plum goodness: Plum Goodness aims for profitability in FY25, eyes product segment revamp

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Homegrown beauty and personal care (BPC) brand Plum Goodness aims to become profitable in the current financial year by introducing new products in its core segments, shutting down less profitable product lines, and optimising its marketing strategy, founder Shankar Prasad said.

The Mumbai-based brand plans to introduce new products within the next six months, focusing on segments such as skincare (including cleansers, serums and moisturisers), hair care and make-up, Prasad told ET in an interaction.

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The company is also planning to revamp its men’s brand, ‘Phy,’ by discontinuing certain skincare products for men such as face packs, moisturisers and face washes. Instead, Plum will enhance its offering in bath and body products like shower gel and perfumes for men. These changes are expected to be implemented by mid-June or July this year, he said.

“We spent most of FY23 and FY24 trying to find a balance between how much we want to invest and how fast we want to grow. We are now clear (about the calibration) and hopefully in the current financial year, we will be able to break even,” said Prasad.

The brand also intends to limit its investments to ‘Baby Plum’, the segment launched last year focusing on baby care, as a cost-saving measure. Marketing costs accounted for over 42% of the brand’s total expenses in FY23.

In FY23, despite an increase in total revenue, Plum’s parent, Pureplay Skin Sciences Ltd, saw net losses widening 66% on year to Rs 52.9 crore.

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“Focusing on fine-tuning our marketing approach by spending more on core categories, leveraging our existing consumer base better, letting go of channels or segments which are less profitable, leveraging our fixed base a lot more are the main areas we look at (for profitability),” Prasad said.Plum closed FY24 with a revenue run rate of Rs 350 crore and aims to cross the quarterly revenue run rate mark of Rs 100 crore this financial year, translating to an annual revenue of Rs 400 crore, he added.

Plum currently operates in over 300 cities and towns in India, with most of its revenue coming from areas outside metro cities. The brand has 36 exclusive outlets, around 1,500 assisted outlets with trained beauty advisors, and over 10,000 unassisted outlets including pharmacies and supermarkets.

Approximately 65 to 70% of the company’s revenue comes from online channels, with major marketplaces like Amazon, Flipkart, and Nykaa contributing the most.

Catering to a consumer base of around 8 to 10 million, Plum specialises in vegan, toxin-free products in the direct-to-consumer space, competing with brands like Mamaearth, Sugar Cosmetics and MyGlamm.

Further, Prasad said he had noted a trend of premiumisation in beauty brands, with consumers having increased access to products across different price points.

“Over the last three or four years, there have been a lot of inflation-led price corrections at the bottom end of the market. The delta between what were once premium and mass brands has changed and the gap is now not that huge,” he said.

The company last raised $35 million in a funding round led by A91 Partners, with existing backers Unilever Ventures and Faering Capital also participating.

India’s beauty and personal care market is expected to see the fastest expansion globally among comparable countries. It is projected to achieve a compounded annual growth rate (CAGR) of 10% between 2022 and 2027, reaching a size of $30 billion, as per a joint report by Redseer Strategy Consultants and Peak XV.

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