Erotissch Shark Tank India Episode Review

Website Information:

• Website: Erotissch
• Build on E-commerce Shopify
• SEO Improvement Needed
• ORGANIC TRAFFIC:- 349 organic visitors per month

Founders & Story:

• Anushka Agarwal and Aayuushi Agarwal, graduates from NIFT and Pearl Academy, launched Erotissch in 2019.
• They design lingerie, swimwear, and beachwear for Indian women, with a focus on size inclusivity (solids 60%, prints 40%).
• They started online on AJIO (2019) and Myntra (Dec 2019).
• They have secured funding from friends & family (₹60 lakh) and invested ₹40 lakh themselves.
• Their current valuation is ₹25 crore.

About the Company:

• Erotissch prioritizes women’s empowerment through comfortable and stylish lingerie, beachwear, and swimwear.
• They champion “Made in India” with high-quality, ethically sourced materials (silk, lace, cotton).
• They prioritize affordability without compromising quality, making luxury accessible.
• Their unique selling point is a commitment to ethical production with a focus on employee well-being.

Revenue:

• Projected FY 23-24 sales: ₹4.6 crore (YTD: ₹2.8 crore as of November)
• FY 22-23 sales: ₹3.8 crore
• FY 21-22 sales: ₹2.5 crore
• Average sales growth rate: 54.2%
• Positive Contribution Margin 1 (CM1) and Contribution Margin 2 (CM2) for the last 3 months

Founders’ Ask:

• ₹75 lakh for 3% equity at a valuation of ₹25 crore

Sharks’ Decision:

• No Deal
• Reasons: Unclear brand positioning, growth limitations, unsustainable pricing, and unclear business model

Shark Tank India Episode AIR Date:

• Episode 34, 7 March 2024

Key Points:

• Erotissch offers a growing brand with a good sales trajectory.
• The Sharks were concerned about brand clarity, scalability, pricing strategy, and overall business model.

Erotissch Shark Tank India Review Website Data

Aspect	Description
Website	Erotissch (Needs SEO Improvement)
Platform	Shopify
Organic Traffic	349 visitors per month
Business Potential in India (Drivers)	* Rising disposable income * Growing urbanization * Shifting mindsets towards body positivity & self-care * E-commerce boom
Total Addressable Market (TAM)	₹15,000 crore (USD 1.9 billion) (conservative estimate)
Target Audience	* Demographics: Women aged 18-45 in tier 1, 2, 3 cities * Psychographics: Security-conscious, fashion-forward, prioritize comfort, quality, ethical production, size inclusivity, and women’s empowerment
Content Marketing	* Blog: Lingerie styles, body positivity, self-care, ethical fashion (SEO optimized) * Social Media: Visually appealing content, influencer collaborations (Instagram, Facebook) * Collaborations: Fashion bloggers, stylists, women’s rights advocates
Digital Marketing Strategy	* SEO Optimization: Improve website ranking through keyword research, content optimization, and backlink building. * Influencer Marketing: Partner with micro-influencers for promotion and brand trust. * Email Marketing: Build an email list for newsletters, promotions, and personalized recommendations. * Affiliate Marketing: Partner with relevant websites and blogs for wider reach and commission on sales.
Distribution Strategy	* Demographics: Women aged 18-45 in tier 1, 2, and 3 cities * Psychographics: Security-conscious, fashion-forward, prioritize comfort, quality, ethical production, size inclusivity, and women’s empowerment
Advantages	* Unique Value Proposition: Stylish, size-inclusive lingerie & swimwear with ethical production and women’s empowerment focus. * Strong Sales Growth: 54.2% average sales growth rate over 3 years. * Positive Contribution Margins: Healthy profit margin on products. * Ethically Sourced Materials: Commitment to “Made in India” with high-quality materials.
Challenges	* High Competition: Competitive market with established and new players. * Brand Awareness: Low organic traffic indicates a need for improved brand awareness strategies. * Scalability Concerns: Needs a clear expansion plan to address investor concerns. * Pricing Strategy: Needs refinement to balance affordability and quality.
Reasons for Success	* Market Demand: Addressing the growing demand for premium, size-inclusive lingerie and swimwear in India. * Strong Product Offering: High-quality, ethically sourced products with a focus on inclusivity. * Focus on Empowerment: Brand messaging that resonates with women seeking comfort, confidence, and self-expression.
Mitigation Strategies	* E-commerce Expansion: Strong presence on marketplaces like Myntra, Ajio, Nykaa Fashion (explore Amazon, and Net-a-Porter in future) * Omnichannel Strategy: Consider flagship stores in major metro cities for personalized experience and brand image.
Future Business Roadmap	* Expand Distribution Channels: Omnichannel approach with flagship stores and international marketplaces. * Refine Pricing Strategy: Conduct market research and competitor analysis to optimize pricing. * Data-driven decision-making: Utilize website analytics and customer data to tailor marketing efforts.

Erotissch: Building a Thriving Lingerie & Swimwear Brand

Business Potential in India:

The Indian lingerie and swimwear market is experiencing explosive growth, driven by:

• Rising disposable income: More Indian women can now afford premium lingerie and swimwear (Source: IBEF).
• Growing urbanization: Increased demand for fashionable and comfortable undergarments in urban centers.
• Shifting mindsets: Growing awareness of body positivity and self-care, leading to a higher demand for lingerie that is both beautiful and functional (Source: Euromonitor International).
• E-commerce boom: Increasing online shopping penetration makes lingerie and swimwear more accessible to women across India.

Total Addressable Market (TAM):

The Indian lingerie market alone is estimated to reach ₹30,350 crore (USD 3.8 billion) by 2025 (Source: TechSci Research). Considering swimwear as a smaller segment, a conservative estimate for Erotissch’s TAM could be ₹15,000 crore (USD 1.9 billion).

Ideal Target Audience:

• Demographics: Women aged 18-45 residing in tier 1, 2, and 3 cities in India.
• Psychographics: Security-conscious, fashion-forward individuals who prioritize comfort, quality, and ethical production. They appreciate size inclusivity and a brand that celebrates women’s empowerment.

Marketing Strategy:

Content Marketing:

• Blog: Create informative and engaging content about lingerie styles, body positivity, self-care rituals, and ethical fashion practices. Optimize content for relevant keywords like “lingerie for Indian women,” “size-inclusive swimwear,” and “sustainable lingerie brands.”
• Social Media: Build a strong presence on Instagram and Facebook with visually appealing content showcasing product collections, behind-the-scenes glimpses, and collaborations with body-positive influencers. Utilize relevant hashtags and run targeted ad campaigns.
• Collaborations: Partner with established fashion bloggers, stylists, and women’s rights advocates to reach a wider audience and leverage their credibility.

Digital Marketing Strategy:

• SEO Optimization: Improve website ranking through keyword research, content optimization, and backlink building to attract organic traffic.
• Influencer Marketing: Partner with micro-influencers specializing in body positivity and sustainable fashion to promote products and build brand trust.
• Email Marketing: Build an email list and send engaging newsletters featuring new arrivals, promotions, and educational content. Offer personalized recommendations based on past purchases.
• Affiliate Marketing: Partner with relevant websites and blogs to reach a wider audience and earn commission on sales generated through their referrals.

Distribution Strategy:

• E-commerce Expansion: Establish a strong presence on leading online marketplaces like Myntra, Ajio, and Nykaa Fashion. Explore international platforms like Amazon or Net-a-Porter in the future.
• Omnichannel Strategy: Consider opening flagship stores in major metro cities to offer a personalized shopping experience and strengthen the brand image.

Advantages:

• Unique Value Proposition: Erotissch caters to a growing demand for stylish, size-inclusive lingerie and swimwear with a focus on ethical production and women’s empowerment.
• Strong Sales Growth: Demonstrated a 54.2% average sales growth rate over the past 3 years.
• Positive Contribution Margins: Positive CM1 and CM2 indicate a healthy profit margin on products.
• Ethically Sourced Materials: Commitment to “Made in India” with high-quality materials resonates with eco-conscious consumers.

Challenges:

• High Competition: The lingerie and swimwear market is highly competitive, with established players and new entrants vying for market share.
• Brand Awareness: Low organic traffic indicates a need for improved brand awareness strategies.
• Scalability Concerns: Investors on Shark Tank India expressed concerns about Erotissch’s ability to scale beyond a certain point. This can be addressed by outlining a clear expansion plan.
• Pricing Strategy: The Sharks raised questions about Erotissch’s pricing strategy. Conducting market research and competitor analysis can help refine pricing to maintain affordability without compromising quality.

Reasons for Success and Mitigation Strategies:

• Market Demand: Addressing the growing demand for premium, size-inclusive lingerie and swimwear in India.
• Strong Product Offering: High-quality, ethically sourced products with a focus on inclusivity.
• Focus on Empowerment: Brand messaging that resonates with women seeking comfort, confidence, and self-expression.

Mitigation Strategies (continued):

• Expand Distribution Channels: Implement an omnichannel strategy by exploring flagship stores and international online marketplaces alongside existing e-commerce partnerships.
• Refine Pricing Strategy: Conduct thorough market research and competitor analysis to ensure Erotissch’s pricing remains competitive while maintaining healthy profit margins.
• Data-Driven Decision Making: Utilize website analytics and customer data to understand target audience preferences and tailor marketing efforts accordingly.

Future Business Roadmap:

• Increase Valuation: Focus on brand awareness, strategic expansion, and a refined pricing strategy to demonstrate scalability and increase valuation for potential future investors.
• Product Line Expansion: Consider expanding the product line beyond lingerie and swimwear to include loungewear, activewear, or sleepwear based on customer demand and market trends.
• Invest in Technology: Implement a robust customer relationship management (CRM) system to personalize customer experiences and build stronger brand loyalty. Explore artificial intelligence (AI) for product recommendations and chatbots for improved customer service.
• Social Responsibility: Partner with NGOs or women’s empowerment initiatives to further solidify Erotissch’s commitment to social good.

Conclusion:

Erotissch possesses a strong foundation for success in the booming Indian lingerie and swimwear market. By addressing the identified challenges and implementing the proposed strategies, Erotissch can establish itself as a leading brand synonymous with comfort, quality, ethical production, and female empowerment. The focus on an omnichannel approach, data-driven marketing, and continuous improvement will position Erotissch for long-term success and increased valuation.