Honasa Consumer, the parent company of D2C unicorn Mamaearth, has ventured into the color cosmetics segment with the launch of a new brand called Staze.
The company stated that the introduction of the new product line aims to address a “critical gap” in India’s color cosmetics market.
The listed D2C unicorn revealed that the new brand will target Indian women in the age group of 18-24 and offer “quality” products at accessible price points. It further claimed that the products in the new line have an average price of less than INR 300.
According to Honasa, Staze has been developed by a team of 43 beauty professionals, comprising product specialists, dermatologists, and influencers. The company plans for Staze to be a digitally-focused brand, accessible through its own website as well as various marketplaces such as Nykaa, Purplle, Amazon, and Flipkart.
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It was clear that there was indeed a gap in the industry because the colour cosmetics category had an impressive 12% CAGR and a sizeable INR 15,000 Cr market. Honasa Chairman and CEO Varun Alagh stated, “These factors paved the way for Staze, which serves as a strategic move for Honasa’s unique house of brand strategy to break into the colour cosmetics market.”
Adding her perspective, Ghazal Alagh, Co-founder of Mamaearth and Chief Innovation Officer at Honasa, commented, “We strongly believe that Gen Z consumers are actively pursuing value and innovation, and Staze is uniquely poised to not only meet but surpass their expectations.”
Staze marks the newest entry into Honasa’s portfolio of brands, joining established names like The Derma Co., Aqualogica, Ayuga, BBlunt, and Dr. Sheths. This launch follows closely on the heels of the company’s recent expansion into the personal wash sector with the introduction of moisturizing lotion soaps.
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Within the realm of color cosmetics, the company is now poised to compete with industry giants like L’Oréal, Lakme, and SUGAR.
Established in 2016 by the couple Varun and Ghazal Alagh, Honasa entered the public domain last year. The company reported a net profit of INR 25.9 Cr in the quarter ending December (Q3) FY24, marking a notable increase of 264% from INR 7.1 Cr in Q3 FY23. Operating revenue also saw a substantial surge, rising by 28% year-on-year (YoY) to INR 488.2 Cr during the same period.
Based on these positive financial results, brokerage firm Citi Research initiated coverage on Honasa in February, issuing a ‘BUY’ rating with a price target of INR 550.
Honasa Consumer’s shares concluded Thursday’s (March 28) trading session 1.54% higher, reaching INR 402.00 on the BSE.
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