D2C brands bet on revenge to boost festive sales

As e-commerce giants Flipkart and Amazon prepare to make the most of an expected rush of revenge during this year’s holiday season, direct-to-consumer brands are aggressively pursuing their own strategies to pursue customers.

The COVID lockdown pushed more people to shop online, with many exploring D2C options, especially in the personal care segment. A Google India report shows that search interest in D2C brands increased by a whopping 533% over the period.

To build on their pandemic-driven growth, startups such as boAt, Wakefit and The Good Glamm Group are expanding their technical support functions and building capacity, inventory and teams.

“The 2022 festive season will be a highly anticipated season for online and new age brands as this marks the first year since the pandemic that consumer buying sentiment is extremely optimistic,” said Chaitanya Ramalingegowda, director and co. -founder, wake fit, a D2C home furnishing brand. “With the pent-up demand and the opening up of travel and leisure, the phenomenon of revenge spending is expected to drive demand this season.”

The Sequoia-backed startup achieved revenue of Rs 410 crore in FY21, up from Rs 197 crore in the previous year.

Instamojo, a startup that helps small businesses and D2C players build and manage their businesses, has also noticed a rising demand for logistics support and technical solutions on its platform.

“This festive season, we expect more merchants to take advantage of the logistics services offered on the platform, with an expected 80% increase in merchant onboarding over this period,” said Sampad Swain, CEO and co-founder of Instamojo.

Make way for new brands

Domestic consumer electronics company boA is ushering in Diwali with a new product line.

“We plan to launch 12-15 products across our portfolio of audio products and wearables during the holiday season,” said Vivek Gambhir, CEO of boAt Lifestyle . “We will also be launching two ‘Make in India’ soundbars this Diwali season. We plan to produce 6 million units in H1FY23 under the ‘Make in India’ strategy.”

Personal care, apparel and furniture brands are also gearing up to take advantage of an expected increase in sales.

Mother and baby focused brand The mothers co. launches a range of ceramides in its skincare portfolio. Manish Malhotra Beauty, a skincare and cosmetics brand, is also set to launch a high-end, professional lineup of basic makeup products.

“Our recently launched GenZ makeup brand POPxo will come with their lip balm, while MyGlamm will release the LIT Matte About It Lip Color range with 12 SKUs (inventory management units or product lines,” said Sukhleen Aneja, CEO, Good Brands Co, a unit of The Good Glamm Group.

The content-to-commerce platform grew from 600,000 customers in FY21 to four million in FY22. Group revenue grew 5x in FY22 and expects 3x growth in FY23.

“In terms of key trends, consumers have become more aware of their choices,” Sukhleen added. “They choose inclusive beauty brands that are cruelty-free, vegan and environmentally friendly. When it comes to makeup, skin care in makeup is a big question. Consumers like to buy products made with natural formulas that are good for you.”

A new look and a new home

“We expect a significant boost in categories such as sleeping, home and furniture from both subways and non-subways as families unite to celebrate festivals and get-togethers across the country,” said Wakefit.co’s Chaitanya.

“Online sales are likely to see a massive surge as discounters look to high-quality yet affordable brands for budget-friendly gift ideas and home improvements.”

your story Previously, industry experts reported that industry experts expect a 20-25% growth in gross trade value (GMV), or total value of sales, on e-commerce platforms for the second half of this calendar year.

“The rise of consumer segments such as DINKs (Double Income No Kids) and nuclear families has led to an increased focus on the home. This has resulted in higher investments in functional and aesthetic furniture, furniture and home decor,” said Chaitanya.

boAT CEO Vivek said the company sees healthy growth in wearables demand and expects this momentum to continue.

“We foresee strong consumer demand and a good festival season ahead. Watch-based wearables and the TWS (true wireless stereo) category are growing at a rapid pace,” he adds.

Sukhleen of Good Brands Co added that the company expects this festive season to be a record season for beauty and personal care with sales significantly higher than any other year.

“We expect 2x growth between brands in the next 3 months,” said Sukhleen.

Edited by Affirunisa Kankudti

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