📦Deepika rewriting the D2C game! (Issue 024)

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In today’s Issue 📥 :

• Rewriting the D2C game.

• What’s not going to change?

• Kiara Advani’s Investment Mantra.

• Zoom’s Shocking Move.

Deepika Padukone’s 82°E is rewriting the D2C game!

India has always had a fascination with celebrity-endorsed products. From Lux being all the rage in the ’90s to the recent emergence of celebrity-led brands around 2015, the trend continues. India alone has over 800 D2C brands vying for attention, creating a market worth just over 100 billion by 2025. Jigar Shah, a seasoned investor, knew of its potential and bet on brands like FrontRow, Mokobara, and Supertails. In 2020, he joined forces with Deepika Padukone to create a brand that is an extension of her personal and professional journey – 82°E.

A crowded market presents an opportunity

The skincare market is a crowded one. During the pandemic, many copycat brands selling similar products appeared, making it difficult for buyers to decide. This is where Padukone and Shah found an opportunity. They formulated a series of products, inspired by a routine Padukone had held for years, through 82°E—a name inspired by the longitudes of India.

Product drops to get feedback and drive sales

82°E kicked off in November last year with two products – Patchouli Glow, an oil-like liquid sunscreen, and Ashwagandha Bounce, a hydration cream. Since then, the brand continues to sell its products through its website and uses a product drop strategy to sell and market its line. While there isn’t a pre-decided frequency, plans include releasing a new product almost every month. According to Shah, this is an effective way to get feedback on the product, which they can use to work suggestions into upcoming products and growth strategies.

Celebrity-led brand strategy

82°E is a celebrity-led brand. The products and the narrative of the brand are completely based on how Padukone is and what she thinks. While Padukone works extensively on all the creative aspects of the brand, Shah looks at everything related to the business, including fundraising, operations, and human resources. The brand had encountered some bumps along the way, with several people taking to the internet to voice their concerns about the line. Despite the negative feedback, the Patchouli Glow has become one of the brand’s fastest-selling products.

Going offline and expanding the product line

82°E is contemplating taking its products offline, either in a shop-in-shop model or having a standalone brick-and-mortar outlet. The brand has been active in India and abroad, selling across 35-40 countries in Europe, North America, and West Asia. It also relies on Instagram to drive sales and has a specific strategy while picking influencers. While 82°E says it will continue using drops, it plans to expand into other categories that would further support a holistic approach to self-care.

Catch Deepika Padukone and Shahrukh Khan together in the latest promotional video for 82°E’s newest product, Gotu Kola Dew toner. The brand’s objective is to produce an informative yet enjoyable piece of content that highlights the core principles of their skincare routine. While the brand is priced in the premium bracket, it has plans to add more products within the C-H-P Routine to serve its consumers’ needs.

82°E, the celebrity-led brand, is attempting to rewrite the D2C rules by carving out a unique niche for itself in the skincare market.

IMPROVEMENT SIP

What’s not going to change?

Jeff Bezos, the founder of Amazon, is known for his innovative thinking and long-term vision. But in a recent interview, he emphasized the importance of focusing on what’s not going to change, rather than constantly chasing the latest trends and technologies.

According to Bezos, businesses should focus on the things that are stable in time, because these are the things that will continue to be important to customers in the long run. For Amazon, this means prioritizing low prices, fast delivery, and a vast selection. These are the things that customers have come to expect from Amazon, and they are unlikely to change anytime soon.

By focusing on what’s not going to change, Amazon is able to build a business strategy that is sustainable over the long term. Bezos explains that the energy they put into these things today will still pay off dividends for their customers 10 years from now. This long-term perspective allows Amazon to invest in new technologies and innovations that will continue to support these core principles.

This approach has clearly paid off for Amazon, which is now one of the most valuable companies in the world. But it’s not just big businesses that can benefit from this mindset. By focusing on the things that are truly important to your customers, you can build a business strategy that is sustainable over the long term, and create a loyal customer base that will support you for years to come.

As Bezos says, “when you have something that you know is true, even over the long term, you can afford to put a lot of energy into it.” By focusing on what’s not going to change, you can create a solid foundation for your business that will stand the test of time.

HOT SIP

Zoom’s Shocking Move: President Greg Tomb Fired After Massive Layoffs!

Zoom, the video conferencing platform, has been in the news recently for its decision to lay off 1,300 employees, which amounted to 15% of its total workforce. In a recent development, Zoom has fired its president Greg Tomb, without giving any specific reason for the termination. The company made a regulatory filing in the US, announcing the abrupt termination of Tomb’s contract “without cause”.

CEO Eric Yuan had previously announced that he would forego 98% of his salary for the coming fiscal year and a full corporate bonus, while members of the executive leadership team would reduce their base salaries by 20% and forfeit their FY23 corporate bonuses.

Zoom is facing challenges due to slowing demand for its video-conferencing services in the face of economic uncertainty, with competitors like Microsoft Corp’s Teams, Cisco’s Webex, and Salesforce’s Slack vying for market share. In a bid to stay ahead of the competition, Zoom recently announced plans to integrate more artificial intelligence (AI) into its products.

During a call with analysts, CEO Yuan stated that “the age of AI and large language models has arrived” and that AI can “truly help” the company. The move towards AI integration is timely, as Microsoft-backed OpenAI’s ChatGPT’s success has prompted other companies like Alphabet and Baidu to announce their own offerings.

Zoom expects revenue between $4.44 billion and $4.46 billion for fiscal 2024, according to a Reuters report, which is below analysts’ average estimate of $4.6 billion. The company is not alone in facing a downturn in demand, as several US companies, including Goldman Sachs Group Inc and Alphabet Inc, have laid off thousands to ride out the current economic climate characterized by high inflation and rising interest rates.

SMALL SIPS

Rupee bear: The British lender now sees the base case for the rupee at 81 per dollar by end-2023 but says the currency can easily gain to even 79 levels, Parul Mittal Sinha, head of financial markets for India, said in an interview.

Work Permits: The United States has announced the expansion of premium processing of work authorization for certain categories of international students, which is likely to benefit a lot of Indian students.

Manufacturing facility: Apple Inc partner Foxconn Technology Group says it is committed to setting up a manufacturing facility in Telangana, Hyderabad, the company said.

Mahanagar Gas: Shares of Mahanagar Gas rose 8.5% to hit a 52-week high at Rs 983.6 in Monday’s trade on BSE after the company signed an agreement to acquire a 100% stake in city gas distributor Unison Enviro (UEPL) for Rs 531 crore.

Elon Apologises: Twitter’s Chief Executive Officer made headlines yesterday for mocking a former employee Haraldur Thorleifsson for his disability. The two were engaged in a war of words over the latter’s employment and payment. Now, the billionaire has apologized to Mr. Thorleifsson for the “misunderstanding of his situation.”

With CHAI ☕

Ceo: Tech Mahindra CEO C P Gurnani earns Rs 17 lakh per day.

How to: get your car insurance KYC done quickly?

Aww: I’m waiting 🐕

It’s Interesting: Google Maps used a camel to create a “street view” of the desert.

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