In 2014, at a time when direct-to-consumer (D2C) wasn't the norm, and e-commerce giants like Flipkart and Amazon were ruling the online retail scene, Mohali-based Ayurvedic beauty and personal care start-up Just Herbs had already marked its breakthrough.

The founder of Just Herbs, Dr. Neena Chopra, Arush Chopra and Megha Sabhlok. The company saw the beginning of the era of online marketplaces and the rise and fall of privacy. Apart from the labels, Just Herbs also represents the rise of the D2C model in India.

The rise of D2C was fueled by an influx of venture capital funding during 2016-2017 and the emergence of new fashion, beauty, furniture, and other types of brands. During this time, companies such as Pepperfry and Urban Ladder, as well as an array of lesser-known brands, received significant growth and investment. This has led to an increase in competition as well as customer acquisition and retention costs. While some survived, many had to close companies as funds dried up in the ecosystem and runways became slick.

Amidst the frenzy associated with VC funding, break-neck growth, and waves of closures, Mohali-based Just Herbs remained undeterred, keeping pace with market trends such as customer-centric innovation, in-house manufacturing, and more.

In 2021, Indian consumer goods multinational Marico acquired Just Herbs, a brand that offers a range of Ayurvedic skin, hair care and makeup products.

That was also the time when many D2C brands were heavily dependent on VC money. Reversing this trend, Just Herbs has decided to merge with Marico, which has helped them expand to over 500 retail touchpoints across India.

It is on the back of this pivot that the brand's topline has grown exponentially since its acquisition. From earning Rs 17.5 crore in FY21, the co-founders claim to have crossed a revenue run rate of Rs 100 crore in FY24.

The Story of Just Herbs Begins

Just Herbs was inspired by Arush's mother, Dr Neena, a biochemist who invested in making skincare products using plants and herbs.

Inspired by their formulations, Arush and Sablok envisioned turning their formulations into a brand, from where Just Herbs emerged. While Sabhlok became the financial controller and COO, Arush led the business as the CEO.

Although the co-founders have listed their products on Amazon and Nykaa, their main focus has always been D2C. According to Arush, they focused on doing D2C when the term didn't even exist.

The co-founders say they initially focused on building a product company and brand without any significant involvement in online sales. However, it was felt necessary to sell online, as traditional methods of distribution, such as sales through chemist shops, create credit risks, and the margins on supply to hotels were too light to sustain.

"The online space looks promising and meaningful because many competitors had only basic websites without e-commerce capabilities. So, we moved on to online marketing and learning Facebook Ads and Google Ads. We continued despite differences and concerns about spending our savings, "Chopra said.

Started with just three SKUs, the brand today comprises 150 formulations across categories such as skin, hair, bath & body, natural makeup, fragrances and gifts.

How to understand the Herbs Customer Acquisition Code?

In the first five years of its ten-year journey, the startup focused on customer support and grew by receiving feedback from customers and enhancing their range of products.

However, according to the founders, navigating the complexities of e-commerce proved to be challenging. The reality of low conversion rates and fierce competition rapidly set in as understanding and adapting to the nuances of online consumer behavior became essential to survival.

In contrast, dealing with suppliers or platforms like Amazon takes more credit terms and is fraught with delays.

It was also the time when the website data revealed a low conversion rate of 2-3%. Even marketing methods such as Facebook ads have failed to deliver results. Thus, the startup turned to WhatsApp for direct customer consultations and feedback.

In 2017, the founders launched a Facebook community called JustHerbs Insiders for direct feedback, which enables 3,000 to 4,000 women to share experiences. That year, the company achieved sales of more than 30 lakh through the website.

The period also marked the startup's first breakthrough when customers from the U.S. expressed interest in launching products on TV.

"Initially, we used to get 100 orders per day on our website. It has gradually increased to 500 orders per day and now we are reaching 5,000 orders per day, "Chopra said.

Chopra added that the development of the base has been a great success factor for them. Prototypes were distributed to 300-400 women through Just Herbs Insiders (JH Insiders), and this strategy eventually proved beneficial.

"This has resulted in the successful development of 5-6 new products, including our lightweight foundation and natural makeup lines," he added.

Following this success, the company has accelerated its customer engagements. Amid the pandemic, they launched 16 herb-enriched lipsticks, which crossed 10 million in sales in 2020 and became best sellers.

Since the acquisition of Marico in 2021, the company has refined its strategies for managing customer acquisition costs (CAC), focusing on customer retention and nurturing.

The founders diversified the marketing channels, moving from an over-reliance on meta-apps to Google Ads, Affiliates, and Influencers, while prioritizing cost-effective channels and using partnerships with banks to optimize costs.

The start-up has also made significant investments in marketing initiatives such as collaborating with celebrities like Athiya Shetty and producing brand films to make the brand reach more people.

Just herbs that attract the new generation

Over the past five years, Just Herbs has noticed a gap in the booming Ayurvedic beauty market in India. As interest in Ayurveda continued to grow, the co-founders realized that there wasn't much attraction to these products.

Filling this gap, they decided to revamp their packaging and branding to attract young consumers with a new and modern look. According to Chopra, this approach has helped her to be at the forefront of integrating Ayurveda with modern skincare.

Next, instead of competing directly with well-known brands such as The Ayurveda Co. (T.A.C) Forest Essentials, Kama Ayurveda, The Body Shop, and L'Oréal, Just Herbs aims to take the lead in blending traditional and modern beauty. Chopra mentioned that they have found their niche by focusing on the youth who are interested in modern Ayurvedic products.s

Initially, their target audience was between the ages of 30 and 45. They later expanded the range to include people aged 25 to 45.

To connect millennials and GenZ, we have introduced innovative products like Lip and Cheek Tints and Ayurvedic Miscellaneous Water," the cofounder said.

In addition, they focused on creating products together with customers to ensure that the products were relevant and authentic.

The road ahead for Just Herbs

Moving forward to FY25, the start-up plans are aligned with Marico's holistic objectives.

"With presence across four portfolios, we aim to achieve harmonious growth across all segments. Using the last 18 months to complete the makeup portfolio, our goal at the moment is to establish Just Herbs as a popular name within and outside India. Our ambition is to make the start-up a recognisable brand across India's borders in the future, "Chopra said.

The startup also aims to continue innovation with an average of 3-4 new product launches per month.

In addition, it plans to focus on its recently launched perfume category, which will be divided into four sub-categories for men and women.

Additionally, it plans to focus on its recently launched fragrance category, which is divided into four sub-categories (perfume, deodorant, body mist, and roll-on deo) for both men and women. This category offers Cruelty Free Vegan products priced between Rs 295 and Rs 649.