‘A dead phone is a dead end’, this might sound hilarious but this is the reality of our current reality. Getting new tech devices and updating them from time to time is a thing for Gen-Z audiences. Watching videos, reading review blogs, and doing all the research to get the most valuable device is essential for smart purchases today but amidst the relentless pursuit of processing power and megapixel cameras, a crucial element often gets sidelined, which is battery life. The frustration of a dying phone is a universal pain point for many. However, one cannot expect to find all-in-one solutions, prompting the need for additional accessories tailored to individual requirements. According to Next Move Strategy Consulting, the global mobile phone accessories market was valued at approximately $278 billion in 2020. By 2030, the market is forecasted to reach a value of $413.2 billion.
Urbn aims to target the charging solution market with products entirely ‘Made in India,’ catering to the Gen-Z audience by offering premium products. In FY23, the company reported revenue from operations of Rs 38.73 crore and a profit of Rs 41.84 lakh, as per filings accessed by business intelligence platform, Tofler. In a conversation with BrandWagon Online, Sagar Gwallani, founder and CEO, Urbn, talks about the company’s brand-building process, its marketing strategies, plans for global expansion, besides its intentions to venture into the smart home accessories section. (Edited Excerpts)
Have you identified any specific gap in the D2C charging solution market that led to the creation of Urbn?
Back in 2019, I was running a brand called Itek and Soundlogic from 2012 to 2019, mainly dealing with audio and charging products. However, we wanted to shift towards a ‘Made in India’ approach. While my partner, in the US, wasn’t keen on developing the Indian market. So, I decided to take the plunge myself, leading to the birth of Urbn in 2019.
Why did we choose charging products? In the mobile accessory category, there are three subcategories- hearables (audio), wearables, and charging. While the audio and wearable segments were dominated by brands like boAt and Noise, I noticed a gap in the charging segment. There was a lack of reliable, up-to-date technology brands in India comparable to international brands such as Belkin and Anker.
Utilising my family’s background in manufacturing electricals, we launched our first range of power banks, cables, and chargers in 2020, exclusively partnering with Amazon due to the Covid-19 . We focused on sourcing top-quality components and quickly became one of the top three charging brands on Amazon within a year.
In the second year, we expanded to offline channels, launching the Black Series, a premium range of charging products. Initially planned for an offline launch, Amazon convinced us to try it online first. The Nano power banks under the Black Series, known for being the smallest and fastest in the country, sold out on launch day during Prime Day 2022, demonstrating the demand for premium products.
Our integration strategy involved setting up our factory, allowing us to control every aspect of production, from sourcing components to assembling and testing the products. This made Urbn a one-stop shop for reliable, high-quality charging solutions, all made in India. As a result, we became the number one charging brand on Amazon during the Diwali sale in terms of units sold.
What strategies or plans is Urbn implementing to capture a share of the charging solutions market, and what specific addressable market have you identified within this category?
The charging solutions market is predominantly unorganised, comprising 70% unorganised and 30% organised segments. The organised sector, currently valued at around Rs 2000 crores, is subject to significant fluctuations due to the ongoing shift from unorganised to organised segments within this category.
Urbn’s strategy revolves around continuous innovation and staying at the forefront of technological advancements in the charging segment. Our focus is on producing compact, fast, and reliable products to meet consumer demands.
Brand building is another key aspect of our strategy. Despite our products’ quality, we recognise the importance of building brand credibility. To appeal to our target audience, primarily the youth and Gen-Z demographic, we’ve collaborated with celebrity Kartik Aaryan. His relatable background and appeal to Gen-Z make him an ideal brand ambassador.
In addition to celebrity endorsements, we leverage tech influencers and bloggers to provide genuine feedback and reviews of our products, enhancing our brand reputation.
Expanding our distribution network is also crucial. While initially, we were predominantly online-driven, we’ve expanded into modern trade and are now focusing on growing our presence in the general trade sector. This involves appointing distributors nationwide and reaching out to mom-and-pop stores.
Furthermore, we’re exploring opportunities in the export market and partnerships with global players to export ‘Made in India’ charging products to various countries, diversifying our revenue streams and expanding our reach internationally.
Are there any plans for product portfolio expansion beyond the existing charging categories, considering the brand already offers wireless charging solutions?
We’ve approached wireless charging differently, especially with our MagSafe power banks. While traditional MagSafe power banks are primarily iPhone compatible, we’ve tapped into the vast Android market in India by introducing MagTag power banks. These power banks come with a wireless ring included in the box, allowing Android users to enjoy a MagSafe-like experience by attaching the ring to their phones. This innovation sets us apart from other brands in the market.
Based on the positive response to our MagTag power banks, we’re planning to expand our MagSafe category with at least 10 new SKUs (stock-keeping units). These will include three-in-one stands, wireless power banks, and charging solutions for various devices such as wearables, hearables, and smartphones, creating a comprehensive ecosystem for wireless charging products.
Do you have any plans to expand into tech-enabled accessories for the growing smart home ecosystem?
We’re exploring several avenues for product expansion. Firstly, we plan to enter the electric toothbrush category. Additionally, we’re looking into a category similar to Apple’s AirTag, which includes devices that can track belongings wherever they are in the world.
Furthermore, we’re exploring opportunities in the audio category. However, our focus will be on launching premium audio products. Just as we found a gap in the market with our Black Series in charging solutions and successfully introduced premium products, we aim to do the same in the audio segment. While brands such as boAt, Noise, and Mivi dominate the mass market, we see an opportunity to establish Urbn as a premium audio brand.
These plans are in the pipeline along with our exploration of smart accessory categories.
How do you plan to compete with Chinese brands besides established players in the market?
Our approach has always been to offer premium-quality products rather than competing on price. While others may sell at lower prices, we prioritise quality and value for money. We’ve established a reputation for charging a premium for our products, yet consistently achieve top positions in the market.
Our company’s vision centres on providing quality products that offer genuine value for money. We believe in catering to an evolving consumer base in India that appreciates and is willing to invest in quality. We’re committed to building premium-quality products that resonate with our customers.
A prime example of this approach is our Black Series. While it could have been priced lower, we set it at Rs 1699 and still outsell competitors offering similar products at Rs 999. This demonstrates our dedication to quality over engaging in price wars.
Looking ahead, what are your long-term growth plans, and are there any funding considerations on the horizon?
Currently, we’re operating as a bootstrap company and aren’t actively seeking funding. We believe we can double our sales without external investment. Our resources are self-sufficient, allowing us to focus on our goal of doubling sales within the next year.
Our vision is to establish ourselves as the premium charging brand globally, proudly made in India. We aim to be recognised as the most reliable, top-quality, and dependable charging brand originating from India, catering to global markets.