Mamaearth is an Indian startup in the beauty care industry. It has become highly successful in a short time and has created a dynamic presence in the industry. It is known for introducing toxic-free skin care routines to its customers.
Here is a detailed analysis about the Mamaearth business model along with its revenue and marketing components. Let’s get started!
Mamaearth Business: A sneak peek
Mamaearth is an Indian based startup that offers a wide range of cosmetic products to elevate its customers’ daily skin care routine. It was founded in 2016 by partners Varun Alagh and Ghazal Alagh.
They started the business with an initial investment of around INR 90 lakh from their own pockets. The brand became a massive hit in the market and has gained over 1.5 million customers so far.
The company deals with a wide range of toxin-free cosmetic products. It includes the range for baby care, hair care and other skin care products. Mamaearth is directly competing with big brands such as Johnson and Johnson, Himalaya and more.
The brand leverages the rising demand of adding organic products in day to day skin and hair care routine. They are one of the first brands which deal with non-toxic seals for cosmetic products in use.
This makes them a real game -changer and customer preferred name in the cosmetic and skincare industry.
Funding timeline and Investors list
The recent firm evaluation was done on Sep 2022 and the net worth of the company is evaluated to be around $1.2 b.
Sept 2018- Fireside Ventures ($4m)
Jan 2020-Stellaris Venture Partners,Fireside Ventures
July 2021-Sequoia Capital, Stellaris Venture Partners, Fireside Ventures,Sofina Ventures
Dec 2021,Sequoia Capital
Jan 2022, Sequoia Capital, Sofina Ventures, Evolvence Capital
Sep 2022, Shilpa Shetty
MamaEarth Business Model
Mamaearth’s business model is quite straightforward. They sell their products through various online marketplaces as well as D2C channels such as Amazon, Flipkart etc. The products are also available for purchase in different offline stores.
The brand’s omni channel presence has made it feasible for its customers to purchase the products at their own comfort. The whole range of products is produced by contract manufacturers under the permit of the Mamaearth brand and are sold globally through offline as well as online channels.
Ideal customer personas for the brand
Since the brand deals with baby care as well as skin care routine products; they have expanded their audience’s reach from mothers and their babies to the millennial generation. The availability of chemical-free skin care products such as serums, creams, face wash, lotions as well as hair oils had created a significant place in the mind of millennial buyers. People are preferring these chemical-free products and are willing to become a repetitive customer to the brand.
Image credit: entrackr.com
How does Mamaearth make money?
As per the reports, the brand has generated a total revenue of INR 920 crore with a net profit of INR 24.6 crore for the year of 2021-22. Since its inception, the brand is growing and generating revenue at a healthy rate. An upward trajectory towards the increasing EBITDA margin from 10 to 15% directly indicates the growth and success.
Staying available on all of the popular ecommerce channels such as Amazon, Flipkart makes it convenient for the brand to acquire more potential customers to its channel.
Here is a detailed analysis of the revenue growth and generation of Mamaearth.
- 20% of the brand revenue comes from the baby care range.
- 80% of total income comes from skincare as well as haircare products.
- 65% of total sales is from the personal care category range.
- 50 % of revenue is invested in marketing the brand on online and offline channels.
Hence, Mamaearth is generating high revenue and is utilizing the profit on marketing and expanding its outreach to the potential and ideal customers.
Value Propositions of Mamaearth- Pointers that makes the brand unique
Mamaearth competes with well established brand names such asMarico, Emami Limited, Johnson & Johnson, Bey Bee, Himalaya etc. Mamaearth leverages the advantage of owning a wide range of products that covers all types of products such as shampoos, soaps, lotions, and body washes.
It also includes household items like detergents, cleaning agents, laundry detergents and kitchenware items like utensils. A dynamic marketing approach and in-demand product ranges together, play a significant role in allowing the brand to become one of the leading and game changing players in the competition.
Here are a few of value propositions that make the brand unique and stand tall among other well established players of the industry.
Pitching the right message to right audiences
The brand has gained trust. Their brand messaging has always connected with its targeted audiences. Initially they started targeting the mothers and made several advertisements that resonates with them.
Superior Quality product
Undoubtedly the quality of products offered by Mamaearth brand are unmatched. The brand has earned many customers through word of mouth marketing.
Lean Innovation cycle
The brand relies on the Lean innovation principle. It allows the beans to keep its focus on increasing the products and operations efficiency. This is achieved by continuously listening to the customers feedback and suggestions.
Lean innovation has helped Mamaearth to stay closer to its customers and understand and fulfill the customer needs in a quick turnaround time.
Futuristic Perspective of the brand
The brand has future plans to take the business to the next level. Mamaearth looks to have a $3 billion valuation for IPO in 2023. This will be further a step ahead in expanding and growing the business. We wish better luck to the brand for its future growth.
Build your own empire
Are you feeling motivated with the success of a home grown brand? Do you plan to own a success story of your own in the coming years? If yes, talk to our team at Jungleworks.
If you dream to own a business and need guidance and support to establish it, feel free to check and connect with us on that.
Let’s make the best of 2023, by bringing out your best version in the market!
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