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Investors pivot towards consumer brands in risk-off market

The Arc Web

The Arc Web · 1y ago

Investors pivot towards consumer brands in risk-off market

Investors are turning their attention to consumer brands in fashion, skincare, and fast food, seeking more predictable growth and cash exits. Startups like Traya (hair treatments), Foxtale (personal-care brand), Snitch (fast fashion for men), The House of Rare (menswear), Mokobara (luggage maker), and others are in talks with various investors for funding rounds ranging from $15-20 million. These investments reflect a shift in VC attitudes towards consumer brands and their potential for significant returns.

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D2C space: Investments in "not my parents' brands" are #trending

Economic Times

Economic Times · 1y ago

D2C space: Investments in "not my parents' brands" are #trending

Investors in the direct-to-consumer (D2C) space are shifting their focus towards young brands that target Gen Z consumers and have no connection to established brands favored by older generations. This trend is visible across various industries such as food and beverages, fashion, and technology. Venture capital firms are backing these new-gen brands, recognizing that the younger generation is looking for unique experiences and is less emotionally attached to traditional brands. This shift in consumer behavior is driven by both strategic messaging and product innovation in niche categories. While initial focus may be on Gen Z, investors believe that scaling and becoming successful requires targeting a broader market base.

Suleyman brings knowledge and past controversy as he joins Microsoft’s AI effort

Livemint

Livemint · 1y ago

Suleyman brings knowledge and past controversy as he joins Microsoft’s AI effort

Mustafa Suleyman, known for his work at DeepMind and Google, is leaving his startup, Inflection AI, to join Microsoft. Suleyman, along with his startup co-founder and team members, will lead a new division at Microsoft. His role will involve overseeing AI products for the company's consumer offerings, such as Bing search engine and Windows. Suleyman is an influential figure in the AI community but has faced controversies in the past. Inflection AI plans to pivot its business away from consumer products towards services for enterprises, with its investors being repaid over time through a licensing deal between Microsoft and Inflection.

Beauty companies in dull phase find quick fix to glow up

Economic Times

Economic Times · 9m ago

Beauty companies in dull phase find quick fix to glow up

Several beauty and personal care brands are turning to quick commerce to revive declining growth. Plum Goodness, Wow Skin Science, Purplle, and Honasa Consumer have all reported lower revenue growth, leading them to explore alternative channels. The saturation of traditional ecommerce platforms and the rise of direct-to-consumer beauty brands are said to be contributing factors. The shift towards quick commerce and offline expansion aims to reach a broader customer base and increase topline. Investors are also showing interest in this approach, funding brands like Foxtale and Traya.

Why D2C startups are built to move faster

Inshorts · 4m ago

Why D2C startups are built to move faster

The D2C model lets businesses respond to trends in real time. From launching new products to adapting pricing, brands can pivot instantly without relying on retail timelines, giving them a major edge in today's fast-moving market. This speed keeps brands ahead of the curve, turning agility into a competitive advantage.

Aditya Birla Group eyes major fashion statement, targets billion-dollar heft for four of its brands

Economic Times

Economic Times · 1m ago

Aditya Birla Group eyes major fashion statement, targets billion-dollar heft for four of its brands

Aditya Birla Group aims to transform its lifestyle brands—Louis Philippe, Van Heusen, Allen Solly, and Peter England—into billion-dollar labels within a decade, driven by changing consumer habits and increasing income levels. The company sees growth potential in the shift towards branded fashion in India's expanding $170 billion market. Originally focused on menswear, these brands now offer a diverse range of products, positioning Aditya Birla to compete globally by capitalizing on evolving market trends.

Decoding The $28 Bn Beauty & Personal Care Market Opportunity

Inc42 · 11m ago

Decoding The $28 Bn Beauty & Personal Care Market Opportunity

Mamaearth is a prime example of a brand that started small in the direct-to-consumer (D2C) beauty and personal care (BPC) space but grew to dominate the segment. With various innovative ingredients, formats, and application methods, the BPC segment remains interesting for investors like Fireside Ventures. The market has seen a shift towards new-age brands, with customers willing to explore and switch to newer options. Brands like Mamaearth are now considering offline retail expansion to reach more customers and be accessible across various platforms. Other notable players in the space include WoW Skin Science, SUGAR Cosmetics, and mCaffeine, all on the verge of becoming unicorns.

D2C Revolution: Why Thinking Outside The Box Is Your Secret Weapon

Inc42 · 1y ago

D2C Revolution: Why Thinking Outside The Box Is Your Secret Weapon

Indian consumers have shown a strong inclination towards direct-to-consumer (D2C) purchases, with approximately 65% of them embracing this retail model. D2C brands can enhance their offerings by investing in data and analytical capabilities, enabling them to provide personalized services based on customer preferences. Additionally, it is projected that three out of four brands will utilize influencer marketing in the future, with the market for this strategy expected to be valued at INR 3,375 Crore by 2026.

7 Strategies To enhance Customer Lifetime Value For D2C Brands

Inc42 · 1y ago

7 Strategies To enhance Customer Lifetime Value For D2C Brands

Forward-thinking Direct-to-Consumer (D2C) brands are shifting towards a customer-centric approach, placing equal importance on customer retention and acquisition. To ensure a healthy business, a CLTV (Customer Lifetime Value) to CAC (Customer Acquisition Cost) ratio of 3 or higher is recommended, indicating a strong retention strategy. Here are some strategies for D2C brands to shift their focus towards customer retention.

Investors gain big appetite for small consumer brands

Economic Times

Economic Times · 22d ago

Investors gain big appetite for small consumer brands

Investors are increasingly interested in small, regional consumer brands in India, aiming to acquire stakes or provide funding as larger companies face sluggish demand. Brands like Iscon Balaji, Dermabay, and Ceres Foods are gaining traction. Mid-sized deals have become more common, with brands such as Khari Foods and FES Café securing seed funding. The industry's shift is attributed to the appeal of regional brands, reduced distribution advantages for legacy brands, and broadening consumer bases.

From NPS and mutual funds to FRSB: Why diversification is key in investing today

Economic Times

Economic Times · 28d ago

From NPS and mutual funds to FRSB: Why diversification is key in investing today

Amidst market volatility, investors are turning to diversified portfolios with fixed-income securities for stability. Platforms like Stock Holding Corporation of India provide access to various investment instruments, including government-backed schemes, mutual funds, and corporate bonds. The focus on diversification highlights the importance of incorporating fixed-income options to counterbalance equity market fluctuations. With tools like the National Pension System and mutual funds, investors can customize risk profiles and seek stable returns, emphasizing the growing trend towards structured portfolio allocation.

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