The Bootstrappers
Nothing is too hard to figure out
Shruti Gupta is bootstrapping Fleck, a D2C brand
Shruti left the comfort of job at big-tech brands to build Fleck. It is an artisanal direct to customer (DTC) business. Within a year of the launch, Fleck has grown three times. Customers adore its products. Can it compete with the bigger brands such as FabIndia and Nicobar? I spoke with Shruti about her struggles, milestones and learning.
She shared her motto: “Nothing is too hard to figure out.”
Scandinavia and failure
While travelling in Scandinavia (Denmark, Norway and Sweden), Shruti fell in love with its design aesthetics. She did not find similar products in India. There was a gap. She could supply such products to the existing retailers. After sourcing the ceramic ware with Scandinavian aesthetics, she booked a stall at an exhibition event in Delhi. Buyers did not place the order. The trend is to buy cheap knockoffs, while her products cost more and of higher quality. Her first attempt failed.
May be next time
The failure did not deter her. She paused the venture. She designed apps for Shifu, Paytm, PayPal and Frogdesign. Meanwhile, the market changed with the advent of Jio, popularity of social media platforms and payment technologies. Developing a DTC brand in 2019 was many times easier than 2013. Market was ready. It is the only thing, which matters.
Once more
Shruti started again. She launched Fleck with a new line of artisanal mugs from different ceramicists. This time the products were for the retail customers. The product line includes planters, dining & serving (mugs/ cups, plates/ bowls and serving trays/ coasters), tables and decor.
As a direct to customer (D2C) brand, Fleck could take online orders, and deliver within days. There were few orders for the first few months. Orders picked up after COVID-19. Its monthly sales is nearing INR 10lacs. Fleck’s 70% of the sales come from online. 30% of the sales happens on ground and in retail stores. It also retails on aggregator websites such as Jaypore and Kalpane.
It’s here to stay
Repeat orders have encouraged Shruti to introduce new product categories such as candles, wellness and furnishings. Starting with a small white mug (the largest selling item),Fleck is turning into a modern lifestyle goods brand. Customer feedback is important to develop new products. When Fleck had launched the planters, customers demanded for the smaller ones. Shruti introduced smaller planters. Today small planters outsell the bigger ones. Customer feedback drive sales.
Know more: Four ways to get feedback Link
Millennial love aesthetics
Fleck’s typical customer is between twenty four years old and thirty four years old, and single. Like millennials, they don’t buy expensive lifestyle goods, say above INR 10,000. People between thirty four years old and forty four years old buy products worth more than INR 10,000. Its customers love to merge the western aesthetics with a dash of Indian identity. That’s Fleck’s sweet spot.
Customers aren’t just in metros. They are also from tier three towns such as Sambhal in Western Uttar Pradesh. Online technologies along with plug and play logistics allows to access the pan Indian market.
Process follows design
Shruti borrows from her design influences to release new collections. Sales trends help to know what customers want. She also interacts with her customers on Instagram.
There is a process behind every release. For example the white mug (300ml), started with the sketches. Then a ceramicist developed a clay prototype. The prototype traveled to the vendor, who iterated as per the feedback. The final product was the white mug. Her next collection was lean ceramics, which followed the same process.
Worth drooling: Glazing Link
Competitors do not matter
India’s home decor and interiors market is more than INR 1lac crore by 2021. Its compounded annual growth rate (CAGR) is 8%. 50% of the home decor market is about soft furnishing. The rest is about homewares and other goods. Technopak reports that there will be 350 economic hotspots across the countries. It means more customers, more growth and room for more brands such as Fleck.
Home decor market comprises of five key segments; mass, affordable, premium, affordable luxury and luxury. Fleck is in the premium segment along with Nicobar, Spin and Nappa Dori. The average price of the products in this segment is INR 5000.
Bootstrapping is hard
In the beginning Shruti and her husband financed the business with their savings. While Shruti built Fleck, she kept her job till recently. This year she resigned from her job to focus on Fleck.Though, Fleck is cash positive. It’s a mix of profitable collections such as planters and the ones breaking even. Shruti invests the extra cash back into the business.
Sales funnel
Fleck is a digital native brand. It advertises on Facebook/ Instagram and Google to attract customers. It has collaborated with influencers such as interior designers. Giving away free products is a great way to build awareness. Tying with up with other brands for co-collection increases reach. Though, the business has grown three fold, Shruti wants more comprehensive marketing communications approach.
Future is fleckin good
Shruti also plans to release micro collections, four times in a year, instead of big releases. It keeps the merchandise new and exciting.
After Fleck Bramdah is the next chapter. It is an online marketplace for sourcing boutique brands. If you are a boutique brand or a retailer looking to buy such brands, you can sign up on Bramdah.
Influences
Shruti’s favourite business and design books are Small Giants, and Laws of Simplicity.
Small Giants talks about how businesses crated big impacted by choosing to remain small.
Laws of Simplicity talks about ten laws to balance the elements of complexity and simplicity in the business, design and technology
She also admires businesses such as Everlane and Byhumankind.
Everlane is a clothing brand, which practices ethical sourcing from the factories around the world.
Byhumankind sells ecological friendly personal care products. Customers can avoid packaging and get refills.
