Mamaearth, the natural and toxin-free skincare products provider, has grown rapidly with its mastering of influencer marketing. Mamaearth is known for its marketing campaigns over different social media platforms. Noted YouTube Vlogger, Instagram Influencers, and other social media known personalities are the backbones of Mamaearth.
Mamaearth is the only Asian startup with ‘MADE SAFE’ certification. Varun Alagh, the founder of Mamaearth, has worked in the FMCG industry. He also worked with top-rated companies like Coca Cola and Hindustan Lever. He is including those reach experiences in his startup. His wife Ghazal Alagh earlier worked as a corporate trainer in IT sector.
Mamaearth raised a total of $23.3 million in five rounds of funding. Sequoia Capital is the main investor in Mamaearth. With its last round of funding, Mamaearth valuation stands at Rs 700 crore in January 2020.
Mamaearth won “one of the best brands” in India award by ET brand festival in 2019. As per the latest reports through different media portals, Sequoia may invest $20-30 million more that will make the Mamaearth valuation worth Rs 2000 crore.
Mamaearth uses Direct to consumer platforms like Amazon, Flipkart to reach its targeted audience. The company also sells products through its own website. The company claims that 90% of the spends has been allocated to digital platforms including influencer marketing and 10% on traditional media.
Atmanirbhar Bharat is what everyone seems to be following as the mantra for growth and development. As a result, the market in the last few months has witnessed a rise in home-grown direct-to-consumer brands. Home-grown skincare brand Mamaearth, which claims to have seized this as an opportunity has increased its marketing spends by three times in the current fiscal. “We will continue to invest in the brand as we believe it is a very large opportunity. Brand building requires investments rather than holding back,” Varun Alagh, co-founder and CEO, Mamaearth told BrandWagon Online. The company claims that 90% of the spend has been allocated to digital platforms including influencer marketing and about 10% has been spent on traditional media, primarily television. The D2C firm further claims that its continuous marketing investments have resulted in month-on-month growth in sales. According to Alagh, in June sales doubled when compared to the pre-Covid period.
Moreover, as per the firm tier 2 and smaller markets amount to more than 50% of its business. “One of the reasons why TV is a good advertising medium is because of its reach beyond the metros. On digital too, we plan to go vernacular and drive local language communications to reach out to these markets,” Alagh added. The company launched its first television commercial recently. As per Alagh, the primary objective is to get new consumers and drive brand awareness. The company recently partnered with Viacom18’s Hindi general entertainment channel Colors for its reality show — Bigg Boss as an associate sponsor.
The company has tied-up with modern trade retail outlets such as Wellness Forever, Health & Glow, Dabur NewU, Guardian, 98.4 chemists, Mother care, Shoppers Stop, among others, as part of its expansion plan. Moreover, it claims to have over 3,000 stores across the country. “We have also expanded our warehouse and supply chain to ensure that we are able to service more consumers from tier 3 and beyond,” he added. Even as a larger part of its sales come from online channels, offline sales’ contribution has increased to 15%.
As a new-age company, it claims to have invested in sustainability to further consolidate the brand’s image. For instance, its ‘Plastic Positivity’ initiative is aimed at recycling plastic while with its ‘Plant Goodness’ initiative it has committed to plant trees for every order received. For Alagh, consumers of today buy into a brand rather than buying into products. “We have been talking about what the brand stands for and we will continue to talk about what we do as a brand beyond creating natural products,” he stated.
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