How this entrepreneur built a multi-crore women's handbag brand in two years
The pandemic helped many small businesses begin a new journey. While some adopted tech innovation, others pivoted to online sales and saw their business grow. The fashion world also widely benefited. Right from apparel and jewellery to footwear and accessories, the industry witnessed all-time high sales during this period.
Capitalising on this growing demand was, a Gurugram-based fashion startup that was started in 2019 right before the coronavirus pandemic hit the country.
“We are born out of the pandemic,” says Mohit Jain, Founder of Miraggio.
Operating in a market dominated by established brands like Caprese, Lavie, Baggit, etc., the handbag brand claims to be witnessing 50 percent month-on-month growth since inception, and Mohit claims the brand is now raking in a revenue of Rs 1.5 crore per month.
Mohit was 20 years old when he decided to walk the path of entrepreneurship. He was studying marketing in Canada when he started a small ecommerce business, trading consumer products between China and India, borrowing money from his father. Though this business journey did not continue for more than two years, he says it taught him a lot about entrepreneurship.
By the time Mohit completed his diploma from Canada and moved back to India, he decided to venture into a full-time business. But he was not sure which industry to pick.
“Fashion has always been my forte, but never had I thought of doing a business. After thorough research and understanding the Indian fashion market, I zeroed in on building a handbags brand to cater to women in the age group between 18-35, who yearn for fashion and trendy styles at an affordable range,” Mohit says.
Thus, he started Miraggio in 2019. Mohit says the business came into existence right before the pandemic, and for the first year and a half, all his time was dedicated to market and customer research.
“It was only in September 2021 that the business started picking up,” he adds.
Mohit claims that all the products are designed in-house and are manufactured through third-party factories located in China.
Till date, Miraggio has raked in Rs 11 crore in revenue, selling across marketplaces and via its own website, where the company is seeing 20 percent repeat customers.
Mohit says by March 2022, the company is targeting to close at Rs 1.5 crore revenue.
Market competition and challenges
According to Technavio, the handbags market in India has the potential to grow by $207.51 million during 2020-2025, and the market’s growth momentum will accelerate at a CAGR of 4.90 percent.
The demand is huge, says Mohit, adding that when he did his research before starting the company, he found that women want to spend money on trendy and fashionable handbags. However, premium brands like H&M and Mango, among others, which cater to this space, are quite expensive.
“There are brands that operate in the price point between Rs 2,000 and Rs 4,000, and Caprese, Lavie, Baggit, and others also go up. I wanted to introduce a brand in between these price ranges, bridging the gap between fashion and price,” he says.
Talking about the challenges, Mohit says the market is extremely competitive and with already established players setting firm foot and building customer trust is both challenging and rewarding.
Miraggio recently added more products like card cases and wallets, and in the next six to eight months, Mohit plans to introduce travel accessories and small leather goods as well.
“We are also planning to introduce products in slightly different and lower price ranges as well,” Mohit asserts.
For now, the company is bootstrapped with Rs 4 crore investment borrowed from Mohit’s father. However, the founder wants to raise funding and "focus on marketing the brand".