Game Changers:

The Insurgent Consumer

Brands Playbook

May 2023
 Introduction (1/2)

As per estimates by the United Nations, India's population by end of April 2023 is expected to reach 1.4 billion, and
become the world's most populous nation. The crown itself has little value, but it is a signal of things that matter.
Within this large base, 157 million upper-middle and high-income consumers have been added in the last 4 years
alone. Another ~400 million upper-middle and high-income consumers are expected to be added in the next 8 years,
bringing the total to 557 million consumers, largely comprising of GenZ and millennials.
The consumers of today and the consumers of the future demand more, better, faster. To serve their needs, a new
set of consumer brands have emerged. We define them as “Insurgent Brands”. They are winning the heart of
underserved customers in India and possess a clear sense of mission and purpose. These brands operate with a
sense of insurgency and are on track to capture an outsized share of growth in consumption.
This fundamental increase in India’s income and consumption structure has created a ripe environment for the rise
of these insurgent brands. Premiumisation and new category creation will be key drivers of growth predominantly
captured by these insurgent brands. These are expected to account for ~50% of consumption growth till 2030, and
for nearly 70% for upper-middle and high-income consumers.
 Introduction (2/2)

We believe the next wave of insurgent brands in India need to focus on serving unique emerging needs of GenZ and
millennials—who are digital natives, socially conscious and believe in consuming products and services that aligns
with their authentic selves.
This report focuses insights on how insurgent brands have garnered disproportionate growth and presents a playbook
for profitable and capital-efficient scale for the era of insurgents that lies ahead. Our objectives are to:
– Analyse the performance of insurgents on scale, profitability, and capital efficiency
– Understand what successful (scale and profitable) insurgents have done, and identify the critical drivers for scale and profitability
going forward
– Highlight emerging consumer themes and archetypes that insurgents can tap into, to drive future scale up
Let a
Thousand
Flowers Bloom
KEY TOPIC
 Graphics: please confirm the source of this
image. We

We define insurgent consumerWe define Insurgent consumer

brands as those winning the brands as those winning the
hearts of underserved hearts of underserved
consumers in India. These customers in India. These
brands operate with a sensebrands
of operate with a sense of
insurgency and are on track insurgency
to and are on track to
capture an outsized share of capture an outsized share of
growth in consumption. growth in consumption.
Note: In this report, we restrict Insurgent consumer brands to those incorporated after 2007
Note: In this report, we restrict Insurgent consumer brands to those incorporated after 2007
 Upper middle class will constitute >50% of spend by 2030
India’s income & Total consumption spend

consumption uplift $5.7T

(with a new, large & High income

underserved upper-
Upper mid
52%
middle class) has income

created the perfect $2.1T

environment for 34% Lower mid

income

Insurgent Brands to Low income

thrive 2022 2030F

GDP ~$3.5T ~$10T

Note: Low income: <1.25L, Lower mid income: 1.25-5L, Upper mid income: 5-30L, High income: >30L basis income per household in real
terms (₹ at 2020-21 prices); HH expenditure for each income class is Per capita expenditure by class multiplied with average household size
for that class
Sources: PRICE Projections based on ICE 360 Surveys (2014, 2016, 2018, 2020); Euromonitor
 Premiumisation and new categories are sweet spots for
India’s income & insurgent brands—expected to account for 45% of
consumption growth
consumption uplift Consumer spending, India (2022–30, $T)

(with a new, large & Drivers for increase in consumption

0.7 5.7
underserved upper- 0.9

middle class) has 2.0

~65% upper-mid & ~70% high-income
created the perfect respondents feel that premiumisation
and category expansion will drive their
increasing consumption
environment for 2.1

Insurgent Brands to 55% 26% 19%

thrive Consumption
2022
Unorganised to
organised
Premiumisation Consumers adding
new categories to
Consumption
2030
their wallet

Note: Low income: <1.25L, Lower mid income: 1.25-5L, Upper mid income: 5-30L, High income: >30L basis income per household in real
terms (₹ at 2020-21 prices); HH Expenditure for each income class is Per capita expenditure by class multiplied with average household size
for that class
Sources: PRICE Projections based on ICE 360 Surveys (2014, 2016, 2018, 2020); Euromonitor
PE/VC money is also betting on insurgent brands to capture
an outsized share of this growth

Criteria
Incorporated Total funding
after 2007 received since 2015 > $3M
Note: $1 = ₹83; Insurgent N = 158; Companies that have driven growth primarily via premiumization account for 48% of funding; Unorganised to Organised with 31%; Consumers adding new categories to their spend portfolio with 21%; Included insurgents
brands incorporated less than 15 years ago;
Sources: Pitchbook; Tracxn; CapIQ; Crunchbase
The era of insurgent consumer
brands has only begun;
They are capturing market share
(and the collective imagination of
consumers) at a much faster
pace than market
 No category is immune; insurgent brands are growing
much faster than their categories

Food & Beverage Apparel & Lifestyle Jewellery Beauty & Personal Care Home & Kitchen Elec. Wearables & Devices

MARKET SIZE*

~2x ~1.5x ~1.5x ~1.5x ~2.5x ~3x

REVENUE OF INSURGENTS

~3x ~2x ~3x 22x ~3x ~9x

0.0% 0.1% 0.2% 0.5% 0.1% 0.4% 0.1% 1.8% 0.3% 0.8% 0.6% 5.0%

2018 2022 ##x Growth multiples xx% Share of insurgents in respective category
Note: $1 = ₹ 83; N = 147 insurgents are considered for total insurgent revenue calculation as they account for majority of the market; Included insurgents brands incorporated less than 15 years ago; Does not include bootstrapped or private label brands;
* Not on same scale for all categories
Sources: VCCEdge; Ministry of Corporate Affairs; CapIQ; company annual reports
The Rites of Passage
KEY TOPIC
Building Profitable
Brands takes time
 We studied 147 insurgent brands that have grown rapidly compared to
their category NOT EXHAUSTIVE Insurgents
While some of these brands have recently been acquired, acquired in the
they achieved their growth largely as independent brands last 4 years

India insurgent brands in 2022

Growth vs.
~6x FY18

~$2.6B Revenue

Median insurgent brand metrics

Growth vs.
3x category

~$6M Revenue

Note: $1 = ₹ 83; n=147; Entertainment & Games category excluded; brand aggregators excluded
Sources: Tracxn; VCCEdge; CapIQ; company annual reports
 Brands take time
to build!
~$9M ~$25M
(₹ 75 Cr.) (₹ 200 Cr.)

The first ₹ 75 Cr. 8 years

+ 2 years
takes 6 years; 6 years

growth comes
quickly thereafter
53 insurgents reached ~$9M (₹ 75 Cr.)
till FY22—out of 147 insurgents
Note: $1 = ₹ 83
Sources: VCCEdge; Ministry of Corporate Affairs; CapIQ; company annual reports
 It takes more than 8 years to build “scale” insurgent consumer brands

# of insurgent brands reaching revenue thresholds, FY22

< $9M (₹ 75 Cr.) $9M–$25M (₹75 Cr. ₹ 200 Cr.) > $25M (₹ 200 Cr.)
We have
37 defined scale
insurgent
28 brands as
those that
21 have been
20
able to
achieve at
11 least ~$25M+
9 9
7 (₹ 200 Cr.+)
2 3 revenue in
FY22
Less than 3 years Between 3 and 5 years Between 5 and 8 years More than 8 years

Years since incorporation

Note: $1 = ₹ 83; N = 147 insurgents; Entertainment & Games category excluded

Incorporated after 2007
Sources: VCCEdge; Ministry of Corporate Affairs; CapIQ; company annual reports
 18 of the insurgent brands are growing at >30% YoY and
>1.5x Capital Efficiency
Successful insurgent brands

30% 30%

1.5

Notes: N = 53; Companies here are inclusive of revenue > $9M (₹ 75 Cr) in FY22; * FY22 MCA filing not available, FY21 EBITDA, revenue & cumulative capital invested considered; F&B: Food & Beverage; BPC: Beauty & Personal Care; Elec.: Elec.
Wearables & Devices; Int. Wear: Intimate Wear; ** Cumulative capital invested = Equity raised till date + Long term borrowings – Cash & Bank balance
Sources: VCCEdge; MCA filings; Accord; CapIQ; company annual reports
 Gross
margins:
With some
exceptions,
gross margins
have been
largely flat
Most companies fall
over many in 0.9x–1.2x range

years
Successful Insurgent brands

*Gross margin indexed with reference to Year 0 or Year 2; Y2 is used in case of an early business model pivot, Y1 represents one year after initial data, similarly Yn is nth year after the initial data
Sources: VCCEdge; MCA filings data
 EBITDA
margins:
Successful
insurgents
typically get to
-25% EBITDA
-25% EBITDA Margin

margins within
4 years of
operation

*Gross margin indexed with reference to Year 0 or Year 2; Y2 is used in case of an early business model pivot, Y1 represents one year after initial data, similarly Yn is nth year after the initial data
Sources: VCCEdge; MCA filings data
 % Years with
Industry
>1.5 Cap. Eff.
Capital Apparel 88%

Efficiency: F&B 100%

Electronics 100%
Most Apparel 100%

successful BPC 88%

BPC 75%
brands follow Apparel 67%

a capital BPC 67%

Home 100%
efficient Jewellery 67%

mindset from Home 67%

F&B 67%

the outset F&B 56%

BPC 44%

BPC 50%
Median of Capital Efficiency
*N: Number of companies
Sources: VCCEdge; MCA filings data
What does a successful insurgent brand DNA look like?

1 Consumer purpose at the core

Offer innovation Brand Shoppability Business model

(Product x Price) memorability across channels innovation

2 3 4 5
 Successful insurgents have excelled on all five elements,
keeping capital efficiency and strong unit economics at their core

1 Consumer purpose at the core

• Targeting underserved needs – existing categories/ premiumisation/ on-trend new categories
• Authentic, purpose-driven brand with a clear value proposition often linked to founder’s story
• Addressing a real consumer need. Deliver greater value - more and higher elements of value

Offer innovation Brand Shoppability across Business model

2 (Product x Price) 3 memorability 4 channels 5 innovation
• Relentless experimentation: Test • Provocative, edgy • Alternative channels like e-com, • Technology permeates all aspects
and refine in market communication, distinctive and D2C first targeted at core of business model incl. customer
– Short product innovation cycles experiential; leveraging advocates consumers, then expansion experience, last mile and drives faster
– Fixated on customer feedback via and influencers growth
sampling to develop, tweak & scale new • Omni-channel strategy to scale up
innovative products • D2C or market place focused and stay relevant • Reducing supply chain
– Quickly pull what doesn’t work brands rely on digital-heavy, data- – GT still the most efficient and profitable complexities by investing in supply
driven targeted marketing channel (Hard to build, hard to overcome chain infrastructure innovations (e.g.:
• Tailored propositions curated for for competitors) farm-to-fork, vertical integration)
local needs • Consumer-driven content
• Timing is important. • Mission driven and agile in
• Redefine value proposition to • Creative in-store assets, new – Too soon or too late often doesn’t work execution, frugal
target at new price points spaces in store
– Lean, asset-light and fit for purpose
(premium, mass) – Founder’s mentality, capable core team

Source: Bain analysis

 Consumer purpose at the core: Elements of Value®️
1 (EoVs) measure types of values experienced by consumers

Ethical
Social Impact
Gives value to society
Humane Cares for the Earth Cares for People

Life-changing elements
Gives value to your personal life
Inclusive Affiliation & Belonging Motivation

Emotional elements Indulgence Reduces Anxiety Nostalgia Attractiveness Design/Aesthetics

Sparks emotional
connection
Health & Wellness Therapeutic Value Fun/Entertainment Premiumness Endorsed Authenticity

Functional elements Reduces Waste Simplifies Quality Natural Saves Time Customizable
Delivers functional
Superior
benefits Simple Formulation/
Composition
Ingredients/
Reduces Effort Reduces Cost Sensory Appeal Materials Easy to Find Variety

Source: Bain Analysis

 Consumer purpose at the core: Insurgents deliver
1 on more and on ‘higher order’ elements than incumbents

Average score across all elements, by level (% of respondents rating 8+ on a 0–10 scale)

+12 pp
+13 pp
+16 pp
45%
40% +16 pp
35%
33% 34%

27%

Insurgent
19%
18%
Incumbent

Functional Emotional Life-changing Social impact

Note: pp=percentage points

Source: Bain Elements of Value Consumer survey, US, 2022 (n=13,389)
 Consumer purpose at the core: Tapping into higher
1 order benefits, ensuring lower order benefits continue
Affiliation and Belonging Environment

• Built a loyal community of 2M+ boAtheads; Launched • Emphasizes sustainability with eco-friendly & chemical-
campaigns like Do Whatever #FloatsYourBoat, free reusable diapers (plastic-free packaging; 16 diapers
NeverFitIn per baby required vs ~5K traditional diapers)
• Partnered with UNEP to educate youth on impact of their
lifestyle on the environment with Tide Turners Plastic
Challenge campaign
 Offer innovation: 25%–40% of revenue for successful
2 insurgent brands come from successful new launches

Depth before • Maximise innovation within existing core before foraying into new
breadth
categories
First-hand • Deep, often first-hand understanding of customer pain points and
perspective
needs
Thorough • Prioritise rapid experimentation and testing through digital channels like
testing
social media and direct-to-consumer platforms
Customer • Leverage customer feedback with large-scale sampling to develop new
feedback
and innovative product solutions
Quick action • Swiftly discontinue products that are not effective by learning,
evaluating, and iterating with speed

Source: Bain Analysis

 Offer innovation: Rapid product launch via a stage-gate
2 approach to test, tweak, scale, or discontinue SKUs
Successful insurgents leverage small-scale sampling before scaling

In-market
In-market
pilot/ Scaled We send out
limited
concept launch
launch 10 products
testing
to 150 of
<6 WEEKS ~6 MONTHS 6 M O N T H S –2 Y E A R S
our loyal
Gate 1 customers
Pre-launch Learning phase Stage 1 (Scale, Stage 2 and leverage
Gauge initial traction Evaluate product performance Tweak, or Scaled launch with ongoing
& potential discontinue) performance monitoring their feedback
to figure out
the product fit
for broader
Key metrics Key metrics Key metrics: Local Relative market
Sales traction & ROI/ROAS (inorganic), average Market Share, profitability,
qualitative customer ratings, organic flywheel ratings and reviews
feedback
CEO, F&B
Tweak mix based on Tweak product based on feedback Insurgent
feedback & test again and test again brand

Discontinue under Discontinue under

performing SKUs performing SKUs

Relative Market Share (RMS) for market leader = Market leader’s topline/ Number 2 player’s topline; other players = Other player’s topline/ Market leader’s topline
Source: Bain Analysis
 Offer innovation: Ensure value proposition is clear and justifies
2 the price premium

• Leading craft beer insurgent

Premiumisation Create new price-points
identified gap in the premium craft
• Targeting new price-points
led by distinct within a product category
beer segment; imported beers
were too expensive → launched a
value on the back of superior
value proposition
line of premium Indian craft
beers that targeted ‘missing’ price
proposition • Limited benefit in deep
point
discounts if market depth • BPC insurgent tapped the rising
is low and/or category preference towards chemical free
purchase frequency is low – skincare/ personal care products
can’t be sustainable → launched products enriched
with natural extracts and free
from harmful chemicals at a
premium price point
 Brand memorability: Successful insurgents have taken
3 a unique approach to brand building

Provocative, edgy Large-scale Community

communication sampling building
boAt, a leading consumer Farmley, a leading dry fruits and Super Bottoms. a leading baby
electronics player targeted youth nuts insurgent brand advertised products company built a
with bold colors, more than 20 up its ‘All Flavors Trial pack’ to ParentTribe (community of
and coming influencers— incentivise trials and build trust parents and caregivers) to allow
cricketers, actors, musicians among consumers users to express themselves and
seek advice from industry experts
 Brand Memorability: Successful insurgents have leveraged their
3 distinctive assets to help the brand gain attention
Design and packaging Events, stores, placements

Lenskart Lite: Low-cost

Celebrity and influencer
franchisee model for
collaborations
Unique designs tier 2 & 3 markets

Organized, visually Celebrity and Food event:

appealing in-store influencer Modern India’s
Strong visual assets that ‘pop’ in the retail environment placement collaborations kitchen partner
 Shoppability across channels: consumers shop across multiple
4 channels; single channel strategy is unlikely to get good coverage
Insurgents often start on ‘alternate channels’ like D2C aided by a
bustling ecosystem of ready solutions (across tech and ops) and However, GT is generally still
truly shine on e-retailers the most profitable channel
“Retail will test you on every level. But if you
Higher traffic to insurgent brand sites (per rupee sales) vs.
succeed in GT in India, that is where the magic
incumbents1
lies and you can't earn money from modern
trade.”
~20X Various plug and play models for building web storefronts
like Shopify, Magento, Wix etc. Viraj Bahl, Veeba, Feb’23
traffic
Well developed supporting ecosystems; e.g.: Delhivery,
Shiprocket for logistics; Unicommerce for inventory
mgmt./warehouse mgmt ~5%
Higher EBITDA margin for offline channels vs.
online, even for F&B categories
Case study: Intimate wear insurgent
Even higher for apparel (need for trials), F&B
85%+ EAmazon, Flipkart, Myntra continue to remain key
channels for the player – together with D2C they form the
(generally low ASP)

Share majority sales share

Scale insurgent brands like Veeba (<10%
(AZ, FK+, D2C Player also plans online portfolio carefully and invests in
online) show that online is not a must for
brands) good quality presence – bestselling SKUs prioritised, good
every category—channel economics must first
fill rates
make sense

Note: 1: For select brands across key categories – BPC, Apparel & lifestyle, Electronic wearables and devices; avg. monthly traffic per unit revenue considered for analysis; AZ: Amazon; FK+: Flipkart + Myntra.
Sources: Lit research; Similar Web
 Shoppability across channels: The timing of channel
4 expansion is crucial
Necessary conditions for expanding beyond natural Conditions met at
new channel entry
channels Natural # yrs. to new
Insurgent brands channel 1 2 3 4 channel entry

1 Established velocity in natural (first) channel

• High velocity and favorable acceptance among retailers & customers in
natural channel serving as potential gateway to explore additional channels
Online (D2C*) 4

• Opportunity to drive profits by tapping new target markets, attract new Online (D2C*) 4
customers and increase revenue streams
• Diminishing ROI on the natural channel or early indicators of growth
trajectory coming under pressure Online (D2C*) 4

2 Clarity on Hero SKUs

• High selling SKUs to be leveraged to gain traction and build brand
recognition in newer channels
Online 6

Offline 3

3 Latent brand pull in other channels

• Evolving consumer behavior and growing preference for newer channels
of purchase (q-commerce, influencer led marketplace etc.) pushing brands
Marketplace 2
to diversify channel mix sooner rather than later

4 Operational efficiency
• Ecosystem that seamlessly solves for logistics and other operational
challenges from distributors/marketplaces,
We started as an online-first brand, worked with franchisees
and then finally to own stores. Today we have a substantial
offline footprint with 1000+ stores across India”
• Coupled with enhanced customer service drives adoption and profitability in Founder, Eyecare brand
new channels
Note: Natural channel refers to the initial/first channel of distribution, New channel refers to second channel of distribution,, *Direct-to-consumer, **Exclusive brand outlets and shop in shops, Impersonal discretionary and essential categories include
apparel, electronics, F&B etc., Personalised discretionary categories include F&B, Jewelry, H&W, Home & Kitchen ; Source: India Retailing
 Business model innovation: Reducing supply chain
5 inefficiencies via innovations can create differentiated advantage

Start with varying levels of supply Critical to take over choke points, Drivers behind integrated
chain complexity building a strong moat supply chain

Where technological differentiation results in Electronics insurgent brand: Moving assembly Higher control and visibility of production
a differentiated product, invest in for most of its SKUs to India for partial relief 1 cost and logistics
manufacturing early from import duties

E.g., Insurgent brands investing in their own back-end

for high quality yoghurt/sauces Fresh food insurgent brand: Invested in a fully
2 Greater efficiency across the value chain

integrated just-in-time supply chain model to

maintain the naturalness Greater economies of scale ensuring
Else go asset light
3 higher margins & greater flexibility

Eyewear insurgent brand: Plans to shift Better quality control for better customer
E.g., Electronics insurgent brand outsourced its entire
supply chain to China
manufacturing ops to its fully
automated facility for last mile customisation
4 experience and loyalty

Savings on import duties & capitalising on

5 ‘Make in India’ subsidies
Making it all come together: Successful insurgents
grow at >30% YoY while maintaining Capital efficiency >1.5x
Evidence/ Observations Implications
Consumer purpose at the core Patience and focus on higher order EoVs to What do consumers of the future—Gen
Solve an acute consumer need-gap create new habits/ categories, and build Z and Millennials, High and Upper mid
sustainable brands income—value most?

Offer innovation (Product x Price) Focus on emerging consumer trends and What are large emerging trends and
Invest behind large future trends/ profit archetypes to drive new profit pools, not consumers archetypes for the next 5–10
pools compete directly with scale incumbents years?

Brand memorability Broaden relevance to new consumers How are consumers of the future
penetration builds large brands through distinctive brand assets to different discovering brands and products?
archetypes

Shoppability across channels Full leverage of scale-up spends and capital

How do archetypes engage with
Get the core right and to improve shoppability across channels;
at full potential improve depth through innovating on hero different sales channels and build
SKUs, range etc. trust?

Business model innovation Innovation, premiumisation and continuous How can willingness to pay a
You die with the GM% you’re born with enhancement of consumer value to ensure premium be leveraged better
appropriate margins, sharp unit economics across consumer archetypes?
and capital efficient growth
Consumer
of the
Future
KEY TOPIC
The path to profitable and capital-efficient scale up for insurgent brands

Consumer purpose at the core: Know thy consumer

Solve an acute consumer need-gap Tomorrow’s consumers have very different values and motivations
from today’s. Understand emerging consumer archetypes in their
entirety, and embrace their contradictions to target more and
Offer innovation (Product x Price): higher order elements of value
Invest behind large future trends/ profit pools
Drive velocity and conversion
Brand memorability: Understand ongoing big shifts in consumer journeys to drive
velocity and conversion. Consumers inherently trust other
Penetration builds large brands consumers—whether faceless or known influencers. Brands must
focus on what they can do, and trust their consumers to drive the
narrative
Shoppability across channels:
Get the core right and at full potential Deepen relevance and trust with chosen consumers
Enhance brand relevance and trust via on-trend and authentic
Business model innovation: propositions around innovation, premiumisation and continuous
enhancement of consumer value to drive appropriate margins
You die with the GM% you’re born with
 KNOW THY CONSUMER

Future profit pools will be disproportionately driven by High and

Upper Mid income GenZ and Millennials
India expected to add ~60M upper middle and ~20M GenZs and Millennials will drive
high income households by 2030 India’s retail spend

High income High income

14M (5%) 35M (10%)

Upper mid Income Upper mid income

103M (33%) 165M (46%)
Millennials (30%)

Lower mid income Lower mid income

156M (50%) 136M (38%)

GenZ (46%)
Low income Low Income
38M (12%) 20M (6%)

2022 2030F 2022 2030F

Note: Low income: <1.25L, Lower mid income: 1.25-5L, Upper mid income: 5-30L, High income: >30L basis income per household in real terms (₹ at 2020-21 prices); HH Expenditure for each income class is Per capita expenditure by class multiplied with
average household size for that class; retail expenditure does not include car, house, etc.; Age groups 20-24 up to 60-64 represent working pop; All India income is ~$3T in 2022 and ~$5.1T in 2030; Gen Alpha is anyone born between 2010-2023; GenZ is
anyone born between 1997 and 2012; Millennial is anyone born between 1981 and 1996; GenX is anyone born between 1965 and 1980
Source: PRICE Projections based on ICE 360 Surveys (2014, 2016, 2018, 2020); Euromonitor
KNOW THY CONSUMER

Our research with high and upper-middle income GenZ and millennials
revealed 6 archetypes—some salient today, others for the future

Consumer survey methodology and findings

QUALITATIVE QUANTITATIVE

15 group discussions (75 respondents) 1041 respondents

• Qualitative in-depth group • Millennial & GenZ respondents • 6 emergent archetypes

conversations across 15 group from 10+ towns & cities characterized as 2 salient & 4
discussions, followed by future-relevant basis associated
• 65+ demographic, behavioral,
Quantitative study (n=1041) trends & consumption
and preferential dimensions
• Quantitative insights leveraged to studied • In-depth analysis to identify &
refine and validate emergent validate trends, preferences, and
hypotheses from the qualitative actionable recommendations
exercise
Elements of Value® as
well as behaviors vary
significantly across
consumer archetypes
 KNOW THY CUSTOMER

Insurgent brands face a significant challenge in building trust

AT T R I B U T E S Preference for insurgent brands Preference for incumbent brands

More trustworthy

Understands me better

Better for me

Natural, chemical free

More environmentally friendly

More innovative Insurgent Incumbent

0 20 40 60 80 100%

Notes: Axis on representative estimated scale; %age of respondents within the archetype who indicated preference for incumbent vs insurgent brands along the above-mentioned parameters
Sources: Bain consumer research (n=1,116 respondents:15 Group discussions with ~5 members per group, Quantitative research n=1,041 respondents)
 KNOW THY CONSUMER

Insurgent brands need to deeply understand consumer

archetypes and target relevant EoVs to build trust
C O N S U M E R S O F T O D AY CONSUMERS OF THE FUTURE

Social Climber
1 Affiliator
2 Maximiser
3 Consciously
Productive
4 Global Citizen
5 Rebel
6
EoVs that • Values functional • Values affiliation, • Values functional • Values emotional • Values social • Lead by fierce sense
EoVs—high quality, belongingness and EoVs—innovative connect EoVs such impact EoVs—cares of identity and
resonates reduced cost inclusion products, superior as health and for Earth, cares for individualism
with each ingredients, wellness, anxiety people
• Values • Aspires to elevate • Seeks quality and
archetypes Premiumness lifestyle to match
reduction in time and reduction
• Values varied innovative products
effort
peers • Values constructive experiences &
• Looks to ascend in • Values unique
• Invests in own well work perspectives,
social status • Quick to adopt offerings and
being diversity &
recent trends— • Responsible towards experiences; craves
• Values familial & inclusion
mimic group • Does not believe in environment & variety
societal values
personality moderation community • Seeks purpose &
meaning

Sources: Bain consumer research (n=1,116 respondents:15 Group discussions with ~5 members per group, Quantitative research n=1,041 respondents)
 KNOW THY CONSUMER

Consumers of the future care more about purpose, identity,

connectedness and empowerment
EOV AT T R I B U T E S 0% 80%
Social Care about environment
Impact
Love community activities

Life Meaning & purpose are more

important than money
Changing
Want to live life on own terms

Crave connection with others

Believe in work hard, play hard

Feel more empowered than before

Wonder what their identity is

Emotional Worry about mental well-being

Live for today

Functional Commitment phobia

Convenience has changed their life

Notes : Axis on representative estimated scale; %age of respondents within the archetype who strongly agree are reflected above. Attributes listed are illustrative Consumers of today Consumers of the future
Sources: Bain consumer research (n=1,116 respondents:15 Group discussions with ~5 members per group, Quantitative research n=1,041 respondents)
 KNOW THY CONSUMER

1 Social Climber: Provide the rungs to climb higher and faster

Emerging • Purchase products offering health

Personality/ Life priorities trends/ benefits such as natural / chemical free
behavior ingredients
• Highly Conscientious, aspirational and materialistic
• Value premium brands but also seek
• Driven to succeed socially
discounts
• Work hard today to enjoy a better tomorrow;
• Strong orientation towards familial & societal values • Value packaging, brand image
What they
• Worry about health, save money for future medical look for in
requirements • Started to favor local brands and seeks
brands
‘Make in India’ products having global
• ~60% aspire for more money to elevate lifestyle; ~30% appeal and value
influenced by celebrity lifestyles

• Pre-dominantly millennials; majority How they • ~85% influenced by good online

affluent build Trust reviews and ratings
• ~70% hard working professionals • Look for reputed brands widely seen in
stores or ads
– ~60% discover brands during online
scrolling

“When my school friend came to visit me, I showed her my progress. I run a boutique store from home. She couldn’t believe
I had done it”
Sources: Bain consumer research (n=1,116 respondents:15 Group discussions with ~5 members per group, Quantitative research n=1,041 respondents)
 KNOW THY CONSUMER

2 Affiliator: Help connect and blend with peers

Emerging • Conform to peer group’s consumption

Personality/ Life priorities trends/ patterns - Willing to pay premium for
behavior Electronics and Apparel as that helps
• Possess set notions of a successful life conform to peer group
• Plan to settle down and live a relaxed carefree life • Build higher purchasing power to elevate
– ~60% saving more than 20% of their income lifestyle
• Mimic group's personality for a sense of belonging • Want to spend on travel experiences
• Harmony & belonging-ness seekers
What they • Follow popular choices / established
• Worry about being judged if they stand out look for in brands
brands • Preference for indigenous, quality
products
• ~44% prefer “Made in India” products
• 70% constituted by GenZ; typically,
less affluent How they • Influenced by friends, relatives as well
build Trust as real and grounded celebrities
• 46% use money to upgrade their
lifestyle • ~54% rely on good online reviews and
ratings

“The group I belong to best represents who I am. I hang around with my college friends. They are my world. We go hang
around in cafes, pubs. We take selfies, follow the vloggers and discuss.”
Sources: Bain consumer research (n=1,116 respondents:15 Group discussions with ~5 members per group, Quantitative research n=1,041 respondents)
 KNOW THY CONSUMER

3 Maximiser: Help realize and reach beyond their potential

Emerging • Seek innovative ideas maximising

Personality/ Life priorities trends/ productivity/potential
behavior • Value convenience
• Push boundaries and maximise each experience
• Strive for set goals; Result oriented and ambitious, Crave • Focus on health & wellness
tangible results
• Believe in time-bound slogging and aspire to work hard and What they • Aesthetically pleasing and high quality
maximise outcomes in youth, retire early and enjoy idyllic life look for in offerings
later brands • Prefer natural, chemical-free product
• Self development focused, anxious to do well; academic ingredients
overachievers • Seek compelling and purposeful brand
• Don’t believe in moderation – work hard, parties hard story

How they • Online reviews, brand reputation and

build Trust word of mouth
• 56% save money to buy/ build a house
• Social media influencers/ celebrities
who demonstrate expertise for brand
discovery

“I revel in identifying and utilizing opportunities that come my way. In this way, I am able to get the maximum out of life, and I
am able to push my boundaries.”
Sources: Bain consumer research (n=1,116 respondents:15 Group discussions with ~5 members per group, Quantitative research n=1,041 respondents)
 KNOW THY CONSUMER

4 Consciously Productive: Connect at the conscious and sub-conscious

Emerging • 82% want to be more responsible towards

Personality/ Life priorities trends/ environment
behavior
• Strives to be constructively occupied at all times • Value mental wellbeing, mindful living

• Enjoy being in circle of like-minded people • Willingness to engage in community

activities incl. cruelty free, plant based,
• Want life to be balanced and in control of their time
environment friendly initiatives
• Consumers of IG & YT tutorials/ reels for DIY cooking,
home décor, managing finance What they • Lean towards mental wellbeing, high
look for in quality and eco impact
• Comfortable in their own skin, peaceful and calm brands
• Advocate use of organic, herbal, natural
• Value human connectedness over digital engagement
and cause oriented brands

• 53% affluent and educated How they • Trying before buying/ self testing method
build Trust to establish trust
• 74% save less than 30% of income
• Real and grounded celebrities
recommendations

“I do yoga to keep myself physically fit and mentally calm. I have started taking Apple Cider Vinegar, Probiotics, I joined
Herbal Life last year, I have learnt a lot from them about wellness.”
Sources: Bain consumer research (n=1,116 respondents:15 Group discussions with ~5 members per group, Quantitative research n=1,041 respondents)
 KNOW THY CONSUMER

5 Global Citizen: Bring the world to them, offer meaning and inclusion

Emerging • Fusion of expensive-inexpensive to

Personality/ Life priorities trends/ maintain minimalistic lifestyle
behavior • Stand for a purpose, care for
• Inclusive and value building a tight-knit community
environment
• Balanced personality
• Cosmopolitan, have refined taste,
• Inclined towards Social Activism, Strong Political views (GenZ)
appreciate experiential delights
• Want a meaningful life; Like to travel, explore the world
• Seek to define self-identity (GenZ); become better version of
What they • ~85% choose brands basis
themselves (Millennials)
look for in environmental impact
• ~70% do not believe in long term commitments brands • Support ‘Made in India’ products
• Cosmopolitan, value diversity

How they • Look for brands widely seen in stores or

build Trust ads
• Affluent; educated; self-assured
• Social media influence from a celebrity
• Free-spirited with ~80% living for today they personally love

“I believe in exploring the world, experiencing things, with an open mind… for philosophy, for food and for lifestyles. There
are no boundaries. I am not myopic; I care for the whole world without racial or cultural prejudice”
Sources: Bain consumer research (n=1,116 respondents:15 Group discussions with ~5 members per group, Quantitative research n=1,041 respondents)
 KNOW THY CONSUMER

6 Rebel: Offer fresh, edgy products and experiences

Emerging • Engage in activities that sharply define

Personality/ Life priorities trends/ their individualism
behavior • Support cause of equality, or celebrate
• Hyper- individualistic, expressive, opinionated and empowered
individualism
• Adventurous & spontaneous; Need variety and uniqueness, • Seeks innovative products
• Wants to try something new; attracted to modern brands with new
age ideas
What they • Value customized offerings,
• Heavy consumers of music and love travelling to satiate look for in • Support unique, authentic brands
exploration drives brands
• Support natural/ chemical free products
• Averse to being boxed into traditional archetypes
• Passionate story of founders

How they • Trying before buying/ self testing of

• Split as 46% GenZ; 53% affluent and build Trust products
educated • Word of mouth from friends, relatives and
other influencers
• Majority also look up to good online
ratings/ reviews

“I am the most important person in my life. If I don’t pamper myself, no one will. I don’t care two hoots about what the world
has to say. I love everything about myself, my body, my voice, my dress, my thinking. I am me.”
Sources: Bain consumer research (n=1,116 respondents:15 Group discussions with ~5 members per group, Quantitative research n=1,041 respondents)
Consumers of the future
are discovering brands
on social media
platforms, purchasing
based on online
recommendations from
online communities
 DRIVE VELOCITY AND CONVERSION

Brand discovery: Social media is becoming prominent for

creating brand awareness; facilitating seamless online purchases
Drivers of
awareness Relevance by archetype Social-led commerce* Implications

20% 50% 80%

• E-retail ads in India are Tomorrow's consumers
Advertisements on Facebook,
growing at a fast pace exhibit similar behavior
Instagram and other social
media platforms in brand discovery
• Social networks are
Social media influencers
increasingly building • Social media platforms
end-to-end checkout —ads, influencers and
experiences natively. word-of-mouth are key
Friends and relatives drivers of building
awareness

Surfing the web Buy

• Hassle-free transition to
next step in purchase
journey
Favorite celebrities and the
brands they wear or endorse

Category search on Google

e.g., “buy dinner plates online”

All Social Climber Affiliator Maximiser

Sources: Bain consumer research (Quantitative research n=1,041 respondents); *How India Shops 2022 Consciously Productive Global Citizen Rebel
 DRIVE VELOCITY AND CONVERSION

Consumers trust narrative from other consumers—friends,

reviewers or influencers; trials & sampling key to get flywheel spinning
Drivers of trust and consideration Relevance by archetype Implications

10% 50% 90% Beat incumbents on brand

trust and consideration:
Good online reviews and ratings
• Drive large scale trials
(via sampling, leveraging
Word-of-mouth from friends and relatives influencers)

• Encourage consumer
Brands tried and tested in the past conversations driving
reviews, word-of-mouth

Social media influencer endorsements/

recommendations
Purchasing customer that
Prevalent brand reputation converts into a brand
ambassador gives tremendous
word of mouth publicity, which
Celebrity, sportsmen and top industrialist endorsements has helped in building the brand

CEO, BPC Co.

Visibility as seen in advertisements and stores

All Social Climber Affiliator Maximiser

Sources: Bain consumer research (Quantitative research n=1041 respondents); MoneyControl Consciously Productive Global Citizen Rebel
DRIVE VELOCITY AND CONVERSION

Community: Insurgent brands must use this cost-effective

method to drive awareness & build trust
Leverage shared causes Traction and sampling Get the flywheel in motion

Communities help audiences find like- As communities grow, they become At scale, trials from communities reinforce
minded people and rally behind a cause channels for beta launches, quick feedback trust, helping the brand benefit from
reviews & feedback

Eco-friendly Mini packs At-scale events

Reinforced trust through
Leveraged better-for-me Encouraged feedback &
a sense of community
& better-for-environment gathered insights through
built around brand value
causes to rally community sampling and mini packs
proposition

Community Social
Physical health
Targeted “women who exclusives campaigns
move” as the larger Offered exclusive launch Core value prop,
cause to engage for club members, leveraged through
customers product samples in extensive social &
subscription boxes influencer campaigns
DRIVE VELOCITY AND CONVERSION

Summary Imperatives: Recommendations from other consumers,

combined along with self-trials are new ways of earning trust
Generating Awareness Driving trust
Social ads, interest communities, word of mouth Reviews, celebrity/ influencer endorsements
• Sampling is the go-to method to drive initial product traction that
• Social media ads and influencers continue to be biggest drivers leads to online reviews, ratings, & strong word-of-mouth
• Consumers are now turning to interest-based communities • Pack size, sampling channels important considerations
• They rely on the “experts” from the interest-based internet • Influencer endorsements are more trusted than celebrity
communities to learn about new products endorsements when it comes to building trust in a brand
– Millennials are 10% more likely to trust influencer recommendations

“You get to know about new products from online ads, but if there is a known “Online reviews tell if it's a trustworthy website and app. See number of
influencer promoting the product then you can trust it more” reviews, see rating and read a few reviews”

-32, Female, Ludhiana -31, Male, Nagpur

“My good morning and goodnight will start and end (respectively) with “If my friends recommend a product, it makes me most likely to buy
Instagram only. So that’s where I get to know about most brands from…” because you can trust them completely”
-31, Female, Ludhiana
-34, Female, Bangalore

“I heard about the brand Wow from a Social Media influencer on YouTube. So, I tried it, and it suits me well, so I continue to use it”
-25, Female, Kolkata

Source: Bain consumer research (Quantitative research n=1041 respondents)

Insurgent brands must
capitalize on mega-
trends to deepen
relevance in coming
years
 DEEPEN RELEVANCE AND TRUST

Insurgent brands must leverage emerging mega-trends that appeal

across consumer archetypes to deepen relevance (1/2)
Maximiser, Social Climber, Global citizen, Rebel,
Natural/chemical free Rebel, Global Citizen Made in India Social Climber, Affiliator

• Traditional practices making a comeback - oil pulling, fasting, • Made in India theme gaining traction
traditional grains (ragi, bajra), copper vessels, neem combs
• Customers gravitating towards blend of traditional
• Consumers increasingly drawn to the natural/chemical-free craftsmanship and modern design, displaying pride and
trend, e.g., a preference for SLS-free, paraben-free, and vegan responsibility towards everything ‘Indian’
ingredients in BPC
• Younger generation considering ‘Made in India’ an important
• Millennials (~74%) actively buying more products with health factor while purchasing—32% GenZ vs 26% Millennial
benefits such as immunity after COVID vs GenZ (65%)

Top choice in willingness to pay a premium 2nd choice in willingness to pay a premium

“I recently shifted to vegan lipsticks also, plant-based lipsticks. “If it is ‘made in India’ I don’t even mind paying a little extra for it
They keep your lips soft and enhances the natural color” because you know that the money will stay within India only”
26, Female, Bangalore 22, Female, Nagpur

“These days you get Bamboo toothbrushes which I have “I prefer to buy products made in India. If the quality is the
started using” same, We have a responsibility towards such brands”
25, Male, Ludhiana Consumer1, Tier 1

Note: GenZ is anyone born between 1997 and 2012; Millennial is anyone born between 1981 and 1996;
Source: Bain consumer research (Quantitative research n=1041 respondents, GenZ = 516 respondents, Millennials = 525 respondents)
Archetypes that resonate
 DEEPEN RELEVANCE AND TRUST

Insurgent brands must leverage emerging mega-trends that appeal

across consumer archetypes to deepen relevance (2/2)
Global Citizen, Rebel, Consciously Productive,
Physical and Mental Health Social Climber, Maximiser Eco-life Maximiser, Rebel

• Consumers turning to healthier alternatives - Mock sugar, Mock • 80% of consumers eager to contribute time or part of earnings
cigarettes, Trail mix to avoid junk, Mini bites ice-cream; Eating to help animals, plants or people
more in moderation • Recreating alternate lifestyle – Using copper vessels,
• Both millennial and GenZ value mental wellbeing- practicing handloom cotton, farm grown, sustainable products
meditation through apps, group-based self-care activities
% engaging in activities that % agree that younger generation faces % started using brands based on % agree that they don’t want to be
improve mental health after COVID higher stress despite higher income their environmental impact irresponsible towards the planet

49% 41% 77% 72% 81% 68% 75% 71%

“It’s important to take care of our health. I control my sweet “When a brand takes an initiative towards the environment, I
cravings, eat gluten-free food and regularly take my multivitamins” feel like buying it”
Male, 35 yrs, Ludhiana 25, Female, Kolkata

“I take probiotic drinks, acv drinks regularly, my ayurvedic “Mama Earth has this thing that every time you buy a product,
doctor recommended these brands; they will plant a tree”
Female, 32, Delhi 32, Female, Delhi

Note: GenZ is anyone born between 1997 and 2012; Millennial is anyone born between 1981 and 1996;
Source: Bain consumer research (Quantitative research n=1041 respondents, GenZ = 516 respondents, Millennials = 525 respondents)
Archetypes that resonate Millennial GenZ
 DEEPEN RELEVANCE AND TRUST

Insurgent brands can craft propositions based on multiple other emerging

trends—specific to archetypes—that have high future potential
Global Citizen Global Citizen Rebel, Maximiser
Minimalism Community Individuality

• Consumers searching for meaning, • Rising loneliness drives demand for • Increasing display of assertive
purpose over materialistic living products/ services that support individualism
collectivism
• Choosing products that make lifestyle • Tailoring products to flexible, individual
better and also align with their values • Gravitating towards like-minded preferences
people- Delhi Foodies, Pet care club,
Trek gang etc.

% love to engage in % want to live on their own

% don’t believe in
spending to show off 76% 68% community-based 76% 70% terms, not be dictated by 79% 75%
activities society’s expectations

“Money can buy comfort, not happiness; “I like to go with the flow, chill with “I really feel safe when I am with myself…
for a meaningful life, health, family, friends, colleagues after work…I plan my vacation because I am responsible for my own
and travel experiences are also important” with my friends” happiness; I don’t care what everyone is
thinking about me”
33, Male, Bangalore 25, Male, Ludhiana 32, Female, Delhi
“I am the most important person in my life.
If I don’t pamper myself, no one will.”
36, Female, Meerut

Note: GenZ is anyone born between 1997 and 2012; Millennial is anyone born between 1981 and 1996;
Source: Bain consumer research (Quantitative research n=1041 respondents, GenZ = 516 respondents, Millennials = 525 respondents)
Archetypes that resonate Millennial GenZ
 DEEPEN RELEVANCE AND TRUST

Brands must persuade consumers to spend (more) on them;

willingness to pay premium (today) differs widely across trends/archetypes
Emerging Mega- Trends Willingness to pay premium for product Implications

N AT U R A L /
CHEMICAL FREE Insurgent brands can
steal a march over
incumbents by leveraging
MADE IN INDIA emerging mega-trends to
craft on-trend and
authentic value
propositions that deepen
brand relevance and
PHYSICAL &
trust…
M E N TA L H E A LT H

…and enhance the

willingness of different
ECO-LIFE archetypes to pay a
premium

Source: Bain consumer research (Quantitative research n=1041 respondents) Maximiser Consciously Productive Global Citizen Rebel Social Climber Affiliator
DEEPEN RELEVANCE AND TRUST

Summary Imperatives: In order to (re)commit to the

consumers of tomorrow, specific value propositions must be
explored for the archetypes
EMERGING MEGA-TRENDS SPECIFIC TO ARCHETYPES

Natural/ Made in Physical & Eco-life Minimalism Community Individuality

Chemical free India Mental Health

Resonating Global Citizen,

Maximiser, Social Global citizen, Consciously
Rebel, Social Rebel,
Consumer Climber, Rebel, Rebel, Social Productive, Global Citizen Global Citizen
Climber, Maximiser
Archetypes Global Citizen Climber, Affiliator Maximiser, Rebel
Maximiser

Examples

Natural Indigenous Mini bites Cruelty-free Minimalistic Consumer Named

ingredients brands ice-cream cosmetics aesthetics belongingness Jewelry

Bamboo-based Locally Mock Its- Bio-degradable Functional Influencer-led Personalized

products manufactured Mock sugar packaging Apparel community Supplements
Critical for businesses to
understand the
consumer archetypes, be
on-trend, evoke
favorable emotions, earn
trust, and expand
discoverability
Actions for insurgent brands

1 Which consumer archetypes and

EoVs are you targeting?

Are you on-trend? Which Are you building Do you meet the As you scale up, will your
mega-trends are you communities to drive conditions to expand current operating model
leveraging to innovate on brand awareness, beyond your natural enable you to maintain
your products/ offers? consideration and earn channels? innovation and customer
trust effectively? advocacy at core?

2 3 4 5
Appendix
Definitions and coverage

Metrics Definition
Insurgent brands We have defined insurgent consumer brands as companies in India incorporated after 2007.
These companies are winning hearts of the underserved customers. They possess a clear
sense of mission. They foster in their employees' deep feelings of personal responsibility for
the company. They abhor complexity and bureaucracy. They are obsessed with the details of
the business and celebrate the frontline employees who deal directly with customers

Incumbent brands Large scale, well established traditional consumer brands, incorporated (well) before 2007,
have proprietary assets, strong brands and superior capabilities to out-invest competition.
Scale insurgent brand Insurgent consumer brands with more than ~$25M revenue in FY22

GenZ Anyone born between 1997 and 2012

Millennials Anyone born between 1981 and 1996

GenX Anyone born between 1965 and 1980

Boomers Anyone born between 1946 and 1964

Sectors covered Apparel & Lifestyle, Beauty & Personal Care, Food & Beverage, Electronic Wearables and
Devices, Healthcare Products, Home (Furniture, Plants and Pets) & Kitchen, Intimate Wear
and Jewelry
Key sources of financial data

Metrics Sources
Revenue MCA filing, VCC Edge, CapIQ, Accord, Annual reports, DRHP

EBITDA, EBITDA Margin MCA filing, VCC Edge, CapIQ, Annual reports, DRHP

PAT MCA filing, VCC Edge, CapIQ, Annual reports, DRHP

Capital employed and ROCE MCA filing, DRHP

Funding amount CapIQ, Pitchbook, Tracxn

Category Sizes (and projections) Statista, Euromonitor

GDP per capita Euromonitor

Consumer expenditure per capita
Consumer expenditure, World economic forum report
Population x Income
Consumer spends Bain PRICE analysis
TO L E A R N M O R E C O N TA C T U S

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Bain & Company DSG Consumer Partners
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