With a few days left in the year 2022, numerous segments of the industry can be seen to prep for 2023, after a stagnant period of 2 long years.
The significant surge in demand in the markets which are flooded with consumers cannot be denied and to understand the commotion among the brands this season, these brands give us an insight into their 2022 journey and their 2023 growth plans.
After a two-year gap, the summer season this year saw higher demand for cooling appliances, and then the festive season was an enabler for consumers to upgrade their appliances and initiated those purchases which were being postponed for a long time. Although inflation affected consumer sentiment in the mass segments, premium segments remained buoyant.
“We have witnessed growth in premium segments over mass segments across geographies and channels. For Godrej Appliances, the premium segment has grown over 100 percent in comparison to the pre-pandemic period FY 19-20; this growth rate is at par with the industry trend,” said Kamal Nandi, Business Head and Executive Vice President, Godrej Appliances.
Additionally, the brand has been witnessing more traction for appliances delivering higher convenience, larger capacities, and health-first innovative features with the latest technologies. To cater to this, it offered 100+ new product SKUs largely centered around premium products across categories-from side-by-side refrigerators to top-end automatic washing machines, double-door refrigerators, advanced air conditioners – and its new cooling solution InsuliCool.
Many of these premium offerings are health-first offerings, with patents applied – like the food disinfection technology in refrigerators, germ disinfection in washing machines, or the unique thermoelectric precision cooling for insulin, delivering greater health and convenience to its customers. Supported by the above, in FY 22-23, Godrej Appliances has achieved more than 66 percent growth over last year, at par with the industry growth rate.
The watch industry has constantly adapted to consumers' ever-evolving tastes. And this has been one of the prime drivers of the overall growth of the industry in 2022.
“We have seen a significant shift in shopper's behavior owing to trends such as post-covid revenge shopping, hybrid shopping (online and offline), to newer lifestyle trends and events that were offered in 2022, leading to a successful year in terms of growth and versatility. The Industry also witnessed Premiumization trends and higher per capita consumption in Top 8 Metro cities,” said Deepak Chhabra MD TIMEX Group India.
Watches are now fashion accessories and no more time-keeping devices. With this in mind, Timex introduced some of the Trendiest Fashion Forward collections throughout the year. In terms of growth, we saw a significant high double-digit year-on-year growth in 2022 because of product innovation, Targeted marketing strategies, network expansion, and digital marketing initiatives to increase the customer base. We are looking to take these trends & learning to 2023 along with continuing with our Consumer and Digital first approach.
All set to clock into the New Year 2023 with a more versatile collection, superior customer engagement, and an overall delightful experience for our consumers.
According to IBEF, India’s textile and apparel market size is expected to grow at a CAGR of 10 percent to reach $190 billion by 2025-26. The industry is one of the biggest contributors to the economy with a 5 percent contribution to the gross domestic product (GDP). It is also the second largest employer after agriculture, providing direct employment to 45 million people and 100 million people in the allied sector.
The last 2 years of Covid gave Woodland an opportunity to re-visit the drawing board allowing it to launch a series of lifestyle products. The brand has further expanded its customer base by targeting the younger audience with the launch of an exhaustive range of Athleisurewear and Canvas footwear collections since it received a good response to the offerings as part of the pilot project during the Covid period.
“The stagnancy due to Covid gave us some good time to review our business strategy and we managed to develop a first-of-its-kind omnichannel platform on our website that turned out to be a blessing in disguise since we were able to continue sales while fulfilling orders in spite of the fact that few markets were operational for limited hours during the Covid period. We further redefined the way, a brand can service customers; that was widely accepted and appreciated by our customers,” said Harkirat Singh, Managing Director, Aero Club (The makers of Woodland & WOODS).
For the year 2023, the brand aims to grow 15-20 percent and cross Rs 1200 crore revenue and aims to innovate and improvise in the upcoming year.
The brand was incepted in 2022 and in nearly eight months it has brought on four leading designer houses (Suneet Varma, JJ Valaya, Shivan & Narresh, and Tribe Amrapali) onto its platform, with one more launching very soon.
Having serviced over a few hundred clients, with 60 percent based out of India, and the remaining abroad, its base is firmly set. Aulerth is thus looking forward to an exciting 2023, aiming to grow its business to 6-7X on its current monthly run rate. The brand thus looks forward to bringing forth more innovation in the way it supports its clients via tailored services while bringing forth the first blocks of an omnichannel foundation.
“We are grateful to our early believers for their support of a much-needed journey that we need to undertake, that of leaving a legacy where preciousness is linked to the power of thought, finesse, and craftsmanship and not to the use of environmentally-destructive materials. We believe that ‘Change is Precious’, and in the near future, we see consumers embracing this notion in a more holistic manner,” said Vivek Ramabhadran, Founder and CEO, Aulerth.
Lea Clothing Co.
Lea Clothing Co. had an exceptionally great year in 2022, in its second year of existence it witnessed a year-over-year growth rate of 95 percent, with its customer base growing by a whopping 172 percent.
The brand undertook a large-scale, website personalization project with its partners, Algoscale, and developed its own AI-powered, recommendation engine that would provide a hyper-personalized shopping experience for Lea customers, allowing them to find their desired styles in the most efficient manner.
“Going into 2023, we plan to continue to prioritize innovation, both, in our products, and our services. We plan to further create and integrate cutting-edge fashion tech into our platform and venture into new verticals to expand our product offerings. We estimate our YoY growth to increase by at least 30 percent with our expansion onto new marketplaces,” said Lavanya Aneja, Founder, Lea Clothing Co.
Fully launched in 2022 aastey is an extension of its founders’ vision of creating an equal space for all women across the country. From being just an idea the brand is now a community of over 50k+ women who believe that there is joy in living in the moment and having a mindful life without putting unrealistic expectations on yourself.
The brand has not only bagged external funding of Rs 10 crore from Kalaari Capital but also launched multiple products in its activewear apparel collection as well as a varied range of accessories.
“In 2023, we intend to create a space where looking good is connected to feeling good. We will be working with a range of new fabrics to deliver the best designs to our customers, which will be comfortable, stylish, and sustainable. Next year, we are planning to launch a varied range of product categories with sweatshirts, joggers, dri-fit t-shirts, wide-leg pants, dresses, and much more, while adding to our existing leggings and t-shirt collections,” stated Jeevika Tyagi and Kanupriya Mundhra, Founders, aastey.
Having spent more than a year developing sustainable and internationally competitive products, the brand utilizes recycled fabrics or organic fabrics in 100 percent of its clothing.
One Minute Saree
Officially launched online at the beginning of 2022, in terms of growth, the brand has witnessed amazing growth with most people purchasing for weddings and events that had been postponed since the pandemic.
“We are excited for 2023 and believe there will still be demand for Ethnic party and wear despite economic issues around the world, we plan to innovate on the saree fabrics and designs as well as our Blouse offering and make the blouse fitting and selection a bit more seamless. We are hoping to grow 3x in 2023 since we just finished our first year and have barely seen the tip of the iceberg,” said Sasha Revankar, Founder, One Minute Saree.
Each creation at Chandrika Raamz is made possible by skilled artisans and fine craftsmen. Having styled celebrities from the south to the north and the brand is working to expand its branches globally.
Chandrika Raamz’s clothing ranges from ethnic Indian to western modern and recently launched Raamz Junior, which caters to customers under the age of 14.
“We believe in exploration, innovation, and novelty every day while remaining true to our roots and rich culture. In the coming years, we hope to present ourselves on a global scale and serve as many people as possible,” stated Raamz and Chandrika, Founders and CEO, Chandrika Raamz.
Being in the fashion industry and running a label with approximately 30-35 artisans, the brand prioritizes ensuring that each of their basic needs is met to the greatest extent possible following an ethical business model that benefits everyone and is free of exploitation.
With 6 in every 10 Indians having a pet today and 70 percent of the GenZ and millennial population driving the industry’s growth as well as a cultural shift in terms of increase in bringing pets home. But along with this, as per a report, 50 percent of pet owners in the country also admit relinquishing a pet since the start of the pandemic. This gap can be attributed to factors like a lack of awareness, growing pains, and a general lack of standards within the industry across services and products.
Wiggles has grown 4.5x since 2021, from a distribution point of view, the brand made its entry in general and modern trade outlets and is today available in outlets including Metro, Lulu, Kwality, and many more, along with an online presence.
“We have directly served over 600,000 pets to date and have expanded our distribution footprint. Overall, the year has been rewarding, encouraging us to continue to innovate to fill in the numerous existing gaps. Our ambition is to build a 360 pet care ecosystem that pet parents can depend on from the day they bring a pet home until seniorhood,” said Anushka Iyer, Founder, and CEO, Wiggles.
The brands’ expansion plans are designed to fit this vision creating products, expertly curated services, and a growing community of pet parents, also has plans to expand its offline services to PAN India.
The brand raised $10 million in Series A funding led by Fireside Ventures alongside existing lead investors Saama Capital and DSG Consumer Partners.
“As the calendar year 2022 comes to a close, we are gearing up for the coming year with big plans on the launch of our D2C brand- Henlo, unveiling our full stack enabled app, improving customer experience, and creating delight across touchpoints, strengthening our supply chain to expand our same day delivery coverage and much more,” said Varun Sadana, Aman Tekriwal, and Vineet Khanna, Co-founders, Supertails.com.
Supertails has a strong base of around 1 lakh customers as of November 2022, having achieved this feat in just 1.5 years since its debut in 2021. From a growth PoV, its integrated offerings and technology have been at the heart of its success clocking an ARR of Rs 50 Crore in the last 18 months and aims to double down on its growth and expansion plans to achieve Rs 100 Crore ARR by March 2023.
“We are a GenZ focused platform that brings together products, services, and community. Our pet pharmacy has served thousands of customers through the channel in the last 3 months. Recently, we launched V diets online and are the only player in the country to sell these products. We have the largest assortment of 10,000+ SKUs and 200+ partner brands across pet food, treats, accessories, grooming, etc, and our vets have done more than 20,000 pet consultations to date,” added the founders.
The sleep essentials business is seeing increasing interest from audiences everywhere. This translates to better mattresses, pillows, better sleep hygiene, and due importance to good sleep health. Members of the family who have tried a good mattress are now convinced to switch other members to branded mattresses as well; this will reflect in more families adopting them.
Expanding its portfolio in furniture and launching its furnishings range, as a company, Sleepyhead grew in terms of Pincode reach, multiple marketplace launches, warehouse expansion, etc. The brand also onboarded Ranveer Singh as its Brand Ambassador and expects to close FY22 at 100 percent growth with more than 8 lakh happy customers.
The brand aims on commencing its omnichannel expansion, build the furniture portfolio further with more products for today's modern homes, and reach out to more pin codes.
“The branded segment in the mattress industry is only 40 percent as of now; hence the scope to grow in the market is huge. As more people are realizing the importance of good sleep and overall good health, we're expecting an upward take-off for specialized mattresses. With a wider range of products to offer, we are expecting a higher connection with the furniture-seeking audience as well,” said Mathew Joseph, CEO, and Co-founder, Sleepyhead.
E-commerce industry witnessed new peaks in 2022 across key business indicators including market penetration, customer awareness, mobile, and data adoption. It also witnessed the Omni channel sales approach reaching mass market customers and business models evolving with the adoption of B2B2C, video commerce, social commerce, quick commerce, and D2C, amongst others.
For many years now, e-commerce businesses focused on acquiring customers even at higher costs, however, 2023 will continue to witness consolidation in spending, increased focus on profitability, and innovation in marketing and CX. With global phenomena like recession and funding winter making their presence felt in India, businesses will have to be more cognizant of adopting sustainable growth practices.
“For organizations targeting customers under 50K monthly income, understanding the sales cycle of the customer is very critical. This large cohort seeks the satisfaction of three basic principles; (i) a Simpler interface, (ii) good quality products, and (iii) a sharper selection. Therefore, what works for a metro TG doesn’t work for them. Mode of payment is still a big challenge for this TG as the majority are still dependent on the CoD mechanism. The coming year will see innovation in payment solutions for the mass market customers which will act as a great enabler for the growth of the e-commerce sector,” said Sourjyendu Medda, Founder and Co-CEO, DealShare.