Notes on Minimalist Skincare Company

Overview

• Minimalist is a rapidly growing skincare startup in India.
• Achieved 360 crores in annual revenue in just three years.
• Made 100 crores in revenue within 8 months of inception.
• Targeting the 16,000 crore skincare market in India.

Founders and Background

• Founded by Mohit and Rahul Yadav, serial entrepreneurs with previous experience in startups.
• Previously co-founded a kids fashion company, Mango Street, and a beauty brand, Free Well.
• Previous ventures helped identify opportunities in the beauty and personal care market.

Market Context

• India's Beauty and Personal Care Market is expected to grow at a 10% rate, reaching $30 billion by 2030.
• Market segments include skincare, hair care, cosmetics, and more.
• Minimalist focuses on the skincare category, specifically active ingredients.

Key Insights of Minimalist

1. Category Creation

• Active ingredients: Chemical components targeting specific skincare problems (e.g., wrinkles, dryness).
• Minimalist was the first brand in India to focus solely on active ingredients, unlike competitors who combine them with inactive ingredients.

2. Building Trust

• High competition with new brands entering the market (e.g., Foxtail, Dermaco).
• Minimalist achieved a 60% repeat purchase rate through:
  • Strong product quality and in-house manufacturing.
  • Higher sourcing costs leading to better product quality.
  • Focus on customer education and transparency about ingredients.

3. Access Strategy

• Products priced affordably (200 to 600 INR).
• Targeting the mass segment to maximize market reach.
• Expansion into international markets, already present in the UK, US, Gulf countries, and Southeast Asia.

Future Plans

• Plans to open 100 exclusive business outlets (EBOs) to educate customers directly.
• Aim to retain brand identity and avoid being lost among other products in supermarkets.

Conclusion

• Minimalist's success attributed to its focus on product quality, customer education, and strategic pricing.
• Positioned to continue growth in the booming beauty and personal care industry in India.