Building a Rs 20-crore fashion business in India may not be too difficult, but scaling it up to Rs 100 crore and then to Rs 500 crore is where the real challenge lies, said Ananth Narayanan, Founder & CEO of .
Breaking down the growth trajectory of fashion brands into distinct “cut-off” points, Narayanan explained, “It is very easy to build a Rs 20-crore business. It goes from zero to Rs 20 crore quite quickly. The next cut-off is Rs 100 crore and then it is Rs 500 crore.”
If a brand has to grow from Rs 100 crore to Rs 500 crore, it can no longer remain just an online-only brand. “You need to make stores. You need to make offline work.”
This transition, Narayanan added, requires a completely different skill set, as offline expansion presents unique challenges.
Opportunity for D2C brands
Despite these hurdles, Narayanan believes there’s immense potential to build consumer brands in India over the next decade.
“There’s a plethora of D2C brands in the country… If you take a 10-year view, there’s a massive opportunity to build consumer brands from India,” he said during a fireside chat with YourStory Founder and CEO Shradha Sharma at TechSparks 2024.
Founded three years ago, Mensa Brands houses 20 brands across three verticals—fashion, beauty, and home decor. The rationale behind this focus, according to Narayanan, is that these are categories where strong branding can be built.
”You don’t need your fifth dress or fourth shirt, but you buy it because you love the product or brand … This lends itself to brand building.”
Unbranded to branded
Going from unbranded to branded is the macro trend in the market, observed Narayanan.
“In the next 10 years, we will see unbranded India become branded India,” he said, adding that the country will have global brands in the consumer space.
Mensa Brands has capitalised on this trend by identifying and riding on emerging consumer needs. For instance, it developed a Rs 200-crore party supplies business called ‘Party Propz’.
“We are 50% of the market, and now we’ve taken it global,” Narayanan shared.
India is a disorganised market, and this where the opportunity lies, believes Narayanan.
While earlier one would go to the shop down the street to buy balloons and party supplies and put them together for a celebration, the trend has changed today with people looking for organised solutions.
“If you look for disorganised spaces where there’s no standardisation and quality, it’s a great place to build a brand,” he said.
