Ice-cream milkshake anyone? đ§
All things noteworthy in the D2C space
Heyđ
Welcome to this weekâs edition of GlobalBees D2C Pulse! In case you missed our last few editions, check them out here!
Are you running a consumer business? If so, whatâs your North Star Metric (NSM)- âthe guiding metric(s) that aligns all of companyâs energy and brainpowerâ. At first glance, it may seem that maximising revenue ought to be the NSM for every consumer product company, but thatâs not the case.
NSM may vary from company to company, and may also change within a company depending on the stage of growth the company is at. For e.g. a company like Bombay Shaving Company that is currently aiming to get the maximum market share might not be concerned with revenue and growth efficiency. Likewise, the focus of a brand like The Better India is engagement growth, for The Better Home it is consumption growth and for Wakefit it is growth efficiency.
The #1 question to start with while deciding NSM is which metric- If it were to increase today, would it accelerate oneâs business flywheel. So whatâs your NSM? Write to us here if you need help, we get pretty kicked about working on NSM.
This was our business tact of the week for you, now letâs get to the D2C updates!
Whatâs in the news?
đ§Scoops of funds for NOTO
Delhi based low-cal, zero sugar ice cream brand NOTO got a funding of INR 4 cr. from a group of investors, including Titan Capital and actor John Abraham. Founded in 2018 by yet another husband-wife duo (this seems to be the flavour of the season), NOTO has sold over half a million units to date.
With the fresh influx of funds, NOTO plans to add different flavours and formats such as keto and high protein to its ice cream, and increase its pan-India presence. NOTO has recently also launched its vegan range, joining the club with Nomou and Papacream.
While the Indian ice cream market continues to be dominated by mass brands like Amul, Vadilal and Mother Dairy, brands like NOTO & Get-A-Whey are slowly gaining traction as consumers look out for healthier desserts.
đźAmul got its Whey
Whatâs better than Ice cream? An Ice cream milkshake!
Food regulator FSSAI recently gave a major blow to the budding USD 21 mn plant-based dairy market by directing e-commerce companies to investigate and delist all non-dairy and plant-based beverages that have label claiming as 'dairy' products. Players like Epigamia, Goodmylk, Raw Pressery that have been trying to drive adoption of soya, almond & oats based milks, will now be mooed-out of the e-commerce platformsâ dairy category.
Amul, that has long viewed plant-based dairy as a threat to its cow-based dairy, finally got its way.
PS: Per GFIâs survey over 80% of respondents feel that existing terminology of âtype of milk mentioned on pack such as soy/oat milk, is the most efficient differentiator for users.â Even we think FSSAIâs move was excessive - FSSAI, why you gotta be so rude!
đ Elevarâs batting hard
When it comes to performance sports shoes, Indian market is still dominated by the likes of Reebok and Nike. Aiming to carve a niche in the USD 3.5 bn sports footwear industry in India, Mumbai based Elevar Sports has raised INR 19 cr. from Kalaari Capital and Dream Sports with its limited yet unique product range of cricket bats and performance footwear.
Elevar plans to utilise the funds for product development, portfolio expansion to include womenâs footwear, and to fund its marketing activities.
đđźD2C brands are getting SaaS-y
The D2C rush is not only acting as a catalyst for the consumer brands but also third parties that enable the D2C ecosystem with their SaaS solutions. According to Inc42, digitisation of the Indian retail sector alone has provided SaaS startups an opportunity of more than USD 2 bn. This has lead to the emergence of tech startups like Dukaan, Khatabookâs MyStore, Dotpeâs DigitalDukaan and many more.
Two such start-ups got funded recently - Magicpin (Orderhere.io) raised USD 3 mn from Oyoâs founder Ritesh Agarwal and IsGoingOnline raised INR 1.5 cr. in a funding round led by Artha Venture Fund.
Brands that caught our eye!
đˇNo more Phool-ing around
Phool, a premium fragrance-based home products company, has come up with a fresh solution to the monumental temple-waste problem in India. Phool collects floral waste from temples and mosques and recycles it into incense, vermicompost and biodegradable packaging material.
Phool products are completely organic and dipped in natural essential oils like eucalyptus and nargis. Through its flower recycling method, Phool saves tonnes of floral waste from being dumped in the Ganges on a daily basis!
đ Test tube diamonds
While we were still getting used to the idea of lab grown meat, a Mumbai based start-up called the Limelight Laboratory, has brought another lab grown friend in town - diamonds! These diamonds are grown in a lab from a single seed of diamond, under the same heat and pressure like in the crust of earth. They are ecologically friendly as they do not scar the earth with mining and yes they are real diamonds!
Trend of the week:Â Ayurvedađ
Ayurveda is not new to Indians - we all have had nani ke nuskhe wali chai & kadha when we have fallen sick. However, the pandemic acted as a catalyst for the adoption of ayurvedic lifestyle - not just as a cure for illness. Be it skincare, essential oils or superfoods, there is a growing demand for ayurvedic products that is being fulfilled by new-age brands in the country.
The Ayurveda market in India was valued at INR 300 bn in 2018 and is expected to reach INR 710 bn by 2024. Many brands in India realise the potential of Ayurveda and have set up profitable businesses around Ayurvedađ
Reads & Recommendations
The Game of Brands creates Twitter threads on stories of different brands like Nescafe, Bata etc.
12 Industries That Will Thrive Thanks To Millennials by CBInsights
Opting in to Optimization sets out principles for building sustainable e-commerce businesses.
Letâs do shots by Mad over Marketing covers marketing & advertising stories in short!
Thatâs all for this week!
Stay tuned for more insights about the D2C start-ups in India. Do share your feedback.
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