D2C brands bet on revenge shopping to drive festive sales

While large ecommerce brands and companies are gearing up for their flagship festive season sales, D2C brands have also worked out strategies to make the most of the season.
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As ecommerce giants Flipkart and Amazon gear up to make the most of an anticipated rush of revenge shopping during this year’s festive season, direct-to-consumer brands too are aggressively pursuing their own strategies to woo customers.

The COVID lockdown got more people shopping online, with many exploring D2C options, especially in the personal care segment. A Google India report shows search interest in D2C brands rose by as much as 533% during the period.

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

“The 2022 festive season is shaping up to be a much-anticipated one for online and new-age brands, as this is the first year since the pandemic that the consumer buying sentiment has been extremely upbeat,” said Chaitanya Ramalingegowda, Director and Co-founder, Wakefit, a D2C home furnishing brand. “With pent-up demand and the opening up of travel and leisure, the phenomenon of revenge spending is expected to drive up demand this season.”

The Sequoia-backed startup clocked Rs 410 crore in revenue in FY21, up from Rs 197 crore in the year prior. 

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

“This festive season we expect to see more merchants use 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

Homegrown consumer electronics company boAt is ushering Diwali with a new line of products.

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

Personal care, apparel and furniture brands are also preparing to cash in on an anticipated increase in sales.

Mother and baby-focused brand The Moms Co. is launching a ceramides range in its skincare portfolio. Manish Malhotra Beauty, a skincare and cosmetics brand, is also set to launch a high-end, professional line-up of base makeup products.

“Our recently-launched GenZ makeup brand POPxo will be coming up with their lip balm, while MyGlamm will be releasing the LIT Matte About It Lip Colour range that will have 12 SKUs (stock keeping 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. The group’s revenue grew 5x in FY22, and is eyeing 3x growth in FY23. 

“In terms of key trends, consumers have become more conscious of their choices,” Sukhleen added. “They are opting for inclusive beauty brands that are cruelty-free, vegan, and environment-friendly. When it comes to makeup, skincare in makeup is a big demand. Consumers are keen on purchasing products made with natural good-for-you formulas.”

A new look and a new home

“We expect a significant boost in categories like sleep, home, and furnishings from both metros and non-metros, as families unite to celebrate festivals and get-togethers across the country,” said Chaitanya of Wakefit.co. 

“Online sales will most likely see a huge surge, as discount shoppers look to high-quality yet affordable brands for budget-friendly gifting ideas and improvements to their homes.”

YourStory reported earlier that industry experts anticipate a growth of 20-25% in gross merchandise value (GMV), or the total value of sales, on ecommerce platforms for the second half of this calendar year.

“The rise in consumer segments like 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, furnishings, and home decor,” added Chaitanya.

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

“We foresee a 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 significantly higher sales than in any previous year. 

“We are expecting a 2x growth across brands in the next 3 months,” Sukhleen said.

Edited by Affirunisa Kankudti

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