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Every mom desires to offer her baby her endless love and concern. She wishes to offer all of her love to the child and to ensure that she can secure him/her in every situation.
When Ghazal and Varun Alagh got to know that they are expecting a baby, they decided to give their child every nutritive item to secure his/her health. As every other concerned couple, both started browsing the products which were beneficial for the baby and nurture him/her with the best products online or offline.
Since their child was born in 2016, they found that a baby care product in India contains few amounts of toxic substances like Parabens, phthalates, sulfates, and chlorine that can have a negative effect on the body of newborn babies. When these products are used for the babies, on their sensitive skin, they can be reactive to the skin and allergies can occur on the skin.
Varun Alagh and Ghazal Alagh tied up with Honasa Consumer, which manages Mamaearth, in an effort to provide commodities that are clean, cruelty-free, and natural by global standards. Its main work is done in Gurugram (Gurgaon).
What Do Company offer to achieve their best?
- Security is paramount
- Empowerment of Mothers
- Earth’s Finest Company needs N number of clearance from different authorities for starting a health care venture
The FDA regulates the cosmetics and personal care goods industries to the large extent. Under the federal Food, Drug, and Cosmetics Act, the FDA has extensive regulatory and compliance control over cosmetics. The FDA acts as a strict regulator for the health and welfare of customers.
Mamaearth Baby Care Products Company’s Motto:
“Our goal is to show you the best of nature through our most natural and caring goods, which are free of toxins and toxic chemicals. For us, goodness includes being generous to the world. As a result, we reuse more plastic than we consume and are PETA certified, meaning we never research animals. This is what our #GoodnessInside looks like”.
While making the product, the owner should be educated because it is necessary to have alertness about what ingredients fall in the product to make it a usable product. Since performing several rounds of qualitative polling with thousands of parents, the pair discovered that there is a substantial difference between producers and consumers for toxic-free baby care products.
Let’s watch the step-by-step process of Mamaearth growing entity:
Step-1: Routing the Gap
During the early days, one of the most difficult obstacles, according to Duo, was finding production partners that were willing to deal with their specific selection of ingredients. The company claimed that the products manufactured were all “Made Safe” certified and this certification was given by the American Institution that works only for Non-Toxic certificates that are in daily use.
Varun Alagh and Ghazal Alagh scheduled a number of discussions with suppliers all over the world, but only received negative feedback from all.
It is Asia’s first personal grooming brand labeled ‘MadeSafe’ certification, toxin-free baby care products for mothers and infants.
Step-2: For A Bigger Slice, Moving Beyond Infant Care
The Gurugram-based D2C Company made its debut with its own website and with the expansion of business, they started to broaden its market by selling it on the big online giant sites like Flipkart and Amazon. As the brand was now known to every supplier, other big outlets like Shoppers stop, Fashion big bazaar, and central mall started to deal with this product of Mamaearth. Even though the company has over 2000 chains all around the globe, its revenue is mostly generated from its own portal.
In India, there are several D2C brands vying for a slice of the baby care piece and becoming a big obstacle to Mamaearth. BabyChakra, The Moms Co, and FirstCry, among many others, are already finding challenges to stay in the market with childcare experts companies such as Johnson & Johnson, Himalaya, Sebamed, Hindustan Unilever, and ITC. Selling baby care products is a unique niche market and every day new firms join this market, thus making it tough to grow in this market. But Mamaearth is moving beyond the baby care products and started to broaden its area by developing the segment for mum’s care.
Step-3: Ramping Up in the Covid-19 Era
Mamaearth encountered the major decision: Did it have to close down while the coronavirus spread grew into a demon?
Varun and Ghazal Alagh had two major to happiness in early March 2020. First, in just four years, the baby care brand startup has totally become the personal grooming brand for all. Second, the business had expanded to an extensive level in 2020. Mamaearth was on target to reach Rs100 crore in operating revenue in FY20, which was higher than the previous year 2019 by Rs 16.8 crore.
Then there was the pandemic, lockdowns, and huge ups and down was seen in the market. There was widespread anxiety and fear in the eyes of the manufacturers, workers as factories were closing and activities coming to a stand.
But, there came the ray of the sun when the government declared its first segment to be kept open i.e essential commodities. The company started its operation and took forward steps. The founder and its team started to hunt the growth opportunities out of this pandemic.
In the starting period of Lockdown, mortar and Brick shops were fully shut down, so the consumer had no choice but to buy their commodities on an online platform. There was a huge surge of demand for products and Direct-to-Consumer (D2C) was rising with two main things. Firstly, the less crowded online world gave it an edge over its offline competitors who were also struggling to work out that how to execute an e-Commerce plan. Second, a large wave of new customers began to come from Upper Middle-Income earner and above.
Performance appeared to be in hot demand nearly a year later, with sales almost doubling in nine months from the prior year—from Rs109.7 crore in FY20 to Rs300 crore in December. Due to this pandemic, the company expected to make its first profit after a loss of Rs5.9 crore last year.
To expand the business, Brick-and-mortar stores were also another source of revenue. Also, the other source of revenue was generated by extending its hands with the television reality show Big Boss, an offline approach was strengthened. The product was pushed to a global scale after being broadcasted throughout the world.
Mamaearth has launched a series of face washes, serums, and skincare baby care products containing Vitamin C and turmeric. The company’s USP i.e using a natural ingredient like vitamin c proved to be an antidote in this pandemic. For the company and every other baby care brand, it was the moment of the Game-twister. “They came off like flames and are now at the top of the bestsellers.”
Step: 4 How Marketing Has Changed The Direct-to-Consumer (D2C) Game
Mamaearth, how did the game changed around? It defied the odds and was working all on advertisement strategy during the lockdown. They were in contact and working with suppliers and distribution firms to ensure things were back on the rails when the government declared to shut down the companies.
The goal was to use only the finest of nature in Mamaearth’s baby care products. This is the main and foremost USP of the company to sell their product to the consumer. The brand has collaborated with social influencers to raise awareness of the brands and their unique selling propositions, as well as to gain a good relationship with people who are health conscious.
It unveiled a digital advertisement campaign called ‘Goodness Inside’, with the intention of bolstering the brand’s reputation by the use of the word ‘goodness.’
In the early stage of the lockdown, the organization also initiated multiple pandemic safety campaigns including “Spread Awareness, Not Fear” and “Let Your Smile Show,” to encourage security and sanitation activities which include sayings like wearing masks is necessary and also distributed free hand sanitizers to the public. Mamaearth’s baby care products range has grown from six to over 100 SKUs since its inception. The company is overwhelmed as they have launched 12 new items and hence the list of baby care products increased in the days of lockdown.
Mamaearth – Services/Products
With over 80 natural ingredients under its banner, Mamaearth caters to baby care products, infant care, hair-care products, and skincare. Mamaearth has produced a few of the best groundbreaking baby care products, including India’s first bamboo-based baby wet wipes, a simple stomach roll-on with hing and fennel for colic and digestive aid, and an effective toothpaste made with natural ingredients especially for kids aged from 0 to 10.
Mamaearth, the baby care product company also makes products like skin and hair care which are purely organic i.e includes Onion, argan oil, ubtan, vitamin C, and many more. From sunscreen to stretch mark reduction cream, the company also caters the products relating to the newly became mums. It covers every range of products for every stage of motherhood. Their product line of Onion ingredients has become every mum’s hot favorite.
Mamaearth’s Seed Funding source
The company has completed its five-round of investment and generated a total of $23.3 million. A Series B round of funding was concluded on January 7, 2020.
Mamaearth secured a $125,000 in pre-seed investment from a group of investors in 2016. Stellaris Ventures, Fireside Ventures, Marico’s Rishabh Mariwala, Sharp Ventures, and Snapdeal entrepreneurs Kunal Bahl and Rohit Bansal led a $4 million in Series A round in 2018.
Shilpa Shetty Kundra also became the brand ambassador of the company and an equity investor in April 2018. This Baby Care Products company generated INR 140 crores in a fund seed round led by Sequoia India in January 2020, with existing players Fireside Ventures, Stellaris Investment Partners, and Sharp Ventures also participated in the round of funding.
Initiatives of Mamaearth
This Made-in-India business is continuously innovating to remain competitive and hence every day the need and preference changes with a variety of new products make an entry in the market. Let’s look at Mamaearth’s marketing campaign, which has shown growth by three times in sales per year, since its formation.
With the mission of a plastic-positive brand, to maintain a healthy environment, the company started its campaign such as “Let’s Recycle”. This campaign was fully focused on preserving Mother earth and sustaining the existence of the environment. The main motto was to preserve Mother Earth for the upcoming youths and awakening their parents to contribute to the campaign. Every individual joined the campaign and the #MyFirstGoodDeedOf2021 hashtag was spread all over the digital platforms.
Word-of-mouth is the oldest and effective technique to extend the business. Mamaearth’s staff trusts in the strength of mothers, so they wanted to approach them personally. The founders were optimistic that if all mums experienced Mamaearth baby care products, their positive reviews would help the business expand.
Previous Year, Mamaearth launched an innovative Mother’s Day Campaign named #MamaearthMummySong, in sync with their concept. The campaign was fully concentrated on the mothers and their development with their growing child, which was the blast on every site like TikTok and Instagram.
They used a consumer retention approach focused entirely on digital content as part of their market transition in the digital age. Influencer marketing accounted for almost 8% of the company’s marketing spending and after the lockdown.
For more work, the company started a blog section which was written by 1000+ mums. For further existence, the company tied up with health and fitness stars, YouTubers, and influencers like Gaurav Taneja (Flying Beast), Fittuber, Ayush Mehra, Srishti Dixit, and Varun Sood. The business heavily depends on online and digital advertising which is handcrafted by the technical team of the company.
Awards and Recognition of Mamaearth: Best Baby Care Products
The startup venture was also named “One of the Best Brands” in India at the second edition of The ET Brand Fest, which took place on March 29, 2019. On the detailed comparison with other evolving brands of India, Mamaearth was named in The Economic Times Best Brands 2019 coffee table book.
The Economic Times and Nielsen collaborated on the study, which looked at 500 brands whose criteria were focused on performance, creativity, and consumer loyalty. From selected 500 brands, Mamaearth along Sleepwell, AUDI India, Myntra, and WOW were recognized as the world’s best brands.
Future Growth Prospects
In terms of future prospects, the co-founders confirmed that the company would concentrate on expanding its customer base. They also want to introduce or create more brands that can resonate with their global clientele.
Mamaearth has created three strong foundations of prosperity
- Among the three, the foremost foundation is the Team. Without the perfect team, no company can walk ahead to the path of success. If the team is effective everything starts to fall in the correct place and automatically the company is called the Strong.
- Every startup focuses on its revenue, valuation, and economic growth. But the main pillar is the brand and quality. If your product quality reaches the consumer, you are one step closer to build the empire of success. The valuable brand is created by the quality of the product company manufactures.
- The third component of Mamaearth’s strategic plan was to break the go-to-market technique.
On the product front, the brand should not get complacent. It is critical to understand that the assurance of ‘toxic-free goods is the reason customers believe the brand. The success story has already started to feel like a dream come true.
Consumers have reacted favorably to the baby care products and approved toxic-free FMCG products. The company stresses that the organization must maintain that adequate laboratory tests should be performed on every product in order to preserve their ‘toxic-free profile. Mamaearth must clearly continue to walk the toxic-free words.