Retail has changed tremendously over years. With online penetration getting deeper in the Indian geography, the ecommerce industry has seen a major boom followed by the emergence of direct-to-consumer (D2C) brands changing the game.
TMRW, a ‘House of Brands’ entity by Aditya Birla Group is disrupting the space where it is backing the new-age digital ventures and creating India’s largest portfolio of brands in the fashion and lifestyle space to enable the next phase of D2C growth in India.
In a fireside chat with YourStory’s Senior Anchor, Beverly Kim White at TechSparks 2022, Prashanth Aluru, co-founder and CEO of TMRW talks about the changing future growth of the Brands of India.
“There is a rise of the D2C brands in India which is poised to be a $100 billion dollar market by 2025. The new age brands are giving traditional ones a run for their money and by 2030, a lot of growth will come for D2C brands and there are a lot of opportunities to scale.”
TMRW is looking to acquire brands that cater to digitally savvy consumers and their demands, particularly in the fashion and lifestyle segment.
According to Prashanth, there are three key factors that TMRW looks for when approaching founders for collaboration.
“There are three key things that we are looking for in founders where the founders should be chasing large opportunities, there might be category creators who want to disrupt the D2C space. Secondly, they should share our vision i.e., stay and build the brand with us and thirdly, the product has to be a market fit.”
Prashanth also added that they are looking for long term associations and not just investing and exiting.
Unit economics and the scalability of brands are important factors for TMRW as Prashanth emphasises that TMRW is not a brand aggregator but a house of brands that give brands an operational value.
The number of ecommerce shoppers is expected to be 450 million in the next few years from 150 million now in India.
Speaking on ecommerce penetration in the tier 2 and 3 cities, Prashanth shares the example of Meesho “Meesho has democratised ecommerce in the tier 2 and 3 space and consumers there as well are looking for new brands,” he says, adding that TMRW is bullish about the opportunity of building for these cities.
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