India is becoming more habitable for pets – ‘pet-owners’ are becoming ‘pawrents’, and packaged edibles are replacing the legendary bowl of rice & boiled chicken!
The pet population in India saw a noticeable uptick to 27 Mn+ during the pandemic, with many households adopting stray animals or rescuing pets. What’s interesting is the growth trend has persisted and, this number stands at 32 Mn+ as of FY24.
The result?
The pet care industry has been steadily gaining momentum – valued at INR 27,000 Cr today, mind-boggling!
No surprises there!
What’s fueling this growth is the evolving mindset & behaviour of pet owners. Currently, pet owners are spending more than double what they were. Redseer estimates, at this pace, the pet care market could reach INR 60,000 Cr by FY28.
If you break down the entire pet care industry, you’ll see pet food, grooming, and healthcare account for approximately 80%
But, another segment that’s growing leaps and bounds is pet supplements!
Valued at INR 20,000 currently, the pet supplements market is reportedly expected to grow at a 7.3% CAGR till 2033, reaching INR 55,000 Cr.
Take a breather – that’s how big the pet care industry is.
But our focus on this edition of The D2CX Newsletter is the Pet Supplements segment and how D2C brands are ramping up!
Key drivers of the remarkable growth of the pet supplements segment include the humanisation of pets, an increasingly ageing pet population, and continued emphasis on natural, organic, and sustainable ingredients.
And with the use of supplements, the results are visible!
❇️ Increased levels of concentration, focus, and energy
❇️ Improved gut health, immune system, and heart health
❇️ Reduction is stress and anxiety
❇️ Enhanced ability to fight bacterial infection, itchy skin, and environmental allergies
Pet supplements such as fish oil, biotin, and amino acids improve cognitive development by providing antioxidants such as vitamin E, vitamin C, L-Carnitine, and Coenzyme Q-10.
Who doesn’t want their furry companions to be happy and healthy?
Some of the most popular over-the-counter supplements consumers purchase for their pets include joint supplements, omega-3 supplements, multivitamins, probiotics, and others.
Although OTC (over-the-counter) sales account for around 80% sales of pet supplements in India (globally this number is around 85%), the online market has huge potential.
While market leaders like Drools and Virbac are adopting a scatter-shot approach to take the lion’s share, new-age brands laser-focused on supplements are delivering quality, transparency, and targeted nutrition, winning hearts (and tails).
D2C brands like Petveda, Wiggle, Dogsee, and K9 Vitality are growing in multitude.
Unlike traditional one-size-fits-all products, D2C brands focus on niche needs such as age-specific, breed-specific, and even condition-specific supplements. Whether it’s a joint supplement for ageing Labradors or calming chews for anxious rescue cats, these tailored solutions appeal to pet owners looking for more than just a generic product.
(The following picture clearly depicts how new-age brands make the understanding of dietary requirements of pets easy for pet-owners)
Consumers want to know what they’re giving their pets. By providing clear labelling, ingredient sourcing details, and comprehensive product guides, these brands build trust and credibility with consumers.
D2C models streamline the path from manufacturer to consumer, making high-quality supplements more accessible. Subscription models and custom bundles allow customers to set up recurring deliveries tailored to their pet’s needs, ensuring consistency in care without the hassle of reordering.
The pet supplement market is no longer a niche—it’s becoming a necessity for pawrents committed to their furry companions’ long-term health. D2C brands that understand this shift and focus on building trust, delivering quality, and staying agile will be the ones to win big.
Talk about fine jewellery, and the mind races to glittering gold and sparkling diamonds.
But GIVA, the Bangalore-based D2C brand, founded in 2019 by Ishendra Agarwal with Nikita Prasad and Sanchit Shetty, has turned the spotlight on sterling silver.
The Mission → Make fine jewellery accessible without skimping on style!
With most SKUs priced under INR 30,000, GIVA’s jewellery offers premiumness minus the wallet guilt. A silver rush on its own!
💠 1 Mn+ customers
💠 INR 273.6 Cr revenue in FY24
💠 INR 2170 Cr valuation
Despite getting great online traffic and reporting high user engagement, GIVA was struggling to translate leads into paying customers, and retain them!
So, they started with grabbing low hanging fruits – strategies that were easy to implement!
GIVA sent personalised emails and push notifications showing the exact product left in the cart, nudging customers to complete their purchase.
It’s like saying, “Hey, remember this? It’s waiting for you!”
Leveraging multichannel marketing flows, the brand surprised customers with gifts during their birthday months. And what a surprise indeed!
This simple but powerful strategy created a perpetual loop, encouraging customers to return.
✔️ Increase in conversion rates from 5% to 10%
✔️ 50% boost in repeat purchases
Numbers speak volumes, and in this case, the growth is astounding. Yes, marketing expenses have increased and that’s a calculated risk. By onboarding Anushka Sharma as brand ambassador and partnering with numerous micro influencers, GIVA is winning over Indian consumers.
GIVA’s creative edge? A relentless focus on fresh, chic designs that keep customers coming back.
Launching up to 50 new designs weekly, the brand caters to young women aged 24-35, balancing affordability with style.
Their versatile silver bracelet that doubles as a ring or even their packaging, everything about the brand makes a statement!
PS – GIVA has also expanded into 18K gold and lab-grown diamonds.
Starting out online gave GIVA a strong foundation, but that was not everything Ishendra had in mind.
GIVA’s first physical store opened in May 2022 in Bengaluru and saw traction right away.
Fast forward to today, GIVA operates over 130 stores across 20+ cities, and secured strategic partnerships with Shoppers Stop and Reliance Trends.
More stores, more designs, and a footprint that extends beyond India. Plans for expansion into Sri Lanka, Southeast Asia, and the Middle East are already underway.
A little introspective!
In the last 36 editions, we’ve shed light on how certain brands have exemplified aggressive growth.
And rightfully so! As a D2C founder, you should look up to these brands and draw actionable insights from their growth ‘hacks!’
But then there are brands that have taken their industries by storm, completely dominating from day 1.
Case in point? Drools, a Bengaluru-based D2C brand is taking the INR 25,000 Cr pet-care market by storm.Backed by a recent INR 500 Cr investment from L Catterton (the private equity firm backed by LVMH Moet Hennessy Louis Vuitton), Drools is now valued at INR 4900 Cr and on track to bag the coveted unicorn status in the next two years.
Let’s dive into Drools’ growth playbook!
“Why should your pet consume something you wouldn’t eat yourself?” This core belief drove the company’s focus on quality, with real chicken being the first ingredient in many of their products.
As per AAFCO (Association of American Feed Control Officials) the definition of real chicken is the clean combination of flesh and skin with or without accompanying bone, derived from the parts or whole carcasses of chicken or a combination thereof, exclusive of feathers, heads, feet and entrails.
Initially, Drools catered to a B2B market, but with India’s pet ownership growing at an 11% annual rate and the rising awareness of pet nutrition, Drools quickly pivoted to a D2C model, and the rest is history!
🔷 INR 500 Cr revenue in FY23
🔷 INR 4900 Cr valuation as of February 2024
🔷 38% market share in volume
🔷 17% market share in value
🔷 70% CAGR between FY20 & FY22
The growth journey of Drools is a case study in itself.
Drools operates three manufacturing facilities in India, selling around 5,200 tonnes of pet food a month.
But it’s not just about volume. Drools ensures that every ingredient used meets the highest standards of nutrition and safety. This commitment has helped Drools build trust among pet owners.
“Pet owners today treat their pets as family, and they want to provide them with the best,” says Shashank Sinha, CEO of Drools. “This trend towards grain-free and garden-inspired pet food is on the rise, and Drools is perfectly positioned to meet this demand.”
While pet ownership was always blooming in metro cities, a huge opportunity afloat in India’s smaller cities like Bhubaneswar, Patna, Guwahati, and Surat.
More than 90% of pet owners in these areas either preferred home-cooked food for pets or did not have the option to buy good-quality packaged foods for their pets.
And, Drools jumped right into this opportunity!
They expanded their distribution network, covering over 34,000 points of sale, both online and offline, ensuring that pet parents from every corner of India have access to their products.
While dogs still account for a larger portion of the Indian pet food market, the cat segment has exploded—jumping from 15% of the market before COVID-19 to 35% today.
Drools capitalised on this trend by expanding its range of cat food, from kitten-specific formulas to adult cat nutrition.
In cities like Mumbai, 65% of revenue from pet-related products now comes from the cat category.
Drools’ partnership with celebrities like Hrithik Roshan, Kareena Kapoor Khan, and Kartik Aryan, amongst others isn’t just for glamour—it’s a strategic move that has helped them claim a larger market share.
“Celebrity endorsements can be incredibly influential in India,” says Shashank. “But we make it a point not just to sell the brand, but also to enlighten our customers about the importance of proper pet nutrition.”
These campaigns have helped raise awareness about packaged pet food.
With 90% of its business coming from online channels, Drools has mastered the art of digital marketing. Their collaboration with Amazon has been a game-changer, allowing them to reach pet parents across India, from metro cities to smaller towns.
Drools has also embraced quick commerce, working with quick-commerce platforms to cater to last-minute pet food orders.
This focus on digital has allowed Drools to spend 11% of its revenue on marketing, primarily on digital platforms, where they see better returns compared to traditional mass media.
Drools isn’t just focused on India—the company already exports to 22 countries, including the UAE, Australia, and Israel.
The ambition is clear: become a unicorn within the next two years. And with the pet-care market growing at a CAGR of 16.5% until 2030, Drools is on the right track.
What do you see at Indian airports? The same monotonous black, brown, red suitcases on conveyor belts.
But every now and then, you’ll spot something that stands out—sleek, stylish, and unmistakably Mokobara.
Founded in 2020 by Sangeet Agrawal and Navin Parwal, Mokobara is on a mission to disrupt India’s luggage market with thoughtfully designed, stylish, and functional travel gear.
From humble beginnings to generating ₹100 Cr in revenue in FY24, Mokobara’s rise has been nothing short of phenomenal.
🔷 Valued at almost INR 700 Cr as of March ‘24
🔷 INR 100 Cr raised in a Series B round
🔷 35,000+ products sold every month
🔷 20+ retail stores
The question is how did they grow so much, so fast, in a market that’s been historically dominated by legacy players like VIP, Samsonite, and Safari?
Two words – guts and design!
Let’s dig in?
Before Mokobara, Sangeet had a stint at Urban Ladder in product development. Meanwhile, Navin comes with experience in design at Uber and WeWork. As we see it – complementary skill sets and a perfect match!
The early prototypes were mostly met with muted responses, and those who responded, said ‘These toy-like designs won’t fly. So weird!’
Unfettered, the founders iterated multiple prototypes before finally launching their first products in January 2020. And then, just as they were ready to soar, the pandemic hit, decimating the travel industry.
India’s luggage market, valued at approximately INR 50,000 Cr, is filled with homegrown brands like VIP and Safari on one end and international giants like Samsonite on the other.
“Not much innovation has happened in this category,” says Agrawal. “People care about their airport look—shoes, clothes, even headphones—but luggage? It was always an afterthought.”
Mokobara filled that gap with bags that weren’t just practical but also designed to be flaunted.
With products ranging from INR 5,000 to INR 15,000, Mokobara positioned itself between the budget players and luxury brands, offering thoughtfully-designed products with a strong aesthetic appeal. Their product lineup includes luggage, backpacks, totes, travel accessories, and handbags.
At the core of Mokobara’s success lies its design philosophy.
From the beginning, the founders teamed up with London-based design agency Morrama to create their first product—a sleek cabin bag that combined functionality with minimalist aesthetics.
Their design philosophy is rooted in Lagom, the Swedish principle of “not too much, not too little.” It’s evident in every detail of their products:
☑️ Japanese Hinomoto wheels that glide smoothly even on rugged surfaces
☑️ A reinforced hard shell that doesn’t compromise on style
☑️ A signature yellow lining inside every bag
☑️ [Optional] thoughtful touches, like a USB port and laundry bags in suitcases
“We want our customers to experience joy when they open our bags,” said Navin, reflecting on the signature yellow lining—something they decided to implement even after research suggested it wasn’t practical.
In one of their standout partnerships, they teamed up with IndiGo airlines to create a special edition Moko 6E luggage line.
The bags, in IndiGo’s signature blue, allow customers to carry an extra 2 Kg of baggage on IndiGo flights—a clever way to enhance customer value.
The response? Overwhelming!
Existing customers came back to buy the limited-edition products, and Mokobara’s brand visibility soared.
This collaboration was about positioning Mokobara as a travel lifestyle brand, not just a luggage company.
From shipping 200 units in their first month to selling 35,000 units per month by FY24, Mokobara’s growth trajectory has been staggering.
In FY22, the brand reported INR 12 Cr in revenue, which leapt to over INR 100 Cr by FY24—an eightfold increase!
“We’re now at an annual revenue run rate of INR 200 Cr,” said Agrawal hinting that they will soon be EBITDA-positive.
Mokobara’s expansion into lifestyle products like backpacks and handbags has also played a critical role, with lifestyle accessories now contributing 45% of their sales.
For them, staying ahead of the competition means doubling down on innovation and expanding the product portfolio (they’re eyeing handbags and kids’ products.)
Again through design, and offering offers that competitors can’t keep pace with!
Mokobara started as an online-first D2C brand, selling exclusively through their website. However, recognising the Indian consumer’s affinity for “touch and feel”, the brand ventured offline, starting with opening two stores in Bengaluru, and then 20+ across various pin codes in India.
The founders are laser-focused on expanding their retail footprint, with plans to open 100+ stores across India in the coming years.
What started as a humble idea in a Bengaluru cafe has grown into a category-disrupting brand on the path to making INR 200 Cr in annual revenue.
“We never called ourselves a luggage company. We’re a travel fashion and lifestyle brand,” said Sangeet, confident that Mokobara’s best days are ahead.
The question now is: Can Mokobara continue soaring in an increasingly competitive landscape with the likes of UpperCase, Assembly, and other players making inroads into the segment?
It was 2018 and Gaurav Zatakia had already spent nearly a decade working at Hush – his family business that was also a leading B2B mattress supplier.
During his time at Hush, Gaurav frequently received calls from people enquiring from where they could buy the hotel-quality mattress for their homes.
These calls planted a seed in Gaurav’s mind – why not supply to this strong demand for high-quality mattresses in the consumer market?
The lightbulb sparked!
For Gaurav, building a high-quality mattress wasn’t the problem – distribution was. Traditional channels were bloated with middlemen who were driving mattress prices to unaffordable levels.
One way to keep pricing under control was to leverage the power of a D2C distribution model. So, Gaurav envisioned a brand that could offer luxury-quality mattresses at affordable prices.
So he did!
Here’s by how much he reduced pricing 👇
But, Gaurav did not stop here. He went on to develop distinct product moats, and Flo is standing on those legs today, thriving with:
🔷 INR 127 Cr in FY23 (from INR ~70 L in FY20)
🔷 2.5 Lakh lifetime users
🔷 4.5 Lakh Products Sold
🔷 250+ SKUs
In this edition of The D2CX Newsletter, we’ll explore the product moat and growth pillars of Flo!
First and foremost USP – Quality!
Flo’s Stress Release™ technology minimises painful pressure points and improves blood circulation, ensuring deeper, and restful sleep. In the heart of every Flo mattress is the Flo Responsive foam that responds precisely to pressure while maintaining optimal support.
The foam is infused with white gel micro-capsules that absorb body heat and release it through the 3D Air-Flo™ Technology, keeping sleepers cool throughout the night.
The brand offers four mattress options, but the most popular are Ortho™ for medium-firm support (ideal for back sleepers) and the Ergo™ for plush comfort (best for side sleepers).
That’s not all – Flo was one of the first brands to launch adjustable pillows that were indeed comfortable.
Just remove a layer of foam, and the height of the pillow changes. Brilliant!
The secret lies in their customer-first approach and the way they’ve leveraged D2C strategies to maximise growth. We promise this growth playbook is interesting!
As a D2C brand, Flo relies heavily on digital marketing channels like Facebook, Instagram, Google Ads, and YouTube to reach customers. But they don’t just use these channels for flashy ads—they focus on educating consumers about the benefits of good sleep through blog posts, YouTube videos, and social media content.
User-generated content boosts social proof. They encourage satisfied customers to leave reviews and post testimonials, which they highlight across their digital platforms. With a 4.8-star average rating, these reviews have become a cornerstone of Flo’s marketing strategy.
✔️ Post-Purchase Engagement: After customers purchase a Flo mattress, the brand doesn’t just stop communicating. They send follow-up emails with tips on how to set up the mattress, optimise sleep, and care for their product.
✔️ Upselling & Cross-Selling: To encourage repeat purchases, Flo has expanded its product line to include pillows, mattress protectors, and other sleep accessories.
✔️ Freebies For Customers: Well, you can get a Flo eye-mask for free just by subscribing to their newsletter.
We have subscribed, will you?
Acquisition is essential, but retention is the holy grail!
It is only through retention that customer LTV can be improved, which further impacts ROI in an incremental manner!
That’s exactly how Sulay Lavsi scaled the annual revenue of his D2C underwear brand ‘Bummer’ from INR 60 Lakhs to INR 12 Cr in just 2 fiscals.
Sulay launched Bummer in 2021 with an intention to make underwear mainstream, infusing cool designs and enhancing comfort. What he did not know was, with in 3 years of launch, Bummer will be thriving with:
🔷 INR 12+ Cr Revenue In FY24
🔷 INR 40+ Cr Valuation
🔷 3 L+ Active Customers
You read that right – 22X ROI.
But there’s more – this number was achieved in just four months without any extra spending on new customer acquisition.
Top Layer: Pre-Acquisition Engagement
Engage customers at the right time.
Before a customer makes their first purchase, Bummer focuses on engaging them early in the buying journey. Here’s how they do it:
☑️ Behavioural Tracking: Bummer tracks website visitors and strategically retargets those who show high intent (e.g., repeat visits to specific product pages). They use WhatsApp and SMS to gently nudge these potential buyers toward a purchase with personalised messages and offers.
☑️ Abandoned Cart Reminders: Many D2C brands send generic cart abandonment emails, but Bummer takes it a step further by sending personalised marketing communications based on the product the customer left behind.
Once a customer makes their first purchase, Bummer focuses on building trust and creating brand loyalty. Here’s how they nurture customers during this phase:
☑️ Product Usage Tips: After the purchase, customers receive communications with tips on how to get the best out of their Bummer products. Whether it’s care instructions or styling tips, this builds trust and positions the brand as customer-centric.
☑️ Community Engagement: Bummer regularly highlights customer stories on social media, creating a sense of community around their brand. This increases engagement and makes customers feel like they’re part of something bigger.
Moreover, regular buyers receive personalised offers, while those who hadn’t purchased in over three months are sent reminders of special discounts.
Time-sensitive messages in the final hours of the campaign are crucial to driving FOMO, which in turn triggers impulse purchasing.
How?
☑️ Exclusive Offers: Bummer offers exclusive discounts to repeat buyers through personalised emails. These are typically sent out shortly after the first product is delivered.
☑️ Cross-Selling and Upselling: Bummer leverages purchase data to recommend related products to customers. For example, if someone buys a pair of quirky printed boxers, they might be targeted with an offer for matching socks or loungewear in the next campaign.
The result? A 60% uplift in revenue from repeat customers and 22X ROI.
Bummer’s appearance in the first season of Shark Tank India gave them the visibility they needed to scale even faster. Sulay was able to secure INR 75 L from Namita Thapar and Aman Gupta in exchange for 7.5% equity.
🔷 Massive Brand Exposure: Shark Tank India gave Bummer national visibility overnight.
🔷 Consumer Trust: Namita Thapar’s investment served as a vote of confidence, adding credibility to the brand. This helped Bummer win over new customers who might have been hesitant to try a relatively new D2C brand.
The Sharks Are In For Hefty Returns!
According to a Bain & Company study, increasing customer retention rates by just 5% can increase profits by 25% to 95%.
For Bummer, focusing on retention allowed them to grow exponentially without constantly having to pour money into customer acquisition.
Ask yourself this: are you focusing enough on retention, or are you still chasing acquisition at all costs?
While the D2C revolution has dramatically reshaped several industries—BPC, fashion, and even home decor, jewellery remains undeterred to a great extent.
In 2023, 2.32% of all jewellery sales were attributed to online channels.
What’s interesting is until CaratLane entered the jewellery space in 2008, online jewellery sales were practically non-existent in India.
This edition of The D2CX Newsletter is dedicated to the “why” behind the aforementioned notion!
We’ll further dive deep into why offline experience centres have become crucial for D2C jewellery brands to not just survive, but thrive in the first place!
Trust is everything in the jewellery business, and that’s where the biggest hurdle lies for online jewellery brands.
While BIS Hallmarking and certifications from leading gemmological institutes like GIA have given online jewellery platforms some credibility, they haven’t entirely replaced the consumer’s need for physical assurance.
Reportedly, 65% of consumers prefer to physically inspect jewellery before making a purchase.
Even though certifications validate the authenticity of gold and diamonds, they don’t consumer concerns about appearance, weight, design, and, more importantly, don’t establish an emotional connection.
This is especially true for items like engagement rings, bridal sets, or heirloom pieces, where consumers seek a personal connection with the product.
To cite an example, Tanishq offers BIS-hallmarked jewellery online, but the brand’s major sales come from its offline presence with over 350 stores across India
To mitigate the trust deficit, several D2C jewellery brands like CaratLane, Bluestone, and Melorra have started investing in offline experience centres.
According to a 2022 report from RedSeer Consulting, 70% of D2C jewellery brands that operate both online and offline experience 20% higher sales conversions in offline stores as compared to their online channels.
By giving customers the tactile experience of trying on a piece of jewellery, brands address the inherent trust issues associated with online shopping.
This hybrid model has worked wonders for CaratLane, which, despite being a digital-first brand, has opened over 250 retail stores across 80 cities in India and reports that 45% of its revenue now comes from offline channels.
Let’s face it—jewellery shopping is a high-involvement purchase. Whether it’s buying a piece for an engagement, wedding, or anniversary, consumers are looking for personalised recommendations.
And, no AI chatbot or assistant can beat the human touch on this front!
Salesmen at offline centres play a vital role in understanding customer preferences and upselling higher-ticket items or even suggesting complementary pieces – more premium designs, customisation options, or add-ons.
Additionally, in a brick-and-mortar setting, consumers are more likely to make impulse purchases when exposed to a wider variety of options.
Loyalty programs that offer points, discounts, and special services work best when customers feel a strong connection to the brand, and that connection is often forged in an offline setting.
The in-person shopping experience allows brands to build a rapport with their customers, who then become more likely to enrol in loyalty programs or return for future purchases.
Reportedly, 78% of consumers who engage in a positive offline experience are more likely to become loyal customers compared to those who only shop online.
Therefore, brands like CaratLane and Bluestone are integrating personalised loyalty programs at their offline centres, offering exclusive benefits to repeat customers.
✔️ Early access to new collections
✔️ Invitations to jewellery events
✔️ Special discounts on customisations
While online shopping has revolutionised several categories, D2C jewellery brands still can’t solely rely on internet to build a sustainable business. For them, the road to success is paved with the human touch and in-store experiences that foster long-term customer loyalty.
What do you think? Will this trend change?
Let’s put the spotlight on sportswear & athleisure, a segment that’s expected to exceed INR 40,200 Cr by 2025!
Tell us a few brands that come to your mind – Nike, Puma, Adidas, Reebok, Fila?
Did HRX creep in too?
It certainly should. Here’s why! 👇
Below are the penetration rates of the leading sportswear and athleisure brands in India from 2012 to 2013. (Source)
Back in 2012, when international players were completely dominating the Sports & Athleisure segment in India, Hrithik Roshan along with Sid Shah, Afsar Zaidi, and Kamal Punwani laid the foundation stone of HRX and took the segment by storm.
Extensive focus on marketing—strategically leveraging Hrithik Roshan’s star power while focusing on long-term brand building, community engagement, and innovative partnerships.
Let’s dive in?
Celebrity endorsements aren’t new, but so many brands have not been able to crack the code. What sets HRX apart is how seamlessly the brand aligns with Hrithik Roshan’s own lifestyle.
Pallavi Barman, HRX’s Chief Strategic Advisor, once mentioned in an interview, “People trust HRX because they see Hrithik not just as a brand ambassador but as someone who lives and breathes the HRX lifestyle.”
Unlike other celebrity brands that fall back on fame alone, HRX’s marketing is centred around Roshan’s genuine passion for fitness. This personal alignment has helped build a strong emotional connection with consumer cohorts.
A 2022 report from Business Insider showed HRX had raked in ₹350 Cr within its first fiscal year through Myntra alone.
HRX isn’t just selling apparel—it’s selling philosophy.
HRX’s campaigns focus on customer stories, featuring real people who embody the HRX spirit. This personal touch resonates deeply with consumers, creating a sense of community and loyalty. It’s not just about buying workout gear—it’s about buying into a mindset.
In a market saturated with brands like Nike and Adidas, HRX found its niche by making fitness more accessible and relatable – they organised marathons, yoga sessions, you name it!
With 253,000 followers on Instagram, HRX has effectively leveraged social media to engage its audience. The brand uses Hrithik Roshan’s star power, engaging influencers, and user-generated content to build a loyal fan base.
🔷 Content Focused on Fitness & Community: HRX’s posts feature workout tips, motivational messages, and product highlights—all aimed at inspiring their community to get moving.
🔷 User-Generated Content: HRX actively encourages customers to share their fitness journeys using its gear, further boosting credibility. Featuring real customers makes the brand relatable, showing that HRX is for everyone.
☑️ The Mass-Premium Play: Simple – offer high-quality activewear at a price point accessible to the average Indian consumer, and win the market share. While global brands command premium pricing, with ASP (Average Selling Price) as high as INR 4000 per product, HRX appeals to a broader audience with an ASP of around INR 1600 per product.
☑️ Local Understanding: From climate-appropriate fabrics to culturally resonant designs for the Indian market, HRX connects with Indian consumers really well.
☑️ Expanding Portfolio: Recognizing the growing athleisure trend, HRX expanded its offerings to include joggers, hoodies, smart wearables, and sneakers, which can be worn casually as well as during workouts.
Beauty & Personal Care (BPC) is the fastest-growing e-commerce segment in India, according to Inc42’s State of the Indian E-Commerce Report [H1 2024].
🔷 INR 2,32,000 Cr+ market opportunity by 2030
🔷 INR 9,000 Cr+ raised by BPC startups from 2014 to Q1 2024
🔷 INR 620 Cr+ market opportunity for AI-powered BPC by 2030
🔷 INR 78 Cr+ median ticket size for BPC funding rounds in Q1 2024
Clearly, the BPC space is brimming with potential; ergo, it’s no surprise that over 68 startups have entered the fray since 2014, competing for a slice of this massive market.
In this edition of The D2CX Newsletter, let’s understand what separates the winners from the rest in the BPC industry.
When we put successful D2C brands in the BPC industry under the microscopic lens, we noticed all of them have one thing in common – they’ve aced Brand Narrative, Product Experience, and Pricing Strategy!
And this makes sense, right?
It’s imperative for these 3 factors to work in harmony for long-term success. Here’s how 👇
✔️ Brand Narrative drives initial discovery and helps consumers to connect with the brand
✔️ Product Experience delivers on the promises made in the brand narrative and ensures consumers keep coming back
✔️ Pricing Strategy strikes the balance between affordability and exclusivity, and strengthens market positioning
Brand narrative isn’t just a backstory—it’s the key that resonates with potential consumer cohorts and makes them choose a product over the 20 other options on Nykaa, Amazon, or any other marketplace.
Why & How?
Nykaa’s Beauty Summit Report 2024 reveals consumer preference is increasingly being influenced by authentic brand stories, ingredient transparency, and a mission.
The democratisation of the internet in India has made social media a major marketing platform for BPC brands. 520 Mn social media users in India alone, that’s correct!
And, how are successful D2C brands leveraging the social media gold mine?
Well, they are generating trust and loyalty by establishing relatability with consumer cohorts, telling them compelling stories.
Also, another report reveals 88% of consumers, especially millennials and Gen Z, say authenticity is the key factor when deciding which brands to buy from. This is where brand narrative becomes key!
Take Mamaearth’s focus on natural ingredients and environmental sustainability for example. This brand narrative resonated with young, eco-conscious consumers, playing an instrumental role in skyrocketing their brand to INR 1,000 Cr+ revenue in FY23.
Consumers prioritise quality over price when it comes to beauty products. This means a product has to do more than make for a viral Instagram story!
How Are Leading Brands Cracking The Product Experience Code?
✔️ Innovative Product Formulation
SUGAR Cosmetics innovates with its long-lasting, high-pigment formulas for Indian skin tones, making it a cult favourite and driving 40% sales from repeat customers.
✔️ Packaging As An Experience
Brands like Juicy Chemistry are known for their eco-friendly, biodegradable packaging, further reinforcing their sustainable ethos.
✔️ Innovative Formulas
The Sleep Company, though a mattress brand, amplifies its core offering with a sleep-inducing aromatherapy range as part of its BPC extension.
In a price-sensitive market like India, getting your pricing right is crucial. However, pricing shouldn’t just be about being cheap—it’s about delivering value at the right price point.
The challenge? Balancing affordability without sacrificing quality.
🔷 Premium pricing strategies can work if backed by superior product quality and transparent brand communication.
Consumers, particularly in Tier 1 and 2 cities, spend on products that align with their values (e.g., cruelty-free, organic, etc.)
🔷 Brands like L’Oréal and Estée Lauder have mastered the art of positioning premium products while justifying the higher price tag with superior results.
Brands like mCaffeine offer mid-range products and boost sales by running limited-time offers and encouraging cross-selling through value-driven bundles.
Finally, it boils down to whether or not the brand is creating value for the consumer and justify the pricing of its products. If yes, the brand wins!
That’s the gist.
Reportedly, the jewellery market in India is worth INR 7,00,400 Cr, and contributes:
🔷 7% to GDP
🔷 15.71% to total merchandise exports
That’s how big the jewellery segment is.
Here’s something interesting ➡️ in 2023, only 2.32% of all jewellery sales were attributed to online channels – that’s a major jump, considering online jewellery sales were practically non-existent in India 15 years back!
In 2008, Mithun Sacheti and Srinivasa Gopalan launched CaratLane aiming to revolutionise the way Indians shop for fine jewellery.
The mission was clear—go digital, eliminate middlemen, and offer price transparency in a traditionally opaque industry.
Fast forward to 2024, CaratLane is thriving. Amazing milestones, we must say!
🔷 INR 3000+ Cr revenue in FY24
🔷 Fully acquired by Titan
🔷 250+ retail stores across 80+ Indian cities
Without further ado, let’s break down the growth playbook of CaratLane!
Mithun, with roots in the jewellery business (his family owned Jaipur Gems), had insider knowledge but wanted to modernise the industry by selling jewellery online. So, he pioneered a tech-first, consumer-centric approach!
The biggest hurdle that Mithun jumped was winning over consumer trust, which he did through:
✔️ Transparency: Every CaratLane piece is BIS-hallmarked and GIA-certified for diamonds, ensuring quality and authenticity
✔️ Virtual Try-On: An AR-powered feature allows customers to virtually try ear-rings and some other jewellery before purchase, boosting engagement rates by 50%
✔️ Try at Home: Customers could try up to five pieces at home for free, leading to an impressive 25% conversion rate
And just like that, by 2016, CaratLane was already a well-established name, growing at a rapid clip.
Then came a defining moment when Titan stepped into the picture. An acquisition!
Titan Company, a part of the Tata Group, acquired a controlling stake in CaratLane for around INR 357 Cr, valuing the company at INR 720 Cr.
While CaratLane was on a rapid growth trajectory, this acquisition further accelerated its growth journey, creating the perfect synergy between Titan’s offline dominance and CaratLane’s digital prowess.
Titan, with its Tanishq brand, was already a market leader in India’s organised jewellery sector. But the world was rapidly shifting online, and Titan wanted a bigger piece of the digital pie. CaratLane presented a perfect strategic acquisition for multiple reasons:
Unlike traditional jewellery brands, CaratLane was built on a tech-first model. This gave Titan access to not just an online platform but a robust digital infrastructure that could be integrated into their existing operations.
By 2016, CaratLane had successfully captured the attention of millennial customers, who are more inclined toward purchasing jewellery for daily wear, which was crucial for Titan’s long-term growth.
Titan had a strong offline presence, while CaratLane excelled online. The acquisition allowed Titan to merge these two channels and create an omni-channel strategy, enhancing both companies’ reach.
CaratLane’s Perspective: They Said Yes!
Titan had decades of experience in offline retail and helped CaratLane expand its physical presence. Today, 45% of CaratLane’s revenue comes from its 250+ retail stores.
Additionally, Titan’s manufacturing capabilities, supply chain, and brand equity enable CaratLane to grow at a much faster rate!
Despite their efforts, CaratLane still faced a degree of consumer hesitancy when it came to making high-value purchases online. Partnering with Titan, a trusted household name, instantly provided the trust validation CaratLane needed.
In a candid interview, Mithun shared, “While we were growing fast, being a part of the Tata Group helped us unlock growth faster. We could leverage their offline retail expertise and credibility to penetrate even deeper into the market.”
The Titan-CaratLane partnership proved to be a match made in heaven.
✔️ Revenue Push: From a mere INR 60 Cr in FY16, CaratLane’s revenue skyrocketed to over INR 3000 Cr in FY24, with 30% YoY growth.
✔️ Titan’s Digital Play: With CaratLane’s expertise, Titan accelerated its own digital transformation. Today, 20% of Tanishq’s sales are driven by online channels, a number that was negligible in the pre-CaratLane acquisition phase.
✔️ Tier 2 & 3 Expansion: CaratLane aggressively expanded into Tier 2 and 3 cities, areas where Tata’s trust factor is instrumental in consumer purchasing decisions.
As CaratLane continues to ride the omni-channel wave, it’s clear they have mastered the art of staying relevant and doing the needful to gain a competitive edge.
A few more carats on CaratLane’s crown, maybe?
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