Organic Harvest, one of India’s leading homegrown organic beauty brand with an entire range of organic beauty care products, was conceived in June 2013 by entrepreneur Rahul Agarwal to fill the gap of lack of organic beauty products in India.
The brand has so far penetrated over 130 cities in India through its exclusive brand and multi-brand outlets. With a presence in Bangladesh, Nepal and as well as in UAE, this organic beauty brand is growing at a rapid pace both in India as well as abroad.
In an exclusive interview with Indiaretailing, CEO, Organic Harvest, Rahul Agarwal talks in the detail about the inception, the present and future plans of the brand.
Please elaborate on the journey of Organic Harvest.
In the beginning, we started with research on products that were already available in the market and gauged the gap that existed for organic beauty products. After a detailed and thorough examination, we realized that there was not a single brand inthe country that specialized in offering a complete range of organic beauty and personal care products. Although the personal care industry is flooded with domestic and international players vying for a market share, there is no brand in the organic personal care segment. And we are filling this gap with our quality products. Apart from the excellent quality of our products, the competitive pricing has resulted in a steady increase in demand.
When we launched our products in 2013, we were discouraged by stalwarts of the industry, but we knew one thing, that if we could make good quality products, which are reasonably priced, there has been and will always be a market for it. And that’s how our journey started. Proving us right, the organic skincare segment has emerged dominant in the market.
It is said that 60 per cent of the product that you apply on your skin goes inside your body. Hence we must use what is healthy and organically grown. The increasing demand witnessed in the segment is mainly attributed to the rising consumer awareness regarding the side-effects of synthetic and chemically treated personal care products.
What makes Organic Harvest so special?
We specialize in hair care, body care and skin care products that are made from certified organic natural products. To keep the skin miles away from damage, no harsh chemicals are used; instead, the raw materials that are used are certified by global organizations like EcoCert, OneCert and Natrue. The certification is evidence that the raw materials used for manufacturing Organic Harvest products are derived from plants that have been grown without chemical fertilizers, herbicides and pesticides and are organic. The raw materials that we use in our products are free from any harsh chemicals, parabens, phthalates, mineral oil, PABA, petrolatum, paraffin or animal ingredients. Every product is carefully conceived using eco-friendly practices and going the extra miles of being respectful of the earth. None of the products are tested on animals because we believe animals are also a part of nature.
How many SKUs do you have?
Starting out with an initial investment of US $6 million, we spent the money on R&D, sales and marketing, and capital expenditure.
Launching the venture with 30 SKUs, today the brand boasts of more than 100 SKUs spanning across skin care, hair care and body care.
What is the average ticket size?
Our average ticket size is Rs 600.
Elaborate on your Omnichannel presence.
General & Modern Trade – We reach out to more than 5,000 retail stores in general trade. We have also tied up with the organized retail chains such as Health & Glow, Dabur New U, Spencer, More, Apollo Pharmacy and Wellness Forever.
Exclusive Brand outlets – We have started opening up Organic Harvest stores, in prominent malls and high streets. Currently, we operate 12 stores across India (Mumbai, Delhi, Pune, Dehradun and Bareilly).
Export – We have started exporting products to UAE, KSA, Nepal and Bangladesh and we will soon be expanding in all GCC countries along with Malaysia and Singapore.
Throw some light on your promotion and marketing activities.
We believe in direct connect with the consumers, so all our promotion activities revolve around this premise. We employ highly-trained, high calibre, beauty advisors, who connect with consumers one-on-one and provide them insightful knowledge about our products. We have more than 600 beauty advisors on our rolls.
BTL Activities – BTL marketing activities are a proficient and cost-effective means for focusing on a target audience and particular gathering. It is a typical method to provide look and feel of products to the end users. Some of the finest and effective BTL activities which Organic Harvest organizes are free facials and sampling of products.
Organic Harvest keeps participating in brand appropriate events for the marketing and promotion of brand. Other than this, we actively engage with the bloggers and influencers.
Let’s talk about your expansion plans.
The brand is currently available in 5,000 outlets and we plan to increase the presence to 50,000 in India within a span of three years. We are exporting our products to four countries (UAE, KSA, Nepal and Bangladesh) and in the forthcoming year and gradually want to increase the number to 10. Also, in terms of our exclusive brand outlets, currently we have 12 EBOs and plan to have 50 by 2020.
Internationally, we have recently debuted in the UAE and KSA markets. Organic Harvest is already present in Bangladesh and Nepal with its extensive range of organic beauty products. The brand is targeting a tremendous growth and is poised to enter in the GCC countries – Sultanate of Oman, Kuwait and Qatar in the next six months followed by Singapore, Malaysia and Indonesia in the South East by next year.
Any plans to raise funds to aid the expansion plans?
The brand is currently self-funded and we do not have any plans to raise funds. We want to wait for one more year before we go there.
What are the revenue targets for current fiscal?
The company, which is expected to close the current fiscal with Rs 50 crore turnover, is eyeing Rs 500 crore sales over the next five years. We are also looking at expanding our retail and distribution presence. We will increase our distribution from 5,000 outlets to 20,000 outlets and from 12 standalone stores to 25 by end of this fiscal.
Where do you see Organic Harvest five years from now?
With our unmatchable quality and competitive pricing of products, the brand is growing rapidly with repeat and referral customers since its launch in June 2013. The brand is currently available in 5,000 outlets and we plan to increase the presence to 50,000 in India within a span of three years. We are exporting our products to 4 countries and in the forthcoming year and gradually want to increase the number to 10. Also, in terms of our exclusive brand outlets, currently we have 12 EBOs across all major cities in India (Delhi, Mumbai, Pune, Surat, Bareilly and Dehradun) and plan to have 50 by 2020. We had also created a TVC campaign and associated with popular serials to further increase the visibility and have a top of the mind recall with the target audiences.