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Shockwaves were felt throughout the retail sector when the epidemic upended offline retail. There has been a fundamental change in customer behavior and an increase in D2C brands, with E-commerce assisting companies in surviving supply chain disruptions and several lockdowns. Many people believed that once the pandemic subsided and brick-and-mortar retail resumed, online commerce would take a backseat. We now know that this has not been the case.
With more than 190 million digital buyers, India is the world's third-largest online buying market, trailing only the United States and China. Modern retail, supported by cutting-edge D2C companies, has emerged as a result of Indian customers' increased appetite for innovation and their decreasing loyalty to established giants.
While there are many trends and new methods that have the ability to influence how the D2C industry runs, there are a few brands that are giving consumers and emerging startups something to think about. Read on to find out the success factors that spiked growth for 11 DTC brands.
1. Anveya Living
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Story
Vivek Singh and Saurav Patnaik founded Anveya in Bangalore in 2018 after feeling the drive to establish a brand of cosmetics that would be able to compete with or surpass major international cosmetics companies in terms of product quality. While also offering purity and the wisdom of nature, their products compete with and beat their synthetic counterparts in terms of quality.
Growth
They strive to achieve excellence at every stage of their customer offering, including research and formulation, raw material sourcing, strictly regulated production processes, warehousing and operations, marketing, eCommerce, and customer support. Since its launch, the D2C brand has sold at least 10 lakh products and has 60 SKUs spread over five categories. It earned INR 11.7 Cr in revenue for FY22.
Without the help of intermediaries or resellers, the brand controls its presence on marketplaces like Amazon and Flipkart directly through its own eCommerce storefronts at anveya.com and thriveco.in. In order to provide clients with a high-quality seamless experience, it directly manages logistics and runs its own warehouse.
Anveya chose to continue with the multi-brand approach very early on and is today recognised as a significant participant in the D2C sector. The first brand of Anveya Living was established at the beginning of 2019 and is envisioned as a premium beauty brand that provides hair and skin care solutions using natural active ingredients. Aiming to address underlying reasons for thinning skin and hair, ThriveCo is the second brand Anveya launched the following year when the pandemic broke out. Both brands are referred to as having "clean labels," which oppose the use of parabens and sulphates and maintain complete transparency regarding the ingredients they employ.
Differentiator
Historically, Indian consumers have received significantly lower-quality goods than some of their international counterparts. Ingredients that have been condemned by a number of nations are nonetheless used. Knowing fully well the adverse effects prolonged usage posed to skin and hair, the founders made the decision to go a different route. They wanted to guarantee that customers received the finest and most effective goods available anywhere in the world.
Second, consumers in India believe that Indian goods don't perform as well as some multinational brands. With what they offer to its consumers, the Anveya team has changed this view. The startup wanted to have an open line of communication with the clients, and social media greatly assisted them in this. Due to this, the team was able to consult with consumers openly about Anveya's solutions and learn about their wants and concerns. This was a very different strategy from the big-budget, celebrity-showcasing tactic used by traditional brands.
Future
The journey has just begun for Anveya. In order to meet the demands and objectives of its consumers, it will launch new categories and expand its current offering in the future year. In addition to launching other hair colours, they aim to generate 45 Cr INR in sales in 2023. The company will also introduce a category for scalp-care products and start offering things like scalp serum and cleansers in order to address hair fall, thinning, and dirt accumulation.
2. Go Noise
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Story
Indian-connected lifestyle brand Noise is redefining how India stays connected. A retailer of smartphone cases and accessories from 2014. The company, however, changed course and began selling smartwatches and wireless earphones, going up against some of the biggest international competitors in the sector. It is now among the major participants in the Indian smartwatch market.
Growth
In India, Noise is the industry leader in the smartwatch market and has had steady growth over the last three fiscal years. Noise was able to increase its operational revenue by around 140%, from Rs 155.6 crore to Rs 372.7 crore in FY21. The business offers more than 35 SKUs for sale, including smartwatches, wireless earbuds, and wireless speakers. These products are advertised on online storefronts as well as the company's own website.
In order to enhance its online presence and fend off competition from established smartphone juggernauts like Samsung and the BBK group, as well as other audio/wearable businesses like boAt and Tagg, the company also concentrated on client acquisition campaigns.
Their marketing strategy was cost-effective. To make sure that every dollar spent on marketing would be in line with business metrics and yield measurable returns, they concentrated more on performance marketing and synchronized their tactics. The revenue from operations increased dramatically from Rs 42 crores in FY19 to Rs 156 crore and completed FY21 at Rs 373 crores.
Differentiator
One of their major breakthroughs was capturing the majority of the smartwatch market share in 2020, three years after making their shift, and holding onto it for more than seven quarters. It was a significant accomplishment for the brand to finish second in the Indian market for truly wireless stereo (TWS) products and be named by IDC as the fastest-growing brand during that quarter.
Their NoiseFit Ultra smartwatch was one of their industry-pioneering designs. The product screamed luxury from the TruView display to the aircraft-grade aluminum body. Due to the variant's outstanding market performance, they went on to develop Ultra 2 and, most recently, Ultra Buzz. The Noise ColorFit Pulse smartwatch would set yet another record. The opening pricing of this watch, which was noticeably reduced for the feature set it offered, made it unique. It quickly became our top-selling option.
Future
Numerous international brands have entered India throughout the years but Noise aims to extend its reach even further and create an inclusive platform where people from every socioeconomic background can access the newest trends in clothing, style, and technology. Additionally, they will soon be releasing the longest-lasting smartwatches in India, an action camera, and a smart wallet. With more than 1 million wearable and technological accessory sales, their sights are set on breaking through the clutter and creating a worldwide, linked lifestyle brand where they can provide excellent products at competitive prices.
3. Rage Coffee
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Story
With a cup of coffee, just the brew is an instant component. The instant coffee industry has undergone substantial upheaval recently, particularly with the pandemic's drive for direct-to-consumer (D2C) coffee. Although many "legacy" companies still control a large share of the market, new competitors are finding success by first securing a niche and then making an effort to win over the general public by gaining a popular appeal. In the face of fierce competition, innovation becomes a crucial USP for brands to attract consumers.
Growth
Prior to 2021, 60-75% of Rage Coffee's sales came from places other than South India, but the company began focusing on the region in January 2022. Since its inception, it has grown by 5X yearly, and it is predicted to grow by 4-5X this year.
Sales through their online and direct-to-consumer channels account for 50% of their total sales, with the remaining 50% coming from offline channels such general trade, modern trade, and hyperlocal. Although Rage Coffee is well-known among new-age coffee producers, it occasionally opts for influencer-led campaigns over flashy advertising. It turns out that this was on purpose; they had the opportunity to begin spending in advertising, but instead chose to engage with the greatest artists in the ecosystem, paying them the same as we would have paid a respected actor or cricketer.
Differentiator
When the brand first debuted, it was aimed at a specific clientele that they wanted to reach right immediately. They experienced such quick growth between 2018 and 2022, along with a sizable customer base, that they surpassed their original goals, activities, and target market.
Given that they were speaking to a small audience through language and identity, the goal was to be a more approachable, inclusive, and non-polarizing brand. A further insight was to target women as well since, despite the fact that many of them drank our coffee, they felt it was a little more on the macho side. While rebranding, they took care to preserve the organization's core values and what they actually stand for.
Future
It aims to generate INR 92 Cr in sales in FY23 and will increase its physical footprint to open more than 10,000 offline stores by March 2023. Rage Coffee will also aim towards a sales objective of INR 500 crore by 2025.
4. Juicy Chemistry
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Story
Consumers are constantly curious about what happens during the production of cosmetic items, and their main concern focuses on the ingredients. For the same reasons, there are a lot of talks these days regarding natural or organic skin and hair care products. Megha Asher and Pritesh Asher are the owners of Juicy Chemistry, which was founded to take advantage of this hype and elevate this segment of the beauty care market.
Juicy Chemistry was founded with the intention of offering skincare that was simple. The goal is to create skincare products using only organic ingredients and essential oils by delving deeply into nature and its processes of restoration and rejuvenation. Their products are vegan and free of artificial fragrances, preservatives, and synthetic additives.
Growth
The FY21 financial results of Coimbatore-based Juicy Chemistry also demonstrate how D2C companies may develop swiftly and profitably. According to the company's annual financial records submitted to the RoC, operating revenue increased by nearly 5X to Rs 18.8 crore in FY21 from Rs 3.72 crore in the previous fiscal year.
The company sells 130 SKUs in its major product categories, which include skin, hair, and body care. In November 2022, it introduced the Color Chemistry line of organic cosmetics, and approximately 75% of the new product line received the ECOCERT seal of approval. More items are currently being certified in order to increase client trust, which is the key to success. It reported INR 29 Cr in revenue for FY22 and claimed to sell 75K goods on average per month.
Differentiator
All of Juicy Chemistry's serums, moisturisers, and shampoos are produced in the ECOCERT-approved production facility, which sources its ingredients directly from organic farmers in 20 different countries. To make sure everything complies with ECOCERT's "organic" criteria, its products and processes also go through the routine, exacting quality testing and audit.
Future
The company plans to produce many more organic, revitalising items over the next five years while simultaneously promoting sustainable growth. After five years, they will still be as fired up and motivated to create products as they were when they started. Juicy Chemistry aims to generate 30 Cr in revenue in the following two years and 65 Cr in the following four. Additionally, they have a great attitude and are committed to producing more organic goods and providing them to clients. They want to work hard to be open, sincere, and genuine with our customers.
5. Licious
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Story
Licious is a meat and seafood brand that provides the cleanest fish, chicken, beef, and eggs. The fresh meat and seafood sectors in India are 95 per cent unorganised. They are unclean, offensive, and nasty local marketplaces. The two sought to alter Indians' perceptions of meat. Additionally, it employs a farm-to-fork business strategy and top-notch processing facilities to manage the supply chain.
The two spotted a chance to alter how Indians buy meat and poultry while working in the food industry. They saw that there was a significant need for high-quality, fresh meat but that the existing system was ineffective and frequently led to food waste. Licious was founded to overcome these issues and deliver a better buying experience for Indian consumers. Since then, the business has established itself as India's top online retailer of meat and poultry thanks to its large product assortment and top-notch customer support.
Growth
Tiger Global Management led a $25 million Series B fundraising round for the business in 2016. A $30 million Series C financing, led by Vertex Ventures, came after that in 2018. One of the fastest-growing businesses in India, Licious has now secured a total of $75 million in funding.
The company grew by 500% in the previous year and is still maintaining its speed. While all product categories increased in revenue, the ready-to-cook and ready-to-eat categories contributed significantly. The kebab range and chicken spreads became popular items, and recent offerings like tandoori goods are also gaining popularity quickly.
Differentiator
Licious separates itself from the rest for a wide range of reasons. First off, the business offers a variety of items, including meat, poultry, fish, and vegetarian options.
Second, Licious is dedicated to offering high-quality, fresh meals. The company has a stringent quality control procedure, and all of the meat and poultry are acquired from nearby farms.
Finally, Licious provides a wonderful buying experience. The website is simple to use, the delivery service is quick and trustworthy, and there are many different ways to pay.
Future
Licious has grown considerably during the last two years. They presently operate in 14 cities across the nation, and they intend to grow to at least 10 additional cities as well as internationally.
6. Wakefit
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Story
Wakefit is a Bengaluru-based startup that aims to bring sleep to the consciousness of Indians while also assisting them in taking action to enhance their sleep habits through practical solutions. They also offer cutting-edge sleep solutions by fostering a healthy sleep culture and changing the sleeping patterns of millions of people as they aspire to become India's top sleep destination, as well as other sleep-related products such as cushions, mattresses, and comforters.
Growth
Wakefit's business strategy is focused on the client. They either generate their own sales through their website or through well-known e-commerce sites like Flipkart and Amazon. They operate on a ubiquitous business strategy and do not intend to offer any offline experience centres. The business believes that clients cannot truly determine whether they are comfortable without spending the night in a bed. Additionally, the majority of people find it uncomfortable to sleep in public.
Wakefit is growing beyond mattresses to become a furniture brand and retailer. It involves making things like sofas, bookshelves, shoe racks, and study tables. The company’s products are selling like hotcakes, with furniture-related products accounting for 15% of Wakefit's income. The revenue will further rise because India's furniture sector is 15% larger than mattresses.
Differentiator
In contrast to other businesses, Wakefit does not think that marketing is all about publishing flashy advertisements once every three months. However, their guiding concept is to make sure they got the fundamentals correct. They have concentrated on methods like SEO, SMM, and performance marketing on platforms like Amazon, Google, Facebook, and Instagram, among others, that other digital firms have mostly neglected.
Nearly 40–50% of potential clients for Wakefit come via customer referrals. This is made possible by significant investments in word-of-mouth advertising. Users of Wakefit are frequently asked to submit reviews and talk about their experiences. This promotes the brand positively in the minds of customers and increases conversions from people looking to buy mattresses.
Future
The market for mattresses in India is estimated to be around INR 10,000 crore. Wakefit intends to dominate the Indian mattress market before expanding internationally with its premium goods and first-rate services. Co-founder Chaitanya hopes to have INR 1,000 crore in income and satisfied clients within the next two years.
7. Happilo
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Story
The company's name is essentially a combination of the terms "happiness" and "love." Happilo is a six-year-old business founded by a person who grew up in a family that grew coffee and pepper 250 kilometres away from Bengaluru. Add tonnes of good health to that.
Happilo is an exclusive provider of nuts, dried fruits, organic seeds, dry-roasted snacks, trail mixes, holiday gift baskets, and other foods since it was founded in 2016. Happilo is a popular FMCG brand that is looked for frequently on e-commerce websites and is accessible in all major modern general merchandise and retail outlets.
Growth
The financial performance of Happilo has continually been remarkable, with both revenue and profit growth. The company has increased its market share and solidified its position in the snack sector thanks to its efficient marketing techniques and product differentiation. The operating revenue range for Happilo International Private Limited for the fiscal year ending March 31, 2021, is INR 100 cr-500 cr. Its EBITDA has grown by 1,8587.2 per cent year over year. Its book net value has also improved by 5,092.36% concurrently. The figures demonstrate the business's exceptional success.
It is clear that Vikas Nahar's leadership and vision have been crucial to Happilo's success. The company's solid basis and capacity to provide value to customers are demonstrated by the brand's product line, growth, and financial performance. Happilo is well-positioned to take advantage of new opportunities and hold onto its position as an industry leader as the snack market continues to change. According to Nahar, their revenue goal for the following four years is 2,000 crores. In order to increase their chances of success, they also secured a 25 million dollar fundraising round from Motilal Oswal Private Equity.
Differentiator
The F&B business has been buzzing with the healthy snacking trend, or "snackification," for the past ten years. The consumer market is fundamentally becoming more open to the idea of transitioning from processed meals to healthy snacking packs by tapping into traditional behaviours of obtaining nutritionally dense sources of food from dried nuts, fruits, and berries.
To provide consumers with the exotic Happilo product line, they developed the D2C vertical. The brand's growth has been multiplied by four thanks to digital amplification during the previous three years. The brand generates 70% of its revenue online, guaranteeing the visibility of the Happilo items by consistently practising working on category keywords. All of the major online marketplaces, including Amazon, Flipkart, Nykaa, Snapdeal, Blinkit, Zepto, Jiomart, Milkbasket, Bigbasket, Cred, and others, feature the brand. They benefit from using the digital realm in many ways, including the dramatic growth of their customer base and the ability to better comprehend customer input to improve taste and product quality.
Future
The development and appearance of new-age health-conscious snack lovers are characterised by changes in habits, such as the rising popularity of brown bread, oats for breakfast, etc., and the soaring demand for healthy beverages and drinks, particularly in the metro cities. In fact, they are now using and accepting bars, trail mixes, dry fruits, yoghurt, and fresh fruits more frequently. People now prefer businesses that offer wholesome, delicious products delivered right to their door due to lifestyle changes. The industry has an enormous opportunity in this segment, especially to make snacking guilt-free as customers become more health conscious.
Because Happilo products are free of gluten, loaded with antioxidants, have no trans fat, are non-GMO, and only include plant-based protein, their popularity has skyrocketed. Based on the expectation that lifestyle quality will improve, per capita income will increase, new metro areas will emerge, and nuclear family trends will continue, the healthy snacking market will rise three times over the next five years.
8. Country bean
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Story
Aditi Satnaliwala was a working professional who relied on multiple cups of coffee to get through the daily grind before launching her first business. However, the market's instant coffee products, in the opinion of the self-described coffee enthusiast, lacked flavour and failed to provide her with the much-needed caffeine boost. She once used to spend a sizable portion of her pay on expensive coffees purchased at cafes. Aditi and her husband Aneesh, a former investment banker at Goldman Sachs, decided to start Country Bean after realising the need for an economical substitute.
Growth
The D2C brand began its adventure with a variety of instant coffees but soon expanded its product line to include biscuits, hot chocolate, palm jaggery, and milk frothers. The brand entered new product categories between October and December 2022 with the introduction of a line of flavoured hot chocolates and a collection of nordic drinkware. Its SKU count increased to 40, and more than 5 Lakh people bought its products. In FY22, it also generated 15 Cr INR in income.
Differentiator
Aditi experimented with several flavours, such as caramel and coconut, before identifying the combinations she thought would be effective. A variety of flavour-packed instant coffees are now available from Country Bean, featuring special mixes like strawberry cheesecake, blueberry muffin, and cocoa mint. Additionally, according to the brand, its goods are gluten-free and vegan, making them ideal for dieting consumers.
Future
Country Bean will introduce new categories in 2023 to improve the experience of drinking coffee at home. It hopes to become a household name for inexpensive and flavorful instant coffee within the next two to three years.
9. Sleep Company
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Story
The founders of The Sleep Company are living proof that, contrary to conventional assumptions, our personal experiences often inspire us to take on more challenging endeavours.
In their quest to discover a solution, they have travelled abroad to learn about and conduct research on various sleep technologies in order to see how they may actually create something that is far better than what is now available. To develop new technology, they enlisted the help of sleep specialists and DRDO scientists. After 1.5 years of research, Smart Grid Technology—which has been shown to offer the highest level of comfort and pain relief—was born.
Growth
The Smart Ortho Mattress and the Smart Luxe Mattress were the Sleep Company's entry-level offerings. Later, more mattresses were added, and pillows, cushions, beds, and SmartGRID chairs were introduced. The D2C brand's sales increased by over 377% to INR 56.4 Cr in FY22 from INR 11.8 Cr in the prior fiscal year. Over 1.5 lakh users have been served, and 1 lakh or more products have been sold over 20 SKUs. Between June and December 2022, it increased its physical presence by building seven brick-and-mortar locations in Mumbai, Bengaluru, Pune, Hyderabad, and Delhi.
Differentiator
The Sleep Company provides end-to-end comfort solutions in addition to a novel and disruptive product, which are its two key USPs.
Clearly, their unique selling proposition is their inventive products. They offered a cutting-edge product based on proprietary SmartGRID technology, while the bulk of mattress manufacturers still utilise memory foam, which initially gained popularity more than 40 years ago. The design takes use of a highly extensible smart gel that, while maintaining its solidity at major surface areas like the spine, conforms to the shape of the body at smaller locations like the shoulders. As a result, the mattress may cushion our bodies and promote comfortable sleep while giving our backs the necessary support. The Sleep Company is the only business in the mattress sector that offers complete comfort solutions, from product development to doorstep delivery. They are a digital-only firm with a direct-to-consumer model.
Future
The company wants to expand beyond mattresses and pillows into related markets including chairs, car seats, workstations and gaming chairs, among others. In addition to India, it seeks to expand into other international markets, starting with Japan. The Salots want the business to grow to a $1 billion enterprise with operations in more than 20 nations over the next five years.
10.The Pant Project
Story
Dhruv and Udit Toshniwal, the founders of The Pant Project, have a fascinating past. One of the founders frequently visited tailors for customising or fitting since he had trouble finding the proper pair of pants that would fit comfortably. The two intended to make things simpler for people who couldn't locate the proper size off the shelf because finding the right size was a difficult, taxing, and time-consuming process. The brothers' favour has been enhanced by three factors. First off, the founders are not new to the industry; the family has been operating an apparel and textile business for 45 years. Second, Dhruv has financial training. And lastly, Udit is naturally artistic and creative.
Growth
The bootstrapped company has sold more than 75K products and served more than 30K customers. It has 100 SKUs for both men's and women's clothing. Its sales increased six times from INR 1 Cr in the prior fiscal year to INR 7.3 Cr in FY22. It passed INR 1.5 Cr in monthly sales in October 2022, marking another significant achievement. By putting its ready-made collection on Amazon, the firm also joined the e-commerce sector and launched a new category of jeans known as power stretch jeans.
Differentiator
Every bottom garment sold by The Pant Project can be purchased online by providing one's size information and selecting a specific pattern from the brand's online catalogue. Additionally, the D2C brand provides free changes and monogramming services. The bottom wear that needs to be altered is picked up by an executive who is dispatched to the customer's address, and it is then delivered within two to three days. Additionally, it offers a ready-made line comprising 100% cotton, 100% linen, and 100% corduroy for sale online, giving the product a luxury feel. The Power Stretch line, which is created from wrinkle-free, moisture-wicking fabric that stretches from all sides, is one of its distinctive goods.
Future
More expansion is planned in the future to open up the possibility of an Omni-channel presence with a mix of online and physical stores, with digital being the main sales focus. The brand also intends to experiment by opening pop-up shops in order to improve customer experience and interact directly with customers.
11. Snitch
Story
The 2019-born brand, which seeks to revolutionise the fashion industry with its hip and cosy designs, has had great growth in terms of app engagements and downloads as well as revenues. Within 60 days of its release, Snitch had 100K+ successful app downloads.
Because of its ability to quickly adapt to shifting fashion trends and incorporate them into its collections, Snitch has established itself as a top fast-fashion company. The brand places more emphasis on producing a variety of styles than just a handful in great quantities.
Growth
Snitch designs and markets quick fashion clothing for males. The business began as a B2B site that produced everyday menswear for merchants. However, it changed its business model during COVID and relaunched as a D2C. Snitch has experienced phenomenal development and anticipates ending FY 2023 with a run rate of Rs 120 crore. With net sales of Rs 11 crore for the previous months.
Differentiator
In comparison to manufacturing higher numbers per style, the brand has produced approximately 3,000 styles per year. And keeping a careful eye on how fashion is developing and changing on a worldwide scale every day, bringing the latest trends quickly to the Indian market. With the advent of corn husk-based packaging material and recycled corrugated boxes for packaging, Snitch has been advancing towards sustainability.
Future
The market for men's apparel and grooming products is expanding quickly. By 2028, the market value of the men's apparel business in India is predicted to be over Rs 3.3 trillion, up significantly from Rs 1.6 trillion in 2018, according to research and analysis platform Statista. Several well-known brands, like Raymond, Peter England, Woodland, Van Heusen, Louis Philippe, and Allen Solly, dominate the market, although smaller competitors are slowly emerging and challenging the industry's leading names. In the upcoming months, SNITCH will expand its availability via more reputable platforms and see a daily order volume growth of over 2,000. Soon the company also intends to introduce an offline model with four to five flagship locations spread across major cities.
D2C enterprises are able to increase their margins as Indian consumers become more demanding, experimental, and willing to spend more money. This expanding sector will benefit from differentiators including novel packaging, product expansion in many subcategories, and proactive involvement in new constructions for consumer engagement like Feeds, Super flash, Gamification quizzes, etc.
In fact, with an estimated CAGR growth rate of 24% between 2021 and 2030, the total addressable market opportunity for Indian D2C brands is on track to surpass $302 billion by that year. India will undoubtedly have a bright future as it continues to open up to this emerging category and uses e-commerce to engage with the changing Indian consumer base.
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