The men’s grooming industry has experienced exponential growth in the last decade. The average number of hair care products bought by men has shot up to 3.2 besides 3.1 products for women in 2020, as per a report by market research firm Statista. The report mentioned that the average number of skincare products bought by men and women was 5.9 and 6.1, respectively.
In alignment with this study, Ustraa, a men’s grooming and personal care brand, claimed to have recorded 2x year-on-year (Y-o-Y) growth since FY21. “We closed FY22 with a net revenue of Rs 70 crore and we plan to end FY23 with a net revenue of Rs 125-130 crore,” Rahul Anand, director and co-founder, Ustraa, said.
Happily Unmarried, the parent company’s net revenue (standalone) increased 70% to Rs 65.8 crore in FY22 from Rs 38.7 crore in FY21. The company’s net loss widened 22.8% to Rs 28 crore in FY22 from Rs 22.8 crore in FY21, as per regulatory filings accessed by the business intelligence platform Tofler.
When asked about the company’s aim for FY24, Anand stated that the target for FY24 is to clock net revenue of Rs 250 crore. “We are a loss-making company because we have indexed for growth. By next year we will break-even,” Anand highlighted. Currently, online sales have exceeded offline sales by 2x for the company, it claims. Further, the company plans to equally divide the pie by the end of FY24, with offline retail accounting for 50% of the total sales.
With regard to the estimated recession, the company claims it is not a major hurdle in the growth trajectory of the company. “If there is going to be a slowdown at all, it will not show in the fast-moving consumer goods (FMCG) sector because you will not stop buying soaps but you will cut down on holidays, for instance,” he exclaimed. Moreover, the company claims that non-metro cities account for 70% of its sales while metros and tier-1 cities account for 30% of the total sales.
With Marico acquiring Beardo, Emami acquiring TMC, Unilever has pushed Brylcreem, Himalaya coming up with Himalaya men, and Colgate-Palmolive investing in Bombay Shaving Company, the men’s grooming category seems to have found its place again in the wallet of Indian consumers. “This growth will continue for the next two to three years and the category will take off by the end of this decade,” he added.