The Good Glamm Group-owned D2C brand The Moms Co plans to further expand its retail presence with an additional 25,000 stores by the end of 2022, Founder & CEO Malika Sadani told FinancialExpress.com. The brand is also looking at foraying in the international markets this year. “Currently, we are available across all major e-commerce platforms and have an offline presence across 20,000 pin codes in 5,000 retail outlets, serving 2 million+ customers. By the end of this year, we aim to expand our presence to 25,000 stores and international markets,” she said. The retail touchpoints will include shop-in-shops, standalone beauty and cosmetics stores, and prestige stores in the likes as Shoppers Stop. The mom and baby products brand had presence at 500 retail touchpoints in October 2021 when it was acquired by The Good Glamm Group. Here are the excerpts from the interview.
How will the acquisition by The Good Glamm Group help The Moms Co?
The Good Glamm Group aims to grow The Moms Co to a Rs 500 crore revenue run rate in the next two years. We will focus on deepening the presence of the brand across the country through retail expansion and investments in brand building. We also plan to foray into international markets. As part of The Good Glamm Group, we are now working with some great minds who have significant years of experience in traditional FMCG companies. They know a lot about brand building and channel building, and we are learning a lot from their respective experiences. When it comes to the brand’s growth, we were already present in 5,000 stores and by the end of this year, we will be present in 25,000 stores. Our DTC website is three times of what it was before the acquisition, and it continues to grow at a very fast pace.
How has the overall operations, management and functioning changed at The Moms Co. after the acquisition by The Good Glamm Group?
We have been focused on leveraging each other’s strengths for maximum impact for the brand. The first thing we integrated was our D2C tech stack, in order to leverage the growth expertise of the larger group along with the content and community platforms. Since then, the brand has grown 10x on D2C while our customer acquisition cost has decreased by nearly 50 per cent. The integration with the Content & Creator groups is also helping with growing the brand’s relevance and assisting the brand in reaching out to relevant target groups. Over time, we have also integrated our retail teams to take advantage of the scale efficiencies that we see with multiple brands going to stores with a single team. This has helped us expand quickly across 4500 retail stores and 36 cities, expanding our footprint across the country.
Beyond the day-to-day functioning, the brand now also has access to expertise across the group for one-off knowledge topics such as media buying, ingredient selection, manufacturer QA and more; helping us quickly professionalize the brand and get the brand and team ready for large-scale.
Tell us about your current retail presence and your expansion plans.
Currently, we are available across all major e-commerce platforms and have an offline presence across 20,000 pin codes in 5,000 retail outlets, serving 2 million+ customers. Our own D2C platform enables discovery and access to consumers across the country. By the end of this year, we aim to expand our presence to 25,000 stores and international markets.
We are constantly innovating and experimenting behind the scenes and are looking to strengthen our product portfolio to meet the evolving needs of women, moms and their babies. We have plans to launch more diverse products in the near future. Recently, we onboarded Sonam A. Kapoor as our first brand ambassador and launched our first National TV campaign. With her as our brand ambassador, we hope to connect to the right audiences who resonate with our philosophy of care without compromise.
What percentage of your sales come from offline retail channels as compared to online channels?
We have observed that the online channels drive maximum sales of our products, contributing around 80 per cent, with our website accounting for 30 per cent of the sales while the rest comes from other e-commerce platforms. The offline retail channels contribute to 20 per cent of our overall sales. In terms of regions, Maharashtra generates the maximum revenue for the brand.
How do you see the current growth in the D2C segment? How are you leveraging this growth for The Moms Co?
Today, customers are more inclined to learn from the brand directly and shop from the brand’s D2C platforms. Earlier barriers around questions about payments and delivery have been reduced, and as a brand, we see customers more inclined to shop from our own app as well. To cater to these needs, we launched our customer app with a great, modern experience in April this year. Since then, we’ve seen more than 90 per cent growth compared to the first few months of the year.
How do you see competition in this space? What are your strategies to stay ahead in the game?
We have always been positive about the other competitor brands and have been closely witnessing their actions to further strategize around our own brand. We have always placed a strong emphasis on our product quality. Consumers are more conscious of their choices and look for brands that stay true to their promise. We take pride in using natural, effective, clinically tested ingredients to create products that meet global safety standards. We also regularly interact with our customers through a regular activity of Ask Malika Anything (AMA) sessions on Instagram and get insight into what and how they think.
How important is digital marketing strategies for The Moms Co? How are you using content, conversational commerce, influencer marketing, etc.?
Digital marketing is very important because being a digital-first brand helps us reach out to our consumers and tell them stories about our products, philosophy and manufacturing. This also helps us to constantly listen to their requests and feedback about our products. From a strategic standpoint, every brand needs to build authentic conversations that are beyond advertising, and this is where we create two-way communication with our customers and influencers who share their individual experiences and journeys that influence others to buy our products or at least try new brands.
We have access to data-driven insights from the group’s content platforms into what millennial women and moms are looking for. These are integrated into The Moms Co. ‘s product development engine to accelerate the creation, launch and marketing of products across skin, hair, bath & body, and mother & baby personal care. We are also leveraging The Good Glamm Group’s large digital audience comprising 88 million POPxo annual users, 100 million users of ScoopWhoop, 35 million unique annual users of MissMalini and BabyChakra’s community of 39 million mothers & 10,000 doctors, and the Good Creator Co.’s network of 1.5 million influencers.
Are you planning to hike the prices of The Moms Co products amid rising inflation and rise in input costs? How are you maintaining your margins?
Product prices will remain unchanged in the current fiscal year. We have always tried to give our customers good value for their money while keeping costs as low as possible. We haven’t raised any prices yet. Instead, we’re using the group’s combined purchasing power to keep prices as low as possible.