Crowdfunding for D2C Startup
I am starting a D2C fashion brand. Haven't been able to arrange funds from any sources.
In a way, it's a chicken and egg problem in market conditions like this. Funding ke liye traction chahiye and traction ke liye funding chahiye.
Need 15 lacs to get things off the ground. Considering the minimum order requirements and marketing expense.
Do you think it would be a good idea to do crowdfunding for my startup? Any help / insights would be highly appreciated 🙏
Aap d2c kya unique bechoge?
in a way samosa seller bhi "d2c startup" hai 😅
Good point. Crowdfunding generally requires a compelling story to succeed.
I believe that we have compelling story of why we started the brand and there's also a social impact angle to this.
Aaj kal D2C brands are all about branding. There's no proprietary / unique product that can't be copied. Even brands like Mamaearth doesn't make it's product and outsources manufacturing to contract manufacturers.
IMHO,
- The main issue with "D2C" is firstly it is just a Sales Channel. The term has been so badly bastardised in India these days.
- By default, your product/solution should be catering to the end consumer directly and if this is true, then you would have already made revenue if not profit. The whole concept of dumping tonnes of money as COGS/COS and CAC to gain market has become archaic.
- Therefore, there will always be a pre-eminence of Sales over Marketing and Scale.
More products have failed in India due to Distribution mismatch than due to Product mismatch.
All said and done, crowd funding can work provided you are sure about sales and the distribution. Or else it will just be seen as another MLM by the crowd.
Ask your buyers to take the bet. CSOPs. You will know the reality
We have a social cause incorporated with our brand.
More than CSOPs, I am leaning towards giving donators a token of appreciation and exclusive company merchandises. What do you think?
Short term thinking. Give both. Long term people will go for CSOPs. CSOP people will act as brand ambassador too.
Word of mouth is becoming very important in D2C brands
At what stage of "starting" are you?
Is there already an e-comm website, insta channel?
In fashion, timing the trend is everything. How fast is your design process?
Do you already have contract manufacturing set up? What does your supply chain look like?
Have you tried targeting Nano influencers to build traction?
Is your startup registered with Startup India?
You might need to have all these sorted out before thinking of VC funding in the current environment.
Note: When it comes to D2C, there are only 2 pure play D2C fashion brands which are profitable.
I have two failed business to my credit. And my advice if you can't fund 15l on your own , I think you should work in some company and then start your entrepreneurship journey.
This!