There’s a big opportunity for RMG exporters right next door. With a value of over US $ 102 billion and growing at a 4 per cent CAGR, India’s apparel retail market is the third largest in the world. Much of this growth is driven by emerging D2C (Direct-to-Consumer) brands that have a fresh approach, strong presence on social media and are popular with the youth. Many of these brands now have a physical presence and are expanding their reach across India.
Except for a few exceptions, most of the D2C brands are sourcing from Bangladesh and are optimistic about the same. Brand Studio Lifestyle, having about 20 per cent of its annual volume sourced from Bangladesh, will increase the same soon. The Campus Sutra, a fast fashion brand, is also placing orders in Bangladesh for almost US $ 1 million.
In 2023-24, Bangladesh’s apparel exports to India reduced by around 30 per cent, so focusing more on the D2C brands can be a good option for the country to increase their market share in India. The following are four Indian D2C brands that have immense growth prospects for Bangladeshi RMG exporters.
Rare Rabbit (Radhamani Textiles)
Bengaluru-based high-end fashion brand Rare Rabbit is one of the most successful start-ups in apparel retail. Launched in 2015, it’s a growing D2C brand for both men and women, with over 100 stores across India. Recently, Rare Rabbit secured US $ 18 million in funding and is expanding into kidswear.
As per various reports, the brand observed a profit of around US $ 9 million in FY ’24, up by 131 per cent from US $ 4 million in FY ’23. Its operating revenue increased 69 per cent to US $ 75 million during the year under review from US $ 45 million in FY ’23.
The brand, founded by Manish Poddar and Akshika Poddar, currently has a strong reach with 141 EBOs and 385 MBOs across India.
Offering majorly westernwear including accessories besides ethnicwear, its price range starts from US $ 20 and goes up to around US $ 50. Cotton and blends are the main raw materials used in the brand’s collection.
The Souled Store
Started in 2013, The Souled Store is a brand for the young generation, pop-culture enthusiasts and collectors. Started by Vedang Patel, Aditya Sharma, Rohin Samtaney and Harsh Lal, the Mumbai-based brand has a strong online presence with 36 stores and expects to have a total 200 stores in the next two years.
60 per cent of its customer base is the millennial demographic while the remaining constitutes Gen Z shoppers. With around 4,000 products (stock-keeping units) on its website across 50 categories, the brand offers topwear, bottomwear and accessories like backpacks, sneakers etc.
Its price range varies from US $ 11 to US $ 40. Famous Indian cricketer Hardik Pandya is also one of the investors in the brand.
As per reports, since 2022, the brand has seen significant growth, marked by an impressive revenue boost with a CAGR of 55 per cent. In FY ’23, the brand had a revenue of US $ 27 million and so far it has raised a total funding of US $ 29.7 million over five rounds.
| In 2023-24, Bangladesh’s apparel exports to India reduced by around 30 per cent, so focusing more on the D2C brands can be a good option for the country to increase their market share in India. |
Berrylush
Six-year-old Noida-based omnichannel fast fashion brand Berrylush, started by Anusha Chandrashekar and Alok Paul, caters primarily to Gen Z and millennial women. So far the brand is bootstrapped and looking to raise funds to scale its operations. During the last fiscal, it had net sales of US $ 9 million which is expected to reach US $ 12 million by the next financial year.
To enhance customer experience and drive retention rates, the brand recently joined hands with ClickPost. This partnership focuses on post-purchase customer experience through streamlined order tracking, a data-driven supply chain and automated communications. The brand also joined hands with GoKwik, which hosts over 1,000 brands on its network. It also launched its app recently and recorded a 50 per cent increase in daily net sales.
The brand, offering products in cotton and blends, has a price range starting from US $ 4 which goes up to around US $ 32. It has four stores currently and its strategy is to expand the Franchise Owned, Franchise Operated (FOFO) model for store expansion.
The Bearhouse
Started in 2017 by couple Tanvi and Harsh Somaiya, The Bear House, Bengaluru-based contemporary D2C men’s apparel brand, specialises in smart work-casuals. With strengths like impeccable quality and versatile designs, the brand caters to discerning Indian consumers seeking effortless transitions between professional and social settings.
The brand is growing offline also as it recently unveiled its first-ever store in Delhi and aims to open at least six stores by the end of March 2025. To grow further, the brand recently onboarded Kapture CX, a Gen AI-powered customer support automation platform.
As per reports, the brand has already surpassed US $ 17 million in revenue and aiming target of US $ 19 million. It is further focusing more on sustainable products, enhancing operational efficiency and customer experience and leveraging technology.
