Fireside Chat - Desi Hangover

Summary

In this insightful interview, Omkar engages with the co-founder and COO of Disney Hangover, discussing the brand's inception and growth in a saturated footwear market. The conversation highlights the importance of leveraging India's craft heritage and the emotional connection consumers have with artisanal products. The company's strategic focus on quality and customer satisfaction has transformed Disney Hangover from a luxury to a necessity, with plans to expand into other artisanal categories while maintaining a commitment to sustainability and social impact.

Takeaways

• 😀 The co-founder and COO of Disney Hangover, Aga, shares the company's journey and insights in an interview.
• 🌟 Disney Hangover was founded with a vision to tap into the market opportunity for a footwear brand in an already crowded market.
• 🏰 Recognizing India's rich craft and culture, the founders saw a familiar product with an emotional connect but lacking appreciation due to an unstructured market.
• 🔍 Market research revealed a demand for a product that was both familiar and could be improved upon, leading to the identification of a competitive advantage.
• 🚀 Disney Hangover leveraged the first-mover advantage in the category and focused on creating everyday essentials with a unique Indian touch.
• 🎉 The brand's success was attributed to its ability to resonate with customers on an emotional level, providing a sense of pride and satisfaction through their purchases.
• 👣 Feedback from large-scale events indicated that customers valued the impact of their purchases on artisans, reinforcing the brand's social mission.
• 👟 The product transitioned from a luxury item to a need-based category, becoming a versatile part of customers' daily outfits.
• 🔄 The brand's approach to quality and status maintenance was crucial in retaining customers who were discerning about the brands they supported.
• 🌐 Disney Hangover's future goals include expanding into more artisanal product categories, aiming for global recognition and appreciation.
• 💚 Sustainability and social impact remain at the core of the business, with plans to scale and reinvent artisanal products to meet international standards.

Q & A

Who is the co-founder and chief operating officer of Disney Hangover being interviewed in the script?

The co-founder and chief operating officer of Disney Hangover is Abba.

What is the primary focus of the interview with Abba from Disney Hangover?

The primary focus of the interview is to discuss the story of Disney Hangover, its market opportunity, brand positioning, and customer needs.

What market opportunity did Disney Hangover identify for its footwear brand in a crowded market?

Disney Hangover identified an opportunity in the Indian craft and culture segment, which was unstructured and lacked appreciation, allowing them to create a product that resonated with the Indian audience's familiarity and emotional connection to the craft.

How did Disney Hangover approach the challenge of educating customers about their product in an overcrowded market?

Disney Hangover leveraged the familiarity and emotional connection of the Indian audience with the craft segment, which reduced the need for extensive product education and allowed them to focus on product quality and innovation.

What was the starting point for Disney Hangover in realizing that their brand was filling a customer need?

The starting point was during real-time sales and customer interactions, particularly at large events, where they received feedback that customers felt a sense of pride and satisfaction in supporting artisans through their purchases.

How did Disney Hangover's customers perceive the brand's footwear as a need-to-have rather than a luxury item?

Customers began to see the value and versatility of Disney Hangover's footwear as it transitioned from a special occasion item to a part of their daily outfits, serving multiple needs with one product.

What was the impact of Disney Hangover's product on the artisans involved in its creation?

The product created a direct impact on the artisans' lives, as customer purchases contributed to their livelihood, giving customers a sense of pride and satisfaction in their conscious buying decisions.

How did Disney Hangover's focus on quality and status quo contribute to its brand positioning?

By maintaining high quality and status, Disney Hangover was able to appeal to customers who were brand-conscious and sought products that met their expectations for quality, durability, and real-time application.

What challenges did Disney Hangover face in terms of customer lifetime value due to the versatility of their product?

The versatility of Disney Hangover's footwear, serving multiple needs, potentially compromised the customer lifetime value as customers might not feel the need to purchase more than one pair, limiting their cart value.

What are Disney Hangover's future goals for the next three years, as mentioned by Abba?

Disney Hangover aims to focus on sustainability and social impact, bringing different categories of artisanal products to global standards and giving them international recognition.

How does Abba view the role of customer referrals in Disney Hangover's growth strategy?

Abba acknowledges the strong customer referrals as a key factor in Disney Hangover's growth, especially considering the high quality and the emotional connection customers have with the brand.

Outlines

00:00

😀 Founding Disney Hangover

The conversation begins with an introduction to the co-founder and Chief Operating Officer of Disney Hangover, who joins the host for an interview. The host expresses appreciation for the company's case study being used as a learning tool and inspiration for students and entrepreneurs. The guest, Abba, is welcomed warmly, and the discussion starts by exploring the company's inception. The host inquires about the market opportunity that led to the creation of a footwear brand in a seemingly saturated market during 2012-2014. Abba explains that India's rich craft and culture heritage provided a familiar product to the market, and the company's focus on Indian opera for the Indian audience allowed them to leverage this familiarity. The company identified a market gap and a competitive advantage, being the first movers in the category, and aimed to make the product an everyday essential with the right improvisations.

05:01

👟 Meeting Customer Needs with Disney Hangover

The discussion shifts to the customer-centric approach of Disney Hangover. The company realized that customers were not only getting a product they liked but also one that held sentimental value. The product was innovative, combining a global perspective with rural craftsmanship. Real-time sales and interactions at events like Carla Gorda and Little Flea provided valuable customer feedback. Customers felt a sense of pride and satisfaction, knowing their purchases directly impacted artisans' lives. This emotional connection and social impact became a key part of Disney Hangover's brand identity. The conversation highlights the importance of customer brand loyalty, especially for a D2C (direct-to-consumer) product, and how Disney Hangover positioned itself as a 'need to have' rather than a 'nice to have' product.

10:03

🌐 Expanding Disney Hangover's Impact

The final paragraph delves into the company's future plans and vision. Abba shares the company's commitment to sustainability and social impact, which are at the core of their business. The goal is to bring more artisanal products to the market, reinvent them to meet global expectations, and achieve international recognition. Disney Hangover started with footwear but aims to expand into other categories, using the same strategy that brought success to their shoes. The conversation concludes with the host thanking Abba for the insightful interview and acknowledging the inspiration Abba provides to a new generation of entrepreneurs.

Keywords

💡Co-founder

A co-founder is an individual who is one of the group of people who establish a company or an organization. In the video's context, the co-founder is the person who started Disney Hangover with others, playing a key role in its inception and growth. The script mentions the 'co-founder and the chief operating officer of Disney Hangover' as a guest, highlighting their significant involvement in the company's establishment and operations.

💡Chief Operating Officer (COO)

A Chief Operating Officer is an executive responsible for the day-to-day administration and operation of a company. In the script, the COO of Disney Hangover is being interviewed, indicating their pivotal role in the company's operational strategy and execution. The COO's presence in the interview suggests their expertise and leadership in managing the company's core functions.

💡Entrepreneurial Venture

An entrepreneurial venture refers to a business enterprise started by an entrepreneur, often involving innovation, risk, and the pursuit of profit. The video discusses the foundation of Disney Hangover as an entrepreneurial venture, emphasizing the importance of identifying market opportunities and creating a product that meets a need. The script mentions the 'foundation of any entrepreneurial venture' in relation to solving a market opportunity.

💡Market Opportunity

A market opportunity is a potential area of business that can be exploited to make a profit, often identified by recognizing a gap in the market or an unmet need. The script discusses the identification of a market opportunity for a footwear brand in an already crowded market, highlighting the importance of finding a niche or differentiator. The COO talks about the 'opportunity for a footwear brand to still emerge and thrive' despite market saturation.

💡First Mover Advantage

First mover advantage refers to the benefits that the first company to enter a new market enjoys, such as establishing brand recognition and capturing a larger market share. In the script, the COO mentions having a 'first movers advantage in the category,' which implies that Disney Hangover was one of the first to introduce a particular type of footwear, giving them a competitive edge.

💡Indian Craft and Culture

Indian craft and culture refer to the traditional arts, crafts, and cultural practices of India, often associated with heritage and local craftsmanship. The script mentions that India is 'known as a country for craft and culture,' indicating that Disney Hangover's products are rooted in traditional Indian craftsmanship, which is a key part of their brand identity and market appeal.

💡Product Innovation

Product innovation involves creating a new product or significantly improving an existing product. The COO discusses how Disney Hangover brought 'improvis(ation)... which nobody had done before,' suggesting that they introduced new features or designs to their footwear that were not previously available in the market, setting them apart from competitors.

💡Customer Need

A customer need refers to a requirement or desire that a customer has, which a product or service aims to fulfill. The script discusses how Disney Hangover identified a 'customer need' and built a brand and product around it. The COO talks about how their product transitioned from a luxury item to a 'need-based category,' indicating that customers found the product to be essential for their wardrobe.

💡Brand Loyalty

Brand loyalty is the allegiance that customers have to a particular brand, often due to satisfaction with the product or service and emotional connection. The script touches on the importance of brand loyalty for a D2C (Direct to Consumer) product, mentioning that Disney Hangover's customers have shown a strong sense of loyalty, which is crucial for the success of their business model.

💡Sustainability and Social Impact

Sustainability and social impact refer to the ability of a business to operate in a way that is environmentally responsible and socially beneficial. The COO mentions that these are 'the heart of the business,' indicating that Disney Hangover is committed to creating products that have a positive impact on society and the environment. The goal is to bring and reinvent artisanal products with global expectations while maintaining sustainability.

💡Direct to Consumer (D2C)

Direct to Consumer (D2C) refers to a business model where products are sold directly to consumers, bypassing traditional retail channels. The script discusses the challenges and opportunities of a D2C product, noting that such products are often considered 'good to have rather than a need to have,' unless they are essentials like footwear. Disney Hangover's strategy involves positioning their shoes as both a desirable and necessary product for consumers.

Highlights

Omkar introduces the co-founder and COO of Disney Hangover, emphasizing the opportunity to learn from their entrepreneurial journey.

The co-founder discusses the decision to start with a footwear brand in an already crowded market, highlighting the familiarity and emotional connection of the product to the Indian audience.

The importance of market research is underscored, revealing a gap in the market for a structured category within the craft segment.

The co-founder explains the competitive advantage and first-mover advantage in the category, focusing on the Indian audience's needs.

The product's potential to become an everyday essential is identified as a key opportunity in the market.

The co-founder shares insights on how customer feedback from events like Carla Gorda and Little Flea helped understand the product's impact on artisans' lives.

The emotional connection customers felt towards the product, seeing their purchases as a direct impact on artisans, is highlighted.

The transition of Disney Hangover shoes from a luxury item to a need-based product category is discussed, based on customer feedback.

The co-founder describes the importance of quality and status in the customer's perception of the brand.

The versatility of the product is emphasized, as it serves multiple needs beyond a single event, leading to its acceptance as a daily essential.

The co-founder addresses the challenge of high customer satisfaction potentially limiting the cart value due to the product's versatility and quality.

The potential for increased customer referrals due to high-quality products and customer satisfaction is noted.

The co-founder outlines the future vision for Disney Hangover, focusing on sustainability, social impact, and expanding to different artisanal product categories.

The goal of reinventing artisanal products to meet global expectations and achieving international recognition is mentioned.

The interview concludes with a reflection on the enriching experience and the inspiration provided to a new generation of entrepreneurs.

Transcripts

[Music]

hello everybody this is omkar and we are

delighted to have the co-founder

and the chief operating officer of

disney hangover to join us i'm sure all

of you have enjoyed thoroughly the case

and now this is your opportunity to see

the faces in real life or well virtually

about the people who build it so a very

warm welcome to to you aga

and uh i'm so delighted that you have

extended your story as a learning

material as a learning tool and moreover

an inspiration to to everybody every

student entrepreneur and uh invite them

to to start early so so welcome abba

thank you thank you thank you for the

opportunity and yeah even i'm delighted

to be a part of this

so you know we are we're reflecting on

the story of desi hangover and we want

to understand a few critical points a

few critical questions from

from you uh let's start off with uh with

the foundation of any entrepreneurial

venture which is which is solving a

market opportunity and this is what i

want to ask you that where did you start

believing that there was an opportunity

for a for a footwear brand which was

let's say even in 2012 2013 2014 already

an overcrowded market so where did you

believe that there was an opportunity

for a footwear brand to still emerge and

now thrive

right

so

as as we know india has always been

known um as a country for you know craft

and culture

so

uh the one thing that

we knew that the product was not foreign

to the market and since you know we had

started in india

uh we worked on indian opera in the for

the indian audience for a long amount of

time so

we didn't have to create the definition

of the product for these audience for

this audience

um so yeah

there was a rec i would say there was

familiarity

of the product in the mind of the

audience um

there might be regard also you know

people have an emotional connect and a

sense of pride towards the craft

uh segment of india but

there was a lack of appreciation for

obvious reasons you know because the

category was a little unstructured

back in the time

uh

so

but when you know we did our market

research we understood that there was a

scope

uh to you know

venture in this product that

people had the need and hence there was

a demand

um

with some improvisation brought in the

picture you know

which nobody had done before so the

opportunity lied in the fact that we had

a competitive advantage

we had the first movers advantage in the

category

and

yeah

with the

indian audience keeping in mind the

indian audience we understood that you

know

uh this product

could be a part of their you know

everyday essentials if made in the right

way

so yeah that's that's where we

understood that uh the opportunity lies

in the product though the the market was

saturated with the with footwear however

this category was seen as an exception

and it was seen as uh the first time um

introduced uh segment

okay you know this is this is

interesting right and this actually

helped me segue into into the subsequent

question about you know uh what was the

starting point when you realized that

you know they see hangover as a company

as a brand is filling a customer need we

saw it from a market opportunity that

you believe that you know you had the

first more advantage competitive

advantage there was very little resource

required to actually educate the

customer about

uh the product about the problem but

where did you start filling in that you

know

you started building a brand and a

product which was solving a real

customer need and you know if you if you

have any memorable experience about it i

think it would be it would be great to

relate

right um

so yeah i mean to begin with definitely

uh the audience was uh getting a product

uh of their liking uh the product had

its own sentimental value with the right

kind of uh you know

um uh innovation with the right kind of

um

uh

what do you say having a global

perspective brought to a rural made

product

it was sort of a

very uh

win-win sort of situation that we uh

achieved with the product

uh however so that was without saying

that the audience the customer was

getting a new and a right quality

product uh a product up to their

expectation

however

when we

you know

started uh

real-time sales and with the kind of uh

interaction that we had with the

audience you know especially when we did

these uh

large uh

format uh events like you know carla

gorda and little flea and these kind of

events where you know we faced a lot

large base of customer

we understood that and this came as a

feedback from the customer

that

okay this is

something that uh is very close to our

heart because it's an indian product

and

overall they could associate themselves

as someone who is a part of the larger

picture

meaning it is their purchase that is

creating a direct impact in the life of

the artisan

by just making you know a sale by bajaj

making a purchase

so overall they were feeling good about

the fact they're there that their money

was you know being spent

where their heart is

so it kind of gave them a sense of

satisfaction and a sense of pride that

overall they were able to create an

impact

on the artisan directly so it kind of uh

completed the circle for us that you

know yes it had the product was doing

was made up to the expectation so that

you know was the fundamental that we had

to cater to

however

the larger goal that we thought you know

we were serving was

giving that sense of pride and

satisfaction to the customer about being

conscious about of their purchase

okay this is this is very interesting

about

getting the customer to not only

associate with the product but but

actually start start falling in love

with it

you know the customer brand loyalty is

everything for uh for a d2c product

right and when we're talking about a d2c

product you know direct to consumer

product it's normally looked as as a

good to have rather than a need to have

right unless you sell essentials right

footwear is considered as an essential

but one pair of footwear is considered

right right

where did you start uh you know

reflecting and then after positioning

that they see hangover shoes they say

anger footwear are a need to have

um was it more towards an approach from

a branding or was it actually a very

genuine reflection that yes a lot of

people are finding they see anger

uh shoes to be a need to have if it was

from the branding perspective then you

know how was it communicated or if it

was not from a branding perspective if

it was a genuine

reason that people are finding this to

have how was it communicated to you

okay so yes there was a very genuine um

feedback and a validation from the

audience that we received that the

product was somehow transitioning into a

need-based uh

category than a want and a luxury based

category so the audience that we uh

served they were very sorted in terms of

their uh brands what kind of what what

brand of shoes do they want what that

what brand of you know say their names

or watches or shades if they want

so quality and status quo had to be

maintained i mean there was

these were the two factors that were

non-negotiable

so having said that

this category of you know indian wear

wedding and festive wear was an

untouched category but it was a well

demanding category however there was no

product that would serve the expectation

that probably uh nike did or a book in

stock did that was you know known for

quality durability

and the real-time application of the

event

so

um

it was

then when we started making the product

with the feedback from the audience and

making it in the with the right

ergonomics

it was then

that the audience started seeing the

the value and the application of the

product

um

maybe as a you know as a friday wear or

as a sunday brunch or you know as a

travel shoe or

so which served the purpose beyond that

one night of sangeeth or you know mayhem

perhaps so it became a part of their

daily outfitting i would say which was

then they realized that you know

maybe a category which is

as commercial as a sportswear which is

considered as casual or maybe loafers

yeah this could also be

in the competition you know which would

sort of break the norms and break the

monotony of the sports shoe or a loafer

shoe so yeah it was then when you know

people started understanding that this

could also be a shoe that i need uh more

than a shoe that i want yeah so so what

i'm understanding is is versatility

right like because maybe one of the

bigger motivation of people to buy the

shoe was uh

was to wear it at a friend sangeet or

where it had a friend's bendy and after

that they realized that hey you know

what i can wear this while uh while

going on a sunday brunch and then friday

evening so instead of having like three

shoes in my uh in my shoe right with

some different purpose i can have one

and

and most important thing is that i my

qualities are short right yeah yeah

and that was that was essentially so

this is this is actually very

interesting positioning right uh

do service three needs a few and every

three needs of you are getting serviced

with the same amount of quality right

and the names yeah i mean

good and bad because you know it uh

limits our cart value because the

customer you know tries to

fill in all the needs with just one shoe

so probably he doesn't feel the need to

buy more than one shoe yes

yeah the lifetime value might be

compromised that's actually a very

interesting discussion yeah and also

because the quality touchwood is good

yeah

the customer takes a long time to come

back

like

even if the customer lifetime value is

small the customer referral becomes high

in that condition right ah absolutely

absolutely inside view of dc hangover so

i know that the customer referrals are

pretty strong so you know i wanna

one chris final question okay

as somebody who has built this branch

from scratch and somebody who has

dedicated uh the entire youth and

they're still young

the entire youth to this brand

you see yourself

taking you taking daisy hangover in the

next three years and something which is

more more quantifiable

so first of all thank you for the

compliment uh i think the wig is doing

its job well uh

i said no where did you buy it eating

kidding

so yeah talking about the coming three

years um

so sustainability and social impact is

you know the core the heart of the

business so we would you know ensure

that that is always delivered

uh the idea the motto would be to bring

uh different categories of artisanal

products

and uh you know um reinvent them

with in in such a way that you know they

achieve a global expectation

appreciation

so

yeah housing more products uh building

you know sustainability around them and

scaling them and giving them the

international recognition is something

that is the goal

so footwear was the segway and now you

want to pick up more and more products

and take it to where the shoes have

reached right yes yes absolutely great

this this has been a fantastic fantastic

interview uh great fireside chat and it

is so so lovely catching up with

inspiring entrepreneurs like you and i'm

sure all the students across the world

who are gonna

uh read your case and understand your

point of view i think this is gonna be a

very enriching experience so thank you

so much abba for taking out the time and

more importantly inspiring a new

generation of entrepreneurs at baghami

so thank you thank you thank you so much

glad to be a part of this thank you

[Music]