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MamaEarth - Rise of D2C Brands

How the toxin-free product has led to its expansion

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Introduction

Mamaearth has become one of the top brands and one of the first companies in Asia to be certified by Made Safe. This US-based non-profit organisation provides a comprehensive certification for non-toxic products. It is the brainchild of Ghazal Alagh and Varun Alagh and they made it a point to make safe, chemical-free products which are easily made accessible to babies across India. Dhanaay has been helping the company in its direct business with the consumers by lessening the financial strain on the company. It helps in the GST return and tax filing and makes the process easier for the company.

Growth of the Company

It was during the stage when Varun and Ghazal were expecting their first child that they realized the harmful toxins that some of the baby care products in India contained. The duo was in a lot of trouble and decided to search for alternatives. They eventually started ordering from the US but that turned out to be impractical and inconvenient. Later, after a lot of research and work, the product was founded with the sole purpose of providing safer products for children and soon it became termed Asia’s 1st brand.

It was launched in 2016 and had only six products in its catalogue. Due to the growth in the business, it now comprises more than 80 natural and toxin-free products. It scaled fast with 30 lakhs in revenue in just 6 months. The reason for such growth is due to their direct relationship with the consumers. It achieved a landmark of 2 crores and then onboarded Shilpa Shetty as its influencer, thus ushering in the concept of influencer mom. The primary reasons for its instant growth can be listed as follows:-

  • . It is primarily hailed as the fastest-growing D2C brand in India which crossed the 100 crore mark in just 3 years.
  • . It is the first product with Madesafe certification
  • . It is also recognized for its plastic recycling initiatives which very few Indian brands are able to do.
  • . The company had onboarded Shilpa Shetty as its brand ambassador, which had helped the company in gaining a lot of fame.

Challenges

Every organisation faces challenges in the initial year of its business and so did MamaEarth. In its initial stage, it faced the hurdle of growth and was not able to expand. The team realized that the problem was not being able to have a sharp target cohort which led to futile marketing expenditure with minimum customer acquisition. The core team later made a unison decision to redefine the target group as well as the communication strategy around the target group. Moreover, being a newly created brand competition from various other cosmetics brands was a constant threat to the company.

Patnerships

It partnered with Anita Hassanandani in 2021 and after her delivery of a baby boy, the company’s growth in the hair care, skin and baby categories improved. It also rolled out in a national tv commercial in 2021 for a 30-second film in which Shilpa Shetty partnered with the brand to advocate the Vitamin C facewash that Mamaearth had launched for their customers.

Future Plans

Ghazal Alagh adds that their mission is to build Mamaearth into a 500-crore brand by acquiring five million new customers in the next three years. Furthermore, they plan to launch more brands under the Honasa umbrella which would primarily focus on the needs of new-age consumers.

Conclusion

Dhannay promises to take forward the flourishing business of the brand with adequate support to the owners by aiding them in their financial area. It provides sufficient professional assistance for them to take forward their business without any additional hurdles. Dhanaay looks after it all.

Tags

  • mamaearth
  • toxin-free
  • D2C
  • product
  • GhazalAlagh

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