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Mamaearth revamps offline distribution after weaker revenue growth

The Arc Web

The Arc Web · 1y ago

Mamaearth revamps offline distribution after weaker revenue growth

Honasa Consumer, the owner of skincare brand Mamaearth, has announced plans to restructure its offline distribution model. The move follows single-digit growth for Mamaearth in FY24, compared to the overall double-digit revenue increase for Honasa. The company aims to establish a stronger infrastructure of direct distribution, reducing the layers between the company and retail outlets. Honasa expects cost savings and increased sales visibility from the restructuring, but acknowledges a potential 2-5% impact on the topline in the near term. Mamaearth's offline sales accounted for approximately half of its revenue when the company went public in 2023.

Related News

With new budget brand, Mamaearth challenges Reliance, Sugar

The Arc Web

The Arc Web · 1y ago

Honasa Consumer, the parent company of skincare brands Mamaearth and others, has launched a budget-friendly beauty line called Staze 9to9. This move comes after Mamaearth achieved a revenue run rate of Rs 150 crore in its premium range of cosmetics. Staze will offer affordable lipsticks, eyeliners, foundations, and other products specifically targeting young shoppers. The prices of Staze products will be 30-50% lower than Mamaearth's range, and the formulations will also differ. Unlike Mamaearth, which started as an online brand before expanding offline, Staze will focus on offline retail initially.

Mamaearth parent Honasa Consumer appoints Nishchay Bahl to lead offline business

Economic Times

Economic Times · 1y ago

Mamaearth parent Honasa Consumer appoints Nishchay Bahl to lead offline business

Mamaearth parent company Honasa Consumer has appointed Nishchay Bahl to lead its offline business. Bahl will be responsible for expanding the company's offline retail presence and driving growth in offline sales channels. Honasa Consumer is a fast-growing brand in the personal care and beauty space, with Mamaearth being its flagship brand. The company aims to leverage Bahl's experience and expertise in offline retail to further strengthen its position in the market.

Honasa Consumer’s chief business officer Zairus Master resigns adding to top-level exits: sources

Economic Times

Economic Times · 7m ago

Honasa Consumer’s chief business officer Zairus Master resigns adding to top-level exits: sources

Zairus Master, the Chief Business Officer at Honasa Consumer, which owns Mamaearth, has resigned due to personal reasons and will leave by February 28. This comes amid the company's offline distribution restructuring that has impacted its financials, including a revenue decline and net loss in the recent quarter. Master played a significant role in investment allocation across the company's brands. His departure follows other senior executive exits, indicating potential challenges within the company.

D2C beauty brand Pilgrim raises 200 crore in a mix of primary, secondary funding

Economic Times

Economic Times · 5m ago

Pilgrim, a D2C beauty and personal care brand, secured Rs 200 crore in funding led by the Narotam Sekhsaria Family Office. With contributions from Vertex Ventures, Sattva Family Office, and others, this round positions Pilgrim at a Rs 3,000 crore valuation. Pilgrim aims to expand offline distribution, boost R&D, and enhance its omnichannel presence, targeting a Rs 1,000 crore revenue run rate by 2025. It competes with brands like Mamaearth and Wow Skin Science.

ICICI Securities Initiates Coverage On Honasa With ‘BUY’ Rating, Sees 28% Upside

Inc42 · 1y ago

ICICI Securities Initiates Coverage On Honasa With ‘BUY’ Rating, Sees 28% Upside

ICICI Securities has initiated coverage on Honasa Consumer Ltd, the parent company of Mamaearth, with a ‘BUY’ rating and a price target of INR 550 per share. The brokerage believes that Honasa's agile and low-risk business model, along with its digital-first approach, positions it well in the beauty and personal care industry. Honasa's portfolio of brands, including Mamaearth, The Derma Co, and others, is expected to benefit from industry growth. While the report highlights challenges in scaling offline distribution and the limitations of a niche natural ingredient-oriented approach, Honasa's newer brands are experiencing strong growth. Shares of Honasa have surged since listing on the stock exchanges in November last year.

Impact of distribution changes higher than expected; taking steps to bring growth back to Mamaearth: CEO Varun Alagh

Economic Times

Economic Times · 9m ago

Impact of distribution changes higher than expected; taking steps to bring growth back to Mamaearth: CEO Varun Alagh

Honasa Consumer, the company behind beauty brands like Mamaearth, experienced a decline in operating revenue and slipped into losses for the second quarter of the fiscal year. The company underwent a restructuring exercise in its distribution and supply chain, transitioning from a super-stockist model to direct distributors. The impact of this restructuring was greater than expected, resulting in a scale reduction and provisions for expired and damaged return stock. However, the company does not foresee any further impact from inventory returns in the coming quarters. Furthermore, growth has been lower than anticipated, partly due to Mamaearth's underperformance in offline channels. The company plans to address these issues by focusing on investment allocation across categories and improving messaging and hero product buildout. The objective is to gain market share across all categories and bring Mamaearth back to the growth path. The company will also allocate investments appropriately across its other brands and focus on strengthening existing categories before expanding into new segments.

BYJU’S Slashes Product Prices, Revamps Sales Model

Inc42 · 1y ago

BYJU’S Slashes Product Prices, Revamps Sales Model

Indian edtech company BYJU'S has reportedly slashed prices and revamped its sales model amidst ongoing financial and legal challenges. The annual subscription for BYJU'S Learning App has been reduced to INR 12,000, while offline BYJU'S Tuition Centres courses are priced at INR 36,000 per year. BYJU'S CEO, Byju Raveendran, introduced a new sales strategy that links team salaries to weekly revenue generation. The company aims to have a workforce of 50,000 salespeople by next year. BYJU'S has faced a debt crisis, cash crunch, and legal cases, prompting these changes.

Honasa Consumer undertakes general trade channel revamp for offline growth

YourStory

YourStory · 1y ago

Honasa Consumer undertakes general trade channel revamp for offline growth

Honasa Consumer, the parent company of Mamaearth, is planning to shift its distribution model and undertake an inventory pipeline correction project called "Neev". The company aims to increase its offline distribution and focus on its house of brands strategy. This move aligns with their transition from a super stockist distribution model to direct distributors for the general trade channel. Honasa Consumer's efforts in scaling and improving brand mix have resulted in an 8.3% increase in EBITDA margin during the April-June quarter. However, the company discontinued its Ayurvedic Beauty Products brand, Ayuga, due to a lack of product-market fit.

Honasa looks beyond beauty and skincare to new growth categories - The Economic Times

Economic Times

Economic Times · 1m ago

Honasa looks beyond beauty and skincare to new growth categories - The Economic Times

Honasa Consumer, known for brands like Mamaearth and BBlunt, is expanding into new beauty tech categories such as laser masks and LED light therapy devices. This move comes as the Mamaearth brand's sales slow, prompting a strategic shift. Despite slower growth in some areas, Honasa’s newer brands are driving overall growth, with a focus on leveraging both online and offline markets. The Indian beauty electronics market is expected to grow significantly, presenting opportunities for Honasa.

What Mamaearth IPO Means For D2C Brands

Inc42 · 1y ago

What Mamaearth IPO Means For D2C Brands

In the lead up to Honasa Consumer's IPO, the article discusses Mamaearth's evolution from an online D2C brand to a retail FMCG player with a services arm. The company has recognized the importance of offline sales and distribution and has also acquired the salon chain BBlunt to reach customers. The article examines the expectations investors can have from Mamaearth, highlighting the importance of a healthy mix of online and offline channels for profitability. It also discusses how BBlunt can reinforce Mamaearth's presence in retail and online channels. The IPO is seen as a litmus test for the D2C segment and the Indian ecommerce ecosystem.

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