Snitch is a homegrown men’s fast-fashion brand that has made a big impact in the Indian fashion industry with its bold approach to style and innovation. From its beginnings as an offline retail brand, Snitch has successfully transformed into a leading direct-to-consumer (D2C) company, delivering trendy, high-quality clothing directly to customers through its own online platform. This journey from a local business to a nationwide brand showcases Snitch’s adaptability and forward-thinking business model, making it a case study worth understanding.
Importance of Understanding Snitch Business Model
Understanding Snitch business model provides insights into how new brands can thrive in the fast-paced and highly competitive world of fashion. By closely examining Snitch’s approach, other startups and entrepreneurs can learn effective strategies for building strong customer connections, managing supply chains, and creating a unique brand identity.
Snitch Business model is particularly interesting because it focuses on direct customer engagement, rapid product turnover, and a blend of D2C and B2B sales, which has allowed the brand to grow quickly and compete with established players.
Company Background
Founding: Snitch was founded in 2018 by Siddharth Dungarwal, who had a vision to bring world-class trends to Indian men’s fashion. With a strong background in retail, Siddharth launched Snitch to address the gap in fashionable, affordable men’s apparel that appeals to the modern man.
Headquarters: The company is based in Bangalore, India, a city known for its thriving startup culture and innovative tech industry.
Industry: Snitch operates in the fashion and apparel industry, specifically focusing on men’s fast fashion. The brand’s offerings include a wide range of products from everyday essentials to statement pieces.
Mission: Snitch aims to provide stylish, trendy, and affordable clothing for men, with an emphasis on keeping up with the latest fashion trends. The brand’s mission is to create high-quality, fashionable options for Indian men who seek style without compromising on quality or cost.
Snitch Business Model
Snitch business model combines multiple revenue streams, allowing the brand to maximize its reach and adapt to changing market demands. Here’s a closer look at its approach:
Direct-to-Consumer (D2C): This is Snitch’s primary business model and the main source of revenue. With a strong online presence, 95% of Snitch’s orders come directly from their own website. By cutting out intermediaries, Snitch can connect directly with customers, offering them better prices and faster access to new styles. The D2C model also gives Snitch full control over the customer experience, from browsing to delivery, which helps in building a loyal customer base.
B2B Sales: Initially, Snitch started as a B2B business, selling in bulk to retailers. This helped the brand establish itself in the market before making the shift to the D2C model. Although D2C is now the focus, B2B sales remain an important part of Snitch’s revenue, allowing them to reach additional customers through retail partnerships.
Reselling: To add another revenue stream, Snitch partnered with Relove, a platform that allows customers to buy and sell pre-owned clothing in good condition. This partnership supports the resale of vintage fashion, contributing to sustainability efforts and appealing to customers interested in eco-friendly fashion choices.
Through this multi-faceted business model, Snitch has positioned itself as a flexible, innovative brand in the competitive men’s fashion market, focusing on direct sales, bulk partnerships, and sustainable resale options. This approach has allowed Snitch to expand rapidly, retain customer loyalty, and adapt to evolving consumer demands.
Revenue Streams
Snitch generates revenue through three main channels, each catering to different customer needs and market segments.
Direct-to-Consumer (D2C) Sales: The primary revenue stream for Snitch is its D2C model, where the brand sells directly to customers through its website, snitch.co.in. This approach has been highly successful, with the brand processing over 2,000 orders daily. By selling directly, Snitch can control the customer experience, offer competitive pricing, and quickly respond to fashion trends, keeping their audience engaged and coming back for more.
B2B Sales: Snitch also maintains a B2B (Business-to-Business) model, primarily focused on selling bulk orders of clothing items to other retailers. This includes orders for custom-printed T-shirts and other men’s apparel. B2B sales help Snitch reach a wider market by partnering with retailers who can then offer Snitch products to their own customers, boosting brand visibility and revenue.
Reselling: In partnership with Relove, Snitch has added a reselling component to its revenue model. Through this program, Snitch offers a platform where customers can buy and sell gently used Snitch clothing. This initiative not only provides an additional income stream but also aligns with the brand’s commitment to sustainability, allowing customers to participate in eco-friendly fashion by reusing items in good condition.
Marketing and Sales Strategy
Snitch uses a blend of digital marketing, media exposure, and strategic promotions to grow its brand and attract new customers.
Digital Marketing: Snitch relies heavily on digital marketing to connect with its audience. By leveraging popular social media platforms like Instagram and Facebook, the brand reaches a large audience, engages with customers, and promotes new collections. Snitch also invests in online advertising to target its ideal customer base, using visually appealing ads and relevant messaging to attract fashion-conscious men.
Shark Tank India: Snitch gained significant exposure by appearing on Season 2, Episode 20 of Shark Tank India, where it secured an investment from all five sharks. This appearance not only brought financial support but also boosted Snitch’s reputation, helping the brand reach a larger audience and increase customer trust.
Promotions and Discounts: To attract and retain customers, Snitch frequently offers discounts and promotional deals. These promotions make the brand’s trendy, high-quality products more accessible and appealing to a broad audience. By using strategic discounts, Snitch can maintain a steady flow of new and returning customers.
Snitch’s Product Range
Snitch’s product lineup is carefully curated to appeal to men seeking stylish and modern clothing options. The brand offers a variety of fashion-forward items that cater to different occasions and styles.
Clothing Items: Snitch provides a wide range of men’s clothing, including shirts, T-shirts, trousers, jeans, shorts, co-ord sets, boxers, and more. Each item is designed to keep up with current trends, making it easy for customers to stay fashionable. This diverse product selection allows Snitch to meet the everyday fashion needs of its target audience.
Target Audience: Snitch’s primary customers are men between the ages of 18 and 35. This age group values style, affordability, and convenience, all of which Snitch offers through its D2C model and frequent product updates.
Trends: To keep up with the fast-changing fashion industry, Snitch frequently updates its inventory with the latest trends. This “fast fashion” approach ensures that customers can find trendy, up-to-date options, making Snitch a go-to choice for men who want to stay current with their wardrobe.
Technology and Operations
Snitch has embraced technology to enhance the customer experience, streamline operations, and keep up with the demands of fast fashion.
Website and App: Snitch’s online presence is supported by a user-friendly website and a mobile app, both designed to make shopping easy and enjoyable. The simple layout and quick navigation allow customers to browse, select, and purchase items effortlessly, contributing to high engagement and satisfaction rates.
Warehouse: Snitch operates a state-of-the-art warehouse equipped with advanced technology to handle order processing, inventory management, and shipping. This setup helps the brand keep up with the high volume of orders and ensures that products are accurately picked, packed, and dispatched to customers efficiently.
Order Fulfillment: With a rapidly growing customer base, Snitch processes around 2,000 products daily. This high volume is managed with precision, allowing the company to meet customer expectations for fast delivery and reliable service.
Financial Performance
Snitch, a rising star in the Indian menswear industry, has shown remarkable growth, supported by the recent shift in consumer preferences toward domestic brands for clothing, beauty, and personal care over the past few years. This shift, combined with the brand’s unique approach and a fresh infusion of capital, has positioned Snitch for significant expansion.
Snitch Sales After Shark Tank:
After Snitch’s appearance on Shark Tank India, the brand saw a substantial surge in sales and revenue. Here are the key highlights:
- Revenue Surge: Snitch’s monthly revenue jumped by 30% following the Shark Tank episode, reaching ₹11 crores.
- Sales Channels: The majority of sales continued to flow through Snitch’s own website, with online orders accounting for ₹6 crores out of the ₹9.3 crores in monthly sales.
- Marketplace and Offline Growth: Snitch also experienced a boost in sales through both online marketplaces and offline retailers, contributing to its overall revenue increase.
- Valuation and Investment: The Shark Tank deal valued Snitch at ₹300 crores, with the brand securing an investment of ₹1.5 crores in exchange for 1.5% equity.
- Funding: In a recent funding round, Snitch raised Rs. 110 crore from prominent investors, including Singapore’s SWC Global and IvyCap Ventures. This capital boost will support the brand’s growth initiatives, including building a leadership team, enhancing internal technology, and scaling inventory.
Revenue Growth: For the current fiscal year (FY 24), Snitch expects sales to cross Rs. 250 crore, a significant jump from Rs 110 crore in the previous year. This growth trajectory is further emphasized by a gross merchandise volume (GMV) reaching an annual revenue run-rate (ARR) of approximately Rs 600 crore.
Average Selling Price (ASP): Snitch operates in the Rs 800 to Rs 1,500 price range, with an average selling price of Rs 1,100. This makes the brand more affordable than premium brands like H&M and Zara but slightly higher than budget-friendly options like Zudio or Max. Unlike these brands, which largely focus on women’s fashion, Snitch specializes in menswear, setting it apart in the market.
Online vs. Offline Sales Mix: Currently, about 90% of Snitch’s revenue comes from online channels. However, with new retail stores planned in major cities such as Bengaluru, Hyderabad, Delhi, and Chennai, the brand aims to achieve a revenue mix of 75% online and 25% offline within the next year. Snitch’s physical stores have also shown a promising trend, with average order values at these locations being twice that of online channels.
Snitch’s focus on quality, affordability, and the fast-fashion model has led to rapid growth. With strong investor backing and clear expansion plans, the brand is well-positioned to strengthen its foothold in the Indian menswear market, bringing high-quality fashion options to a wider audience.
SOURCE: financialexpress.com
Challenges and Opportunities
Despite its success, Snitch faces both challenges and exciting growth opportunities.
Challenges: Operating in the fashion industry is challenging due to intense competition and fast-changing trends. Additionally, Snitch must carefully manage its inventory and supply chain to keep up with customer demand without overstocking.
Opportunities: Snitch has several avenues for growth. Expanding its product range and entering new geographic markets can help attract a broader audience. By further leveraging technology, such as advanced data analytics, Snitch can continue refining its operations and improving the customer experience.
Future Plans
Snitch’s future looks promising as it plans to expand and adapt to the evolving fashion market.
Expansion Plans: The company has ambitious plans for continued growth, both online and offline. It aims to reach more customers through new stores, digital experience spaces, and expanded product lines.
Sustainability Initiatives: Snitch is committed to sustainable practices in fashion, focusing on eco-friendly materials and ethical production methods. This commitment aligns with growing consumer demand for responsible and mindful fashion.
Innovation: Snitch constantly works on new ideas to stay at the forefront of fashion trends. By embracing innovation, the brand aims to keep its products fresh and exciting for customers, ensuring it remains competitive in the industry.
Key Learnings from Snitch Fashion
Direct-to-Consumer (D2C) Focus Brings Greater Control
- Snitch’s decision to focus on a D2C model allows it to maintain full control over customer experience, product quality, and brand messaging. By selling directly to consumers through its website, Snitch builds stronger customer relationships, adapts quickly to trends, and benefits from higher profit margins by cutting out intermediaries.
Fast Fashion for Men is a Growing Market
- Snitch identified an underserved market in fast-fashion men’s apparel and seized the opportunity to become a leader. By offering trendy, affordable, and quickly updated clothing options, Snitch has carved out a unique space that resonates with young male customers seeking fresh and accessible fashion choices.
Importance of a Strong Digital Presence
- Snitch’s success has been significantly driven by its digital presence, which includes a well-designed website, mobile app, and active social media engagement. By leveraging online platforms for direct sales and customer interaction, Snitch has expanded its reach and effectively engaged its target demographic.
Effective Use of Marketing Automation
- Through partnerships with martech platforms like Wigzo, Snitch has harnessed the power of automated marketing to improve customer engagement and retention. Automated SMS, email, and WhatsApp campaigns targeted at customers who abandon their carts have helped Snitch achieve high open rates and conversion rates, contributing to steady revenue growth.
Diversifying Revenue Channels is Beneficial
- While D2C sales are Snitch’s main focus, it also leverages B2B bulk sales and a reselling partnership with Relove. This diversification allows Snitch to reach different customer segments, expand its market presence, and tap into sustainable fashion trends.
Adapting to Changing Consumer Preferences
- Snitch’s focus on sustainable practices and affordable pricing reflects an understanding of changing consumer preferences. As more consumers prioritize eco-friendly fashion, Snitch’s partnership with Relove and use of sustainable materials have strengthened its appeal among conscious shoppers.
Conclusion
Snitch’s success story highlights the power of a well-executed D2C business model, smart use of technology, and a strong focus on customer experience. From its advanced operations to impressive sales growth, Snitch has established itself as a dynamic player in the Indian men’s fashion market. As the brand looks to expand, focus on sustainability, and stay ahead of trends, it is well-positioned for continued success in the fast-paced fashion industry. Snitch’s journey serves as an inspiring example of how adaptability and strategic planning can drive growth in a highly competitive market.
Source: financialexpress, pangrow, greenhonchos, wafflebytes, etc.
FAQs
Is Snitch an Indian brand?
Snitch is a homegrown Indian men’s fast-fashion brand, founded in 2018, that focuses on providing trendy and stylish clothing for men through a direct-to-consumer (D2C) business model.
Who is the founder of Snitch?
Snitch was founded by Siddharth Dungarwal in 2018, who aimed to bring bold and experimental fashion trends to Indian men’s apparel.
How does Snitch make sales?
Snitch primarily sells its products through its website, which accounts for 95% of its sales. It also has B2B partnerships and a reselling collaboration with Relove for vintage fashion.
What types of clothing does Snitch offer?
Snitch offers a variety of men’s clothing, including shirts, T-shirts, trousers, jeans, shorts, co-ord sets, boxers, and more. The brand’s range covers everything from everyday wear to statement pieces.
How many orders does Snitch process daily?
Snitch processes approximately 2,000 orders daily, thanks to its state-of-the-art warehouse and efficient order fulfillment system.
What was Snitch’s revenue in its first two years?
Snitch achieved ₹100 crores in sales within its first two years and is projected to reach ₹1,000 crores in FY 2022-2023.
Did Snitch appear on Shark Tank India?
Yes, Snitch appeared on Season 2, Episode 20 of Shark Tank India and secured a deal with all five sharks, gaining both investment and national exposure.
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