How Omnichannel Brand Crozzo is Integrating Tech to Become a Household Name

The rising income level and growing youth population are the biggest factors behind the growth of the bakery industry in the country along with the accelerating consumption of ready-to-eat food products mainly due to the hectic lifestyle of people. 

“The Indian bakery market reached a value of $ 10.2 billion in 2021. Looking forward it is expected that the market to reach $ 19.3 billion by 2027, exhibiting a CAGR of 10.94 percent during 2022-2027,” as per a report by Imarc Group.

The market is dominated by many well-known players like Britannia Industries Limited, ITC Limited, Parle Products Private Limited, Surya Food, and Agro Limited. But there are some segments where they are lacking to cater to their consumers. However, some of the new age brands have started to fill in the gaps for Indian consumers for good and they have come up with a solution by offering innovative products. 

Crozzo was established in Mumbai in 2019 by Sharan Goyal. At Crozzo, the company aims to change pre-existing notions about how bakery products are consumed in India. Using the highest quality ingredients, and proprietary manufacturing and packaging technology, they provide an authentic French croissant right at your doorstep.

While talking about the inception of the company, Goyal shared, “When the first lockdown hit, we all had nothing to do. So we got an essential services pass and started developing croissants at the factory, all alone. In a month, we had perfected the product and we started taking orders on WhatsApp groups, making them in the morning and delivering them in the evening. This was during May 2020 which was the peak of the lockdown. Then, things slowly started opening up, our staff was allowed to come to the office again, we built the website, started taking Pan-India orders, and our journey started.”

Betting Big on D2C
The brand is extremely bullish on the packaged food market in India. The industry can see a double-digit CAGR for multiple decades. Hence, the brand thinks that it is a very favorable risk/reward to bet big on D2C and set up an extremely efficient distribution network.

On the D2C front, Goyal said, “We are in this space, the truth is that the guy who wins is the guy with the best distribution. Hence, that is one of our core focus points. Moreover, it is the D2C business that builds customer loyalty and brand reputation. Although it is an expensive affair, once the perceived value in the mind of the customer is established, things flow a lot easier.”

Retail Strategy 
In Crozzo’s case, they have their own website where customers can order directly. 

“We are also available in various modern trade stores such as Nature’s Basket, Star Bazaar, Zepto, Blinkit, etc. We are positioned as a premium bakery brand that provides doorstep delivery to underserved segments of the market. This strategy has really helped us penetrate into Tier ll and lll cities where people do not have access to authentic bakery products. Consumers from all over the country can have all-natural, freshly baked bread, cakes, cookies, and croissants delivered right to their homes! It's a win-win for all,” he asserted.

“We are available both online and offline. Online is direct via our website, and also marketplaces such as Zepto, BigBasket, Blinkit, etc. Offline, we are available in Modern Trade stores such as Nature’s Basket, Star Bazaar, and many general trade stores across Mumbai. On the B2B side, we sell frozen croissants to multiple hotels, restaurants, and caterers. We have tie-ups with many hotel chains such as Accor, Lemon Tree, Radisson, Orchid, etc. When you stay at their property and eat a croissant for breakfast, you are actually eating our croissant,” Goyal added.

Technical Integration
Technical integrations in the new-age brands are gradually heralding the digital transformation of businesses, irrespective of industry or vertical.

“Our entire organization works on a customized, cloud-based ERP and MMS system. Our manufacturing, sales, accounting, marketing, and everything is controlled and operated digitally. We would like to be even more tech-enabled, but many times it is wise not to overdo things. Over the course of time, we will get more and more tech-enabled, that is for sure,” he explained.

Future Goals
Crozzo has been growing at 250 percent YoY. To maintain that growth, the company is aggressively expanding the team in new cities across India, building new revenue streams, and spending on building the brand. 

“Our vision is for Crozzo to become synonymous with croissants in India. As mentioned above, when a child is in the mood to eat croissants for breakfast, he should say, "Mom, I want some Crozzos for breakfast,” Goyal commented.

On the funding front, Goyal said, “We are cashflow positive and do not need to raise external money. However, if there's a good offer on the horizon, we are happy to look at it. Typically, funding comes with a whole host of expectations. We like the freedom of not having to answer to anybody and make strategy calls that we think are best for the company.”

“The plan is to grow our B2B business, expand to new markets such as the Middle East and Europe, increase our D2C presence by creating new distribution centers in all the major cities in India, and become the biggest and best croissant manufacturer in the country. We envision Crozzo to become generic for the word ‘croissant’ in India. When you buy a bottle of mineral water, you ask the shopkeeper for a Bisleri. My vision is that when you ask for a croissant, you will ask for a Crozzo,” he concluded.