One year after acquiring, beauty and personal care giant is doubling down on the mom-and-baby segment. Currently, the baby care market has a mix of traditional players like Johnson & Johnson and Himalaya as well as D2C (direct-to-consumer) companies such as Mamaearth.
In May this year, BabyChakra forayed into the D2C space with the launch of its personal care product range for babies. “Everything needs a bit of setup time…growth will be aggressive in the coming months,” Naiyya Saggi, Co-founder, Good Glamm Group and Founder, BabyChakra, tells YourStory.
Founded in 2014, BabyChakra began its journey as a parenting website. In March this year, it acquired TinyStep, a regional parenting network. “The aim for BabyChakra is to be a Rs 100 crore brand by March 2023,” Naiyya says.
Data from Tracxn shows that BabyChakra clocked a revenue of Rs 1.5 crore at the end of FY21.
In October 2021, The Good Glamm Group bought The Moms Co., a mom-and-baby startup that specialises in toxin-free personal care products.
The Moms Co generated a revenue of Rs 46.8 crore at the end of FY21. The Good Glamm Group hopes its recent acquisitions in the space will help it create a one-stop shop for mom and baby needs across all price points and categories.
“We are clear that there are a lot of synergies that can be unlocked…We are partnering on the kind of complementarities we can bring to each other’s businesses. It makes no sense to cannibalise each other’s markets,” says Naiyya, when asked about integration plans with The Moms Co.
Baby’s day out
Why is The Good Glamm Group betting big on baby care products?
Up until a few years ago, the parenting segment was almost an afterthought for many new-age companies. However, the rise of social media influencers as well as “new informed internet shoppers” have changed the category dynamics.
India’s baby care market was pegged at about $10 billion as of 2021 and is expected to grow at a compounded annual growth rate (CAGR) of over 17% to almost $40 billion by 2029, according to Data Bridge. Reports suggest that key segments of the baby care market which include toys, toiletries, and diapers are growing by 13-14% per annum.
New age D2C companies like Mamaearth, WOW Skin Science and The Moms Co are cashing in on this trend.
“Mom & baby was an underserved category until three years ago. We have more aware and quality-conscious consumers who are looking for good brands. The influencers segment is further driving this category. Products and brands have evolved to cater to consumers who also want sustainability as part of their life,” says Surbhi Bhatia, Founder and CEO, of The Mom Store, a mom-and-baby marketplace.
The Mom Store recently began offering personal care products for babies on its website and is already seeing a 50-60% growth in the segment.
Innovation is another strong pillar that companies in this space are betting on. In an earlier interview with Yourstory’s Daily Dispatch, Varun Alagh, Co-Founder & CEO, Mamaearth, another leading player in the Mom & Baby segment, had also spoken about growth pillars for the company. “We are very paranoid about QC, quality, and around our products delivering what they are supposed to deliver.. That has been a pillar that has helped us grow fast. Innovation has been a strong driver in us becoming a relevant brand and in being able to connect better with consumers,” he added.
For BabyChakra and The Moms Co, the application of shared resources in functions like distribution, marketing and product development could help accelerate growth. BabyChakra is already seeing the benefits of these shared resources playing out.
“We’re piggybacking on the shared resources available in the group for distribution and to take us to market. The other big shared resource is on marketing. If not for these resources, we would not have been at the run rate we are at,” says Naiyya
Without divulging specifics, Naiyya said that there will be a lot more collaboration happening between the brands under the mom and baby segment which could be in the form of sharing consumer insights, leveraging social platforms and even mix-and-match gifting combo kits.
The Good Glamm Group recently restructured its business into three divisions—Good Brands Co., Good Media Co., and Good Creator Co. The D2C brands are housed under Good Brands Co.