In 2014, when direct-to-consumer (D2C) was not the norm and e-commerce giants like Flipkart and Amazon ruled the online retail scene, Mohali-based Ayurvedic beauty and personal care startup Just Herbs had already marked its stride. into the Indian D2C realm.

The founders of Just Herbs Dr. They are Neena Chopra, Arush Chopra and Megha Sabhalok. The company has seen the dawn of the era of online marketplaces and the rise and fall of privacy. Apart from labels, Just Herbs also represents the emergence of the D2C model in India.

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

Amid the frenzy of VC funding, break-neck growth and waves of closures, Mohali-based Just Herbs has remained undeterred, moving forward by adapting to market trends such as customer-centric innovation, in-house manufacturing, etc.

Perhaps it is because of these things that in 2021 Indian consumer goods multinational Marico acquired Just Herbs, a brand offering a range of Ayurvedic skin, hair care and makeup products.

It was also a time when many D2C brands relied heavily on VC money. Bucking this trend, Just Herbs decided to merge with Marico, which helped them expand to over 500 retail touch points across India.

It was on the back of this pivot that the brand's top line grew significantly after its acquisition. From earning Rs 17.5 crore in FY21, the co-founders claim to have crossed the revenue run rate of Rs 100 crore in FY24.

The story started by Just Herbs

Just Herbs was inspired by Arushin's mother Dr Neena, a biochemist invested in making skin care products using herbs and plants.

Inspired by their formulations, Arush and Sablok envisioned turning their formulations into a brand, from where Just Herbs emerged. Arush led the business as CEO while Sabloc became Financial Controller and COO.

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 much involvement in online sales. However, selling online felt necessary because traditional distribution methods such as sales through chemist shops posed credit risks and the margins on supplying to hotels were too thin to sustain.

“The online space looked promising and made sense because many competitors had only basic websites without e-commerce capabilities. So, we got into online marketing and learning Facebook Ads and Google Ads. "Despite disagreements and apprehensions about spending our savings, we continued," Chopra said.

Starting with just three SKUs, the brand today spans over 150 formulations across categories like skin, hair, bath & body, natural makeup, fragrances and gifts.

How did Herbs get the Customer Acquisition Code?

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

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

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

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

In 2017, the founders launched JustHerbs Insiders, a Facebook community for direct feedback, enabling 3,000 to 4,000 women to share their experiences. That year the company achieved over 30 lakh sales through the website.

This period also marked the start-up's first forays when customers from the US showed interest in launching the products on TV.

“Initially, we had 100 orders per day on our website. It gradually increased to 500 orders per day and now we are approaching 5,000 orders per day,” said Chopra.

Chopra added that the development of the base is a key success factor for them. Prototypes were distributed to 300-400 women through Just Herbs Insiders (JH Insiders), and this strategy eventually paid off.

“This has led to the successful development of 5-6 new products, including our lightweight foundation and natural makeup lines,” he added.

Following this success, the company accelerated customer interactions. Amidst the pandemic, they launched 16 herbal-enriched lipsticks, which became best-sellers in 2020, surpassing 10 million in sales.

After the Marico acquisition in 2021, the company revised its strategies to manage customer acquisition cost (CAC), shifting its focus to customer retention and nurturing.

The founders diversified marketing channels, moving away from an over-reliance on meta apps to Google Ads, affiliates and influencers, while prioritizing lower-cost channels and using partnerships with banks to optimize costs.

The startup has also invested heavily in marketing initiatives such as partnering with celebrities like Athiya Shetty and producing brand films to reach out to more people.

Just Herbs appeals to the new generation

Over the past five years, Just Herbs noticed a gap in the booming Ayurvedic beauty market in India. While interest in Ayurveda was growing, the co-founders realized that there was not much appeal for these products.

To fill this gap, they decided to revamp their packaging and branding to appeal to younger consumers with a new and modern look. According to Chopra, this approach has helped them to be at the forefront of integrating Ayurveda with modern skin care.

Next, The Ayurveda Co. (T.A.C), rather than directly competing with renowned brands like Forest Essentials, Kama Ayurveda, The Body Shop and L'Oréal, Just Herbs aims to advance 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.

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

"We introduced innovative products like lip and cheek tints and Ayurvedic micellar water to connect with millennials and GenZ," said the cofounder.

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

JUST HERBS' JOURNEY AHEAD

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

“With a presence across four portfolios, we aim to achieve consistent growth across all segments. Using the last 18 months to complete the makeup portfolio, our aim now is to establish Just Herbs as a popular name within and outside India. "Our ambition is to make the startup a recognizable brand beyond India's borders in the future," said Chopra.

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

It also plans to focus on the recently launched fragrance category, which is divided into four sub-categories (perfume, deodorant, body mist and roll-on deo) for both men and women. Priced from Rs 295 to Rs 649, this category offers cruelty free vegan products.

While the startup's future plans are aligned with Marico, Arush wants the brand to become a household name in the ayurveda industry, which is expected to become a Rs 3.2 lakh