Good Glamm Group - D2C Beauty Brand
Founded in 2016, Good Glamm Group is India's fastest growing direct-to-consumer beauty brand.
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Founded in 2017, Mumbai-headquartered Good Glamm Group is a direct-to-consumer beauty brand that offers an online beauty marketplace with international spa and salon products. Along with the new age beauty products that Good Glamm Group sells, it also has its own training academies and on-demand beauty services.
The company grew a significant amount in recent years, becoming a Unicorn in November 2021 on the backs of a $150M Series D from Prosus Ventures and Warburg Pincus.
The company is backed by notable investors including french beauty major L’Occitane, silicon valley VC firms Bessemer Venture Partners & Accel, and global e-commerce giant Amazon among others.
Business Overview & Products
Good Glamm Group currently has 4 sub-brands:
The brand also plans to introduce a personal-care category soon. These categories include premium cruelty-free products that are designed especially to cater to Indian consumers and their beauty needs. The brand also offers a variety of collections ranging from premium ones such as Manish Malhotra to cheaper alternatives like LIT, Liquid Matte Lipstick.
Apart from designing and selling these products, Good Glamm Group offers aesthetician services at home through their app. Their recent acquisition of POPxo resulted in the creation of Good Glamm Groupxo, a program for beauty influencers, where they provide free Good Glamm Group products to influencers so they can create content and share it with their subscribers. The company operates across 50 cities and delivers in 1,000 towns in India, and plans to expand globally soon.
How It Works
Good Glamm Group is an online marketplace that designs and sells products created specifically for Indian consumers. These products are developed in laboratories across Italy and Germany and are 100% cruelty-free.
The company has built its own training academies where courses in beauty, hair, and makeup are offered to students. The earnings from these academies are a major contribution to the company’s total revenue. Good Glamm Group also offers on-demand beauty services which can be availed through their mobile application or via a phone call.
The company’s strategy to gain new customers relies heavily on a generous reward system. For starters, upon referring the brand to someone, the referrer either receives online points that can be used in offline stores or hefty discounts on products and services. Another way to earn points is by promoting Good Glamm Group on social media like commenting on their official posts and creating hype about new products.
The venture is also known for its one-of-a-kind program for influencers and beauty enthusiasts called Good Glamm Groupxo which is an interactive space for influencers to share their content using products provided by the brand. The platform not only helps influencers gain more followers but also pays them for promoting the brand.
The company’s tech-enabled stores have not only made transactions easier but also enhanced the shopping experience of customers. For instance, there are beauty advisors present at their stores that advise customers on which product suits them and fits their criteria. Moreover, customers also have the option of swatching a product at the store and then adding it to their wishlist in the app.
During the pandemic, Good Glamm Group also introduced the option of virtually trying products which saved consumers the extra trip to stores and was quite a game-changer during the lockdown as it reduced the risk of buying wrong products.
Business Model & Pricing
Good Glamm Group has a direct-to-consumer (D2C) business model where it offers an online beauty marketplace to its consumers. The company also collects data to understand the needs of its customers and then creates content accordingly in an attempt to build a community with them.
The company has adopted price differentiation as its key pricing strategy. With its vast collections, the company is catering to all income groups. For instance, it has lipsticks starting from INR 300 ($4.02) to INR 1000 ($13.39)+. A shipping fee of INR 99 ($1.33) is only charged when the order amount is below INR 199 ($2.66). Moreover, prices are also customized according to the store credit each customer has in their account.
While the company refuses to reveal their revenue, in 2021 they reported an annual revenue rate of $100M which they were hoping to increase to $250M in 2022.
The major factors driving their growth are product portfolio expansion, aggressive expansion strategy, category growing, POPxo, driving digital growth, and tier-two and tier-three driving offline. Around 98% of the online revenue comes from the Good Glamm Group website and app; the remaining 2% comes from marketplaces. Category-wise, 75% comes from makeup while 25% comes from personal care.
Founder(s) & Team
Priyanka Gill: Co-Founder at Good Glamm Group. Priyanka, an MBA graduate from London Business School started her blogging journey from eStylista which was a huge hit. A year later, she founded POPxo, India’s largest women-centric digital platform which was later merged with Good Glamm Group and became Good Glamm Group-POPxo-Plixxo.
Darpan Sanghvi: Co-Founder and CEO at Good Glamm Group. Darpan, an MBA graduate, previously worked as a Marketing and Business Development Manager at eBay, and as a Business Analysis Manager at Celanese. He also founded Sanghvi, one of the largest luxury salon and spa operators in Asia.
Naiyya Saggi: Co-Founder at Good Glamm Group. Naiyya, a Harvard graduate, previously worked as a Consultant at The Bridge Spa Group and as a Business Analyst at McKinsey & Company. She also founded BabyChakra, India’s largest platform for pregnancy and childcare.
History & Evolution
Darpan Sanghvi, a fresh MBA graduate returned to India in the early 2000s and realized the lack of international brands present in his country. With the idea to globalize brands in India, he contacted L’Occitane and managed to score a master franchise with them. For the next 10 years, he launched 25-30 international spas in India. It was during this time he realized the market gap in the beauty industry, how international brands were not fulfilling Indian consumers’ needs and neither were they tech-enabled. With this vision in mind, Good Glamm Group was founded in 2016 as a beauty brand that made looking glamorous effortless.
Initially, the company started with a makeup line to establish its dominance in the market. Their target was to create premium face products that felt comfortable on the skin to gain the consumer’s trust. Once their first product, Total Makeover FF cream took off, they slowly expanded to other makeup products.
In its 12th month of existence, the brand ventured into different collections to cater to all kinds of consumers, helping them create price differentiation. For instance, with their first line LIT they targeted the low-income group, and in another line, Manish Malhotra targeted the elite class.
The next year, 2018 was spent on exploring different lines and expanding portfolios. Since the makeup line took off, Good Glamm Group ventured into skincare as well as hair care. In 2019, the company saw a major 400x growth as a result of its expansion. The company’s 90% of transactions were being made on its own platform whereas other brands were relying on marketplaces for transactions. This gave Good Glamm Group a competitive edge over all its competitors.
In 2020, sales plummeted initially due to the pandemic because Good Glamm Group’s product lines did not fall under the essentials category. However, in August, Good Glamm Group acquired POPxo to expand into the online content space. This move did wonders for the company as its monthly customer acquisition numbers rose to 60,000. It also helped the company master the art of content to commerce which in turn reeled in more consumers than ever. In 9 months, Good Glamm Group started acquiring 250,000 customers every month.
In 2021, Good Glamm Group acquired BabyChakra, a parenting platform that offers information and tips related to parenting, The Moms Co, a D2D mother and baby care brand, ScoopWhoop, a digital media and lifestyle content platform and Miss Malini, a celebrity media and influencer talent management network.
The company that started its operations in Mumbai now has 15000 points of sale in 70 major cities of India including Mumbai, Bengaluru, Pune, New Delhi, Hyderabad, Chennai, Chandigarh, Kolhapur, Jaipur, Jammu and Kashmir, Ahmedabad, Surat, Amritsar, Kolkata, Lucknow, Bhopal, Indore, Meerut, Goa, and Ludhiana. It also delivers in 1,000 cities across India and plans to expand globally and cater to a wider audience. The startup initially started with 450 services and now has 15,000 services with a pool of 1,800 beauty professionals. It delivers close to 600 services a day.
In September 2021, Good Glamm Group was rebranded as Good Glamm Group. This move was made to consolidate the company’s numerous businesses under one umbrella brand. By becoming the Digital House of Brand, the company aims to be a one-stop-shop for women in every stage of their lives, from teenage years to motherhood.
The beauty industry was worth $511B in 2021 with a valuation supposed to exceed $716B by 2025 with an annual compounded growth rate of 4.75%.
India’s beauty industry, worth $27B saw a boom driven by online shopping and influencers.
Suggested Next Reads
[Podcast] Future of beauty and personal care: Good Glamm Group tracking the evolution of the category in India (Anand Daniel, Your Story, Aug ‘21)
India's Good Glamm Group to invest in NPD, data and offline after funding boost - CEO (Amanda Lim, Cosmetics Design-Asia, March ‘21)
Darpan Sanghvi of Sanghvi Brands, on creating India’s largest bespoke beauty services platform ‘My Glamm’ (BNI Links, LinkedIn, Sept ‘16)