How GoColors built a ₹655 Cr "dhanda"? 🤯
Going deep into a single category & much deeper insight.
Welcome to the 162nd edition of the GrowthX Newsletter. Every Tuesday & Thursday I write a piece on startups & business growth. Today’s piece is going to 95,300+ operators & leaders from startups like Google, Stripe, Swiggy, Razorpay, CRED & more
GoColors did ₹655 Cr "dhanda" last year 💰
Most of it by selling a single SKU - leggings 🤯
How its nailing women's bottom wear category ⬇️
Quick context 🗓
Started in 2010, GoColors sells "leggings" as it's star product at an affordable price point of ~ ₹600. The brand has grown from ₹250 Cr revenue in FY21 to almost 3X the revenue in under last 2 years.
My experience with GoColors 😅
Every-time I go out with my wife to Church street (Bangalore), I have seen her shop atleast an item out of the GoColors retail outlet & kept wondering how this brand is able to get so many repeat purchases.
Why GoColors is winning the category? ⬇️
1/ The right timing to launch 🕹
In 2010s, a transition was happening from women’s wear to suits, wherein the bottom wear and upper wear were being sold separately. There was hardly any brand going niche on women's bottom wears.
2/ The right product wedge 🎯
Most western brands (Zara / H&M) were doing a cookie cutter job. They were pushing the western bottom wear clothing onto new age Indian women - absolutely not for Indian body type. GoColors customised their offering for Indian women.
3/ Finding the differentiator in colours 🎨
Ask your women friends, it's really hard to find matching coloured leggings for a specific Kurti. Most brands just keep the standard black coloured ones. GoColours launched leggings with ~ 3 shade variations for each colour (total 40+ variations).
4/ Repeat purchase insight 🔁
You can't buy a single leggings and be done with it. You will buy a couple of matching leggings for almost every Kurti you buy. Kurti is a growing category, leggings get a share of the pie without moving a muscle. But, price point helps too.
5/ The affordable price point 💸
Kurtis cost anywhere between ₹1,000 to ₹5,000 but the average is somewhere around ₹1,500. A leggings that elevates Kurtis elegance at 1/3rd the price makes a ton of sense. Also, a legging can be on multiple Kurtis so effective price per look is cheap.
6/ Not doing random stuff 🙈
Would you not launch a women's tops category if you had a ₹250 Cr annual revenue line? - most would answer yes. But, GoColours stayed away from losing it's focus and it's a very smart move in hindsight.
7/ Outsourced manufacturing 🤯
Yes, you heard it right. The brand does not manufacture any of it's products. It just designs it. Being able to have the flexibility of going to the best supplier who gives us the best quality at the best price has saved it from struggling with working capital.
What's next for GoColours? ❤️
I'm pumped to see an Indian brand nailing a brutal category against international brands. Specifically when GoColours new "Jeans" category is blowing up - again the insight is absolutely great fitting for Indian body type. My bet is on GoColours to become a ₹1000 Cr revenue brand by next year
India’s Travel market is worth +5 lakh CR.
Easy My Trip , a bootstrapped company that started with a small investment of 15L, today makes ₹3,000 CR+ in revenue. Taking on the brutal Indian travel market where Goibibo & MMT ruled, they grew slowly & steadily to capture 5% of the market today. In the latest episode of Wireframe on YouTube, we dig deep into Growth Journey of EaseMyTrip & how they've cracked the code to India's travel market?
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