The pandemic has helped many small businesses start a new journey. While some have embraced technological innovation, others have turned to online sales and seen their businesses grow. The fashion world has also benefited greatly. From apparel and jewelry to footwear and accessories, the industry saw record sales during this period.
Capitalizing on this growing demand has been Miraggioa Gurugram-based fashion startup that launched in 2019 just before the coronavirus pandemic hit the country.
“We were born out of the pandemic,” says Mohit Jain, founder of Miraggio.
Operating in a market dominated by established brands like Caprese, Lavie, Baggit, etc., the handbag brand claims to witness 50% month-on-month growth since its inception, and Mohit claims that the brand now garners a turnover of Rs 1.5 crore per month.
Mohit was 20 years old when he decided to follow the path of entrepreneurship. He was studying marketing in Canada when he started a small e-commerce business, trading consumer products between China and India, borrowing money from his father. Although this business trip did not last more than two years, he says it taught him a lot about entrepreneurship.
The moment Mohit graduated from Canada and returned to India, he decided to go into business full time. But he didn’t know which industry to choose.
“Fashion has always been my forte, but I never thought of doing business. After extensive research and understanding of the Indian fashion market, I focused on creating a handbag brand to meet the needs of women in the age group between 18 and 35, who yearn for fashion and trendy styles at an affordable price”, Mohit said.
So, he launched Miraggio in 2019. Mohit says the company started just before the pandemic, and for the first year and a half, all of his time was spent on market and customer research.
“It was not until September 2021 that activity started to resume,” he adds.
Mohit claims that all products are designed in-house and are manufactured by third-party factories located in China.
To date, Miraggio has raked in revenue of Rs 11 crore, selling in marketplaces and through its own website, where the company sees 20% repeat customers.
Mohit says that by March 2022, the company aims to close at Rs 1.5 crore in revenue.
Market competition and challenges
According to Technavio, the handbag market in India has the potential to grow by $207.51 million between 2020 and 2025, and the market growth momentum will accelerate at a CAGR of 4.90%.
The demand is huge, says Mohit, adding that when he did his research before starting the business, he discovered that women want to spend money on fashionable handbags. However, high-end brands like H&M and Mango, among others, that cater to this space are quite expensive.
“There are brands that operate in the price range between Rs 2,000 and Rs 4,000, and Caprese, Lavie, Baggit and others are also moving up. I wanted to introduce a brand between those price ranges, bridge the gap between fashion and price,” he says.
Speaking of the challenges, Mohit says the market is fiercely competitive and with already established players establishing a foothold and establishing customer trust, it is both challenging and rewarding.
Miraggio recently added more products like cardholders and wallets, and in the next six to eight months, Mohit also plans to introduce travel accessories and small leather goods.
“We also plan to introduce products in slightly different and lower price ranges,” says Mohit.
For now, the company is seeded with an investment of Rs 4 crore borrowed from Mohit’s father. However, the founder wants to raise funds and “focus on brand marketing”.