Mamaearth was launched in 2016 after Varun and Ghazal Alagh had a child. As parents, they were highly conscious of what products were being used on their child. They noticed that baby products available in the Indian market were full of toxins and chemicals that were harmful to their soft skin. The couple then started shipping baby products from the United States since they were much better for the sensitive skin of the little ones, but this was an expensive affair. It was then, they decided to take matters into their own hands.
The company also started manufacturing products for mothers since it is a brand for parents, by parents. Gradually to expand, it launched skin and hair products for men and women. Due to this, its target audience increased.
Diving into Mamaearth
A subsidiary of Honasa Consumer Ltd. It claims to be one of the most trustworthy brands in India. With its tagline ‘Goodness Inside’ the products are crafted with love and the goodness of nature. All of its products are paraben-free, cruelty-free, chemical-free and toxin-free.
Its portfolio includes products from –
- Haircare range (oils, shampoo, conditions, serums, etc.)
- Skin/Face (facewash, masks, scrubs, etc.)
- Body (moisturiser, soaps, underarm cream, etc.)
- Makeup
- Baby products and accessories
- Gift packs/combos
This D2C brand sells its products through channels like Amazon, Flipkart, etc. and its own website. The products are also available offline for sale.
Competition
Currently the Indian market has seen the rise of the old and the new. The old ones are innovating, while the new ones are trying to make it sustainable. Himalaya Wellness, Johnson and Johnson co, Plum Goodness, and Forest Essentials, are just some of its competitors in the market.
Competitive Advantage of Mamaeath
- Transparency- On its website, it has an entire ingredient list mentioned to maintain transparency and to build customer trust.
- Products- The brand highly believes in all-natural products that are nurturing and high-quality.
- Environmentally conscious– Mamaearth is a sustainable brand. It recycles more plastic than it uses. The brand also doesn’t test on animals and is PETA-certified.
- Wider target audience- The company’s audience is not limited to a single demographic but it is a huge market of people from almost all age ranges.
- Strong marketing strategy– It markets through various channels such as digital ads, celebrity/ influencer endorsements, word of mouth, etc. All of its advertisements depict the emotion behind the brand very well. Apart from that, Ghazal Alagh was also on Shark Tank India Season 1.
Financials of Mamaearth
The company turned profitable in FY 21 as its revenue increased 4X to Rs 461 crores. Though in FY 23 the company reported a loss of Rs 151 crore. The company was the first unicorn of 2022 with a valuation of $1.2 billion. It went public in November of 2023 and offered a share band of Rs. 308-324 each, with a valuation of Rs. 10,500 crores. There were mixed reactions about its IPO as many commented saying that it was overvalued.
Mamaearth’s products and strong ethics have helped them create a powerful brand which continues to serve and care for its customers with clean products. To have a successful business, a brand must have a strong story to tell. A narrative that motivates the entrepreneurs and evokes emotions in their customers. And Mamaearth surely is one great story.