Siddharth Dungarwal, CEO and founder of Snitch, expressed, “We’re witnessing remarkable growth, unveiling new stores every two weeks to serve our discerning clientele. Within our cutting-edge showrooms, customers can explore a diverse collection of over 1000 styles spanning across 13 categories, all conveniently accessible in one location. This rapid expansion underscores our steadfast dedication to providing an extensive and unparalleled shopping journey.”
Current Store Operations and Expansion Plans
Presently, the brand operates seven stores throughout India: three in Bangalore, two in Surat, and two in Vadodara. With ambitious expansion goals, Snitch aims to inaugurate an additional 30 stores by the close of this fiscal year.
In the fiscal year (FY) 2023-2024, Snitch experienced a remarkable growth of over 150% compared to the preceding year. During this period, Snitch shipped over 3.5 million pieces through diverse channels, maintaining profitability while achieving a net sales increase of more than 2.25 times compared to the previous year.
Starting its journey as a D2C brand in 2020, Snitch secured INR 110 crore in a Series A funding round in December 2023. The investment came from Singapore-based venture capital firm SWC Global and Indian venture firm IvyCap Ventures.
Christian Dior, the French multinational luxury fashion house, has unveiled its new Fragrances and Beauty boutique in Bengaluru. Located at Phoenix Mall of Asia in Yelahanka, this elegant addition was announced by a mall official on social media.
Tanul Bheda, the general manager of leasing at Phoenix Mall of Asia, announced in a recent LinkedIn post, “It’s our pleasure to announce that Dior, Fragrances and Beauty has commenced operations at Mall of Asia.”
Within the store, patrons can explore an extensive selection including Dior’s makeup, skincare, and fragrance collections, alongside a variety of personalized services.
Christian Dior’s Presence in the Indian Market
The first Christian Dior Fragrances and Beauty boutique in India was unveiled in 2016 at New Delhi’s Select CityWalk mall, Saket. Currently, the brand has over four such stores in India across Mumbai, New Delhi, and Bengaluru.
In 2006, Christian Dior entered the Indian market by inaugurating a haute couture boutique in New Delhi.
Established in 1946 by French fashion designer Christian Dior, the renowned brand Dior now falls under the control and leadership of French businessman Bernard Arnault, who also serves as the chairman of LVMH. With a global presence, Dior manages more than 620 retail outlets worldwide.
Phoenix Mall of Asia reserves an entire floor solely for esteemed international luxury brands, showcasing a curated selection including Ferragamo, Boss, Emporio Armani, Kate Spade, Bottega Veneta, Zegna, Coach, Brooks Brothers, Golden Goose, Karl Lagerfeld, Hackett, and many more.
It’s expected that all the luxury brands will be up and running by the year’s end.
Yousta, the youth-focused brand under Reliance Retail, has opened its store in Pune’s Amanora Mall, as revealed by a top company executive in a social media post.
The latest store will provide amenities such as QR-enabled screens for sharing information, self-checkout counters, Wi-Fi access, and charging stations.
Surjit Singh Rajpurohit, CEO of Amanora Mall, Pune, shared on his LinkedIn post, “We’re delighted to unveil another remarkable addition to Amanora Mall, Pune – the inauguration of Yousta, Reliance Retail’s youth-focused fashion retail format! Yousta brings high-fashion to young consumers at affordable prices. Get ready to elevate your shopping experience and be part of this incredible journey!”
Recent Additions to Amanora Mall
The mall introduced several new outlets, including Nykd by Nykaa, Meena Bazaar, and Burger Singh, just a month ago.
Earlier, the company had inaugurated Yousta stores in Mahasharta, located at Phoenix Marketcity Pune, and Satyam Pride in New Panvel.
Reliance Retail launched its youth-focused fashion brand, Yousta, in August 2023, marking the opening of its first store at Sarath City Mall in Hyderabad. Presently, it spans across 15 states nationwide.
Reliance Retail Ltd (RRL), the retail subsidiary of Reliance Industries Ltd., operates a comprehensive omni-channel network comprising over 18,774 stores and digital commerce platforms.
Starbucks, a US-based coffee chain, has launched its first store in Greater Noida, as announced by a company official on social media. The new store is situated at Ithum Galleria near Delta 1 metro station in Uttar Pradesh.
“Greater Noida, we’re here! Our very first store in your city is now open at Ithum Galleria near Delta 1 metro station,” shared Rahul Chaudhary, Associate in Business Development at Starbucks India, on LinkedIn.
“The journey commenced about a year and a half ago, and it was truly rewarding,” he added.
Starbucks Operations in India
The Starbucks-branded coffee chain in India operates through a joint venture split equally between Seattle-based Starbucks Coffee Co. and Tata Consumer Products Ltd.
In 2023, Starbucks expanded its presence in India by entering 15 new cities, inaugurating a total of 71 new stores. Presently, the brand boasts a network of over 430 stores nationwide.
The company aims to achieve a milestone of operating 1,000 stores in India by 2028, with the strategy of opening a new store every three days.
The beverage giant has announced its intention to double its workforce, aiming for approximately 8,600 partners, up from the current 4,300. This expansion strategy encompasses entering tier 2 and 3 cities in India, along with extending services to drive-thrus, airports, and 24-hour store formats to meet the diverse needs of customers.
The company recently unveiled its first store within the premises of the Delhi High Court, marking its first establishment within a court in India.
Nykaa, the Mumbai-based e-commerce company which offers a wide array of beauty, fashion, and lifestyle products, has announced the appointment of brand consultant Santosh Desai as an Independent Director on its board, effective July 15, 2024, for a term of three years.
Nykaa’s board of directors currently consists of 10 members, each bringing expertise in various areas including business strategy, technology, entrepreneurship, finance, governance, regulation, human capital management, and corporate social responsibility (CSR).
“We firmly believe that Santosh’s strategic guidance will play a pivotal role in driving Nykaa’s brand equity forward and fortifying our current array of brands for sustained global triumph,” stated Falguni Nayar, Nykaa’s Executive Chairperson, Founder, and CEO.
Nykaa’s Additional Independent Directors
Additional independent directors of the digital beauty retailer include Milind Sarwate, Anita Ramachandran, Seshashayee Sridhara, and Pradeep Prameshwaram.
Desai held the position of chief executive officer at FutureBrands Consulting for close to 17 years. Additionally, he assumed the role of President at McCann, an advertising agency.
Currently, Desai holds board positions at Think9 Consumer Technologies, Dainik Jagran Group, and Breakthrough. Furthermore, he is an active member of the governing councils at Mudra Institute of Communication, Ahmedabad, and Praxis Business School, Kolkata. Previously, he served on the boards of ING Vysya Bank and Oxfam India.
“I am thrilled to become part of Nykaa as an independent director. Nykaa’s dedication to customer-centric retail has truly revolutionized the beauty and lifestyle landscape in India,” remarked Desai.
Established in 2012, Nykaa caters to 25 million consumers across India. Over time, Nykaa has diversified its portfolio, venturing into lifestyle and B2B sectors with the launch of online platforms such as Nykaa Fashion, Nykaa Man, and Superstore.
Prosus holds the largest stake in Swiggy, owning 32% of the startup. Additionally, it has played a significant role as an investor for Delivery Hero, a company that went public in Germany back in 2017.
“Prosus has been increasingly involved with Delivery Hero in recent months, and it’s been more engaged in supporting Swiggy, as well, obviously. With my appointment, we anticipate greater opportunities for collaboration between our businesses and the sharing of best practices,” Bloisi informed analysts during a conference call on May 17 following the announcement of his new role.
Bloisi is set to become an executive director on the Naspers board starting July 1, and will subsequently join the Prosus board following the AGM in August 2024.
It’s worth noting that Bloisi presently serves as the CEO of iFood, a prominent food delivery startup in Brazil. Although he didn’t disclose detailed plans for collaboration between Swiggy and Delivery Hero, he highlighted that Swiggy’s expertise in Instamart and quick commerce in India would benefit iFood.
“In India, we collaborate closely with Harsha [Sriharsha Majety, cofounder of Swiggy] and the Swiggy team. Our interactions with them have been highly informative, particularly in the realm of iFood. For instance, their success with dark stores in the grocery sector is something we’re closely studying,” he shared with analysts, drawing parallels between his experiences in Brazil and the potential contributions to Prosus’ ventures in India.
Although the potential partnership between Delhivery Hero and Swiggy remains in the realm of speculation, it raises the question of whether Swiggy intends to venture into international markets through such a collaboration. However, there have been no signals thus far indicating that the Bengaluru-based unicorn is considering an expansion abroad.
Considering Swiggy’s aims to reduce expenses, achieve profitability, and its recent filing of pre-IPO papers in India, any potential collaboration with Delivery Hero will be under close scrutiny.
Financial Performance of Swiggy
For context, in the fiscal year 2023, Swiggy reported a net loss of INR 4,179 crore, with operating revenue reaching INR 8,246 crore. According to reports, during the first nine months of fiscal year 2024 (from April 2023 to December 2023), the company recorded a loss of approximately $207 million (approximately INR 1,650 crore).
Given Zomato‘s less-than-impressive track record with global ventures, it’s intriguing to observe how Swiggy harnesses the potential synergies within Prosus’ portfolio. Delivery Hero, with its presence in 70 countries spanning Asia, Europe, MENA, and the Americas, offers a significant scope for exploration.
It’s worth mentioning that in 2019, Delivery Hero acquired Zomato’s UAE business, a direct competitor to Swiggy. Additionally, Delivery Hero invested $50 million in Zomato’s international operations, which is now a publicly listed food delivery powerhouse. Zomato, in its bid for global expansion, acquired several entities including Urbanspoon, Gastronauci, Cibando, MenuMania, and Lunchtime.
However, leading up to its initial public offering and shortly thereafter, the company opted to cease international operations in several regions, aiming to streamline its business operations.
Zomato, which made its debut on the stock market in 2021, reported its first-ever profit of INR 351 crore for the entire fiscal year of FY24.
The Gurugram-headquartered food delivery and quick commerce behemoth discontinued operations across nearly all international markets, such as the United States, United Kingdom, Singapore, and most recently Lebanon. Earlier this year, it also wound up its subsidiaries in Vietnam and the Czech Republic.
It remains to be seen whether Swiggy will reap any advantages from potential synergies with international players like Delivery Hero, particularly given Zomato’s previous unsuccessful experiences in similar endeavors.
In addition to discussing Swiggy, Bloisi announced that he would be visiting India in the coming weeks to further explore Prosus’s portfolio, which includes Meesho and PayU. “Therefore, you can anticipate that I will spend more time in India learning a great deal and considering how we can leverage our global structure to strengthen our position in India.
Boldfit, a Bengaluru-based health and fitness products company, has teamed up with the quick commerce platform Blinkit.
This partnership will enable Boldfit to deliver its range of products, including workout apparel, fitness equipment, accessories, and supplements, within 10 minutes to numerous cities across India.
Pallav Bihani, CEO of Boldfit, expressed, “Partnering with Blinkit marks a significant stride towards our objective. With Blinkit’s strong delivery network, we’re committed to enabling our customers to sustain their fitness and wellness regimens seamlessly.”
Established in December 2018, Boldfit is a direct-to-consumer fitness enterprise specializing in an array of products, including fitness gear, workout equipment, and dietary supplements. With aspirations to expand, the brand aims to inaugurate 100 stores across diverse formats within the next four years. Currently, it offers over 200 SKUs through various digital platforms.
Honasa Consumer Ltd., the holding entity of Mamaearth, The Derma Co., Aqualogica, and Dr. Sheths, has acquired the assets of CosmoGenesis Labs. Renowned for its expertise in cosmetic formulation and development, particularly in premium skincare solutions, CosmoGenesis Labs will significantly bolster Honasa’s research-driven innovation capabilities. This acquisition underscores Honasa’s steadfast dedication to pioneering product development tailored for the Indian consumer market.
Founded in 2011 by Rohini Manoj, CosmoGenesis has risen as a prominent player in cosmetic formulation and development within India. Fueled by a dedication to innovation and excellence, CosmoGenesis has played a pivotal role in crafting over 5000 cosmetic and personal care formulations for enterprises throughout the country.
Ghazal Alagh, CIO and Co-founder of Honasa Consumer Limited, commented, “Innovation has always been at the core of Honasa Consumer, and our data-driven consumer research has kept us ahead in the personal care segment. This strategic alliance with CosmoGenesis will significantly enhance our ability to research new trends more efficiently and help us create best-in-class products. It sets the foundation for transformative growth and innovation in profound ways. This acquisition empowers us to explore new sub-categories, leverage cutting-edge research and development, and ultimately deliver exceptional value to our consumers. With CosmoGenesis joining the Honasa family, we are confident that we will drive meaningful growth and make a lasting impact in the beauty industry, while staying true to our values of innovation, quality, and sustainability. Together, we are set to elevate skincare standards, providing unparalleled benefits to our consumers, employees, and stakeholders.”
R&D Expertise and Facilities at CosmoGenesis
The R&D team at CosmoGenesis boasts extensive expertise in cosmetics and significant experience in developing natural and organic formulations. With a state-of-the-art, fully equipped laboratory, CosmoGenesis demonstrates a commitment to excellence, offering global knowledge and support to both emerging companies and established brands worldwide.
“We’ve collaborated with Honasa Consumer for a while now, producing some remarkable innovations. Joining forces with Honasa fills me with excitement for the vast potential this partnership brings. Our mutual dedication to innovation and excellence, especially in botanical ingredients and natural beauty care, assures that we’ll keep crafting groundbreaking products our consumers can rely on,” expressed Rohini Manoj, Founder of CosmoGenesis.
Teaming up with CosmoGenesis, Honasa is committed to offering an extended range of groundbreaking, safe, and scientifically validated skincare solutions to modern and future generations of consumers.
Shivani Poddar and Anurag Murali, Co-Founders of High Street Essentials
High Street Essentials, the parent company behind women’s fashion labels Indya and FabAlley, has secured INR 50 Cr ($6 Mn) through a combination of equity and debt infusion in its latest funding round.
JSW Foundation chairperson Sangita Jindal spearheaded the round, with contributions from family offices of SRF Group, Cyient’s executive vice chairman and MD Krishna Bodanapu, and Pure Home + Living’s MD and CEO Timmy Sarna.
The infusion of fresh capital will support Indya in extending its footprint both within India and in global markets.
Established in 2012, High Street Essentials is a direct-to-consumer omnichannel fashion house specializing in women’s apparel. The company offers affordable western and ethnic-fusion wear under the FabAlley and Indya brands.
The infusion of funds is expected to propel the brand’s premium occasion-wear line, ‘Weddings By Indya,’ while simultaneously enhancing its presence in the occasion and wedding wear market.
Shivani Poddar and Anurag Murali, cofounders of High Street Essentials, expressed their vision, stating, “We perceive a significant opportunity to establish a formidable presence for Weddings By Indya within the $15 Bn wedding wear market, much of which remains unorganized.”
Indya asserts its collaboration with esteemed Indian designers, including Rohit Gandhi, Rahul Khanna, Varun Bahl, Ashish N Soni, and Nikhil Thampi, among others, to serve India’s thriving wedding wear market.
At present, Indya distributes its products through its website, online marketplaces, and 12 exclusive brand outlets situated in cities like New Delhi, Bengaluru, Chennai, Bhubaneshwar, Indore, and Ahmedabad.
Financial Performance and Targets
High Street Essentials asserts achieving EBITDA profitability in FY24, with a growth rate exceeding 30% year-over-year. The company targets achieving profit after tax (PAT) positivity and is aiming for a 50% year-over-year growth in FY25.
Listed companies and industry trackers have noted a slowdown in online consumption during the March quarter across various segments including electronics, wearables, and beauty products.
In the fourth quarter, Delhivery, a logistics firm, reported a 13% sequential decline in its express parcel shipments, which serve as a proxy for ecommerce delivery volumes, down to 176 million.
Sahil Barua, co-founder and CEO, pointed out that the decline in the March quarter followed a robust October-December period, typically marked by festive season sales on ecommerce platforms. Despite this, the company’s delivery volumes were down by 2% year-on-year.
In its analysis of Delhivery’s results, brokerage firm Citi acknowledged the subdued online consumption but expressed confidence that it wouldn’t jeopardize the long-term growth expectations of 15%-20% in ecommerce.
Nykaa, a beauty and fashion retailer, highlighted the trend of consumer brands reallocating their advertising budgets towards offering increased discounts to stimulate demand in the currently subdued market. During the post-earnings analysts call on May 22, Anchit Nayar, CEO of Nykaa E-retail, expressed optimism that brands would revert to investing in advertising once demand recovered.
Likewise, Honasa Consumer, the parent company of the beauty and personal care brand Mamaearth, observed single-digit growth for its flagship brand during fiscal year 2024. Consequently, it is adjusting its offline strategy to enhance both growth and margins.
Assessment of Overall Ecommerce Sales
According to an executive at a prominent third-party logistics firm, overall ecommerce sales remain lackluster, with growth likely to be below 15%, in contrast to the typical approximate 20% growth rate.
The logistics expert continued, “Due to the lack of big events and the large amount of sales made over the previous holiday season, apparel and smartphone shipments—which typically drive overall ecommerce growth—have not had the chance to develop significantly. But because of the early summer season, appliance sales have improved, which has provided some help.
According to reports, demand for air conditioners (ACs), fans, and coolers surged by 80%, 20%, and 45%, respectively, during March and April compared to the previous year on Amazon India. Meanwhile, on rival platform Flipkart, AC demand witnessed a 50-60% increase in March year-on-year.
According to a senior ecommerce executive, although the first quarter experienced a decline in consumption growth, volumes steadily improved on a month-on-month basis.
Regarding smartphones, the move towards offline purchases and the absence of significant releases have contributed to subdued sales. According to a report by market intelligence firm Counterpoint Research, Indian smartphone shipments recorded an 8% year-on-year growth from January to March. However, it’s worth noting that the low base of the corresponding period last year was a key factor driving this growth.
The report further noted that the offline share of total sales reached 64%, representing the highest quarterly figure since the onset of the Covid-19 pandemic.
Nevertheless, in the smartphone sector, premiumization persisted as the market experienced an 18% growth in terms of value. The premium segment, encompassing products priced above INR 30,000, accounted for 20% of the total sales volume and 51% of the total sales value for the quarter, marking its highest-ever contribution, as highlighted in the report.
“The trend we’re observing is that an increasing number of smartphone purchases appear to be upgrades, with users holding off for major discount periods, and this phenomenon is also reflected in the premiumization,” stated the logistics executive mentioned earlier.
According to data from research firm IDC, shipments of wearable devices such as earphones and smartwatches through online channels decreased by 14.1% year-on-year, marking the second consecutive quarter of decline.
A leading executive at a smartwatch manufacturer noted that during the December quarter, multiple brands shipped surplus inventory for the festive season, which unfortunately did not meet the anticipated demand levels.
“The January-March period didn’t witness significant shipments due to the high levels of inventory from the preceding quarter,” the executive explained. “This indicates insufficient demand as well. Additionally, it’s evident in the declining average selling prices (ASPs) of products like smartwatches and earphones.”
A venture investor specializing in consumer brands noted emerging macro indicators suggesting an uptick in demand in tier 2 and tier 3 cities.
“Some early indicators, such as increasing two-wheeler dispatches and FMCG sales in smaller towns, are becoming apparent,” he explained. “Once this trend gains momentum, discretionary spending will also rise, reflecting in ecommerce volumes across the board.”
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