Honasa Consumer eyes Tier 2 markets for growth

Beauty and personal care business Honasa Consumer plans to tap into the increasing demand for branded goods in Tier 2 markets for its next round of growth as it works to reach the top of the beauty industry in India.

“The next phase of expansion will be focused on Tier 2 cities and beyond,” Honasa Consumer’s founders Ghazal and Varun Alagh told India Retailing in an interview. The business plans its offline expansion strategy by looking at geographies with high consumer demand for its products online to ensure stores open in areas of high preexisting demand.

The 2024 financial year saw Honasa Consumer report an annual profit of Rs 111 crore compared to a Rs 151 crore loss the year before, mainly due to its acquisition of Momspresso. The publicly listed business counts 110 brick-and-mortar stores across India and recently launched its first offline outlet to house its own array of brands including Mamaearth, The Derma Co., Aqualogica, Dr. Sheth’s, and Ayuga.
 
“Our goal is to become the most loved beauty and personal care company in India, which has brands that help the consumer move up the aspiration ladder,” said Ghazal and Varun Alagh. “That will be the continued goal. We are also one of the few companies, which have a strong brand-building muscle and the ability to build brands, which is something that we will continue to focus on. Wherever we see consumer opportunities, we will build more brands there in the future.”