Plum Goodness, a homegrown beauty and personal care (BPC) brand, is aiming for profitability in the current financial year. Founder Shankar Prasad disclosed that the strategy involves launching new products in their core segments, discontinuing less profitable product lines, and refining their marketing approach.
Prasad mentioned that the Mumbai-based brand intends to unveil fresh products within the upcoming six months, concentrating particularly on skincare (encompassing cleansers, serums, and moisturizers), hair care, and makeup segments.
The company will also revamp its men’s brand, ‘Phy,’ by dropping certain skincare items for men, which include face packs, moisturisers, as well as face washes. Plum will instead expand its bath & body product offerings, including shower gel and men’s scents. Prasad stated that these adjustments are expected to be implemented by mid-June or July of this year.
“The majority of FY23 & FY24 was devoted to attempting to strike a compromise between our desire for rapid growth and the amount of investment we wish to make. We now have a comprehensive understanding of the calibration, and we anticipate breaking even during the current fiscal year,” according to Prasad.
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As a cost-saving measure, the brand plans to restrict its investments to ‘Baby Plum’, the segment launched last year, which focuses on baby care. Marketing expenses constituted more than 42% of the brand’s total expenditures in FY23.
During FY23, although there was a rise in total revenue, Pureplay Skin Sciences Ltd, Plum’s parent company, witnessed a 66% increase in net losses, reaching INR 52.9 crore compared to the previous year.
Prasad emphasized the importance of refining their marketing strategy by allocating more resources to core categories, optimizing engagement with their existing consumer base, discontinuing less profitable channels or segments, and maximizing the utilization of their fixed assets as key areas for achieving profitability.
Prasad added that Plum concluded FY24 with a revenue run rate of INR 350 crore and is targeting to surpass the quarterly revenue run rate threshold of INR 100 crore in the current financial year. This objective translates to an annual revenue target of INR 400 crore.
Plum presently serves customers in more than 300 cities and towns across India, with the majority of its revenue originating from regions beyond metropolitan areas. The brand boasts 36 exclusive outlets, approximately 1,500 assisted outlets staffed with trained beauty advisors, and over 10,000 unassisted outlets, including pharmacies and supermarkets.
Around 65 to 70% of the company’s revenue is generated through online channels, with prominent marketplaces such as Amazon, Flipkart, and Nykaa being the primary contributors.
Serving a consumer base of approximately 8 to 10 million, Plum specializes in offering vegan, toxin-free products within the direct-to-consumer market, positioning itself in competition with brands such as Mamaearth, Sugar Cosmetics, and MyGlamm.
Additionally, Prasad observed a trend of premiumization within the beauty industry, where consumers are gaining greater access to products spanning various price ranges.
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There have been numerous price corrections at the lower end of the market caused by inflation throughout the past three or four years. According to him, the difference between mass and premium brands has shrunk and is no longer as significant.
In its most recent funding round, the company secured $35 million, spearheaded by A91 Partners, alongside continuing support from existing investors Unilever Ventures and Faering Capital.
According to a collaborative report by Redseer Strategy Consultants and Peak XV, India’s beauty and personal care market is anticipated to experience the most rapid growth globally among similar nations. The market is forecasted to attain a compounded annual growth rate (CAGR) of 10% between 2022 and 2027, reaching a value of $30 billion.