In recent years, the rise of direct-to-consumer (DTC) brands has been a significant trend in India, with these brands connecting deeply with new-age consumers and representing their aspirations and needs. Concurrently, the strategy of content-to-commerce has gained prominence, with initiatives like the Open Network for Digital Commerce (ONDC) leveraging this approach to boost transactions. Among the notable DTC beauty brands that have thrived in this landscape is The Good Glamm Group, which has had a unique journey, particularly through its flagship brand, MyGlamm.
Founded by entrepreneur Darpan Sanghvi in October 2017, MyGlamm quickly evolved into the Good Glamm Group, expanding its portfolio to encompass various segments of the beauty and personal care market. From color cosmetics to mom and baby products, organic personal care, intimate and menstrual hygiene, and sexual health, the group has established a diverse range of offerings catering to the needs of South Asian consumers.
What's the reason behind the brand's success?
At the heart of the group's success lies its content-creator-commerce model, which integrates deep customer listening, stringent quality control measures, and rapid feedback mechanisms into its product development process. This approach has enabled the company to effectively engage with its audience through owned content, social media, and influencer partnerships, driving significant traffic to its commerce platforms.
With 150 million monthly active users (MAUs) engaging with its content and creator ecosystems, the group has witnessed a substantial portion of its audience transitioning to commerce platforms, resulting in impressive conversion rates. Out of 30 million MAUs engaging with commerce product pages, 1.5 million customers are converted monthly, reflecting a 5% conversion rate. Moreover, the group's focus on customer retention has yielded remarkable results, with repeat orders increasing from 35% to 65%.
The group's emphasis on profitability and reducing discounts has also borne fruit, with marketing costs decreasing from 75% to 30% of revenues over the past three years. This focus on efficiency has propelled the Good Glamm Group towards profitability, with plans to achieve EBITDA profitability by the end of FY25.
Nykaa vs Good Glamm
In terms of scale and growth, the Good Glamm Group's performance is particularly noteworthy when compared to industry peers like Nykaa, India's largest beauty marketplace. Despite comprising fewer brands, the group has managed to attract a significant share of the market, with DTC visits and annual transacting customer numbers rivalling those of Nykaa.
Furthermore, the group's acquired brands have transformed, with a substantial portion of their revenue now coming from the DTC channel. Leveraging its content-creator-commerce assets, the group has successfully replicated its model across different brands and markets, driving exponential growth in transaction volumes.
What's in store for the future?
Beyond its commercial success, the Good Glamm Group remains committed to initiatives that promote social impact and community service. Programs like the Mompreneur program and the Sirona Foundation reflect the group's dedication to empowering women and addressing social issues like period poverty.
In conclusion, the Good Glamm Group's journey exemplifies the power of the content-to-commerce model in driving growth, profitability, and social impact in the consumer goods industry. With a focus on innovation, customer-centricity, and community engagement, the group is poised to continue its trajectory as one of India's fastest-growing consumer companies.
