Creatik Innovative Solutions Private Limited, based in Mumbai, is one of India’s most innovative and leading corporate gifting companies. In an exclusive interview with Mobility Magazine, Mr. Digant Sanghavi, Founder at Creatik Innovative Solutions Private Limited shared the brand’s journey, market strategies, and future vision.
Kindly brief us about yourself.
We’ve expanded our portfolio by becoming official distributors for top brands like Puma and Blackberry apparels, as well as U&i and Lyne electronic gadgets, enhancing our corporate gifting expertise.
How did you shift to this segment of the market?
The shift to B2B business was a strategic move inspired by our experience in national distribution for brands like Pebble and DigiTech in 2015-16. During that period, we noticed a significant demand surge in the B2B sector, where bulk orders of 5,000 to 10,000 units far outpaced the traditional trade orders of 200 to 500 units. This realization led us to explore the potential of the B2B market. Our initial involvement in corporate gifting was through supplying pen drives to major pharma companies like Sun Pharma, Lupin, and Alkem. However, as we engaged more with gifting partners, it became evident that electronics were becoming a pivotal part of corporate gifting, which was previously dominated by items like backpacks, table tops, and pens. Recognizing this trend, we expanded our offerings and, in 2017, officially founded our company. Today, we cater to a wide range of needs, from resellers to direct companies, positioning ourselves as a comprehensive corporate gifting solutions provider.
What are your plans for the future festival?
This year has been challenging for the gifting industry, especially due to the UPMC guidelines that restrict pharma companies from giving gifts to doctors, leading to a slowdown over the past 3-4 months. However, Diwali is the one season where corporate gifting remains strong, regardless of economic downturns. While budgets might tighten, the volume of orders tends to stay robust.
During Diwali, certain categories dominate the corporate gifting scene. First is luggage, with brands like American Tourister, Safari, and VIP gearing up by stocking up their inventories for the high demand. Second, appliances like Milton, La Opala, and Borosil products are popular, especially items like dinner sets, casseroles, and glassware that align with the festive spirit. Third, electronics play a significant role, especially in employee gifting, with tech products like soundbars, earbuds, and speakers being highly favored, particularly in IT-driven regions like South India. Fourth, home essentials like blankets and bedsheets also contribute a substantial share to the gifting market.
Finally, dry fruits and sweets are perennial favorites, often accompanying any of these primary gifts, making them an integral part of Diwali gifting traditions.
Which is your most popular category?
In our top category, appliances dominate, accounting for over 40-50% of sales. Electronics follow, while bath and bedding come next. Although the luggage segment hasn’t performed as well, it thrives notably in IT companies. We were excited to launch a Puma trolley bag, but unforeseen delays have postponed this. Had it launched in time for Diwali, it could have significantly boosted our business.
What changes do you see in the future in this market segment?
When I started in 2016, I had little expectation of achieving significant turnover or understanding the intricacies of the gifting industry. Back then, my approach was far from refined. I recall my first experience with Aristo Pharma, where I was involved in a display project. I had no clear idea of the process. Initially, I had to learn that gifting is much more than just presenting products; it involves navigating complex approval processes, budgets, and procurement negotiations.
Over the next 1-1.5 years, I immersed myself in understanding these dynamics. I realized that to scale effectively, a well-structured team and infrastructure were essential. In the early stages, many in the gifting industry operated in a traditional, one-man-show manner. However, I saw an opportunity for growth through scalability. I focused on building a robust infrastructure capable of meeting clients’ needs, even at short notice, such as late-night calls for next-day deliveries.
Building this infrastructure took 3-4 years, but it proved crucial. We established a team and processes that supported our growth. Unlike many competitors who preferred to keep control tightly in their hands, we understood that delegation and team support were vital for expansion.
Our initial turnover in the first year was around 2-2.5 crores. Since then, we’ve seen consistent growth, surpassing 50-55 crores in the last financial year, with a goal to reach 100 crores. Our success stems from not limiting ourselves to one segment. Besides gifting, we expanded into various verticals like RNR (Rewards and Recognition), and even established branch stores. For instance, at the ICICI Bank BKC office, we operate a branch store selling ICICI-branded products—an innovative move in the Indian market, akin to practices in Western countries.
Our approach diverges from the norm where many businesses focus on a few accounts. Instead, we’ve diversified across sectors like cement, paint, oil, liquor, FMCG, insurance, and NBFCs. Our product range is vast, from pins to planes, reflecting our broad market reach.
To maintain growth while keeping our bottom line intact, we introduced new brands like Puma, BlackBerry, and U&i. We plan to add 2-3 more brands in the coming year, ensuring continued organic growth. This strategy allows us to rely on resellers and a dedicated team for brand management, contributing to our long-term success.
How has your journey been with U&i and Lyne?
The journey hasn’t been easy, as establishing the brand was challenging. However, what has worked in our favor is our strong inventory and aggressive pricing. As the founder of U&i often says, the shift in telecom pricing after Jio’s entry is similar to what we’re doing in the electronics market. Brands like boAt, Noise, and JBL charge a premium for their name, while we offer the same quality at a more economical price.
This strategy has earned us the trust of numerous corporate houses, and we’re now seeing customers return, specifically asking for U&i products. Moreover, U&i and Lyne are often first movers with new technologies from China. For example, while JBL’s earbuds with a display are priced around ₹15,000, we offer a similar product through Lyne at just ₹1,500.
We’re not just competing; we’re breaking into their market. With increasing customer recognition, we aim to scale U&i and Lyne to ₹50-60 crore in the next two years.
Could you brief on your strength in this market segment?
Before COVID, electronics was my core strength due to my expertise in the field. We then expanded into bath and bedding with brands like Trident and Welspun. In 2021, recognizing the daily need for apparel in corporate events, we ventured into this sector with BlackBerry Apparels. Within months, we also partnered with Puma. Today, we exclusively offer three brands: Puma, BlackBerry, and U&i/Lyne. While electronics remains a key focus, we’re proud that apparel and related accessories have become a major strength alongside electronics.
Where do you see yourself in the next 10 years?
This industry is close to my heart, having grown from nothing to where we are today. However, I’m not limited to this business. My one clear vision: taking my company public within the next 10 years.
Covered By: Mobility India / Creatik Innovation
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