Touch, feel, try & buy: Snitch CEO's take on why offline retail still wins

Shark Tank India has significantly impacted the Indian entrepreneurial landscape, offering young startups crucial funding and prominent exposure during prime-time television. Numerous brands have demonstrated their capabilities on the platform, yet only a select few have made a significant impact. One such brand is Snitch, a notable player in the men’s fashion space.

Snitch gained significant attention on the show for multiple reasons, one of which was its valuation of Rs 100 crore within just two years of operation despite being bootstrapped. This helped the brand secure a rare investment from all five sharks, who collectively offered Rs 1.5 crore for 1.5% equity. 

Shark Tank India will launch its fourth season on January 6, 2024. Siddharth Dungarwal, CEO and founder of Snitch, emphasises the significant impact of the show on emerging consumer brands.

“Shark Tank is a phenomenal platform for building trust as a new brand. It provides a stamp of credibility that resonates with consumers,” Dungarwal tells afaqs!.

Participation itself offers invaluable insights and exposure, even in the absence of secured investment. The organic marketing produced by the show surpasses what a brand could accomplish with a budget of Rs 5-8 crore. Numerous brands are capitalising on the enduring recognition associated with the "As seen on Shark Tank" label. 

Bengaluru-based men’s fashion brand Snitch achieved notable milestones in 2023, signalling its expansion and growth trajectory. The company successfully raised Rs 110 crore in Series-A funding, co-led by SWC Global and IvyCap Ventures. 

Since then, the company has launched its physical retail stores, initiated its inaugural advertising campaign, expanded into new categories such as fragrances and accessories, and introduced a redesigned mobile app to enhance its digital presence.

“Our Snitch 2.0 app, launched five months ago, has surpassed two million downloads and now accounts for nearly 70% of our online revenue.” 

Siddharth Dungarwal, CEO, Snitch-

Snitch’s financial performance underscored its rapid growth. The brand achieved Rs 120 crore in revenue during FY23, reflecting a 250% increase from Rs 44 crore in FY22. According to Dungarwal, the brand has grown over 100% this year compared to the previous year, in terms of both top-line revenue and profitability.

Snitch has experienced substantial growth in its retail footprint. The company inaugurated its first store in Bengaluru in June 2023, followed by a strategic six-month interval to assess the retail landscape prior to the launch of its second store in February 2024. 

When Dungarwal spoke to this reporter, he shared Snitch's ambitious plans for expansion. At the time, the brand anticipated operating 35 stores across 15 cities by the end of the year, with intentions to expand to 100 stores by the end of 2025. In the future, Snitch plans to expand its presence in major cities including Hyderabad, Mumbai, and Delhi.

“Starting January, we plan to open 15 to 20 stores in the NCR region alone over the next year,” says the Snitch CEO. The brand is also focusing on growth in UP, Kerala, Hyderabad, Karnataka, and Maharashtra.

A Snitch store in Surat 

Offline vs online

Snitch, an omnichannel brand, has noted unique consumer behaviours on its online and offline platforms. Consumers who were once doubtful about online brands are increasingly recognising and trusting Snitch, attributed to its establishment of a physical store presence, as noted by Dungarwal.

“Physical stores make it easier for consumers to walk in, make a purchase, and build trust, which often translates into repeated online purchases.”

Siddharth Dungarwal, CEO, Snitch-

Regions with a robust offline presence are demonstrating notable online growth, underscoring the critical role of an omnichannel strategy.

The company has observed a notable difference in consumer behaviour when comparing online and offline shopping. “Online shopping is often driven by visual appeal, while offline shopping focuses on the tactile experience—touching, feeling, and trying the product.”

The offline experience also impacts spending patterns. Snitch has observed nearly a twofold increase in the average order value (AOV) at its offline stores compared to its online platform.

The brand is set to introduce its loyalty programme by January 15, 2025, aiming to boost consumer engagement and retention efforts.

Maiden ad campaign

The company has launched three ads drawing inspiration from popular Bollywood films: Kabhi Khushi Kabhie Gham, Delhi Belly, and Go Goa Gone. BeenThereDoneThat (BTDT) has conceptualised the campaign. 

The campaign parodies iconic movie scenes, infusing them with humour while playfully addressing themes of fashion and brand authenticity. It targets competitors including Super Dry, Zara, H&M, and GAP.

With expanding retail footprint, it is becoming increasingly important to raise awareness, says Dungarwal.

“We have spent significantly on marketing these stores. With a strong digital presence, it is easier to attract consumers to our retail locations without incurring high acquisition costs.”

Typically, the brand allocates 15% of its annual revenue for marketing efforts.

Entry of Zudio

Zudio, the budget fashion brand under the Tata Group, has expanded its presence in the Indian retail sector, with 577 stores now operating in 184 cities as of September 2024. Snitch faces competition from global brands such as Zara and H&M, but Dungarwal considers Zudio's market entry within a wider context.

“The total addressable market (TAM) in India is so vast that even 10 large-scale brands can coexist comfortably.” He emphasises that Snitch's objective has never been to compete with organised retail giants such as Reliance Trends, Aditya Birla, or Zudio.

“Brands like Max or Westside operate within a broader lifestyle spectrum, with 75% of their sales coming from women’s categories, 20-25% from men’s, and 5-10% from kids’ sections. Their store layouts reflect this division. In contrast, Snitch exclusively caters to men, simplifying the shopping experience and significantly improving conversion rates,” he explains.

Snitch adopts a targeted strategy, effectively positioning itself in the market by appealing to a defined age group.