Amardeep is a retail analyst who studies global retail trends and forecasts across diverse sectors, offering insights into the market dynamics, opportunities, and challenges faced by businesses. Her expertise spans both market-wide and city-level analysis, helping organizations navigate the complexities of the retail landscape with informed, data-driven perspectives.
Radhika is a retail analyst specializing in tracking multinational retailers on their strategy, with a focus on "Go-To-Market" approaches. Radhika examines each potential retailer in-depth, across the geographical scope of the USA, APAC, UK, and Europe
Mamaearth, a darling of India’s D2C beauty scene, has hit some bumps on its ambitious journey to reinvent its distribution game. The company’s bold moves have been a double-edged sword, offering valuable lessons for brands looking to scale.
Here’s the story:
🔄 Daring Distribution Overhaul
With “Project Neev,” Mamaearth swapped super-stockists for an in-house sales team, aiming for tighter control and better margins. The result?
Disrupted supply chains, strained relationships, and a mountain of unsold inventory.
💸 Financial Shake-Up
Revenue dropped by 6.9% YoY in Q2 FY25.
A profit of ₹34 crore last year turned into an operating loss of ₹41 crore.
Inventory adjustments ballooned to ₹70 crore, hammering EBITDA.
⚠️ Stumbling Blocks
Overstocking Missteps: Overestimated demand caused inventory pile-ups.
Brand Identity Woes: Rapid product launches diluted the brand’s core essence.
Offline Struggles: Online success didn’t translate well in traditional retail.
🌟 The Comeback Plan
CEO Varun Alagh is steering the ship back on course:
✅ 70% of regions now have the right distributors; the rest will follow soon.
✅ Focusing on core product categories before chasing new segments.
✅ Smarter investment in marketing and data-driven inventory management.
🔥Battling the Giants
Mamaearth’s pivot to offline channels puts it toe-to-toe with FMCG titans. To win, the brand must lean on its D2C roots while building offline muscle.
This rollercoaster has led to a 45% stock slump—offering a playbook on the risks of scaling too fast. But with resilience and recalibration, Mamaearth is fighting back.
What’s your take? Is this a cautionary tale or a story of redemption in the making?
#RetailRevamp #StartupStories #D2CInsights #FMCGChallenges #BusinessLessons