales rolling in.

6. How did Desi Hangover validate the demand for their products?

To validate the demand for their products, DESI HANGOVER likely used various methods. They
probably started by doing market research to understand what their potential customers want and need.
This might have involved things like surveys, interviews, or looking at existing market data to get a sense
of the trends. Then, they might have created prototypes or samples of their products to show to people
and get feedback before making a bunch of them. Building an online presence would've been important
too, using social media, their own website, or online stores to showcase their stuff and see how people
react to it. Hosting pop-up shops or going to events could've been another way for them to talk directly to
customers and see if they're interested in buying. They might've also teamed up with influencers or other
brands to get the word out and reach more people. Finally, they might have done a pilot launch in a
smaller area to test things out before going big. By trying all these different things, DESI HANGOVER
could figure out if there's enough demand for their products and how they can make sure they're giving
customers what they want.

7. What is the Fake Door Strategy that Desi Hangover is currently debating? What’s your take on
it?

Desi Hangover took a cautious approach when expanding into the global market. After a successful
debut at a university fair in Canada, they opted to gauge demand by exclusively selling their footwear at
various college fairs. As an additional step to verify market interest, they implemented the Fake Door
Strategy during an upcoming exhibition in Chandigarh, India. By nearly selling out their entire footwear
inventory, except for one pair retained for display, they were able to showcase their product to potential
customers and collect pre-orders. With 70 pre-orders secured and a requirement for customers to pay
50% upfront, Desi Hangover effectively mitigated production costs and ensured profitability. This strategy
not only allowed them to manage production quantities effectively but also provided valuable insights into
market demand and target demographics. Overall, this strategic move by Desi Hangover demonstrated
prudent decision-making in their global market entry journey
 Republic of the Philippines

University of Cabuyao
(Pamantasan ng Cabuyao)
College of Education
Katapatan Mutual Homes, Brgy. Banay-banay, City of Cabuyao, Laguna 4025