D2C brands bet on revenge shopping to boost festive sales

As e-commerce giants Flipkart and Amazon prepare to make the most of the anticipated rush of revenge shopping this year’s holiday season, direct-to-consumer brands are also aggressively pursuing their own strategies to woo consumers. clients.

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

To capitalize on their pandemic-induced growth, startups such as boAt, Wakefit, and The Good Glamm Group are bolstering their tech support functions as well as building capacity, inventory, and teams.

“The 2022 holiday season promises to be highly anticipated for online and new-age brands, as it is the first year since the pandemic that consumer buying sentiment is overwhelmingly optimistic,” said Chaitanya Ramalingegowda, Director and co. -founder, Wakefit, a D2C furniture brand. “With pent-up demand and the opening up of travel and leisure, the phenomenon of revenge spending is expected to drive demand higher this season.”

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

Instamojo, a startup that helps small businesses and D2C players build and run their businesses, has also seen an increase in demand for logistics support and technology solutions on its platform.

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

Make way for new brands

Local consumer electronics company boAt is kicking off Diwali with a new line of products.

“We expect to launch 12-15 products in our audio and wearable product portfolio 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 expect to manufacture 6 million units in the first half of FY23 under the “Make in India” strategy.

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

Brand focused on mother and baby The Company of Moms. launches a line of ceramides in its skincare portfolio. Manish Malhotra Beauty, a skincare and cosmetics brand, is also set to launch a high-end professional line of basic makeup products.

“Our recently launched GenZ makeup brand POPxo will offer its lip balm, while MyGlamm will launch the LIT Matte About It Lip Color range which will have 12 SKUs (stocking units or product lines), said Sukhleen Aneja, CEO, Good Brands Co, a unit of The Good Glamm Group.

Content-in-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 go for inclusive, cruelty-free, vegan and eco-friendly beauty brands. When it comes to makeup, skin care in makeup is a big demand. Consumers are eager to buy products made with healthy natural formulas. »

A new look and a new home

“We expect a significant increase in categories like sleep, home, and metro and non-metro furnishings, as families come together to celebrate festivals and get-togethers across the country,” a said Chaitanya of Wakefit.co.

“Online sales will most likely see a huge boost as discount shoppers turn to high-quality yet affordable brands for budget-friendly gift ideas and home upgrades.”

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

“The rise of consumer segments like DINKs (Double Income No Kids) and nuclear families has led to an increased focus on the home. This has led to increased investment in functional and aesthetic furniture, furnishings and interior design,” Chaitanya added.

boAT CEO Vivek said the company is seeing healthy growth in apparel demand and expects that momentum to continue.

“We anticipate strong consumer demand and a good festival season ahead. Wearables based on watches and the TWS (true wireless stereo) category are growing at a rapid pace,” he adds.

Good Brands Co’s Sukhleen added that the company expects this festive season to be a record season for beauty and personal care with sales significantly higher than previous years.

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

Edited by Affirunisa Kankudti
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