Gone are the days when shaving used to be a customary exercise for men, now it is more than a practice to maintain hygiene. As the beard defines the style statement, shaving or trimming becomes more of a necessity. People nowadays love to look perfect all the time which motivates the growth of the prospectus hygiene and grooming sector. The Indian male grooming products market was estimated at $888.51 million in 2022. During the forecast period between 2023 and 2029, the Indian male grooming products market size is projected to grow at a CAGR of 11.06% reaching a value of $1,844.65 million by 2029.
Bombay Shaving Company over the years has managed to draw both money and the attention of leading companies. The company in 2022 raised Rs 160 crore in a funding round led by India-based hedge fund Malabar Investments as it seeks to expand products and acquire companies. The round also saw participation from Patni Advisors, Singularity AMC, and other HNIs. The company over the years has managed to raise funds from Reckitt, Colgate Palmolive and Sixth Sense Venture Partners as investors. The company’s revenue from operation rose 40.72% to 177.30 crore in FY23 from Rs 105.10 crore in FY22, as per the regulatory filings accessed by Tofler. It’s net loss widened 84.9% Rs 80.25 crore in FY23 from a net loss of Rs 43.39 crore in FY22. In a conversation with BrandWagon Online,Deepak Gupta, COO, Bombay Shaving Company, talks about the company’s growth in various sectors, launch of new products, and plan for FY25 among others. (Edited Excerpts)
The company’s revenue from operation rose but losses have been widened, what are your strategies to narrow down this loss and become profitable?
We anticipate that our financials for FY24 will be filed at Rs 186 crore with an EBITDA loss. This loss is at a similar percentage level to the previous year. The reason behind this is, that we’ve made significant investments in innovation, resulting in new launches in FY24. This has contributed to increased brand awareness, which aligns with our strategic goals.
In terms of market focus, we operate in large categories such as razors and trimmers. The shaving category has approximately 380 million consumers, while the trimmer category has about 20 million consumers. Additionally, we’ve been investing in our women’s brand – Bombae, which is two and a half years old. This investment is aimed at elevating the brand’s presence.
In FY25, we expect our losses to reduce by more than half in the coming months. Our goal is to achieve positive EBITDA and break even by the end of this financial year. This shift in strategy reflects our initial investment for growth in the past few years, which has now positioned the business on a healthy trajectory.
What is the share of men’s products and women’s products in your overall business? Are there any plans to launch new products or variants soon?
The share of men’s products and women’s products within the category is 80% from Bombay Shaving Company and 20% from Bombae, which is a two and a half year old brand.
Last year, we entered the razor category by launching razors priced from Rs 99 to Rs 500, targeting a sensitive and younger demographic aged 16 to 25 years. Additionally, we expanded our presence in the trimmers category, achieving nearly double-digit market share within a year of launch across quick commerce platforms. Our market share for disposable razors has also reached double digits, including key platforms like DMart Appliance.
Our recent innovations have been successful, leading us to deepen our focus on these categories. We’ve recently launched a trimmer called ‘Power Play Next’ at an attractive price point of Rs 599 to disrupt the market. This product is already available on platforms like Amazon and Blinkit.
Moving forward, we plan to continue innovating in the men’s razor category, with a focus on sustainable razor launches. We’re also introducing a new product called hair mousse spray, catering to the convenience needs of younger consumers who are physically active and seek easy hair removal solutions.
What marketing strategies are you planning to implement to gain traction for the upcoming product launches, and which channels do you plan to rely on more?
We have been implementing a city-by-city marketing campaign, starting with a heavy activation in Mumbai over the past six months. Our 360-degree ad campaign, titled ‘Try Sensi,’ focused on our Rs 99 razor that delivers excellent results comparable to the market leader’s product, which is nearly 2.5 times the price. Our campaign emphasised sensitivity to the skin and affordability for younger consumers. For the same, we utilised major print properties, outdoor advertising, digital platforms, and various adjacent media channels in Mumbai.
Moving forward, we are launching phase two of this campaign in eight more cities next month. Another aspect of our marketing strategy involves social and content engagement. For instance, ‘Barbershop with Shantanu’ is a platform where we engage with younger consumers through conversations with guests such as Kapil Chopra, CEO of Oberoi Hotels, and Aditya Ghosh, CEO of Akasa Airlines. This strategy helps us connect with our consumers’ audiences and reach a wider demographic.
Furthermore, we recognise the power of word-of-mouth among male consumers, and we aim to leverage content and social media to engage with them authentically. Our Instagram presence, college engagements, and discussions on broader issues beyond products have resonated well, with one reel reaching up to one million consumers within three days.
How do you measure the return on investment (ROI) from your social media marketing campaigns, including the reels you create and the resources you allocate towards them, considering that ROI measurement can be challenging in social media marketing?
Most of our social media work is done in-house. We have a studio within our office where we conceptualise, shoot, and even act on the content. For example, we recently launched a range of perfumes under Bombae called Scentsutra, and all the content creation for that, including mobile-focused content, is done internally.
From an ROI perspective, we find the results to be amazing. The key focus is to gain insights that drive our social media efforts. Given the cluttered nature of social media and the abundance of content and influencers, we strive to ensure that our brand plays a meaningful role in consumers’ lives. This involves addressing topics such as acne and skincare during summers, targeting our consumers emotionally and functionally.
Additionally, platforms like BarberShop, where we engage with entrepreneurs from all over India, help us connect with our audience culturally. Our approach to social media and content is to create content that resonates with consumers on multiple levels, including cultural, emotional, and functional aspects.
While measuring ROI on social media can be challenging, especially compared to mainstream media, we focus on ensuring the effectiveness of our campaigns through targeted insights and engagement strategies.
What is the distribution split between online and offline?
We have a distribution model where 60% of our business is conducted online, and the remaining 40% is offline. Our products span large categories and encompass online and offline channels, particularly in the shaving and trimmer segments.
For our online business, B2C e-commerce and quick commerce platforms are significant contributors. Offline, we have a presence in approximately 10,000 stores, including major retailers like Dmart, Reliance, and Forever 21. We are also available in general trade stores across five key cities and in army canteens and Naval Academy outlets.
Which regions account for most of the consumers?
Initially, our focus was on metro cities. However, due to the impact of Covid-19, there has been a significant increase in online shopping from lower-tier cities. Additionally, we have expanded into modern trade and university markets. Currently, our audience mix is approximately 55% from metro cities, and 45% from tier-1 and tier-2 and beyond cities.
What factors do you believe contributed to your recent print ad receiving attention and public opinion, and what aspects do you think could have been improved?
From our perspective, the recent print ad was an honest and open communication from our brand team. Bombae as a brand is distinct from Bombay Shaving Company, with a focus on understanding consumers at an emotional level, especially younger consumers who are exploring this hair removal. Initially guided by mothers and then influenced by peers in college, discussions around body hair remain taboo.
The intent behind the ad was to address this taboo openly and authentically, offering support and understanding to those facing such issues. However, the ad was interpreted differently by different people, leading to some negative publicity fueled by trolls. Despite this, we stand by our intent, which was to be authentic and convey a real message to our audience.