Assembly: Luggage Startup Ideas

India is growing and travel is becoming a part of everyone's life. Assembly is a new-age luggage brand that offers functional, budget-friendly, and good-looking bags and travel accessories. They offer functional features such as a laptop section, separate space for keeping shoes, a hard shell for protection, and a charging cable space. Along with functionality, they have an equal focus on design and the quality of the products.

Ownership of Assembly Startup Ideas

Assembly was founded by Mohit Garg and Aditya Khanna. The equity split of the company is as follows:

• Mohit Garg - 33.5%
• Aditya Khanna - 33.5%
• ESOP - 9%
• Investors - 23%
• Others - 1%

Business Model of Assembly Startup Ideas

90% of the production is outsourced to Mohit’s family business. Assembly primarily sells its products through its website, social media, and online marketplaces like Amazon and Flipkart. All of their revenue comes from online platforms. They get 45% of sales from prominent marketplaces such as Amazon and Flipkart, 50% through their own website, and the rest from corporate B2B. By selling directly to customers online, Assembly eliminates intermediaries, reduces costs, and enables competitive pricing. Their target market is people aged 25-40 years. They are expecting a revenue of ₹25-30 Cr in the financial year 2023-24.

Products and Services of Assembly Startup Ideas

Assembly offers a range of products designed to make travel easier. They have 10 SKUs and have already catered to more than 2 lakh customers in 3 years. Assembly offers durable and stylish bags that have advanced features like GPS tracking, shoe space, laptop section, and USB charging. Assembly aims to disrupt the traditional luggage industry, offering innovative, affordable, and stylish products to Indian consumers.

BizFoc Analysis of Shark Decisions of Assembly Startup Ideas

BizFoc has provided an analysis of the Shark decisions related to Assembly's pitch, assessing the strengths and weaknesses, and the potential impact on the future of Assembly.

Some Key Strengths and Weaknesses of Assembly Startup Ideas

Assembly's strengths include its innovative product design and strong online presence. However, challenges include maintaining quality control with outsourced production and navigating competitive pricing strategies.

Future of Assembly Startup Ideas

The future of Assembly looks promising as they continue to innovate and expand their product range, targeting a growing market of young travelers in India.

Conclusion

Assembly is well-positioned to capitalize on the growing demand for functional and stylish travel accessories in India. With a strong business model and a focus on innovation, they are poised for continued growth in the years ahead.

Business Valuation of Assembly Startup Ideas

Assembly presented its Startup idea in Shark Tank India Season 3 Episode 15 seeking an investment of ₹85 Lakhs for 1% equity.

• Anupam Mittal: He liked the simple and elegant designs of Travel bags of this company. He was impressed by the functionality that Assembly offers. However, he had concerns about the quality and mentioned that the strong branding was missing.
• Aman Gupta: He noted that the designs were monotonous and mentioned that lifestyle elements were missing in their designs.
• Ritesh Agarwal: He mentioned that the business was too dependent on online sales and that the designs could be improved.
• Vineeta Singh: She emphasized that the brand should focus on quality, as the founders were primarily emphasizing the design aspect.
• Namita Thapar: She decided not to invest as there were already too many investors involved.

BizFoc Analysis of Shark Decisions of Assembly Startup Ideas

None of the sharks decided to invest in the business. Although the sharks were impressed with the concept and revenue, they had doubts about the design and differentiation from competitors. Quality was a significant concern, as the founders focused mainly on design. Additionally, the company had many existing investors, and the branding of the product was not done effectively, with the brand's logo not even present on the products. The company was also not profitable, leading the sharks to be reluctant to invest.

Some Key Strengths and Weaknesses of Assembly Startup Ideas:

Strengths:

• Innovative Products: Assembly's luggage products are designed with innovative features like GPS tracking, USB charging, and durable construction, setting them apart from competitors.
• Strong Online Presence: Assembly has a robust online presence through its own website and other marketplaces.
• Subscription Service: The luggage subscription service offers customers a flexible and affordable option, reducing barriers to entry.
• Data-Driven Approach: Assembly utilizes data analytics to optimize marketing, product development, and customer engagement.
• Lean Operations: The company maintains a lean operational structure, reducing overhead costs and ensuring efficient logistics and supply chain management.

Weaknesses:

• Dependence on Online Sales: Assembly is reliant on online sales and has yet to tap into offline markets, which are essential for brand recognition.
• Limited Offline Presence: The company's lack of physical stores limits their ability to connect with customers face-to-face and showcase products.
• High Marketing Costs: Assembly's marketing costs are quite high, accounting for 20% of the revenue generated.
• Competition from Established Brands: The luggage industry is competitive, with established brands having a strong market presence and customer loyalty.
• Supply Chain Risks: Assembly's reliance on Mohit's family business for production could cause supply chain risks and quality control problems.

Future of Assembly Startup Ideas

The future of this brand seems promising as they are growing at an exponential rate. Their vision is to become India's biggest thoughtful travel store in the next 3 to 5 years. Their future target is to achieve ₹80 Cr annual revenue in the next 18-24 months. Appearing on Shark Tank has put this brand into the spotlight, potentially leading to brand recognition and more sales. If the company strategically spends on marketing and offline channels, it is going to be one of the biggest luggage brands.

Conclusion

The founders of Assembly, a luggage brand, pitched their business seeking ₹85 Lakh for 1% equity. They showcased their innovative products, including carry-on luggage with various functional features. However, the sharks did not invest due to concerns about design, quality, the number of existing investors, and the crowded market with already established brands.

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