Q] How does having Vicky Kaushal in your new campaign align with your brand image, and enhance your brand’s credibility?
Besides being a great actor, Vicky is humble, smart, and confident. When I met him, I realised that his personality resonated with Damensch’s mission to make modern Indian men more comfortable, confident, and conscious. Our collaboration with Vicky aims to convey the feeling our customers have about our products, helping them express it. With Vicky’s presence, we hope to reach a broader audience, extending beyond metros to tier one and tier two cities.
Q] How do you differentiate yourself from your competitors in the D2C market?
Damensch offers a unique experience to our customers using in-house research, and globally high-standard fabrics. We have an impressive Amazon rating of 4.7+ and over 65% repeat purchases within six months. In comparison, our competitors’ averages are around 4.2 or 4.3.
Our apparel caters to the Indian body type, and is available in various sizes, is versatile, modern, and durable. We provide ‘true value’ to value-conscious Indian consumers and justify a slight premium. Our commitment to sustainability with eco-friendly materials and long-lasting products further distinguishes us from fast fashion.
Q] You recently raised some money in a series B round. It has been nearly two years since the last time you raised money, are there any specific plans for expanding your product or service offerings with this new capital?
About a year and a half ago, we completed a Series B round, supplemented by small investments from internal investors. This funding helped us expand into offline markets, and we are now focusing on reaching more Indian consumers, especially men, and increasing awareness about our products.
Q] Speaking of offline markets, your CRO, Ashmeer Sayyed, recently said that Damensch’s offline business will surpass its online business in no time. What factors will drive this offline growth?
In the next 12 to 18 months, we plan significant expansion, leveraging growing digital penetration to support our offline business. We currently have over 1,000 offline touchpoints and around 25 EBOs in key locations. Our goal is to scale both sectors, with offline expected to grow faster. There is tremendous potential in the offline business given that 90% of the market remains offline.
Q] Damensch plans to open a hundred stores by the end of 2024 are you on track to achieve that? Additionally, how has the reception been to the existing 25 exclusive retail stores in India?
Of the 100 stores, the first 25 were company-owned and operated. We now plan to expand by collaborating with various franchises and modern and general trade partners. So, now we are on track to reach that number with the help of our partners offline.
Realising that our own stores require significant investment, we decided to scale by partnering with others who can provide capital for building and setup. The success of our initial 25 stores has attracted strong partner interest, enabling us to expand more efficiently. The remaining stores will be established through these partnerships.
Q] You sell your products on your website as well as across various e-commerce platforms. From which platform do your customers prefer to make their purchases?
The largest portion of our business comes from our own website, thanks to our high product standards and supporting technology. While our website remains the biggest channel, other e-commerce platforms like Amazon, Flipkart, Myntra, and the emerging quick commerce platforms are also experiencing rapid growth.
Q] What are some strategies you have adopted to drive traffic to your own website?
We’re still early in building brand awareness among Indian men. Our collaboration with Vicky is a major step to drive traffic to our website and boost consumption. We strongly believe in our products, offering a 30-day refund policy even for innerwear. If customers are dissatisfied, they can keep the product, and get a refund on their first purchase, a policy exclusive to our website. These awareness programs are the biggest driver of traffic to our site.
Q] Is pricing a challenge for you in the broader Indian market, given the presence of numerous competitors like new D2C brands such as Bummer and established names like Jockey?
Brands like Bummer, and other new-age competitors often are priced similar or higher than us, while legacy brands offer a wider price range. In India consumers are value-conscious, not price-conscious, valuing a mix of quality and premium pricing. Our strong customer loyalty and high repeat purchases mitigate pricing challenges. We offer multiple price tiers to serve different audiences, from metros to tier-one cities, ensuring exceptional value that outperforms both new-age and legacy brands.
Q] Which markets have significantly contributed to your brand’s growth as of now and going forward, which markets do you think will drive growth?
We are primarily a digital focused business, serving over 15,000 pin codes nationwide. Damensch isn’t limited to metro and tier one cities; over 60% of our business comes from beyond these areas. Our significant reach extends to regions with high digital penetration.
Q] The operating revenue of the company saw a rise of 22% in FY23, but your net loss more than doubled. So, what are some plans to turn around the net loss?
This year, we anticipate a major shift from the previous one or one and a half years. Post-COVID, we had to pause some plans, which contributed to earlier losses. However, we expect our online business to become profitable in the next four to five months. For offline, as we continue to experiment and learn, we project a growth of 70-80% this year with a significantly improved bottom line.
Q] Can you share some insights regarding your marketing mix? Is digital your preferred way of marketing?
I would say up till now, almost all of the media mix was digital. However, with this campaign, we plan to reach a lot more consumers. We are also expecting a significant share from other digital channels like OTTs, where our consumers are. We may also do some ATL marketing in strategic locations over the course of this year.
Q] Damensch does a lot of mental health campaigns, and also has a plus size range for men. Does inclusive advertising attract more people, and how has its reception been in India?
The reception has been excellent, which is why we’ll continue focusing on big sizes. We expect a significant share of our business to come from this segment in the next financial year. Addressing size and mental concerns is crucial, and it’s our moral responsibility to communicate this. People resonate with our approach, so we’ll persist in this effort.
Q] Are there any upcoming campaigns or initiatives that you are excited about? Can you tell us about them?
I’m excited about the next 12 to 18 months. We’ll start by raising awareness for our new campaign to reach potential customers. In the coming months, we’ll launch a groundbreaking innerwear range and, as winter approaches, a unique sustainable collection. Early next year, we’ll introduce a new category designed to boost men’s confidence and comfort. We’ll also collaborate with personalities who align with our brand throughout the year.
Q] With a huge number of brands in the D2C space, do you still see potential in this space or is it becoming stagnant?
In our category, expertise in product and marketing is essential. We aim for 100% growth in digital and B2C spaces, with quick commerce boosting our digital reach. Success in categories like beauty and personal care hinges on finding the right niche. Despite rising digital advertising costs on platforms like Meta and Google, there is substantial D2C potential as new categories emerge and Indian consumption grows over the next decade.
