HempStreet, the Ayurvedic cannabis startup, has secured $1 million in a pre-Series A funding round, with the primary support coming from the current investor, Carl Waahlin.
Additional participants in this funding round comprise Andre Rodrigues, a group of High Net Worth Individuals (HNIs) from South East Asia, and Abhishek Mohan.
To date, HempStreet has garnered a cumulative funding of $3 million and collaborates with more than 20,000 doctors throughout India.
The funds will be allocated to broaden its initiatives in conducting clinical trials for exclusive formulations, extend its presence in the menstrual cramps and pain treatment sector, and support research and development efforts to enhance Ayurveda-inspired products.
Established in 2019, HempStreet addresses the chronic pain epidemic and menstrual health issues by responsibly dispensing cannabis-based medication. The startup’s products assert high efficacy in addressing concerns related to menstrual pain (dysmenorrhea) and other associated problems.
HempStreet’s product lineup targets digestive ailments, sexual health, hypertension, and anxiety. In a bid to broaden its international presence, HempStreet has formed partnerships with MGC Pharma (UK), Gynica (Israel), Amrita School of Ayurveda (India), UIDI (Brazil), and Cannabis 360 (Brazil).
Last week, Cannarma, a medicinal cannabis brand, obtained undisclosed funding in a pre-seed round led by Praveen Kaushik, the founder of Zero to One Fund, with a pre-money valuation of INR 17 crore ($2.04 million).
The omnichannel beauty brand SUGAR Cosmetics reported a remarkable 90% revenue growth in the previous fiscal year. Additionally, the company stated in a media release on Monday that its EBITDA margin experienced a notable improvement of 16% over the same period.
Furthermore, the company aims to achieve profitability by the end of FY24, emphasizing its dedication to financial stability and long-term success.
In FY23, the company reported an increase in income, reaching INR 428.4 crore, compared to INR 223.8 crore in the preceding year, as disclosed.
As per the company’s statement, it managed to limit its losses to the levels observed in FY22. This led to an enhancement of the overall EBITDA margins from -31.4% in FY22 to -16.5% in FY23, positioning the company on track to achieve break-even in the current fiscal year.
Kaushik Mukherjee, Co-Founder and COO of SUGAR Cosmetics said,” With our gross margins continuing to improve and trend at nearly 73% (up 280bps over FY22) for the overall business, we are confident of hitting break-even in the current fiscal.”
“We are excited to continue to grow into becoming a key player in India’s fast-growing beauty & personal care landscape – and the results of all the hard work that the team has put in are there for all to see,” Mukherjee added.
Yakult, the beverage brand, has expanded its presence into the cafe industry as a means of engaging with a broader audience.
Named the Yakult Gohonmaru Cafe & Gallery, this establishment is situated in Utsonomiya, Japan.
The cafe will provide a menu featuring ice cream, chiffon cakes, tiramisu, and various other items, all crafted using the distinctive Yakult drink.
Simultaneously, the two-story cafe will showcase a beauty salon that provides cosmetic products formulated with lactic acid bacteria.
In Japan and other Asian countries, Yakult drinks were traditionally delivered to households by ‘Yakult ladies.’ However, recognizing a perceived lack of communication channels for consumers to stay informed about Yakult, the brand decided to tackle this issue. In response, they established the cafe as a comprehensive wellness complex, aiming to provide potential new customers with opportunities to learn more about their products.
Balenzia, widely recognized in India’s socks market, has recently unveiled its eighteenth retail outlet. This strategically positioned store is located at Terminal 2, International Departure, Chhatrapati Shivaji Maharaj International Airport (CSMIA). This marks a noteworthy achievement for Balenzia, as it not only introduces the sixth store in Mumbai but also inaugurates its first store at an International Terminal, expanding its footprint in the market.
Shruti Gupta, Balenzia’s Head of Strategy said, “It’s with immense excitement and pride that we unveil our new store at CSMIA’s International Departure, a luminary event in Balenzia’s ever-evolving narrative. Positioning ourselves at CSMIA, a key international junction, enables us to broaden our audience reach, catering to both Indian and international customers, and offering them a chance to experience the best of craftsmanship in socks. Our presence at this international hub symbolizes our commitment to bringing our unique blend of style, comfort, and quality to travelers from around the world. We’re excited to showcase our innovative designs and superior quality products that have been the cornerstone of our brand in India, now to a global audience.”
Crafted with meticulous attention to detail, the CSMIA store is designed to offer an immersive shopping experience for both domestic and international travelers. Featuring a sleek design and a diverse product range, the store is dedicated to meeting the diverse preferences of today’s discerning customers. From timeless staples to modern designs, the collection exemplifies Balenzia’s dedication to staying at the forefront of fashion trends while maintaining the utmost standards of quality.
Gupta emphasized, “Balenzia is on a dynamic path of expansion and innovation, aiming to open more stores by the end of this financial year, further solidifying our position in the market and bringing Balenzia closer to our customers. Our vision is to make Balenzia a household name, synonymous with quality and style in socks. We are thrilled to embark on this journey and bring our distinctive collection to more people around the world.”
China-founded fashion company Shein has confidentially filed for an initial public offering (IPO) in the United States, as disclosed by two sources familiar with the matter to Reuters on Monday.
Goldman Sachs, JPMorgan Chase, and Morgan Stanley have been selected as the principal underwriters for the offering, with sources indicating that Shein may debut on the public market in 2024.
The decision by the fast-fashion giant to go public coincides with a challenging period for the initial public offerings (IPO) market, which is grappling with a series of underwhelming stock market debuts in the United States.
Over the past few months, there have been four significant initial public offerings (IPOs), with three of them failing to meet investor expectations. Shares of Birkenstock, a German sandal-maker, Instacart, a grocery delivery app, and Arm Holdings, a chip designer, all experienced declines below their IPO prices shortly after their respective debuts. However, it’s worth noting that Arm’s shares have since recovered and are currently trading above the initial price.
“It doesn’t strike me as the most opportune time for Shein to come public, but if they need capital the markets are open at least we’ve had a rally off the lows in the last few weeks and investor sentiment has been more positive than it was a few weeks ago,” said Jason Benowitz, senior portfolio manager at CI Roosevelt.
“…when investors can review the financials, I would expect to see pretty strong growth historically… the key question will be if they can kind of maintain the pace or to continue to gain market share going forward,” he said.
According to one of the undisclosed sources, Shein initiated discreet roadshows for its public offering in the U.S., with both sources opting not to be identified due to confidentiality constraints.
The retailer’s most recent action occurs against a backdrop of increased scrutiny from U.S. lawmakers directed at the company.
In August, attorneys general from 16 U.S. states, all Republicans, urged the Securities and Exchange Commission to conduct an audit of Shein, the China-founded fast-fashion retailer, to investigate the potential use of forced labor in its supply chain prior to its possible initial public offering (IPO).
Shein, recognized for its $10 tops and $5 biker shorts, predominantly dispatches its products directly from China to customers via air, with each item packaged individually.
The utilization of direct shipping has enabled the company to sidestep the accumulation of unsold inventory in warehouses and evade import taxes in the United States, a significant market for Shein. This approach allows the e-tailer to leverage the “de minimis” provision, exempting inexpensive products from tariffs.
The tax provision is currently facing increasing scrutiny in Congress, with critics contending that it enables companies to circumvent higher tariffs on Chinese goods.
In July, Reuters disclosed that Shein, having postponed its IPO plans on two occasions in the past, has been collaborating with a minimum of three investment banks regarding a potential initial public offering. The company was also engaged in discussions with both the New York Stock Exchange and the Nasdaq.
Shein, currently headquartered in Singapore, chose not to provide a comment. Goldman Sachs and JPMorgan declined to comment, and Morgan Stanley did not respond immediately to a comment request.
In May, the company achieved a valuation of more than $60 billion and is anticipated to become the most valuable China-founded company to go public in the United States since the 2021 debut of the ride-hailing giant Didi Global, valued at $68 billion.
Fast fashion retailers are gaining traction in the United States, with Shein capturing market share from established brands like Gap, as consumers seek fresher styles and trendier clothing.
In August, Shein collaborated with SPARC Group, a joint venture involving Authentic Brands, the owner of Forever 21, and Simon Property, a mall operator. This partnership aims to broaden their market reach and capitalize on the increasing demand for their products.
Both Shein and Temu.com, however, have struggled to translate site visits into actual sales and lag significantly behind the market leader, Amazon.com, which has effectively converted visitors into buyers.
The Wall Street Journal initially reported Shein’s confidential IPO on Monday.
The government plans to enhance its tur dal procurement substantially, aiming to raise the acquisition from a few metric tonnes to approximately 8-10 lakh metric tonnes (LMT). This strategic initiative, disclosed by a senior official, seeks to manage commodity prices amidst a year characterized by a diminished pulse acreage and an expected decline in production.
According to government data, the nationwide retail price of tur dal surged by more than 40%, escalating from INR 112 per kg last year to INR 158 per kg this year.
In October, the year-on-year retail inflation for pulses surged to 18.79%, primarily driven by a significant increase in the prices of tur, chana, and moong. This contrasts with the 6.61% food inflation recorded in the same month. Notably, these inflationary pressures persist despite the government’s initiative to boost imports from African nations and Burma by eliminating the import duty on tur in March.
The official, who preferred not to be identified, mentioned that the procurement will take place through the Price Stabilisation Fund (PSF) at market rates, which are significantly higher than the minimum support price (MSP).
The acquisition will be carried out directly from farmers by the procuring agencies, namely the National Agricultural Cooperative Marketing Federation of India (NAFED) and the National Cooperative Consumers’ Federation of India Limited (NCCF). This process will commence at the onset of the season when the kharif crop begins to enter the market, as mentioned by the official.
The initial advance estimate released by the Ministry of Agriculture and Farmers’ Welfare in October indicates that this year’s tur production is projected to be 34.21 LMT, slightly lower than the output recorded in the previous year.
“This will send a message to the farmers that there is a definite buyer in the market, encouraging them to plant more tur in the years to come,” the official said, adding that an increase in area will eventually help in reducing import dependence.
Countries such as Mozambique and Burma, due to their heavy dependence on imports, are influencing terms and causing disruptions in the supply of dal, a widely consumed pulse in the country.
A reduction in the acreage dedicated to tur during the kharif season resulted in a production shortage, contributing to food inflation in recent months. According to government data, the area allocated for tur decreased from 46.13 lakh hectares on September 29, 2022, to 43.87 lakh hectares on September 29, 2023.
Sales of fast-moving consumer goods in kirana stores or traditional shops have decelerated, according to chief executives of companies like Marico, Dabur, Emami, and Bajaj Consumer. This can be attributed to factors such as a lower number of product launches compared to e-commerce and organized retail, a decrease in credit availability from distributors, and a weakening of rural demand.
In response to this, the companies have decided to reinvest in kirana stores, as these stores still constitute four-fifths of the total FMCG sales in the country, according to their statements.
They believe that concentrating on kirana stores will yield positive results, as consumer sentiment in rural areas is anticipated to improve in the coming quarters.
Saugata Gupta, the managing director of Marico, emphasized the necessity for companies to reinvest in general trade to reignite growth in the sector. This is particularly crucial as the industry has seen significant development in e-commerce and modern trade over the past three years, with a majority of new launches occurring in these channels.
“It will be an ‘and’ growth and not an ‘or’ growth,” he told analysts recently. “Over the next few quarters, we will systematically address this general trade issue and the deflation tapering off in the second half will also help.”
The shortage of end-consumer sales has led to a depletion of credit from distributors to kirana stores. This is adversely affecting the payback period for the earlier credit extended to these stores, subsequently impacting the terms for obtaining fresh credit. The constriction of credit is, in turn, preventing kirana stores from stocking up adequately, thus creating a vicious cycle.
Consequently, inventory levels have decreased, such as in the case of Marico, where they have dropped by three to four days.
In the retail sector, modern trade experienced a year-on-year growth of 19.5% during the September quarter, according to NielsenIQ data, whereas traditional trade recorded a growth of 7.5%. However, this growth was primarily attributed to a low base in the previous year when sales had decreased by 2%. According to Bizom, a platform that monitors retail sales and kirana orders, the number of kirana outlets declined by 3.4% in October compared to August and remained flat year-on-year. Additionally, there was an accumulation of inventory.
“An inconsistent demand for Diwali is leading to excess stocking across kiranas and standalone modern trade channels. This in turn is leading to deep discounts for liquidation of stocks at these stores to ensure new product stocking happens quicker,” said Akshay D’Souza, chief of growth and insights at Mobisy Technologies, which owns Bizom.
Parle Products senior category head Mayank Shah said, “Distributors are wary of giving credit to kiranas since they are not receiving money from outlets timely. This issue is more pronounced in stores focused on low velocity items such as personal care products.”
Despite the significant rise in e-commerce over the past three years since the onset of Covid-19 and the rapid growth of modern trade driven by retail giants like Reliance Retail and D’Mart, general trade continues to be the primary driver of FMCG sales in India.
In fact, despite facing a high baseline, kirana stores outpaced supermarkets and even online grocers during the pandemic. Throughout the Covid-19 period, the majority of consumers opted to shop from local neighborhood stores, especially when supermarkets operated with restrictions. However, industry executives now assert that this trend has shifted.
Jaideep Nandi, Managing Director of Bajaj Consumer Care, noted that there was a low single-digit decline in general trade during the July-September quarter, primarily attributable to subdued rural demand.
“Urban markets continue to outperform rural markets, which remained subdued on account of inflation and below-average rainfall in certain regions,” he said.
Frendy, a convenience store network, announced on Monday that it has raised INR 16 crore ($2 million) in a bridge round of funding.
In this funding round, existing investor Desai Ventures, along with new participants such as Auxano Capital, AT Capital Singapore, Metara Ventures, Priya Joseph, Rohan Jain, Rishabh Jain of The Wellness Co., and the Apurva Salarpuria family office, contributed to the investment.
The startup announced that it is considering the possibility of expanding the funding round to INR 24 crore (approximately $3 million) through a subsequent rights issue, as stated in their release.
The startup intends to utilize the newly acquired funds to enhance its technology infrastructure, expand its network of stores, and diversify its portfolio of private-label products.
Established in 2019 by Sameer Gandotra and Gowrav Vishwakarma, Frendy, headquartered in Ahmedabad, operates as an omnichannel convenience store network targeting small towns across India. The platform utilizes pre-existing micro-stores like family-operated kirana shops and newly established home-based stores managed by housewives to serve as last-mile distribution points. Using its app, the startup facilitates the sale of household items, guided by a network of women community leaders.
The startup asserts that it has extended its reach to more than 40 Tier II-VI towns in Gujarat, catering to 50,000 customers and offering a diverse range of over 4,500 products.
Frendy, specializing in beauty, cleaning, grocery, kitchen products, and more within its private-label portfolio, reported a doubling of its revenue from INR 40 crore in FY22 to INR 82 crore in FY23.
Commenting on the startup’s growth plans, Gandotra said, “In our second phase we are going asset & operations light with our Franchised Marts doubling up as a warehouse for our existing micro-stores and in parallel have scaled down our central warehouse.”
“Our goal for the coming 12 months is to have 40 operational Marts and further build out our private label offering. We have now perfected our business model and will continue to grow with right unit economics and scale out the model to the rest of Gujarat & then into other states,” he added.
In May last year, Frendy secured $3 million in an extended Series A funding round, with contributions from the Desai Family office, Let’s Venture Angel Fund, Centera Fund UK, and other investors.
Within the retail tech market, the startup contends with competitors such as New Shop, 1K Kirana, Super K, Citymall, Dealshare, and several others.
According to Statista, India holds the title of the world’s fastest-growing grocery market. In 2020, the Indian grocery market reached $573 billion in size and is projected to grow to $852 billion by 2025.
In the dynamic landscape of business, where customer preferences and behaviors are constantly evolving, the need for a customer-centric approach to sales has never been more critical. The traditional sales process, which often focused on pushing products or services to potential clients, is no longer sufficient in meeting the expectations of today’s discerning consumers. To thrive in this environment, businesses must shift their focus towards a customer-centric conversion strategy – one that prioritizes understanding, empathy, and relevance.
Let’s explore some tactics that can improve your sales process and make it so compelling for your target audience that it goes beyond mere relevancy.
1. Understanding the Customer Journey:
To build a truly customer-centric sales process, start by comprehending the intricacies of the customer journey. Map out the various touchpoints a prospect encounters from initial awareness to the final purchase decision. Identify pain points, moments of delight, and critical decision-making junctures. This insight forms the foundation for tailoring your sales process to meet customers where they are in their unique journey.
2. Personalization Beyond Names:
Personalization has transcended the mere insertion of a customer’s name in an email. It’s about understanding preferences, anticipating needs, and delivering a bespoke experience. Leverage data analytics to segment your audience based on behavior, demographics, and interactions. Tailor your communication, recommendations, and offers to align seamlessly with each segment, making your customers feel seen and valued.
3. Seamless Omnichannel Experience:
In a world where customers seamlessly transition between online and offline channels, your sales process should be a unified journey. Ensure a seamless omnichannel experience, where interactions on social media, your website, and in-store complement rather than contradict each other. Consistency across channels builds trust and reinforces your commitment to meeting customers on their terms.
4. Educate Rather Than Sell:
Shift your mindset from selling products to educating and empowering customers. Position your sales team as trusted advisors, providing valuable insights, solutions to challenges, and information that aids decision-making. This not only builds credibility but also establishes your brand as a reliable source of knowledge, fostering long-term relationships.
5. Leverage Technology Wisely:
Embrace technology, not as a replacement for human interaction, but as an enabler of personalized, efficient service. Implement customer relationship management (CRM) systems, AI-driven chatbots, and analytics tools to streamline processes and gain actionable insights. Technology should enhance the human touch, not dilute it.
6. Solicit and Act on Feedback:
Customers appreciate being heard. Create avenues for feedback and actively listen to what your audience is saying. Use their insights to refine and optimize your sales process continuously. This not only demonstrates a commitment to improvement but also fosters a sense of collaboration with your customer base.
7. Create Emotional Connections:
In a sea of transactions, emotional connections set businesses apart. Infuse your sales process with a genuine understanding of your customers’ emotions, aspirations, and challenges. Communicate your brand story in a way that resonates emotionally, turning a transactional experience into a memorable journey.
The Bottom Line
A customer-centric conversion strategy is not just a trend; it’s a necessity for thriving in a customer-driven marketplace. By understanding the customer journey, personalizing interactions, ensuring a seamless omnichannel experience, educating rather than selling, leveraging technology wisely, soliciting and acting on feedback, and creating emotional connections, your sales process can evolve into a dynamic, relevant, and customer-centric force that propels your business towards sustained success.
Navigating the intricate terrain of the modern business landscape demands more than just a quality product. In an era marked by information overload and fleeting consumer attention, the ability to cut through the noise and captivate the audience is a skill that can define success. At the heart of this challenge lies the art of building product awareness from scratch—an endeavor that goes beyond mere advertising to cultivate genuine consumer expertise.
The Foundation: Know Your Audience
The journey to product awareness begins with a profound understanding of the target audience. Every successful strategy hinges on the ability to connect with consumers on a personal level, addressing their needs, desires, and pain points. Conducting thorough market research lays the foundation for this understanding, unraveling the intricacies of consumer behavior and preferences.
Businesses that excel in this realm employ a human-centric approach, recognizing that they are not just selling a product but offering a solution to real-life challenges. This empathetic perspective allows companies to create a narrative that resonates, establishing an emotional connection with their audience—a connection that transcends the transactional nature of business.
Crafting a Compelling Narrative
In a world bombarded with messages, stories have the power to cut through the noise and leave a lasting impression. Crafting a compelling narrative around your product involves more than just listing its features. It requires weaving a story that captures the imagination, taps into emotions, and ultimately positions the product as an indispensable part of the consumer’s story.
Tell the tale of your product’s inception, highlighting the challenges overcome and the passion that fuels its creation. Illuminate the value it brings to consumers’ lives, emphasizing not just what it does but why it matters. A well-crafted narrative provides context, making the product more relatable and memorable.
Strategic Communication: Consistency is Key
Building product awareness is not a one-time effort but an ongoing commitment to communication. Consistency across all channels—be it social media, traditional advertising, or in-person interactions—creates a cohesive brand image that reinforces the narrative.
Investing in a multi-channel approach ensures that your message reaches consumers where they are most receptive. The digital realm, with its vast reach, offers unparalleled opportunities for engagement. Social media platforms, in particular, provide a dynamic space for interactive communication, enabling businesses to not only disseminate information but also actively participate in conversations, responding to queries and feedback in real-time.
Leveraging Influencers and Ambassadors
In the age of social media influencers, leveraging personalities who align with your brand values can significantly amplify your product’s reach. Consumers often trust the recommendations of individuals they admire or relate to, making influencer marketing a potent tool for building product awareness.
Identify influencers whose audience aligns with your target demographic and whose values align with your brand. Authenticity is paramount; consumers can discern genuine endorsements from paid promotions. Collaborate with influencers who can authentically integrate your product into their content, showcasing its utility in real-life scenarios.
Educating the Consumer: The Power of Content
Empowering consumers with knowledge about your product is a cornerstone of building expertise. Develop a content strategy that goes beyond promotional material, offering educational resources, tutorials, and insights. This not only positions your brand as an authority in the industry but also fosters a sense of trust and loyalty among consumers.
Video content, in particular, has emerged as a powerful tool for product education. Whether through explainer videos, product demonstrations, or behind-the-scenes glimpses, visual content captures attention and communicates information effectively. Additionally, written content, such as blogs and articles, serves to delve deeper into the intricacies of your product, catering to consumers seeking in-depth information.
Fostering Community Engagement
Building a community around your product creates a space for consumers to connect, share experiences, and become advocates. Platforms like forums, social media groups, and dedicated community spaces on your website foster a sense of belonging among users.
Encourage user-generated content, where consumers share their experiences with your product. This not only serves as authentic testimonials but also provides valuable insights for potential customers. Actively participate in these communities, addressing concerns, celebrating successes, and continuously reinforcing the shared values that bind the community together.
Measuring Success and Iterating
As with any business strategy, measuring the success of your product awareness efforts is crucial. Utilize analytics tools to track key performance indicators, such as website traffic, social media engagement, and conversion rates. Analyzing these metrics provides insights into what resonates with your audience and allows for informed adjustments to your strategy.
Product awareness is an evolving journey, not a destination. Regularly reassess your approach, incorporating feedback from consumers and staying attuned to industry trends. Adaptability is a hallmark of successful businesses, and the ability to iterate on your product awareness strategy ensures continued relevance in the ever-changing marketplace.
Building consumer expertise from scratch requires a holistic and dynamic approach. From understanding the audience to crafting compelling narratives, leveraging influencers, and fostering community engagement, each step contributes to the intricate tapestry of product awareness. In a world where attention is a precious commodity, the businesses that invest in genuine connections, consistent communication, and ongoing education are poised to not only capture consumer attention but also cultivate lasting loyalty.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.
