Mars Cosmetics’ Rishabh Sethia on the company’s growth strategy and market expansion plans 

How are you planning to achieve your growth targets and expand into new markets?

We’ve been seeing significant traction recently. Based on our monthly growth, we’re confident about achieving our targets. We’re focusing on several key areas for expansion. For instance, we’re growing our presence through exclusive business outlets, particularly kiosks. Additionally, we’re exploring new markets, especially in regions of India where we have been underpenetrated, such as the South and East. This year, we’ve strengthened our teams and strategies to better address these demographics. Our online business is also showing strong month-on-month growth. Overall, considering all these factors, we’re optimistic about meeting our targets.

Can you provide details on the year-on-year and month-on-month growth you’re experiencing?

Month-on-month, our growth can be quite variable due to the seasonal nature of the makeup industry. Currently, we are in the offseason, with June, July, and August typically being slower months due to the heat and monsoon. The peak period for us begins around August 15. However, from May 2023 to May 2024, we have seen growth of over 80-90%

In a category where the product is crucial, could you outline the core products in Mars Cosmetics’ portfolio?

We cater to five major categories. First is lips, with products like lipsticks being central to our portfolio. The second category is eyes, which includes items such as mascara, eyeliners, kajal, and eyeshadow. Third is face, covering foundation, concealer, setting powder, and compact powder. Fourth is nails, featuring nail polish and nail tools. Finally, the fifth category is tools and accessories, including makeup brushes, sponges, and false eyelashes.

How do you strategise your pricing structure, and what kind of audience are you targeting with it?

Our tagline, ‘Makeup for Everyone,’ signifies a lot about what we do. We aim to optimise the entire supply value chain to be the most value-centric for our customers. We want to be the most value-centric brand out there. We offer products at price points ranging from Rs 70 to Rs 2000, and even our higher-priced items, between Rs 1,500 and Rs 2,000, adhere to the same philosophy. We ensure they provide the most value based on the quality we deliver. Our approach is centred on offering the best value to our customers, considering the value-centric nature of the Indian market.

With plans to open stores in 20 cities in FY25, what criteria are you using to select locations? For example, what factors influenced your decision to choose Kanpur?

Our criteria for expansion involve selecting malls with a footfall of more than 3.5 lakhs. We focus on the best-performing malls in each demographic. For example, in Kanpur, we chose a mall that met our performance standards and opened there. We have also opened locations in Lulu Mall, Elante Mall in Chandigarh, and CP 67 in Mohali. Additionally, we plan to open five to six kiosks within the next 30 to 40 days. Our growth strategy in this area is very aggressive.

Given your expansion efforts in India, do you have any plans for international expansion?

We have received numerous inquiries from international buyers and export houses interested in reselling our products. However, we currently have no plans for direct international expansion. Notably, our lip crayon is ranked as the 13th best-seller on Amazon in the Dubai market, according to my most recent check. Although we do not have a direct presence in the UAE, our product is likely being sold through general trade (GT) channels by intermediaries. These intermediaries are reselling the product at nearly three times the price compared to its retail price here. The fact that our lip crayon has achieved the 13th position organically, without any direct marketing efforts on our part, is a strong endorsement of the quality of our product.

Given that Mars Cosmetics has recently gained attention from its collaboration with Nancy Tyagi at the Cannes Festival, how do you assess the impact of social media and influencer marketing on your brand’s visibility?

For us, social media and influencer marketing are central to our strategy. They are crucial for communicating our products and our brand to the world. These channels are among the most important ways we engage with our customers. Currently, we are actively involved in various initiatives, including a collaboration with the TVF-produced women-centric show Sisters, where we are also a sponsor. We strive to collaborate with individuals and platforms that resonate with our target audience.

Could you provide an overview of your distribution strategy? Specifically, how do you balance between e-commerce and physical retail, including kiosks and other offline channels? What is the current distribution split between these channels, and how do you anticipate it evolving in the future?

Currently, our distribution is evenly split between online and offline channels, with each accounting for 50% of our business. Online, we are present across all major marketplaces, including Nykaa, Myntra, Flipkart, Purplle, and various quick commerce platforms. In the offline sector, our products are available in 7,000 to 8,000 GT stores, and we also operate our own kiosks. We are seeking financial partners to help us launch our products on multi-brand platforms. We are witnessing strong growth in both online and offline channels, and we expect the distribution split to remain balanced by the end of the financial year.

Given the highly competitive nature of the beauty and cosmetics segment, especially with the entry of international brands, how do you plan to differentiate yourself from other players? What are your key SKUs, and what do you consider to be your competitive edge?

Differentiating in a crowded market can be tough, but we focus on several key areas. First, we offer shades that cater specifically to Indian skin tones, unlike many Western brands that have shades suited to Western complexions. Our formulations are also adapted to handle India’s extreme weather conditions, ensuring they perform well in both hot and cold climates.

We are committed to providing great value for money, understanding that Indian consumers prioritise this. Our products are priced competitively to offer high quality at affordable rates.

Additionally, many of our products are inspired by Indian culture. For instance, our Paradise Makeup Palette, launched last year, was designed to be travel-friendly and included a range of products in one compact. The palette featured themes based on various Indian cities, reflecting our focus on local culture and customer needs.

Given that the cosmetics category often involves a sensory experience where consumers might prefer to see and feel products before purchasing, how do you allocate your marketing budget between online and offline channels?

Our marketing budget allocation leans more heavily towards online channels, reflecting the fact that most consumer attention is now focused online. We allocate approximately 65% of our budget to online marketing, as it drives a significant portion of our sales, including offline sales. The remaining 35% is allocated to offline marketing efforts, which include in-store branding, our kiosks, and sponsorship of events. Over the past six months, we have sponsored around 8 to 10 college festivals and participated in various events such as Nykaaland. We are actively expanding our event marketing efforts as well.

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