Why Does Organic Harvest Pursue Ambitious Offline Expansion Plans

The Indian skincare and beauty market has experienced a significant transformation over the past three years, particularly post-COVID. Consumers have shifted from generic 'green' categorizations to a more nuanced understanding, seeking details about the percentage of organic ingredients and certification status. This evolution has driven Organic Harvest to prioritize transparency and quality in its product offerings.

Organic Harvest, a pioneering brand in the realm of organic personal care, embarked on its journey in 2011 with a vision to fill a conspicuous gap in the Indian market. While consumers were embracing organic lifestyles in their food choices and clothing preferences, the realm of personal care products lacked a dedicated organic range. Over the past decade, the brand has not only filled this void but has also witnessed significant growth, evolving into a comprehensive skincare, haircare, and body care brand.

Distribution Evolution

Initially relying on a traditional offline distribution model, Organic Harvest has undergone a transformative shift in its distribution strategy over the years. What started as a predominantly online presence has now expanded into a balanced ecosystem with 50 percent of sales from both offline and online channels. The brand has strategically positioned itself on various online marketplaces like Amazon, Flipkart, Nykaa, Blinkit, and Zepto, in addition to maintaining a robust direct-to-consumer (DTC) website.

Offline Strategy

The company's offline strategy encompasses two key models – the beauty advisor-led model and mass distribution. The beauty advisor model involves trained sales professionals engaging with consumers at high-footfall outlets, providing personalized consultations, and promoting the benefits of organic products. The mass distribution model places products in retail outlets, allowing consumers to make informed choices based on previous experiences or recommendations. The brand has also ventured into salon distribution, offering exclusive ranges for salon use and retail.

“With a current reach of 100,000 retail outlets and 5,000 salons, we aim to expand our offline footprint to 250,000 retail outlets and 25,000 salons in the next two years. We strategically avoid exclusive partnerships with salon chains to maintain flexibility and maximize distribution potential,” said Rahul Agarwal, CEO, Organic Harvest.

Contribution of Tier II & III Markets

The growth trajectory for Organic Harvest emphasizes the increasing importance of Tier II and III markets, contributing 25-30 percent at present and expected to rise to 50 percent over the next two years. “These markets play a pivotal role in building brand aspiration and widening distribution,” he asserted.

Product Innovation

The brand's product portfolio spans over 200 SKUs across skincare, haircare, and body care. Recent innovations include the introduction of organic color cosmetics, aligning with consumer demand for certified organic beauty products.

“We plan to expand further into categories like organic hair color,” stated Agarwal.

Tech Integration for Personalization

The brand leverages technology for personalized consumer assessments, both in offline retail and on its D2C website. Face assessments guide consumers to products tailored to their specific concerns, and continuous tracking allows for dynamic product suggestions based on observed improvements.

READ MORE: The Resurgence of Organic Farming: Navigating Challenges in a High-Tech World

Future Targets

With a current revenue of almost Rs 200 crore, Organic Harvest envisions closing FY24 with a robust Rs 300-350 crore. “We are poised for aggressive growth, targeting the 500-crore mark in the near future,” he explained.

Additionally, the brand has ventured beyond Indian borders, with a presence in Nepal through traditional distribution. “Plans for expansion into the UAE and Saudi Arabia are underway, marking our foray into international markets,” he further added.