The growth of the Direct-to-consumer or D2C brands can be attributed to an increase in e-commerce and internet penetration, faster last-mile logistics, and a jump in consumer tech awareness. D2C, an evolving, high-growth market in India, attracts investments from across the globe. The growing demand for online shopping and convenient deliveries has brought about a new revolution in the consumer goods and retail supply chain. D2C selling is a fast-track retail model
wherein brands sell merchandise directly to consumers through an online storefront, without involving intermediaries such as wholesalers or distributors. Brands sell directly to consumers via in-house fulfilment centres, e-commerce marketplaces, or with the help of third-party logistics providers.
Uptownie, founded by Priyanka Agarwal is a stellar example of a flourishing business based on the model of D2C selling. Uptownie is a homegrown, fully bootstrapped, affordable, womenswear brand. They design and manufacture clothes for Indian women, keeping in mind their preferences and body types. As an online contemporary fashion label, their mission is to empower Indian women with the liberty to dress comfortably, fashionably and authentically.
Since the birth of Uptownie in 2015, they have refined their focus and design unique styles that are not easily available elsewhere. Today, their products have a nationwide presence and can be found on their website as well as e-commerce stores such as Myntra, Flipkart, Amazon, Nykaa Fashion and Ajio. They have developed deep capabilities in product development, manufacturing, storytelling and marketing – and unlike many other womenswear brands in the country, all their designing and manufacturing is done in house, giving them an agile and efficient supply chain. Their network of suppliers and strong supply chain helps them offer premium products at affordable prices and launch new styles very quickly. Consumers today are looking for alternatives to high street brands and given the greater trust in buying from homegrown labels, the sector has received a push. Their designers keep in mind that they are designing for the Indian consumer who prefers warmer colours for Indian skin tones, silhouettes that are forgiving on the hips, slightly more modest cuts to cater to Indian sensibilities, length adjustments according to average Indian body height, prints with a slightly ethnic feel and brand language that the Indian consumer finds relatable. Due to these reasons, they are able to compete effectively with international brands, and do not see their sales hit during Zara’s biannual sale, for instance.
There is also greater adoption of western wear across the country even outside the metros. Consumers from small towns are increasingly comfortable purchasing online and comfortable wearing western wear. This is a big shift from even five years ago when the market was more heavily weighted towards the bigger cities. Their leading markets are Maharashtra, Karnataka, NCR, West Bengal, but they deliver in every state across the country.
They are a women-led business where all important managerial positions are held by strong, independent women. At the helm of the 90 member (and quickly growing!) organisation is a mother and daughters team who strongly believe that more women in India need to enter the workforce, and more importantly that women are a real asset in the workforce. Of course one of the biggest pain points for homegrown brands is the presence of COD (cash on delivery) as a mode of payment. This often leads to parcels not being received by the customer due to lack of coordination between the customer and courier partner. This results in the parcel being returned back to them , thus forcing them to pay two-way logistics for an unsuccessful order. Another pain point is the lack of customer awareness regarding placing returns online – despite creating an easy-to-use system, it remains a challenge to educate customers about how to go about placing a return and using store credit.
On the marketing front they have grown their Instagram community. They make cutting edge content that educates the customer while also being fun and true to the brand. They take pride in their social media engagement which is superior to most competitor brands. With their reel views and comments being consistently high they have been successful in building a strong brand recall and recognition in the minds of their target audience.
Going forward they are also on a mission to become Phygital with steps already taken to have their products displayed in boutique stores all over the country as well as participating in fashion and lifestyle exhibitions. They hope to be present in 500 stores by the end of the calendar year 2023 so those customers who are uncomfortable purchasing online are still able to access their brand.
Being profitable since its second year, a growth of 200% year on year and a 40% month on month growth last quarter, Uptownie has been performing way beyond their expectations and they only see the trajectory going up with the coming year. At their current run rate, they are set to hit overall sales of 50cr in FY 23-24, with 25-30cr of sales coming from their own website. They have raised no outside funding, and have reached such revenue figures in a sustainable manner while maintaining healthy profitability. Their long term goal is to become a one stop shop for women looking for western and Indo western wear, at an affordable and accessible price point.
