Good Glamm to foray into live commerce in Jan; eyes acquisitions in men’s grooming, haircare segments

 

Shanghvi: All of us in this beauty and personal care (BPC) business have had a lot of amazing category stories behind us. The industry itself has many factors - the first factor is that GDP per capita is currently at $2,000. The PCB industry is exploding because all that is above it is disposable income. And one of the most important areas of spending is PCB and the second factor is that India is very little penetrated, so personal beauty consumption accounts for a third of Southeast Asian countries like Vietnam. Another big reason is that the visibility of BPC products on phones has become easier for women. All of these micro-indicators may point to why the PCB industry in India is doing so well right now. If you look at Myglamm, he's four years old.

But also other brands. So all of these brands started their journey five or six years ago. Branding is more important in the PCB industry than anywhere else. If you look at a company like Estee Lauder, we have seven brands, each with $7 billion in sales.

Five of them were acquired brands. When you see these brands around the world you can build a brand or two, the rest has to be acquired. You acquire a brand and use your experience to scale it. Do you see in the industry that the players are consolidating, an offline sales channel can serve your brand? In my case we have the network and the rhythm that nobody had and above all I have 150 million users like no other. On one scale and then pressured to move on to the next, they become part of a larger group. This can help them with climbing. BT: Is this the kind of cumulative ecommerce activity we've seen in the US and even India?

Sanghvi: We are not a roll-up player. We build brands and they have to be maintained. We build a brand and secondary brands take time to build, we are experts in BPC, these are built through acquisitions. When I am trying to build a brand, it can take time. We have the experience, we have the audience, we have the value engine,and then we scale these brands. BT: But we're trying to understand the various acquisitions the Good Glamm group has made so far, from influencers to D2C content and brands.

Sanghvi: You're right, they serve different segments, ScoopWhoop is for men and Baby Chakra is for mothers; they serve different target groups. The body care beauty product is aimed at different target groups. We received these assets because of their target groups. Target groups enable us to build these brands. : You will see something with us on the topics of feminine hygiene, mom and baby, hair care, barber shop, skin care.

We want to make sure we have brands in every segment over the next three years that are the top two brands in each of them.BT: The D2C market has seen more momentum with the COVID-induced digital acceleration; Do you see a change in buying behavior? Do you see further growth in the industry?

Sanghvi: Last year, Diwali was much better than Diwali before COVID came up. Comes from the physical store that will continue to happen. If we look at the online shop, it is also growing well. Consumer buying behavior changed a long time ago, Nykaa is the best example to explain things better. It was a real groundbreaking ceremony like ours. Beauty Personal Care did well during the lockdown and is doing well today around the world whether you are online or offline.BT: You could credit

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