Kolkata-based FMCG company RSH Global, makers of products under Joy Personal Care brand, is expanding its footprint and ramping up its offerings in a bid to become a national player. While the brand thus far has been confined to Uttar Pradesh, Madhya Pradesh, Rajasthan and Delhi, its expansion plans are focussed on West Bengal and Maharashtra markets.
“When we started seeding the West Bengal and Maharashtra markets about three years ago, these two regions contributed `25-30 crore to our revenue. We are looking to take that figure up to `250-300 crore by FY24,” says Sunil Agarwal, chairman, RSH Global, adding that the company is also on track to reach `1,000 crore in gross merchandise value by then.
Furthermore, plans are on to foray into Gujarat in the next fiscal, but South India may not be on the cards for at least another three years. “Moisturising lotions and creams account for 70% of our business, but considering these are not a key requirement in the South, which does not see very severe winters, we will take our time to evaluate which product portfolio will best meet consumer needs there,” explains Agarwal.
While, like several brands, the 35-year-old firm faced pandemic-induced challenges during FY21, it recovered to clock a 28% revenue growth in FY22 with a GMV of `600 crore. RSH Global also owns men’s grooming label X-Men and personal care brand Karis, which together account for 10% of its revenues.
Joy, a click away
In a shift away from its offline-heavy retail model, RSH Global will launch its own D2C platform this month. “In FY22, 5% of our business was driven by e-commerce. With our D2C platform, we expect online sales to account for 10% of our business this fiscal,” explains Agarwal. Since the bulk of Joy’s business comes from tier-II and III markets, the platform’s launch is expected to grow its market share in tier-I cities and metros.
The D2C route has helped new-age brands get a toehold across categories where established brands have ruled. Samit Sinha, managing partner, Alchemist Brand Consulting, says this is bound to happen in a market like India. “Traditional players, who have created strongholds in offline retail and have a formidable distribution clout, will have to start taking the rapidly-growing online channels seriously if they want to defend their overall market share,” he says.
As niche as it gets
The advent of new personal care brands has resulted in the emergence of niche products catering to specific consumer needs. While Joy Personal Care identifies face creams, body lotions and face washes as its core segments, it has expanded its portfolio over the last two years to meet this demand. By next month, it will feature over 10 new products such as under-eye gels, face gels and shower gels among its online offerings, and take these offline in time for the festive season.
In recent times, both mass and D2C players are recognising the growing need for niche products in their portfolios, points out Anand Ramanathan, partner, Deloitte India. “Niche offerings lend themselves well to the D2C business model. The per capita penetration of these products is still very low and there exists a large aspirational market in India.” It is thus critical for traditional/ mass players like Hindustan Unilever or P&G to also be present in these little niches, he says.