D2C Brands Like FableStreet, Snitch Challenge The Old Guard With Style, Price And GenZ Connect

It’s not easy to make a mark in an extremely crowded market like fashion. Yet, direct-to-consumer, or D2C, brands are catching the fancy of consumers by carving unique niches and providing hitherto non-existent options. 

FS Life, formerly FableStreet, realised that in a market where size matters the most, the right fit doesn’t exist for Indian women. It designs clothes for Indian women with unique body shapes and heights who cannot acclimatise to Western body types. The eight-year-old brands clocked in an average revenue rate of Rs 60 crore as of fiscal 2023. 

“Every brand that comes up needs to make sure that they are not another ‘me too’ and are solving a unique problem. FableStreet focused on solving sizing issues for Indian women and came up with a unique sizing algorithm around it,” says Adarsh Sharma, chief business officer of the company. 

When they’re not using technology to gauge the right fit, D2C fashion brands are identifying unique gaps that have gone unnoticed. Snitch saw that Indian cosmopolitan men are short on stylish clothing options. Siddharth Dungarwal, its founder, says that most top retailers concentrate on women, and around 10% of their stocks are for men. 

“There is a blaring gap in men’s apparel. We are providing interesting styles at aspirational price points,” says Dungarawal. While his clothes target millennials and Gen Zs, he was chuffed to note that many of his customers are in their 50s. “Men at every age now want to look fresh and trendy on Instagram,” he notes. 

Indian D2C fashion brands generated around $4.6 billion in fiscal 2023, according to a recent report by 1Lattice. The sector is expected to grow at a compound annual growth rate for the next five years to hit $14.9 billion in fiscal 2027. Due to their higher average order value, the margins for apparel are typically around 50–60%, the report says. 

Ninad Karpe, a partner at 100X.VC, which has invested in D2C apparel brands, believes that they can carve a niche even in a saturated market like apparel. Especially since the youngest of fashion consumers, Gen Zs, are a demanding lot,. 

“Gen Zs are very conscious of good colours, designs and aesthetics with specific tastes. They do not have a sense of loyalty to their parents’ older fashion brands. Since they’re open to new brands, there is a case for disruption, especially for challenger brands,” he insists. 

A few brands are employing novel styles, materials and design concepts. As per 1Lattice, ThePantProject is using advanced yarns and textile technology—a wrinkle-free, flex-tech waist, thermoregulating, breathable material—to make stretchy, comfy pants. Bummer, on the other hand, is making quirky innerwear for youth. 

The era of one-size-fits-all approaches to apparel seems to be ending. “Different customers have different problems that need to be solved. It's important for brands to identify a unique problem statement and solve it. Even if it is for a small market, brands can expand in different spheres gradually after having established themselves in a particular field completely,” says Sharma. 

Karpe of 100X.VC believes that going niche is the way to go for new D2C brands. “It’s a tough market, but if they can identify a good arc and have a good product, they can succeed. They can choose one focused vertical and make it successful and maybe branch out later,” he said. 

D2C customers are also a lot more sensitive to their consumer needs; they offer a certain degree of personalisation with tailoring options, facilitate hassle-free returns, etc. They also offer discreet shopping experiences with diverse offerings, especially in hush categories like innerwear. 

Cause-based brands that provide sustainable clothing items are also gaining traction. “No Nasties, 11.11, or Doodlage are some brands offering sustainable clothing,” says the 1Lattice report. 

Like most other disruptions currently at play, fashion D2C is also embracing technology beyond their sales channel. Most of them employ AI, data analytics and more for various purposes, right from design iterations to assessing consumer interest. 

“They employ dynamic pricing methods that adjust prices and discounts based on real-time customer demand, preferences, and market dynamics. They harness comprehensive data analytics to derive actionable insights into consumer preferences, guiding informed product development strategies,” says the 1Lattice report. 

With high-powered data analytics, they can also test new styles in the market much more easily. “We use technology to find trends. When we release new designs, we start with a low quantity and see the traction and the segment that’s interested in it and they increase it,” says Dungarwal.

Most D2C brands are working hard to improve the online shopping experience as well. They are integrating virtual try-on functionalities with rich product cataloguing and more. At the same time, they are not ignoring the brand visibility of an offline presence as well, with an omnichannel presence. Most of them are going to offline stores to display their products and bring in footfalls. After all, apparel is a sector where touch and feel matter a lot.

Katya Naidu is a senior business journalist who writes about equity markets, startups, energy, infrastructure, real estate and healthcare.

The views expressed here are those of the author, and do not necessarily represent the views of NDTV Profit or its editorial team.