Competitor Analysis: Forest Essentials

The cosmetics sector in India underwent a considerable development because of shifting lifestyles
and rising awareness. In terms of producing the most money from the beauty and personal care
business in 2021, India is ranked fourth globally. A small number of multinational corporations like
Unilever, Procter & Gamble, and L'Oréal dominate the global cosmetics sector. Despite their
enormous success in India, homegrown competitors now compete on an equal basis with newer,
organic businesses. However, local businesses like MamaEarth, Khadi Essentials Forest Essentials,
and Kama Ayurveda were given the chance to market their home-made cosmetics and personal care
products as the foreign brands were unable to meet the demand for items suitable for Indian skin
types.

Since the Indian Indus valley culture, cosmetics and their use have been documented. Prior to the
turn of the century, most skin care and hair care products were created at home with locally sourced
herbs and ingredients. Additionally, certain practises for maintaining beauty were based on routine,
while others depended on the seasons. Oils and Ghritas, were used in Ayurveda for facial beauty.

The COVID-19 pandemic boosted the online discovery and sales of a fresh generation of cosmetic
products due to the closure of supermarkets, department stores, hypermarkets, and salons. Like
China, India’s consumer relocation to online channels has benefited the DTC (direct-to-consumer)
brands. One such success story in the sector, was Nykaa, one of the leading cosmetic companies
with the largest share in the online beauty and personal care market.

Moreover, consumers preferred the flexibility and safety of online purchasing and home delivery.
Thus, e-commerce surged the beauty industry. For the first time, the market size achieved the
largest rise for online beauty and personal care. Other factors that contributed to the expansion of
the beauty and personal care market were the trends towards the use of clean and environmentally
friendly products. This in turn increased concern about personal grooming driving demand for
beauty and skincare business, and the rise of social commerce.

2,500

1,981
2,000
Market size in billion Indian

1,500
1,267
rupees

1,120
1,000 868

500

0
2016 2019 2020 2025

Online aggregators have become the preferred channel for Beauty & Personal Care purchases.
Beauty market in India is seeing a trend of wider adaption of ayurveda based beauty products. The
market for ayurveda based products was always there but the pandemic has only made it bigger.

In 2021, the market for ayurvedic products in India was worth INR 515.5 billion. Looking ahead,
IMARC Group projects that the market will grow at a CAGR of 19.78 percent from 2022 to 2027,
reaching INR 1,536.9 billion. We are regularly tracking and assessing the direct as well as the indirect
impact of the pandemic while keeping in mind the COVID-19 uncertainties.
 Competitor Analysis: Forest Essentials

An important element influencing the market for ayurvedic products in India is the growing
consumer acceptance of natural and organic medications and the advantages they offer. The desire
for ayurvedic products among consumers in the nation is also being fuelled by factors like growing
health concerns and understanding of the negative effects of western medications. Additionally, the
market for ayurvedic products has benefited from a considerable rise in per capita healthcare
spending over the past few years, which was spurred by economic expansion and rising earnings.
Ayurvedic products are now much more easily accessible in both urban and rural areas because to
an improved distribution network. The Indian government is pushing the use of ayurvedic products
through subsidies and awareness campaigns.

Competitor 1: Forest Essentials

1. Brand Strategy:

Combining Ayurveda and modern biochemistry to use to potency of natural oils with
traditional techniques in a modern touch. Create a brand using traditional ayurveda for
personal care but separating it from normal ayurveda products which are not so easy to use.

Values: Pure, Fresh, Seasonal & Natural

Brand Message: If you can not eat it, do not use it on your Skin

Customer Experience: Premium & Natural Experience based on Ayurveda

2. Marketing Strategy:

The marketing strategy of forest essentials is based on differentiation of the product from
majority of generic ayurveda brands. They have created awareness about their practice of
using only organic and natural ingredients in their products. This was achieved with the help
of content marketing on webpage as well as on social media. The focus was on showing why
the other brand can not replicate its quality.

Points of Differences:
 Premium & Natural Raw Materials
 Competitor Analysis: Forest Essentials

 No artificial chemicals
 Social impact

3. Labelling:

The packaging portrays an image of premium brand. They use different colours in order to
differentiate the sae base of plastic container. Recently, they have started using packaging
made out of recycled polyester bottles.

All the details of our packaging is not displayed on the website, which has to improve. The Forest
essentials has given the composition and direction to use which gives out additional details about
the product.
 Competitor Analysis: Forest Essentials

What can we adapt:

1. The use of content marketing to raise the awareness about the Aarohi’s products and social
impact.
2. Highlighting the ingredients on the website and packaging.
3. Improving the ecommerce portal.
4. Using segmentation for the products.

Competitor 2: Kama Ayurveda

The company posted revenues of Rs 72.87 crore in 2018 versus the Rs 41.10 crore the year before. It
also reported a net profit of Rs 2.54 crore in FY18. Initially they started with 9 products and had only
tie ups with Good Earth and Oberoi beauty salon. In order to reach larger audience, they started
manufacturing more products. Puig, the Spanish fashion and beauty conglomerate, invested in Kama
Ayurveda in 2019. Currently they are having 40 shops and they will add 16 more shops. Started new
shops at Raipur, Amritsar, Indore and Coimbatore airports. Company has reported 30% of total sales
as online sales.

1. Brand Strategy: Kama is Kind. Kind to Skin. Kind to Environment.

2. Marketing Strategy:

Initially they depended on word-of-mouth marketing. They first started with a shop in Delhi
and marketed the qualities of product. During the initial 2-3 years they depended on word-
of-mouth marketing only. After that they started implementing influencer marketing and
used SEM for promoting the products online. In pandemic they had to adopt to new strategy
as everything went online. They had to move away from product centric communication to
topics that would resonate better with customers. On their website they started yoga
tutorials, live sessions and in addition to that they had a Spotify playlist with name “Calm
with Kama”. In that period, they also successfully activated direct digital consumer
engagement channels in the form of online beauty consultations to replicate their
personalized consultative in-store experience.

Marketing tools/Advertisement:
• Using SEM
• Influencer Marketing
• Seasonal Discount offers

3. Labelling:

4. Website:

 Giving free samples to promote & try at very minimum price.

5. Things that we can implement:

 Company can provide sample & let customer try the products at bare minimum
price.
 Tie up with hotel industry can be increased as it would further help in marketing and
connectivity.
 Seasonal discounts or coupon offers can be provided.
 Most customers now buy most things online, same situation was seen in Kama
where 30% of sales were through online platform. Hence digital marketing can be
increased through SEM and products should be available on E-commerce websites.
 Influencer marketing can be implemented, it helped Kama Ayurveda.
 Website needs to accessible and proper segments need to be provided (haircare,
soaps etc)
 Competitor Analysis: Forest Essentials

Competitor 3: Pahadi Local