Know about the success story of Mamaearth
Mamaearth is a personal care brand co-founded by Ghazal Alagh and Varun Alagh. The brand offers non-toxic products to people. Mamaearth deals in healthcare products. It was founded in September 2016 and is headquartered in Gurugram, India. The company is owned by Honasa Consumer Pvt. Ltd. Currently, it has over 200 employees. It has served more than 300,000 consumers within five years of its launch. It has its consumers across 150 cities and has sold over one million products. Let us know the success story of Mamaearth in this article.
The idea of launching Mamaearth came across during Ghazal Alagh’s stay in the US. She was conscious of the baby care products before buying. So she realised that there were no safe baby products here in India. They eventually came across the idea of launching safe baby care products in India.
Mamaearth is the fastest-growing D2C brand in India. The company generated a revenue of around Rs 25 crore in 2018-19. The company’s revenue crossed Rs 100 crores the following year. In 2018, Shilpa Shetty was made the brand ambassador of the company. After her joining as its brand ambassador, the company boosted its sales up to four times. Shilpa Shetty was also an investor in the company. It is now considered as an AFMCG (automatically fast-moving consumer goods). The company is currently valued at $1.07 billion as of January 2022. and is generating a revenue of Rs 461 crore. The company is also the first FMCG brand that posts its revenue model on online eCommerce platforms.
Despite the competitiveness of several healthcare and beauty industry giants, Mamaearth was able to take its place in the market within five years. The company made significant growth, especially in 2018. More prominent brands like Johnson, Unilever mainly dominate the hair and skincare market. However, Mamaearth made a significant place in this market.
The products are made after approval from moms. The company promises to be a company by the moms, for the moms and through the moms. More than 200 moms help in the approval and conceptualisation of their products. Experimentation and quick improvements have increased customer satisfaction. It offers several products like baby care products, hair care products, skincare products and pregnancy care products as well. The company claims to provide products that do not cause any harm to your skin or hair. The company uses natural ingredients, including onion, tea tree, ubtan, argan, charcoal, etc. Hence the products are 100 per cent natural.
Mamaearth is considered the first Asian company which has been certified by Made safe. Made safe is a US-based non-profit organisation that certifies brands for making non-toxic products.
Mamaearth products are also delivered by several eCommerce platforms like Flipkart, Amazon and Nykaa.
However, the company faced several issues at the earlier stage of its establishment. Earlier, the company fetched only a few orders per day. However, its sales continued to boost up, and it started receiving more than 500 orders per day. Thus, the team began facing challenges in order tracking or shipment of wrong orders; It also faced issues with the high volumes of orders and how to cater to the increased demands. However, the team overcame such challenges shortly, and they managed their operational challenges well. Moreover, a solid social media marketing strategy has helped boost the company’s sales.
Moreover, the company takes the help of third-party manufacturers, which lowers the company’s operating costs.
The baby care market in India is expected to grow at 17 % CAGR. The company plans to expand its market. It will provide products for baby’s mothers as well. The company has created an onion range of products for the buyers. The brand aims to provide international standard products to the parents.