Netsurf Communications which operates several companies in an effort to compete with the current set of direct-to-selling consumer products has rolled out its very own app, Netsurf World. The company claims that its app till date has been downloaded by 1.5 lakh users. Netsurf Communication claims to have earned a (gross) has earned a revenue of Rs 7 crore within the last four month, since its launch. Netsurf Communications Pvt Ltd (consolidated) posted a 18% rise to Rs 307 crore in FY22 from Rs 378 crore in FY21, as per regulatory filings accessed by business intelligence platform, Tofler. While net profit rose 14% to Rs 19 crore in FY22 from Rs 16.7 crore, during the same period in the corresponding year. In a conversation with BrandWagon Online, Sujit Jain, managing director, Netsurf Communications Pvt Ltd, talks about plans for the D2C brands, the company owns. (Edited Excerpts)
Where does Netsurf fit in the world of D2C brands?
We are a direct selling company in India with a consumer base of more than three million. Netsurf offers more than 60 natural and herbal products in four distinct categories including healthcare, personal care, home care, agriculture and color cosmetics. These products are being sold in 633 districts and across 5,000 village clusters.
Why the app now?
COVID created a compulsion for online shopping. People have also gotten used to convenience and the process of buying online.This was the prime reason behind launching the app to adapt to changing consumer behaviour and provide a seamless customer experience through technology.
What kind of marketing budgets you have, typically?
We spend about Rs 35-50 lakh per month on marketing. Of this 80% is spent in digital that is about Rs 25-30 lakh per month. Of the total money spent on digital 35-40% is spent on influencer marketing. According to regulatory filings with the Ministry of Corporate Affairs (consolidated), Netsurf Communications Pvt Ltd’s marketing spends declined 30% to Rs 8.84 crore in FY22 from Rs 12.6 crore in FY21.
How has the been the year, so far? What is your target for FY24?
In the last six months, the app has recorded 1.73 lakh downloads, while the turnover clocked stands at Rs 8.32 crore (please note that FE Online – BrandWagon Online could not verify the data at the time of filing the interview). The average receipt value is Rs 1,500. It has clocked a 20% growth on a month-on-month basis. Also, as far as the target turnover is concerned, we are looking at a at growth rage of 20% year-on-year. We had seen a spike in November 2022, with the app clocking a turnover of Rs 2.30 crore, due to the launch of their new range of exclusive products.