D2C space: Investments in "not my parents' brands" are #trending
D2C) space are following a new thesis for placing their bets: to back young brands that focus on Gen Z (those born between 1997-2012) and have nothing to do with incumbent brands popular among older consumers.
At Titan Capital run by Snapdeal cofounders Kunal Bahl and Rohit Bansal, this unwritten investment thesis has a name — «not my parents' brand». Several such brands have emerged over the past few years across food and beverages, home furnishing, fashion and footwear, oral care, and luggage, including Perfora, Mokobara, Nasher Miles, Wakefit, SleepyCat, Hocco and NIC. This phenomenon of not using parents' brands is visible in even sectors such as automotive and smartphones, Bahl said.
«Consumers are increasingly gravitating towards new-generation EV brands, motivated not only by environmental concerns but also by a desire to differentiate themselves from their parents' preferences,» he told ET.
Product Innovation in Niche Categories
Deepak Shahdadpuri, MD of venture capital firm DSG Consumer Partners, said: «There is no connection between someone who is 18 years old and incumbent brands. There is zero emotional connection.»
DSG has backed brands such Chai Point, Sleepy Owl Coffee, SleepyCat and Epigamia among others.
«In the old days...it was difficult to build awareness, distribution was hard, and the only brand you got were the brands you saw,» Shahdadpuri said. «Now, all the brands are starting from scratch. You have to earn the right to be purchased — that's the starting point.»
That's not easy in
