How to Build a Big Brand: Gen Z, Packaging & Influencer Marketing | Suyash Saraf | FO494 Raj Shamani

Suyash Saraf believes India's BPC market is set to see 20,000 crore brands in the next 5-7 years, driven by a previously underserved consumer base. He highlights the historical gap where global brands offered generic products in India, leading to a demand for high-quality, effective, and Indian-specific solutions. Dot & Key was founded to address this gap, focusing on problem-solving products tailored to Indian skin and climate.

Saraf advises founders to focus on large categories with multiple sub-categories. He explains that as a category deepens, new specialized products emerge, such as tinted or mineral sunscreens. He emphasizes the importance of entering a category and continuously learning through the process of building, iterating, and identifying white spaces. For example, Dot & Key started with a niche swim sunscreen and later expanded to broader, problem-solving sunscreens that addressed common consumer pain points.

Saraf shares that Dot & Key's success was partly due to being based in Kolkata. He notes that while talent was initially a disadvantage, the city's hungry and motivated young individuals, nurtured with purpose, led to a strong homegrown team and low attrition rates. Additionally, Kolkata's isolation from external noise, unlike Mumbai or Delhi, allowed them to make fundamental, consumer-first decisions, contributing to their impressive growth from 1 crore to 6000 crore.

Saraf acknowledges the challenge of validating a personal problem's broader market appeal. He suggests using tools like Google Trends for relative sizing and Amazon rankings to gauge product popularity and category depth. He also encourages direct outreach to industry professionals and constant interaction to gather insights. Ultimately, he stresses that starting and iterating is crucial, as ideas alone are insufficient without action.

Saraf recounts Dot & Key's shift from niche to broader, problem-solving products. He explains that after an initial growth spurt during COVID, they realized the need for stronger brand positioning amid increased competition. They then strategically focused on the Gen Z demographic, offering affordable, effective moisturizers and sunscreens. This clear targeting led to more effective marketing and a stronger connection with their audience, ensuring long-term customer value.

Saraf highlights the significant ROI of investing in premium, distinct packaging. He explains that while initial purchases are often driven by attractive packaging, repeat purchases depend on product effectiveness. Dot & Key's unique packaging, which leverages custom molds and patents, serves as a strong differentiator, making the brand stand out and reducing long-term manufacturing costs despite a higher upfront investment. This strategy positions them as delivering high value to the consumer at a competitive price.

Saraf advises that early-stage brands, before achieving product-market fit, should prioritize speed to market with differentiated products. This 'speed eats the slow' approach allows for first-mover advantage and quicker feedback loops. However, once a brand is established, the focus shifts to perfection. At this stage, rigorous testing and adherence to KPIs (Key Performance Indicators) are essential to prevent product failures and maintain consumer trust.

Saraf shares challenges in dealing with contract manufacturers, emphasizing the importance of transparency in ingredient sourcing and formulation. He advises founders to push for proper QC (Quality Control) and efficacy testing through accredited labs. While costly, these tests ensure product claims are met. He also notes that knowing suppliers and pushing for transparency can prevent manufacturers from cutting corners, ultimately safeguarding the brand's integrity and consumer trust.

Saraf argues that modern brand building requires clarity and a strong 'reason to win.' He recommends launching fewer, highly specific products with a clear consumer insight and perfecting them through aggressive marketing and consumer education. In today's competitive landscape, products that are not effectively marketed or do not resonate with consumers will struggle. This focused approach increases the chances of success unlike in the past when lack of competition allowed for broader, less targeted product launches.

Saraf's process for finding differentiated insights involves deeply analyzing comments on Instagram influencers' posts, reading marketplace reviews (both theirs and competitors'), and exploring platforms like Reddit. He uses these collective insights to identify consumer needs and pain points, which then inform product development and launches. For example, feedback from comments led to the expansion of tinted sunscreen shades. This approach emphasizes that consumer truth is paramount for building a successful brand.

Saraf explains that India is a 'value-sensitive' rather than 'price-sensitive' market. Brands can command a premium if they offer a solid, differentiated product with strong packaging and benefits. He suggests analyzing competitor pricing across different segments (mass, masstige, premium, luxury) to position your product. For Dot & Key, a masstige brand, they charge about 50% more than mass brands for core categories, but less for highly competitive ones like face washes. The key is to align pricing with the overall value framework and consumer perception.

Saraf advises starting with friends and family for initial support. Next, leverage social media with performance marketing for an initial budget (e.g., 50,000 rupees) to gain early feedback and traction. This feedback loop is crucial for refining the product, pricing, and brand message. He then suggests launching on your own website first, as it serves as a critical catalog and communication platform. Subsequently, prioritize Flipkart and Amazon, depending on product affordability, and consider quick commerce channels only after proving demand.

Saraf recommends focusing performance marketing on single SKUs, running ads on collaborate with influencers, and creating diverse content pieces for each product. Consistent spending and a longer-term view (6-9 months for product registration) are vital. He emphasizes evaluating 'cost per purchase' over just 'ROAS' for new customer acquisition. For influencer marketing, he highlights the effectiveness of 'collab reels' with B+ or A+ influencers who have authority, a strong voice, and a dedicated community. Authenticity is key, as consumers can easily spot forced content.

While both micro-influencers and celebrities have their roles, Saraf leans towards established creators for brand advocacy due to their cult following, authentic voice, and consistent engagement. He uses views rather than followers as the primary metric for influence. He believes creators, when given creative freedom, produce more impactful content. He also sees value in partnering with creators for micro-categories or product collaborations, where they are deeply involved in product development, ensuring authenticity and strong consumer resonance.

According to Saraf, large brands seek category-leading brands with high market share in a single or few categories. Brands need to demonstrate authenticity, maintain discipline in product development, and have strong consumer perception (ratings and reviews). Crucially, the founder's drive, hunger, and skillset to scale the business from 100 crore to 1000 crore are vital. He emphasizes that defensible startups, those with a clear focus and strong market position, are more attractive acquisition targets.

Suyash Saraf encourages young brands seeking to scale or secure investments to reach out to Hyperscale Ventures. They can find them by searching on Google or LinkedIn. Hyperscale Ventures actively mentors and invests in startups, sharing insights from their experience building Dot & Key.