Founded in 2016, Mamaearth is an Indian firm with more than 1.5 million customers. Varun and Ghazal founded Mamaearth with a roughly INR 90 lakh initial investment from their personal savings. Large companies like Johnson & Johnson, Himalaya, and others are rivals of Mamaearth.
This company plan offers skincare, non-toxic hair, and baby care products. The company started off selling body washes, shampoos, oils, body lotions, and diapers, among other six distinct products. Currently, Mamaearth’s business plan sells over 100 products.
Mamaearth Company Details
| Company Name | Mamaearth |
| Origin Country | India |
| Founded | 2016 |
| Founders | Varun Alagh, Ghazal Alagh |
| CEO | Varun Alagh |
| Headquarters | Gurugram, Haryana, India |
| Industry | Beauty and Personal Care |
| Key Offerings | Natural and Toxin-free Skin Care, Hair Care, Baby Care Products |
| Number of Employees | Over 500 (as of last update) |
| Official Website | www.mamaearth.in |
Business model of Mamaearth
The business strategy for Mamaearth is easy to read. The company creates items with the consent of the Mamaearth brand, which is then contracted to produce them. Mamaearth mostly distributes its products online via direct-to-consumer (D2C) platforms like Flipkart, Amazon, and others, in addition to several physical merchants. They are available on every platform.
The following are the main characteristics that set the Mamaearth business model apart:
When the Mamaearth founders were searching online for natural and toxin-free baby goods, they had the idea. They chose to create an eco-friendly product line according to their knowledge of what most parents desired for their infants. The product line consists of wipes, bath soap, shampoo, body wash, as well as diaper creams. The products do not include any dangerous chemicals, such as parabens, which are present in most personal care products, and are suitable for infant skin.
1. Superior high-quality products
Their goods are safe for children and the environment because they contain natural ingredients. Additionally, they solely utilize organic resources in the production of their goods. The business gives discounts on its goods to draw in new clients and keep hold of existing ones. In addition, by buying their products, customers can accrue points in their loyalty program. Redeeming points for gift cards or cash back is possible.
2. Lean innovation cycle
The idea behind lean innovation is that companies should constantly listen to their customers’ feedback to increase efficiency. Experimentation and continuous improvement of your product quality are your top priorities. Mamaearth was able to quickly identify and meet client demands thanks to lean innovation.
Revenue
With a net profit of INR 24.6 crore and an overall revenue of INR 920 crore in FY 21–22, Mamaearth is one of the leading brands in the personal care sector. The brand’s EBITDA margin has steadily increased from 10% to 15% over the last five years, indicating that it has been expanding at a solid rate.
Mamaearth’s customer acquisition strategy is exclusively centered around digital content. Selling as many things as they can online is their primary objective. By listing their goods on Amazon, Flipkart, and other such e-commerce platforms, they make money.
Just 20% of the brand’s sales are from baby goods. Products for skincare and haircare account for 80% of revenue. Mamaearth has a strong gross margin profile in the personal care sector, with over 65%. Thus, 40–50% of their earnings can be allocated to marketing.
Companies such as Marico, Johnson & Johnson, Emami Limited, Bey Bee, etc. are competitors of Mamaearth. Both companies have advantages and disadvantages, but Mamaearth’s main selling point is the vast array of products it offers. These include cleaning supplies, laundry detergents, detergents for the home, and kitchenware like utensils, as well as personal care items such as shampoos, lotions, soaps, and body washes.
Mamaearth generates revenue through the sale of goods, subscription fees, and advertising. Thanks to the wide range of items offered by the company, customers may quickly find what they need. The sole focus of Mamaearth’s customer acquisition strategy is digital content.
Maximizing online sales of items is their main objective. Selling products on Amazon, Flipkart, and other similar e-commerce sites is how they make money. Remarkably, barely 20% of the brand’s revenue comes from sales of baby products. In contrast, 80% of sales are made up of skincare and haircare products.
Due to its affiliation with the personal care industry, Mamaearth boasts a favorable gross margin profile, at over 65%. They can therefore allocate 40–50% of their revenue to marketing.
Conclusion
Mamaearth is a flourishing startup in the natural products industry. It has proven that its clients can rely on it and that it is a trustworthy firm. The company’s success can be attributed to the amazing goods it has created using premium components. Not only are the items safe for all users to utilize, but they are also reasonably priced.
Meet Suhas Harshe, a financial advisor committed to assisting people and businesses in confidently understanding and managing the complexities of the financial world. Suhas has shared his knowledge on various topics like business, investment strategies, optimizing taxes, and promoting financial well-being through articles in InvestmentDose.com
