Children’s apparel market in India is growing at a fast pace. The industry kids wear market was estimated at $16.62 billion in 2020, and is set to be worth nearly $23 billion by 2026, according to reportsandmarket.com report. In addition to apparels, there is also a demand for branded baby care products, bath and shower items, furniture, toys, and so on.
While Firstcry and Liliput have made significant gains in the offline market, new-age startups like Luvlap, Baby Jalebi, Hopscotch have also emerged. Ludhiana-based Mi Arcus, a new player in the industry, is also looking to tap into what is evidently a huge market.
Mi Arcus is essentially a baby and nursery brand with a range of products in infant wear, kids wear, baby bedding essentials, feeding essentials, baby accessories, baby furniture, and soft toys.
We spoke to Mi Arcus founder and CEO Gian Singh to learn more about his startup, business model, and future roadmap. Here are the edited excerpts.
What makes MiArcus stand out from other companies that are operating in baby-focused brands?
Mi Arcus, meaning ‘My Rainbow,’ embodies the vibrant spectrum of joy that fills our lives and homes when a new baby arrives. We aspire to share in this transformative moment with families, particularly parents, by making parenthood a joyful journey. Our mission is to provide comprehensive solutions for newborns up to 6-year-old children.
What sets us apart from our competitors is our dedicated focus on newborns. Our primary differentiator lies in offering international quality and a kaleidoscope of colors at affordable Indian prices, which forms our unique selling proposition (USP). Currently, we have a presence on 10 leading marketplaces and operate 40 Coco stores across various cities, including Lucknow, Ahmedabad, and Srinagar.
D2C companies are largely dependent on advertising and marketing for customer acquisition. Please tell us about your strategy.
We primarily leverage social media platforms for our advertising efforts, allocating approximately 10% of our annual sales budget to promotional campaigns. However, our greatest asset lies in the power of word-of-mouth recommendations from satisfied customers, contributing to an impressive 40% retention rate. Additionally, expanding our physical presence through the opening of new stores serves as a key strategy for entering new markets.
While our two-year contract with Kareena Kapoor Khan as our brand ambassador recently expired, it provided us with a significant boost during its tenure, catalyzing our initial growth trajectory.
Please give an overview of your growth and short-term and long-term growth plans.
Our vision is to establish a network of 300 stores across India and achieve a total sales turnover of 500 crore by the year 2028. By the end of 2024, we anticipate operating 65 Coco stores with an annual turnover of 75 crore, distributed as 45% online sales and 55% offline sales.
While we haven’t thought much about the long-term, our current primary focus revolves around crafting an exceptional Made in India baby brand. Our unwavering dedication is directed towards curating an outstanding customer experience and fostering a compelling brand identity.