Juicy Chemistry, a Coimbatore-based personal and beauty care brand, is planning to enter the offline retail sector in a big way by opening around 115 company-owned company-operated (COCO) stores across the country in 2023–24. It is also looking to diversify its product portfolio by launching a natural and organic cosmetic line.
“With several expansion plans on the cards, we are targeting to be a Rs 175-crore brand in 2024–25 financial year,” Co-Founder and CEO of Juicy Chemistry Pritesh Asher told Businessworld.
“We have had very good run rates in the recent time. We have registered a growth rate of over 190 per cent. The company’s revenue stood at Rs 25 crore in the 2021–22 fiscal. Our aim is to arrive at Rs 45 crore in 2022–23 financial year and further Rs 100 crore by 2023–24-end,” Asher added.
Asher, who has been steering the D2C wagon since its beginning in 2014, is planning an offline foray as well as product diversification. The proposed 115 COCO stores will come up in metros and tier-1 cities. Besides, the company will have around 18–20 kiosks and 3,500–4,000 touchpoints in select locations. The company presently has four COCO stores in Coimbatore (2), Chennai and Kochi.
“We will soon open in Bengaluru and Hyderabad. We are in advanced talks with channel partners for opening an outlet in Mumbai by January 2023. We will eventually get into Delhi and Kolkata markets as well. We will have around 15 COCO stores within six months. And by 2023–24-end, we would have around 115 stores across India,” Asher stated.
D2C To B2C
“Juicy Chemistry has set up a robust online system for its D2C functions. Our strength has been our D2C format, but as time passes one needs to think about overhauling the whole system for growth,” Asher said.
“During Covid, there was a huge outcry in D2C space but that trend has diminished as people have come out on streets for traditional shopping, which is the touch and feel. So when we are diversifying ourselves and launching a cosmetic line, it is very pertinent for us to open new retail avenues to showcase our products and sell. It is not going to affect our D2C business, but we are aspiring to reach wherever we feel our customers are,” Asher noted.
Juicy Chemistry is entering the colour cosmetic segment in a big way. The company has already signed a slew of manufacturing contracts with some of the top European manufacturing companies, to produce around 15–20 lakh pieces to meet its domestic demand. The company plans to invest around USD 3–5 million over the next 18–24 months to fuel its growth.
“We are entering a new category which will require a lot of capital expenditure for marketing in order to make sure brand awareness is created. I am quite sure that ours will be India’s first certified organic range of colour cosmetics,” commented Asher.
Partners At Growth
At Juicy Chemistry, Asher has never followed the principle of growth at any cost strategy. Juicy Chemistry already raised USD 8.5 million from series A in 2020 and is looking at raising another USD 25–30 million in series B in 2023–24 to fuel expansion. Some of the key investors include Verlinvest, Spring Marketing Capital and Manash Lifestyles.
Juicy Chemistry’s approach to formulation has been very different. “When we look to address a concern, we run to the farmers and not the lab. The reason why we run to farmers is that we have conducted extensive research and found out the importance of natural organic ingredients in skin and personal care,” said Asher. The company works with farmers in thirty countries.
According to Asher, Juicy Chemistry does not face any competition. “We don’t have genuine competitors. There are hardly any organised, certified organic brands in the market today.”