Archive · 9 Jun 2025
Mamaearth Parent's Distribution Overhaul Yields Results Amid Challenges
Imagine Mamaearth products are sold in stores.
Before, Mamaearth used middlemen called super-stockists to get the products to stores, but this caused problems.
To fix it, Mamaearth started working directly with stores.
This has been difficult, especially for some stores, but it's starting to work!
Mamaearth is now selling more products through stores.
Even though it cost the company money at first, sales are growing.
A related brand, The Derma Co, is also doing well in stores.
Mamaearth now plans to reach more stores to sell their products.
Honasa Consumer Ltd, parent of Mamaearth, transitioned to a direct distribution model.
Direct distributor revenue contribution nearly doubled in the January-March quarter.
The distribution overhaul cost the company and faced challenges from distributors.
The Derma Co brand is seeing traction in offline trade and aims to expand its presence.
Honasa plans to expand its direct distribution to 150,000 outlets in the next year.
- Who
- Honasa Consumer Ltd. (Mamaearth's parent company), distributors, and industry experts.
- What
- Honasa Consumer Ltd. transformed its distribution model from super-stockists to direct distributors.
- When
- The transition began about a year ago, with results starting to show in the January-March quarter.
- Where
- Across India, particularly in tier-2 and tier-3 regions.
- Why
- To gain more control over sales and data, and improve efficiency.
- Revenue Growth (Q1)
- 13%
- Direct Distributor Contribution
- 71%
- Distribution Outlets (2024-25)
- 100,000+
- Q4 Profit Decrease
- 17%
- The Derma Co ARR (Offline)
- ₹100 crore
- Stock Decrease (From High)
- 41%