After e-commerce, fintech, healthtech and foodtech, the nascent segment of babycare is garnering solid attention from entrepreneurs.
Positioning their products around ‘’natural’’, and providing a womb to kindergarten and beyond experience to kids and mothers, startups are evolving their business models and channelising their offerings in a highly competitive and challenging market.
As per estimates, the babycare, pre and post natal care market in India is worth Rs 2, 900 crore, growing annually at 8%.
Entrepreneurs say rising disposable income levels, nuclear families, e-commerce boom and the search for enhanced quality products is expected to further drive the potential of this segment.
But alongside the opportunities, the segment is rife with multiple challenges, starting with the established presence and legacies of big brands like J&J, P&G, Dove (HUL), Dabur, Nestle, Aditya Birla Group, and international entrants like Chicco and Sebamed. In fact, homegrown brands like Himalaya Drug Company are eyeing Rs 1,000 crore annual turnover through baby and mothercare in the next few years.
Experts say in babycare, especially when it comes to baby food, diaper care and skincare (lotions, oils, soaps), doctors hold much weightage over parental buying decisions. “And the big brands have already carved a place for themselves in the minds of paediatricians. Hence you have doctors suggesting parents to go in for particular soaps or lotions. This makes it tough for start-ups as babycare is one segment where parents most often agree to doctor recommendations,” say experts.
What then is the game plan for the start-ups to reiterate their presence and gain confidence in the minds of parents?
“We believe parents today are spending more time researching online for unique and high quality solutions for their babies. We are using content as our key strategy to educate parents about our products and solutions,” says Varun Alagh, co-founder of Mamaearth.
Entrepreneurs are determined to build and promote their products as ‘’organic’’, ‘’herbal’’, and ‘’toxin-free’’ as they believe millennial parents vouch by these traits.
Malika Sadani, founder & CEO, The Moms Co, says their products use natural ingredients like jojoba, organic chamomile, calendula, organic shea butter, moringa, etc. “It is an exciting time for moms to have so many options than a few years ago. Our expertise based products make choices easy.”
Alagh says the core lever for differentiation is their line of innovation driven natural products like bamboo-based wipes, asafoetida-based easy tummy roll on, etc.
Start-ups are also looking to engage with doctors and relevant influencers. Sharad Venkta, MD & CEO, WOWMOM, says they are planning to enter into direct tie-ups with hospitals in key cities.
“Doctors are impressed with our product quality and have started recommending these. Today, over 300 doctors across NCR and Bangalore recommend our products to parents, ” says Sadani.
Start-ups such as WOWMOM are looking at another strategy to reinstate their presence by extending their offerings and becoming a part of the lifestyle of a child from 0 -12 years. Furthermore, start-ups are utilising both the online and offline channels to expand their reach. Besides promoting products through their own websites and large e-commerce marketplaces, entrepreneurs are opening up exclusive stores, as well as positioning products in modern retail to enhance their access to consumers. “Online is a great starting point where we get to understand the mom’s needs and make sure our products make sense. We started our offline journey recently. We have 10 stores inside hospitals and want to increase it to 20 by next year,’’ says Sadani, adding The Moms Co has also started its foray into retail stores and they aim to be in 500 outlets by this fiscal.
Alagh says Mamaearth products are currently available in 500 stores and ‘’we intend to be in 5,000 stores in the next one year. We also look towards setting up extensive infrastructure to achieve the same and get into relevant partnerships.’’
The start-ups also claim to witness strong double-digit growth. According to Sadani, they are growing at 20-25% month on month and doubling quarter on quarter.
Venkta says WOWMOM is growing at 30% year on year. “We are expecting to double our turnover to Rs.40 crore this year. We plan to expand to the US, UK and Saudi Arabia.”
TAKING BABY STEPS
- Rs 2,900 cr – Babycare, pre and post natal care market in India
- 8% – It is growing annually
- Rs 1,000 cr – Turnover homegrown brands such as Himalaya Drug Company are eyeing though baby and mothercare products
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