Guwahati: Tonmoy Pathak and Rupom Ali frequently discussed their dreams while working for the same company. They wanted to launch a venture of their own. However, due to budget constraints, they could not advance their concepts at the time. In 2023, Tonmoy and Rupom, both residents of Guwahati, started researching different markets, such as athletic apparel and tailored formal attire for online retail. Following their research and market analysis, they launched 'Kyatchi' a brand that creates personalized bags in Assam.
During an interview with Akangkhita for Business North East (BNE), Kyatchi's co-founders, Tonmoy Pathak and Rupom Ali recounted their motivating tale of entrepreneurial journey, from their modest origins to establishing a thriving bag manufacturing company.
"Acquiring bags from regions beyond Assam presented three significant obstacles. Initially, the extended delivery waiting periods posed a significant hassle for customers. Secondly, if the bags were tailored, suppliers would demand outrageous fees for sample designs, occasionally up to three times the usual price," the founders said during the interview.
The duo added, "The complete process, from placing the order to delivery, lasted 2-3 months, negatively impacting customer satisfaction and needing a more effective solution. This market gap encouraged Tonmoy and Rupom to launch Kyatchi, aiming to simplify the process and provide customers with high-quality tailored bags alongside quick delivery."
Moreover, the founders of Kyatchi said that the brand's unique selling point (USP) is its capacity to provide bags rapidly while maintaining quality standards. Although numerous market competitors may require 1-2 months to fulfil orders, Kyatchi guarantees that its clients get their deliveries within a week, and in certain instances, even in a day. This fast response time has distinguished them in the competitive market. Moreover, Kyatchi stresses the importance of customer satisfaction by pledging to perfect samples and making changes until the customer is completely content, particularly for large orders.
By examining market trends and consumer demands in the competitive e-commerce market, Kyatchi first created smaller batches to improve its designs and gain a clearer understanding of its target audience. This method, which focuses on experimentation, enables them to provide more tailored choices grounded in actual customer input, guaranteeing their products align with the unique needs of various customer groups.
To ensure profitability, Kyatchi collaborates closely with suppliers to obtain raw materials at favourable prices. This budget-friendly sourcing approach allows them to create top-notch bags while maintaining reasonable prices, especially for clients in Northeast India. Although B2C sales account for most of their revenue and provide greater margins, B2B contributes approximately 10-13% to their earnings. The founders seek to enhance their B2C presence to seize a bigger portion of the consumer market.
As revealed by the founders, the major obstacle Kyatchi encounters is the lengthy delivery transit times, typically averaging 14 days. To address this problem, the company utilizes GST-compliant storage facilities in various states, lowering delivery times to 1-2 days. This enhancement has not only boosted customer satisfaction but also elevated the brand's visibility and competitive standing in the marketplace. By selling customised bags Kyatchi earns around Rs. 150K which is 25% of the profit margin yearly.
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