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The iconic The Body Shop brand is expected to have more competition from indigenous players in the ‘natural’ bath and body products segment. With the rising demand for natural products (without the use of chemicals) in the FMCG category, home-grown Indian brands in the natural bath and body products segment are looking at ways to scale up their operations.
While the 6-year-old Nyassa brand is seeking strategic tie-ups and may end up with venture capital (VC) funding to increase its retail presence, Soulflower, with its range of aroma therapy products, plans to acquire a distribution company to get a better foothold in the market.
Ishween Anand, founder of Nyassa, says, “The consuming class of premium bath brands may be just 5 per cent of the market, but they are the ones looking for discretionary products, which minimise the use of chemicals. From a start-up, today we are in a scale-up phase and will need VC funds. We believe there are consumers who are willing to pay Rs 200 for a bar of soap.”
Nyssa has already enhanced distribution at modern trade outlets and is now seeking institutional tie-ups with leading hotel chains to increase visibility. With six standalone stores, rentals are one of its biggest costs, since hand-made soap is not a capital-intensive category.
Anand adds, “By having strategic tie-ups with international hotel chains, we can also reach out to international markets. There could be co-branding agreements with hotels, which will help in reaching out to a bigger audience.”
Co-founder and MD of Soulflower, Amit Sarda, says that the brand has earmarked a budget of Rs 30 crore to buy a distribution company which has a pan-India network, in order to reach mom-and-pop stores. After launching the brand in 2002, following its buy from Shoppers Stop, the company is now looking at selling in smaller neighbourhood outlets.
Initially manufactured in Thailand, the brand has expanded operations with two India-based facilities. Soulflower is currently sold at 140 modern trade outlets. The company plans to tap into more categories such as cosmetics and creams.
purvita@thehindu.co.in
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