Builders for Bharat
How Mamaearth is Turning Focus Towards India Beyond the Metros
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Summary
How Mamaearth is Turning Focus Towards India Beyond the Metros
In a journey spanning just seven years, Mamaearth transformed from an idea to a publicly traded company, becoming the fastest unicorn to reach this feat. Over the last couple of years, Mamaearth has started eyeing India’s tier 2 and 3 cities, recognizing Bharat as a significant market.
Tier 2 and smaller cities form the backbone of Mamaearth’s success, contributing to a majority of its revenue. This highlights the company's deep connection with and strategic focus on these vital yet often overlooked markets, underscoring their pivotal role in driving growth. Bharat includes middle-income households earning between 5 to 15 lakh annually, spread across Tier 2, Tier 3, and rural India.
One of the key strategies behind Mamaearth's growth has been its focused network expansion. The brand has adopted a top 50 town strategy, initially concentrating on metro and tier 1 cities, and progressively expanding into smaller towns. This phased approach ensures a steady growth trajectory, allowing Mamaearth to build a robust distribution network.
Despite starting with a strong presence in urban centers, Mamaearth has recognized the immense potential of the Bharat market. Mamaearth already offers smaller pack sizes, such as 100 ml shampoos and 50 ml face washes, demonstrating the brand's understanding of the purchasing power and preferences in diverse markets.
The company also built a pan-India reach through its D2C operations and marketplace partnerships, covering virtually every pin code in the country. This extensive online presence complements its offline growth strategy, ensuring that Mamaearth's products reach a broad customer base.
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