Is Minimalist A Good Brand & Can It Compete With The Giants?

Minimalist- An Indian skincare brand known for its transparent & honest products is making waves in India and abroad. Unlike some premium brands, Minimalist offers exclusive quality products at pocket-friendly prices. Guess what? This became a crucial part of Minimalist’s success!

Now the question is- Is Minimalist a good brand? If yes, then, can it compete with the giants?

Go through the article and you’ll get the answer!

(A) What Is Minimalist? Profile Overview

Minimalist is an Indian skincare brand founded in 2020 to offer honest skincare products. Honest? Yes! Here is what they say-

Minimalist started with a big idea- they wanted to change how the beauty industry works by being clear and honest. They saw that many beauty brands were giving out wrong information and making promises they couldn’t keep. This made people worried and confused, leading them to buy things that weren’t right for them.

One big problem they noticed was with “natural” products. A lot of people think that if something is called “natural,” it’s automatically safe and works well. On the other hand, they think anything with chemicals is bad. But here’s the thing- everything is made up of chemicals, even water! So, saying something is “chemical-free” doesn’t make sense.

Minimalists decided to do things differently. They wanted to create products that are easy to understand, tell the truth, and work, without all the fancy talk you often see in ads. 

Before diving further, let’s have a look at its profile-

Do you know, Minimalist is expecting 30% revenue from international markets? We will discuss it in the later sections.

(B) Is Minimalist a Good Brand?

As you have read above, Minimalist aims for “clean beauty,” meaning products free from well-researched toxins, regardless of whether the ingredients are natural or naturally derived.

So, naturally, you must be wondering whether it is a good brand or not! To solve your query, we went through a long list of user reviews on “Minimalist” products. Based on the reviews, it seems like Minimalist has both positive and negative feedback from users. 

Let’s discuss the facts we found-

(B.1) Positive Points

• Affordable: Many customers appreciate that Minimalist offers products at a reasonable price compared to other skincare brands. That’s why people call it an affordable replica of “The Ordinary.” 
• Effective Products: Some users found Minimalist’s products to be worth the price, mentioning that they saw improvements in their skin texture and appearance after using them.
• Specific Product Effectiveness: Certain products like the serum, sunscreen, and cleansers received praise for their performance, with customers noticing positive changes in their skin.

(B.2) Negative Points

• Quantity for Price: One customer in Amazon reviews complained that the quantity of the products is too low for the price, suggesting that they may not last long.
• Sticky Texture: Another user mentioned that the moisturizer felt sticky after application, suggesting that it may not be suitable for everyone.
• Initial Side Effects: Some users experienced initial side effects like itchiness, skin peeling, and pimples when using certain products like the retinoid face cream. But later they found good results including glowing skin.

Overall, whether Minimalist is a good brand or not depends on your preferences and experiences. While some customers appreciate the affordability and effectiveness of certain products, others may have concerns about quantity, texture, or potential side effects. Potential customers like you need to consider these factors and possibly try out samples or smaller sizes before committing to full-size products.

(C) Business Perspective: Financials of Minimalist

Minimalist stands out in the Indian direct-to-consumer market for its impressive financial performance over the past two years. In the fiscal year ending March 2023, the company’s revenue skyrocketed from Rs.22 crore in FY21 to Rs.184 crore in FY23, marking an eightfold increase. Notably, the Jaipur-based company has remained profitable since FY21.

According to consolidated financial statements obtained from the Registrar of Companies (RoC), Minimalist experienced a 70.3% surge in revenue from operations, reaching Rs.184 crore in FY23, up from Rs.108 crore in FY22. The company primarily sells its products through its website and various e-commerce platforms such as Amazon, Nykaa, Flipkart, and Myntra. 

Let’s look at the financials of Minimalist for FY22 and FY23

In FY23, the sale of its products constituted the sole source of revenue for Minimalist. Similar to other direct-to-consumer skincare and beauty brands, the company allocated a significant portion of its overall expenditure, 36%, to advertising and promotional activities, which doubled to Rs.65 crore from Rs.33 crore in FY22 as the company scaled up its operations. Additionally, the cost of procurement increased by 72% to Rs.50 crore in FY23. 

Various expenses including employee benefits, distribution costs, legal fees, and other overheads contributed to the company’s total expenditure doubling to Rs.180 crore in FY23 compared to Rs.90 crore in FY22.

(D) Can Minimalist compete with the giants?

While Minimalist may not have the same level of brand recognition or marketing budget as the giants in the industry, it certainly has its own strengths. Let’s discuss it one by one-

(D.1) Crafting Quality

While Minimalist might not have the household name status of some skincare giants, it’s all about quality over quantity. Instead of bombarding the market with endless options, Minimalist hones in on a select range of products that are meticulously crafted and scientifically backed for real results.

(D.2) Making Beauty Affordable

Minimalist keeps its prices down without compromising on quality. While other big brands might slap a hefty price tag on their products, Minimalist keeps things reasonable, making top-notch skincare accessible to everyone.

(D.3) Trust through Transparency

Minimalist doesn’t play games when it comes to transparency. They’re straight shooters about what goes into their products, how they’re made, and the science behind them. This transparency builds trust with customers who want to know exactly what they’re putting on their skin.

(D.4) Flexibility and Freshness

Despite being relatively new compared to established giants, Minimalist isn’t afraid to innovate and adapt. They keep a close eye on industry trends and consumer preferences, constantly refining their products and marketing strategies to stay relevant and competitive in the market.

(D.5) Personal Touch

No one-size-fits-all approach here! Minimalist understands that everyone’s skin is unique. They offer personalized recommendations and solutions tailored to individual needs, making skincare feel like a custom-fit experience.

If Minimalist sticks to its strengths and works on the negative feedback of the customers, then we can say that Minimalist can compete with the reputed beauty giants. Although it can take time, the founder is hoping so. Any facts to justify it? You may ask. Well, Minimalist has been profitable throughout the years and is planning to expand internationally. 

Isn’t it a signal for Minimalist’s ability to beat the giants in the competition? Think carefully!

Note: There is another skincare brand that gained immense popularity recently. Can you guess it? Its Cetaphil! Go through the article “What’s special about Cetaphil & why is it popular among men?”

(E) Future Plans of Minimalist

Minimalist is planning to go global. Here’s how-

(E.1) Venturing Abroad

Minimalist, known for its skincare products, has recently stepped into international markets like Australia, Singapore, and Vietnam, and even made its mark in the Middle East, particularly in the United Arab Emirates, back in 2021. This bold move came as they noticed more and more people worldwide seeking skincare solutions based on solid science, not just in India.

(E.2) Tailored Promotion Strategies

Understanding that each market has its own flavor, Minimalist is crafting unique promotional plans for each destination. Their playbook includes a mix of digital marketing, teaming up with influencers, and crafting ads that speak directly to the people in each place, catering to their tastes and preferences.

(E.3) Growth Ambitions

While currently, about 10% of their sales come from abroad, Minimalist aims to boost that number to a whopping 30% in just two years. Founder Mohit Yadav revealed plans to ramp up advertising spending while keeping profitability in check. Their approach involves using various platforms, partnering with influencers, and hosting events to spread the word about their products.

(E.4) Challenges along the Way

Expanding globally isn’t all smooth sailing. Minimalist has had to tackle hurdles like meeting different regulations, keeping their supply chain strong, finding the right ways to get their products out there, and understanding what customers in each market really want.

Despite the ups and downs in the global economy, the founders remain positive. They’re sticking to Minimalist’s long-term vision and believe in the skincare industry’s ability to bounce back from any challenges, which is why they’re boldly taking their brand around the world.

It will be interesting to see how Minimalist unfolds its success in the future!