German skincare brand Sebamed cuts prices, to use sachets for Indian market

The brand usually caters to premium consumers in personal care and baby care and it is a recent entrant in India

German skincare brand Sebamed, a newcomer to the Indian skincare space, has shifted focus to smaller units and sachets to expand its reach in the domestic market.

The personal care and baby care company is bringing down the price points of its products. It has introduced pack sizes priced as low as Rs 10 as it looks to broaden its distribution and sell its products even through the general trade route.

The brand typically caters to a premium consumer in the personal care and baby care categories.

“We launched Rs 10 a 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 them,” Shashi Ranjan, country head at Sebamed, told Business Standard.

Currently, its range of products are available at 60,000 outlets in 50 cities, which it plans to expand to 100 cities by the end of this calendar year. The company intends to make its products available even at mom-and-pop stores.

Sebamed entered India through the pharmaceutical route as it tapped doctors to recommend its products. As the company is expanding its reach, it only sees 20 per cent of its total sales through the chemist channel.

It has taken an omnichannel approach to increase its distribution reach and is adding more cities in a bid to grow its topline.

This move by the skincare company comes at a time when it sets a target of increasing revenue by 10 times over the next five years in order to become a billion-dollar brand in India. In 2021 (calendar year), Sebamed's India revenue stood at Rs 600 crore.

USV, 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 the nutrition segment, and these are early signals in terms of our intent to look at products, which really appeal or fill the need gap of consumers. We will continue to explore such possibilities in the future,” Ranjan said.

Sebamed has increased its advertising spends by three times in the past 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.

In 2021, the company took on Hindustan Unilever soaps by comparing pH levels.