It's boom time for natural products. Anything that smacks of ayurveda or herbal remedies is lapped up by consumers, probably according to the logic that if Madonna is into it, it can't be that bad. One would imagine that the sky is the limit for Indian herbal cosmetics or natural personal care products to market themselves abroad.
It seems ironic, then, that while we have not heard of indigenous Indian brands doing well abroad, there is a Chicago-based natural skincare brand, H2O Plus, that's doing well here. H2O Plus, which uses seawater as a base for most of its products, was founded in 1989, and is now a $100 million company, with over 350 points of sale all over the world.
H2O Plus came to India in March of this year, with two stores in Delhi and seven counters jointly in Delhi and Mumbai. It seems to have fared better than expected, for it is planning six new stores by next month, and 15 more counters in cities like Hyderabad, Chandigarh, Bangalore and Chennai. Consuelo Martìnez, senior international account manager, H2O Plus, was in New Delhi last week, and had a very clear idea about why
the brand is so successful.
"It's a range of factors," she says. "It's a natural brand. This is a huge selling point, especially in India, where the consumer is more sophisticated about natural products. Then, we've luckily positioned ourself here as one of the only premium skincare products that is available in organised retail."
It's true that retail in India, and not just for skincare, is disorganised. While you will find the odd Body Shop or Clinique product here, they are more the result of a lazy or unprincipled customs officer than an initiative on the part of these companies to reach out to the Indian consumer.
H2O Plus, on the other hand, has tied up with Sports Station India, which has experience retailing brands like Levis, Dockers, Nike and Aigner, for distribution and retail.
The price point for H2O Plus ranges from Rs 900 (for a mask or a scrub, for instance), to Rs 4,000 for an entire regime in its skincare line. It has spa and bath & body lines at Rs 450-2,000.
"We are priced below premium brands such as Christian Dior," says Garima Makkar, product manager at H2O, "but above mid-market brands such as L'Oreal. So we're occupying a unique spot in the market -- like accessible luxury."
H2O Plus still needs to beef up awareness about its brand, though. While the Indian consumer may be "sophisticated" when it comes to natural products, "water-based, sea-derived" products are relatively new here, and we still have an inherent suspicion of seaweed.
H2O Plus is planning, according to Makkar, a series of events to raise awareness, and this should give the brand enough of a headstart for when the retail sector finally manages to organise itself.
