German skincare brand Sebamed cuts prices, to use sachets for Indian market
Sebamed, a German skincare brand, is cutting prices of its products and will use sachets to make room in the Indian market, said a senior executive.
The brand usually caters to premium consumers in personal care and baby care and it is a recent entrant in the Indian skincare business. It has introduced pack sizes priced as low as Rs 10 as it looks to expand its distribution and sell its products even through the general trade route.
“We launched a Rs 10 sachet a couple of months back for our entire shampoo range. We started launching smaller versions of our products two and a half years ago so that people can try our product,” Shashi Ranjan, country head of Sebamed, told ‘Business Standard’.
Sebamed’s products are available at 60,000 outlets in 50 India cities. It plans to expand its reach to 100 cities by the end of this year.
Sebamed made its mark in the country through the pharmaceutical route as it tapped doctors to recommend its products, but as it expanded its reach in the country, it now only sees 20 per cent of its total sales through the chemist channel. It has taken an omnichannel approach to expand its distribution reach in the country and is adding more cities in a bid to grow its topline.
This move by the skincare brand comes as it has outlined a target of growing its revenue by 10 times over the next five years as it aims to become a billion-dollar brand in India.
USV Pvt Ltd, which markets Sebamed products in India, has also launched Little Birdy hair oil to expand its product offering. It also plans to enter into the nutrition category with its range of products.
“We are getting into nutrition segment, and these are early signals in terms of our intent to look at products which really appeal or fills the need gap of consumers. We will continue to explore such possibilities in the future,” Ranjan said.
As it looks to increase its sales, Sebamed has also increased its advertising spends by three times in the last three years even during the pandemic, Ranjan said. In the baby care category, Sebamed stands at number three in value terms, Ranjan said without sharing its market share number.
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