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- Deepak's Musings #152: Insights from The New Consumer & Coefficient Capital 2024 Mid-Year Report
Deepak's Musings #152: Insights from The New Consumer & Coefficient Capital 2024 Mid-Year Report
💎 Luxury products and their VICs
Deepak Shahdadpuri
July 30, 2024
I am interested in all things consumer and insurgent brands. In my newsletter, I share what I read, think about, and reflect upon. You can follow me on Twitter at @dishahdadpuri or DSG Consumer Partners at @dsgcp.
This is my first newsletter after a four-week break with my family, which included London, Berlin, Munich, Boston, Hudson Valley, and New York. I used the time to recharge and examine consumer trends in those markets.
p.s. You can click any summary link to read the full article from its source.
There is more interest in travel, especially among younger generations. And when you travel, you need luggage.
💄 Deal announcement: Why DSGCP partnered with Colourette Cosmetics
DSG Consumer Partners is privileged to announce our investment in Colourette, a dynamic and proud Filipino beauty and skincare brand. Launched in 2015 by Nina Ellaine Dizon, Colourette has been painting the Philippines with its spectrum of shades, becoming a homegrown hero in the Filipino beauty arena.
🔥 India’s largest brands
The latest Kantar India Brand Footprint Report 2024 was published last week. It contains lots of data across categories. It is a must-read for anyone who is interested in consumer brands, which I guess is most of you.
Access it here: Kantar Brand Footprint 2024 India
🐿️ Pip Murray is The Grocer Gold Awards 2024 Entrepreneur of the Year
There are many awards. The most important award in the UK, the holy grail in CPG, is The Grocer Gold Awards. And last night, our very own Pip Murray, founder and CEO of Pip & Nut, was named 2024’s Entrepreneur of the Year.
🧳 Portfolio spotlight: ICON
With many insurgent brands jostling for market share in India’s luggage market, how is DSG Consumer Partners portfolio company ICON approaching the market? Other insurgent brands include Mokobara, Uppercase and Assembly.
🛍️ Latest consumer trends - The New Consumer & Coefficient Capital 2024 Mid-Year Report.
This is US-centric, but many of the trends are global. Some of the key insights include:
Despite economic challenges, consumer spending remains strong, particularly in online grocery shopping and niche food markets.
Younger brands, particularly those targeting Gen Z and Millennials, are driving growth in the beauty industry. These brands often emphasize authenticity, community engagement, and specialized products.
The popularity of GLP-1 drugs like Ozempic for weight loss and diabetes management is rising rapidly. There is significant interest in food products specifically designed for GLP-1 users, with over 90% expressing interest.
There is a decline in traditional smoking, with an increase in vaping and cannabis consumption. Gen Z shows a unique preference for nicotine pouches like Zyn, often using them as an alternative to eating or drinking for a dopamine boost.
🌱 What went wrong with the plant-based opportunity?
Andre Menezes, former CEO of Tindle Foods, discusses the plant-based food industry's rise and subsequent decline post-pandemic. Tindle has raised over $130 million from investors, including Temasek, Alpha JWC Ventures, EDBI, MPL Ventures, GGV Capital, and K3 Ventures. There are so many valuable lessons here.
🥯 Low-carb bakery products
How large is the low-carb bakery opportunity? Will this play out in India and Southeast Asia, where people love their bread and roti?
💎 Luxury products and their VICs
Very Important Clients (VICs) drive growth in the luxury sector, accounting for a significant portion of luxury brands' revenues. Although they represent a small percentage of the customer base, they contribute disproportionately to spending.
🏡 Portfolio spotlight: StayVista’s Amit Damani speaks to Skift
Indian travellers now seek flexible accommodation options, and the alternative stay industry is racing to meet the demand. StayVista is focused on bridging the trust gap historically plaguing the sector.
🍾 India’s alcobev opportunity
This is a long three-hour video podcast featuring Abhishek Khaitan, MD of Radico Khaitan, Minakshi Singh, Co-founder of SideCar, Shuchir Suri, Co-founder of Gin Explorer’s Club, and Suraj Shenai, Founder of DSG Consumer Partners portfolio co Goa Brewing Co.
🫱🏽🫲🏻 Founder & investor event: Building successful consumer businesses from Singapore and beyond
DSG Consumer Partners, in partnership with Heros of DTC and Mandala Club, will host a founders and investors event at Mandala Club on 2 Aug 2024 from 4-7 pm, on Building Successful Consumer Businesses from Singapore and Beyond.
Participants: Adrien Desbaillets (CEO of SaladStop!), Dione Song (CEO of Love Bonito), Peck Ying Tan (Co-Founder of Blood), Grace Chua (CEO of NTUC FairPrice), Sarvesh Nivetia (Executive Director at Venturi), and Roshini Bakshi (Managing Director at Everstone).
Our panellists will share their real-world experiences and strategies that have driven their brands to success beyond Singapore. This is a fantastic opportunity to gain insights from industry experts, network with fellow founders, and engage in meaningful discussions about building and scaling consumer businesses.
There are very limited invitations available for the event. Please RSVP at https://join.mandala.club/form/2153 by 31 July if you are interested in attending. Confirmation emails will be sent 24 hours before the event.
⚡ Will Q-Commerce become the dominant channel for certain categories within e-grocery?
I was sceptical when I was first pitched the q-commerce (QC) model in 2015-2016. Who needs groceries in 30 minutes? Dunzo was among the first.
I must admit that I was wrong. QC has changed how Indian consumers behave and has allowed a new generation of brands to be created.
QC is estimated to be $400Mn today and is forecast to grow 7x to $2.8Bn by 2030, according to Kearney.
📰 Select funding & deal news
Funding and deal news that caught my attention
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