Mamaearth-Case-study

Mamaearth- Natural Hair & Skin Care Brand : Is it Organic?

Business Health Women

Are you also concerned about your child’s safety? When a parent searches for safe baby products in the market, it sure gets tiring to find the right product. There is constant unavailability of natural products that don’t harm a child. The international brands are costly and unaffordable.

The domestic products don’t stand up to the mark of the safety standards. Mamaearth saw this potential market and didn’t think twice before tapping into it. A brand developed to solve all these problems with a promise of honest, natural and safe products. Mamaearth is the first certified ‘MadeSafe’ brand in Asia which makes products from natural substances only. Their product range is wide including mosquito repellent, hair care, skincare, and others. Mamaearth has made it possible to find safe and toxin-free baby products easily in the market (both online and offline).

Did you know?

Mamaearth-toxin-free-products
Pc: Stellaris

The Indian FMCG market growth every year is 20%. Every year the next billion customers are debuting in the market. There is a constant shift in the preferences from “value for money” to “value for experiences”. This is a great factor backing the brand creation opportunity in India. Mamaearth surely understood the approach to proceed in the market and hence made a brand value sooner than later. Child/mom section of FMCG is usually a field where a lot of product research goes on in both offline and online mode. There is a huge demand for trustworthy products with pocket-friendly pricing. People only trust products with great reviews and high brand value. Despite this, there is a huge lack in the national brands that can fulfil these criteria.

Why is there a need for natural products in markets?

Many previously available products in the market have left harmful impacts on people. Especially as the Research is happening in a full-fledged speed, many carcinogenic substances have been identified in products. They include sulfates, mineral oils, parabens etc. The demand for natural and organic products in the market has increased since these findings. Mamaearth came in the market with all the right criteria filling in, making a solid upfront. They are focusing on making advanced products utilizing age-old recipes and ayurvedic treatments. The best thing being the easy availability of products. The products are accessible on e-commerce platforms as well as it’s a website, reaching remote areas. They have also partnered with platforms like Amazon, Flipkart, Nykaa, BB, etc., Along with various offline stores.

How does Mamaearth work? 

Since 2016, when Mamaearth was established they have created products with love and care, keeping the sensitive skin of children in mind. Their product value increases as they lack any harmful products that are banned in many countries. All their products are safe by the International Standard.

Where did Mamaearth originate?

origin-of-mamaearth
Pc: BW disrupt

Mamaearth is a company that originated in India, headquartered in Gurugram. Its founding members Ghazal Alagh and Varun Alagh aims to make the skincare routine stylish along with appropriate care. Mamaearth was formed under the parent company named Honasa Consumer Private Limited in 2016. The Mamaearth range of products was launched later in December and toxin-free.

When Ghazal was staying in the US she developed awareness about the harmful chemicals used in products. She became extremely conscious about each component when she arrived back to India. It wasn’t before Varun and Ghazal were expecting their first child, that they realised a lack of safe childcare products in the market. They started ordering US-based products which cost a fortune. This sowed a seed in their head to begin something of their own in this untapped market.

As per Ghazal “We are on a mission to reduce parental stress & are continually improving and innovating to make the world a safer place for both babies and their parents.”

About the Founders

Varun has a deep insight into the FMCG sector. He has previously worked with Coca-Cola and Hindustan Lever. With his brand management insight and expertise, he always brings something refreshing to the table. Ghazal on the other hand has worked in an IT company as a corporate trainer. Currently, she is the chief of Mamaearth.

According to Ghazal “We are a ‘mum-powered’ company and work with a large number of mothers who are involved in the process, right from ideation, conceptualization to the actual product launch. We believe this connection with mothers will continue to be the biggest driver of success. We have more than 200 young moms on board who help us in conceptualizing and formulating the products. The moms then test these products, and only those with great feedback are approved for mass production.”

Do you know Mamaearth focuses on a particular audience only?

Mamaearth-logo
Pc: Mommy Voyage

Yes, you heard it right, Mamaearth targets a particular market area. According to technavio- a market research company, the baby care market is growing exponentially in India, which is the target of Mamaearth. The market will grow by 17 percent CAGR in terms of revenue in the next three years. This market includes toys, baby care products, accessories as well as other things. Mamaearth covers baby care, hair care, and skincare with over 80 natural products under its umbrella. 

Except for the basic products, Mamaearth has successfully created some first-ever products like India’s first bamboo-based baby wipes, easy tummy roll on with hing and fennel for colic and digestion relief, and 100% natural plant-based toothpaste for children between 0-10 years. They use all the popular natural Ingredients to create skin and hair care products such as onion, ubtan, tea tree, vitamin C, argan, coco, and charcoal.

Their major target audience is mothers. The company swears by its product quality and confidence which leads to the word of mouth spreading brand awareness. However, social marketing also gained a huge audience base.

How did Mamaearth gain its voice?

Mamaearth-product-range
Pc: Venture Dreams

During the initial years, the significant push for Mamaearth came along with their Lean Innovation Cycle. This strategy helped them in understanding consumer demands better along with extensive research and reviews. They allowed real-time product validation to be a key to improving their products. Overall, this strategy boosted consumer confidence in their product, with quick changes and reduced market review time.

Mamaearth is a digital-first FMCG company where D2C platforms are involved in selling products. These platforms include Amazon, Flipkart, etc., along with the traditional offline market. Their strategy is to be omnipresent. 

Challenges faced by Mamaearth

Just like many other start-ups, Mamaearth also faced challenges during its initial stages. They were set back with a growth hurdle. Soon, they realised that their approach was wrong as they were spending large amounts of money on marketing however the audience they were targeting wasn’t right. So, the team set a step back and re-thought about their marketing strategies. They focused on mothers. Changing a simple strategy showed major improvements.

Competition of Mamaearth

What is a great organization without competition right? So Mamaearth also has many contemporaries running along. The major competition it receives is diverse from both nationals and multinationals such as Himalaya and Johnson & Johnson. Many e-commerce portals run as a competition as well such as Nykaa. However, Mamaearth has collaborated with Nykaa. Other companies involved are Hindustan Unilever, Kimberly Clark and Procter.

Investments in Mamaearth

Investors-in-mamaearth
Pc: VCCircle

Mamaearth raised a funding of $125,000 from the consortium of investors in 2016. In the series of round A funding it raised 

 $4 million by Stellaris Ventures and Fireside Ventures, Marico’s Rishabh Mariwala who manages Sharp Ventures, and Snapdeal founders Kunal Bahl and Rohit Bansal. Shilpa Shetty Kundra, the brand ambassador of Mamaearth also invested in 2018. In latest fundings, Mamaearth secured 140 crores from Sequoia India along with existing investors – Fireside Ventures, Stellaris Venture Partners, and Sharp ventures.

Achievements

Mamaearth has been honoured as “One of the Best Brands” in India as per the 2nd edition of The ET Brand Festival held on March 29, 2019.

Conclusion

This story is the mirror to reaching the ladders of success by stepping foot in an untapped market. It might be risky and hard but in the end, it’s mostly worth it. Success is always ready for those who never lose hope. 

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