Miraggio, a handbag brand, was founded with a clear mission – to provide modern, aspirational fashion to the youth at an affordable price. At the heart of the brand's strategy is a customer-centric approach, constantly adapting to changing trends and prioritizing quality. The company fosters a culture of creativity and innovation, evident in every aspect, from content and shopping experiences to delivery and packaging.
Miraggio’s recent fundraise in November marks a significant milestone for the brand. It picked $1.2 million in Pre-Series A funding. It is also leading the way by introducing unique materials and shapes. The brand’s recent Denice Tweed Bag Collection has garnered positive responses, making Miraggio the first in India to venture into these materials.
“This move aligns with the evolving preferences of Gen Z and millennials, who are keen on experimenting with colors, body designs, and materials. Our success story is not just about offering affordable accessories but creating a holistic and innovative fashion experience,” said Mohit Jain, Founder and CEO, Miraggio.
Currently, the brand is strongly positioned in four key categories: satchel, tote, crossbody, and shoulder bags. With over 250 SKUs currently live, Miraggio anticipates a substantial expansion, projecting to have 500-600 SKUs within the next 12 months. The brand's commitment to offering a diverse range of options is reflected in its comprehensive catalog, ensuring there's a perfect bag for every occasion and style preference.
“We plan to introduce new categories such as wallets, backpacks, clutches, and more in the near future. In the next six months alone, we aim to unveil a minimum of two to three new categories, broadening our already extensive product range, he stated.
Miraggio operates at an average selling price (ASP) of Rs 2,700 presently. Looking forward, the brand aims to enhance this by 10-15 percent within the coming year.
Tote bags and laptop bags are its highest-selling categories. “The surge in demand for tote bags and laptop bags is notably driven by the changing dynamics of the workforce. A significant influx of younger professionals entering the job market at the age of 20 and the gradual return to offices post-COVID have fueled this trend. The evolving landscape of businesses in the Indian market, accompanied by substantial job opportunities, has created a palpable need for functional and stylish bags that cater to the demands of the modern professional,” explained Jain.
Presently, Miraggio operates exclusively as an online brand, with a robust presence on various platforms including its website, as well as popular fashion marketplaces like Myntra, Amazon, Ajio, Nykaa, and Tata CLiQ, among others. However, its strategic vision for the next six months to a year involves the establishment of flagship stores.
“We are also planning to extend our reach to multi-brand outlets such as Shopper Stop and Lifestyle, and anticipate having a notable presence in airports through our brand stores or kiosks,” asserted Jain.
To ensure a thoughtful and data-driven expansion, the brand’s initial approach involves conducting a comprehensive analysis to identify key customer demographics and locations. While there is no definitive answer at this stage, the focus will likely be on metro cities, given the current trend where a significant portion of its revenue originates.
Like any other business, the brand encountered initial challenges during its journey. Among the notable hurdles was the fiercely competitive market it entered. Breaking through and establishing a market for a previously non-existent price point posed a significant challenge. Additionally, the unique nature of the brand’s model, being the first brand in India to launch bags every month, introduced supply chain complexities that required careful navigation.
“However, it's worth noting that these challenges, faced in a relatively short span, have now transformed into strengths for our business. Overcoming the hurdles of market penetration and supply chain intricacies has not only fortified our resilience but has also positioned us as pioneers in the industry,” he noted.
The brand has introduced a feature called a WhatsApp bot for its customers. This means you can now shop with it directly on WhatsApp. The bot understands what consumers are looking for, suggests different bags based on their needs, and allows them to make a purchase right there on WhatsApp.
“It's like shopping on our website, but even more convenient, and your chosen product will be delivered to you just like usual. This is our way of using technology to make your shopping experience easier and more enjoyable,” Jain highlighted.
A significant chunk, over 50 percent of its revenue, comes from Tier II and beyond cities. The brand believes this is where the major growth opportunities lie because India is experiencing peak aspiration and premiumization, with the most substantial changes happening in Tier II and III cities. “Therefore, for any brand targeting the mass premium segment, focusing on these cities is essential for achieving extensive growth,” he said.
Mohit stated that maintaining a high level of aspiration is crucial for us as a brand. “We have a deep understanding of our ambitious consumers who seek a lifestyle that reflects their aspirations. To meet this demand, we consistently create top-notch content, ranging from visually appealing bags to educational and unboxing content. Our goal is to excite consumers about the unique experience they are signing up for when choosing Miraggio,” he added.
The brand has experienced an impressive year-on-year growth of over 140 percent, and its ambitious target for the upcoming fiscal year, 2024-25, is to achieve a minimum threefold growth for the company. This growth will be propelled by a strategic focus on category expansion, exploring new distribution channels, bolstering its marketing efforts, and enhancing team building – these four pillars will be the primary areas of concentration.
“In the last financial year, we generated revenue exceeding Rs 20 crore. As we close this fiscal year (FY 2023-24), we anticipate a GMV of over Rs 50 crore. Looking ahead to FY 2024-25, our goal is to reach Rs 150 crore GMV,” stated Jain.
“While these near-term objectives shape our immediate focus, our long-term vision for the brand is to establish it as the go-to aspirational fashion and lifestyle accessories destination for the modern Indian woman. We aspire to set international standards for our brand, offering affordable prices and making aspirational fashion accessible to women across India,” he concluded.
Copyright © 2009 - 2024 Franchise India Holdings Ltd