When it comes to cosmetic products, consumers are a little more particular about knowing the process of how the product is being made, as they have to apply it directly to their skin. This is why we are witnessing a change in the cosmetic industry and seeing a new era of organic, naturally manufactured cosmetics free of toxins and chemicals.
MamaEarth stands out to be the perfect example of this new era of cosmetics. In this article, we will know more about MamaEarth’s case study.
MamaEarth is a manufacturer and retailer of skincare products. It was established in 2016 by Ghazal Alagh and Varun Alagh. The company is headquartered in Gurugram, India, and has become a popular name on various online platforms that offer daily use and safe skincare products.
MamaEarth is the first Asian company that has been certified by the US-based non-profit organization, Made Safe, which provides an extensive human health-focused certification for making toxic-free products.
Founders of MamaEarth
Varun Alagh and Ghazal Alagh, the founders of MamaEarth, are a couple that wanted to work together to realize their dream of manufacturing safe skincare products and making them available to everyone. Both of them joined Honasa consumer Private Limited, the company under which MamaEarth is registered, and started the journey of MamaEarth in December 2016.
Varun Alagh has some prior experience in the FMGC (Fast Moving Consumer Goods) business as he has previously worked with Hindustan Lever and the cold drink company Coca-Cola. On the other hand, Ghazal has filled in the position of Chief Innovative Officer at MamaEarth.
MamaEarth manufactures and sells baby-care products alongside skin and hair care products, such as toys, apparel, pregnancy care products, and accessories. Hence, this makes mothers, pregnant ladies, and babies their target audience. However, it also sells products for men in India.
MamaEarth has an omnichannel presence, and its business model is pretty straightforward. They formulate the products and hire manufacturers under contract to manufacture the products for MamaEarth. They have been mainly selling through online D2C (Direct-to-Consumer) channels such as Amazon, Flipkart, and many others and through their various offline stores.
How does the brand make money?
Their primary way of acquiring customers is through digital content. MamaEarth has a robust digital presence, with good quality engaging content and 1 million followers on Instagram. According to reports, approximately 90% of the sales of MamaEarth products come from various online platforms. Just like many other businesses nowadays, it aims to be able to sell as many products as possible online.
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However, despite being famous for baby products, only 20% of their revenue comes from it. The rest of their 80% income comes from skincare and haircare products. MamaEarth operates in the personal care category. They enjoy a healthy gross margin, making it possible for them to invest heavily in marketing.
Through this brief MamaEarth case study, we hope you have a clearer picture of the roots of this famous brand. They excel in providing the best possible products, but their marketing strategies also complement their products which makes it such a huge success.