Selling in the US, and DMart and Reliance’s acquisitions
In the fifth edition, we cover Reliance Retail's reported potential acquisition of Alia Bhat's clothing brand, and the world's cheapest pizza is in India.
Good morning, folks!
Welcome to the world of D2C Insider.
In D2C Insider Digest’s fifth edition, we explore the number of acquisitions, which happened or are happening during the week. Retail giant DMart acquired Health and Glow, a beauty retailer, and Alia Bhatt’s Ed-a-mama is in talks to get acquired by Reliance.
We also spoke to Chirag Gada from Mensa Brands, a few weeks ago, who shared his expertise about selling in the US.
Oh, and guess the price of the world’s cheapest pizza? Dominoz is rolling one out.
You would only need to spare about 4-5 mins to be all caught up.
Also, D2C Insider Digest has been growing stronger every week. That’s all thanks to you folks, our readers.
We need a tiny little help from your end and we also want to give you something in return as a token of our appreciation. But that’s at the end. So do stick with us till then.
But first, let’s dive into…..
Most important things to know before expanding in the US Market
A few Indian D2C (direct to consumer) brands have done a great job expanding across international markets. But among digital marketplaces in the US, Amazon.com has lions share. Hence, it is the best place to start selling.
After working across these markets here are the top five things a founder should keep in mind, if they decide to sell in the states. Click here to know more.
Happenings from last week
DMart acquires beauty chain Health and Glow
Avenue Supermart’s billionaire founder Radhakishan Damani acquired Health and Glow. The Bengaluru-based beauty and personal care retail chain was reportedly bought for ₹700-750 crore from Rajan Raheja and Hemendra Kothari’s family offices.
In 2015 Damani also bought out Bombay Swadeshi Stores, India’s oldest retailer, for ₹42 crore.
Run by Avenue Supermart, DMart currently runs 324 stores, and also offers grocery delivery services through DMart Ready, its online delivery offering. The firm competes with Reliance Retail, and Spencer’s, among others.
Sharks and their investment report card
Namita Thapar honoured the highest number of deals she promised on Shark Tank, a reality show. Emcure Pharmaceuticals’ executive director went ahead with 13 deals compared to 22 she had committed.
This was followed by fellow investors Ghazal Alagh and Aman Gupta. The co-founder of Honasa Consumer Pvt. Ltd. backed four out of the seven investments promised on the show while Boat Lifestyle’s Gupta honoured 12 deals out of 28.
Anupam Mittal, founder of People Group, on the other hand, backed seven firms after committing deals to 24 startups.
Investors, who are popularly known as Sharks on the show, have expressed that many deals don’t go through even after being promised due to compliance issues, among many other factors.
Reliance’s acquisition spree continues. This time it is Alia Bhatt’s Ed-a-mamma
Reliance Brands Ltd., which partners with brands including Burberry, Armani Exchange and Hugo Boss, is set to acquire Ed-a-mamma. Started in 2020 by actor Alia Bhatt, the sustainable kids clothing brand could be sold for ₹300-350 crore.
This acquisition would strengthen Reliance’s presence in the kids wear segment. Currently, Ed-a-mamma is reportedly a ₹150 crore brand, which is majorly sold online through marketplaces and the brand’s own website.
Domino’s rolls out the cheapest pizza as inflation builds
Domino’s rolls out pizzas worth ₹49 ($ 0.60) in India as the world’s biggest pizza brand fights inflation in its second largest market.
The stripped-down seven-inch version, which would consist of cheese with parsley and basil sprinkles, is the pizza brand’s lowest priced offering. Domino’s offers its lowest priced version for $3.80 in Shanghai, while in San Francisco the starting price point is $12.
Currently, Domino’s and its competitors-- including Pizza Hut (run by Sapphire Foods India) and McDonalds-- are dealing with margins getting squeezed as consumers have reduced eating out. The fast-food chains also face competition from India’s thriving street food culture where a consumer needs to spend less than Rs 20 for a samosa or a vada pav.
Liking D2C Insider Digest so far? Why not subscribe?
Arjun Vaidya, co-founder, V3 Ventures, talks about the potential of ₹10 price point.
“Think about it. With income growth, increase in aspiration and inflation - we’d expect ₹10 to move to at least ₹20-30. But, the 10 rupee price point is still the most powerful. A decent product at this price just sells!” Vaidya said in a post.
“It’s helped drinks like Frooti hold onto a dominant market share. In soap, the 10 rupee segment is still the fastest growing one accounting for 30-40% of the market (TOI),” he adds.
Following are the reasons for this price point to be working out:
The price point being etched in our memory.
Lower prestige factor.
Mass market can be penetrated through this price point.
Protection of market share.
This week, one of our group members shared an elaborate response on the steps digital-first brands can take to achieve better retention rates. With growing competition, most brands in the current times are trying to figure out retaining consumers.
D2C Insider also crossed adding more than 75 member in its new cohort The Titans. Consisting of founders whose companies have crossed more than ₹100 crore in revenue, a kick-off meet was held in Mumbai.
Touching ₹100 crore in revenue is a big milestone for any founder building a brand from scratch.
And we want to give a huge shoutout to Pilgrim’s co-founder Anurag Kedia, Sujata Biswas and Taniya Biswas, founders of Suta, and Skillmatics’ Dhvanil Sheth, among others, who have breached this milestone and are going strong.
D2C Insider’s #FRIENDSOFBRANDS
Apart from this, brands in D2C Insider’s community are also offering exclusive deals to fellow members. Under the #FRIENDSOFBRANDS initiative:
ExclusiveLane is offering a 20% discount on minimum purchase of ₹999.
So is Aimly on spends of ₹500.
Snackible offers 25% discount on no minimum purchase value.
Want to work at the ever-growing D2C ecosystem?
D2C Insider’s job portal could help you out. Until Saturday, we have received:
Jobs : 87
Job Seekers : 91
Applications : 65
Employer accounts - 76
Also, the following companies are hiring:
Maiora Diamonds is looking for a social media content creator.
Organic Roots is looking for a marketing lead.
Deals of the week
Solethreads, a footwear firm, raised $3.7 million, in Series A funding round from Fireside Ventures, DSG Consumer Partners and Saama.
Blitz, a same-day delivery service platform, raises $3 million, from India Quotient, and Better Capital, among others.
Radiohead Brands, which runs Jimmy’s Cocktails, raised ₹11 crore, in pre Series A round from Prath Ventures and Vijay Shekhar Sharma.
Tip of the week
Changing times, changing brand imagery!
Burger King, which started witnessing slacking sales, decided to upgrade its logo in over 20 years.
The legacy fast-food seller wants to be one with GenZ and also show sustainability in its approach.
Refer us to a curious soul
D2C Insider Digest is growing from strength to strength. Every week, we organically get subscribers, like yourself, who are curious about the digital-consumer landscape.
And we cannot thank you enough for reading us every week.
Now we also need your help in spreading a word around about the newsletter and making this into a massive community of curious souls.
Share this or any other edition of D2C Insider Digest, and try a new brand of your choice as a token of gratitude from our side.
Tier 1 - Get ₹500 gift card from top brand for 25 referrals
Tier 2 - Get ₹1000 gift card from top brand for 50 referrals
Tier 3 - Get 1 Goodie Bag worth ₹10k+ for 100 referrals
That’s it for today, folks!
Make sure to subscribe to D2C Insider Digest, and also check out our upcoming summits in Delhi, Mumbai and namma Bengaluru. Register here to become a part of our summits.
Also, click on this link to get a chance to showcase your firm to Fireside Ventures, Saama, and Blume Ventures, among other investment firms as part of our upcoming pitchathons