What local brands can do to keep up with their growth
Recently, several local brands have grown rapidly with impressive numbers, overtaking their main competitors in the market. Their growth is tied to unique strategies and smart business tactics.
Navigate the pandemic
Arjun Srivastava, Co-Founder and Deputy Managing Director, Wingreens Farms, says that in any business, the important thing to do is to track where the consumer is going. Due to the pandemic, there has been a marked shift to the online space. Therefore, to stay relevant, companies also had to make this change.
Over the past year, Souled store has grown exponentially in the D2C sector, stocks Vedang Patel, Co-founder, The Souled Store. Currently, the casual clothing space in India is very fragmented and there are many opportunities for growth in this spectrum. In FY19, casual wear accounted for 36% of the total clothing market in India and is expected to grow at a CAGR of 16% from 1.37 rupees lakh crore in FY19 to 2.87 rupees lakh crore in FY24.
The most important part of the business, according to Vedang, is having a strong and loyal customer base that has essentially helped The Souled Store grow even during the global pandemic.
“Having these fundamentals in place with clear differentiators is what helped a lot,” says Vedang.
Musthafa PC, CEO, iD Fresh Food, explains that people have become more health conscious and are looking for healthier consumption alternatives. “Fresh is the future, so fresh sells,” Musthafa says. So the brand is focused on keeping products 100 percent natural, with no chemicals or preservatives to stay true to their promise.
The founders of Souled Store
Exploit the current scenario
In March 2021, Wingreens Farms acquired the Raw Pressery beverage brand. According to Arjun, the two brands would work together to build a new platform that will be in play in the D2C space.
“The idea, in the future, is to bring together cool brands and create a more viable direct-to-consumer business,” says Arjun.
Jatin Gujrati, business manager, Vedix says the company has always been about personalization. He adds that an important part of being in the D2C space is communicating with customers and therefore, Vedix is currently working on building a feedback loop to understand customer needs – a strategy that has helped develop. the business in the last few years. The target market, which was 150 million consumers, will double in 2025, Jatin shares.
Since the start of the pandemic, the entire D2C ecosystem has evolved a lot. According to Arjun, more and more companies are starting to consider doing business with the help of Third Party Logistics (TPL).
“It’s a totally dynamic and changing world, and as we expand our new distribution we will be working more and more with partners,” says Arjun.
According to Musthafa, partnership is the best way to grow your business. When iD Fresh Food started partnering with BigBasket last year, the revenue generated increased from Rs 30 lakh per month to Rs 3 crore per month.
Overcome the bumps in the road
Warehousing is one of Vedix’s strengths, says Jatin. About 98% of the activity takes place on the Vedix platform. According to Jatin, it’s important to create a great product so that customers keep coming back to the platform.
Musthafa says iD Fresh Food has been able to compete with the fast delivery options offered by large companies like Amazon, despite the challenges the company faces, such as shipping a three-day shelf life in because of its activity in the fresh food sector. .
Inventory management is the key differentiator in the apparel industry, explains Vedang. Additionally, marketing is the main challenge for any D2C business. The product must have a good history, which will give the company a clear advantage over the competition.
Anju Srivastava, Founder and Managing Director, Wingreens Farms
The future roadmap
Wingreens Farms will launch a new e-commerce platform with Raw Pressery, and will also get many more brands and expand categories.
“The only way for a D2C company to really work at scale is to offer a wider range of offerings,” says Arjun.
In addition, the company is currently planning an offline and omnichannel retail strategy.
Vedix is currently looking to expand into different categories and deepen already existing verticals. The brand also plans to expand internationally in the United States and the Middle East. These strategies will double revenues over the next two years, Jatin shares.
The secret of success
The panelists highlight some key points essential to the growth of any business.
Arjun emphasizes that the secret sauce to success in the industry is passion and purpose, while Vedang believes the approach to solving problems is what decides whether a business is going to be successful or not.
Jatin, on the other hand, says the brand must have a key differentiator to stand out in the D2C spectrum, while Musthafa concludes by saying that it is very important for companies to think from the consumer’s point of view and deliver. clear solutions for their problems.