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2026.10.01 | TB | Consumer | Indian Grooming & Haircare Sector

原标题：PE Sector Update: Indian Grooming & Facial Haircare Sector

#consumer

Third Bridge · 2026-10-01

Analyst-led • 14 Sep 2026

Companies: 507815 IN, META US

Varun Gupta (VG) Chief Marketing Officer at Visage Lines Personal Care Pvt Ltd Inc (Bombay Shaving Co)

Devanshi Shah (DS) — Third Bridge Sector Analyst

Agenda

Key Insights

Introduction

DS [00:00:10]: Welcome to Third Bridge's Interview entitled PE Sector Update: Indian Grooming & Facial Haircare Sector. I am Devanshi Shah, and I'll be facilitating today's Interview with Mr Varun Gupta, who is the Chief Marketing Officer at the Bombay Shaving Company.

Before we start today, could you please state I agree or I disagree to the following statement: You understand the definition of material non-public information and agree not to disclose any such information, or any other information which is confidential, during this Interview.

VG [00:00:42]: I agree.

DS [00:00:43]: Thank you so much. If you would, could you begin with a brief introduction to your background?

VG [00:01:14]: I work with Bombay Shaving Company. It's a 10-year-old start-up, Devanshi. I serve as the Chief Marketing Officer. I've been here for the last 4.5 years. My job essentially is to build products and market them across the Bombay Shaving Company spectrum, which is trimmers, deodorants, perfumes, razors, consumables, foams, creams, all of that, the entire shebang. I've worked with Pepsi, HUL and RP-Sanjiv Goenka Group in the past. Currently, the last 4.5 years, I've been building Bombay Shaving Company.

Questions

00:03:05] What 2-3 key trends are you seeing in the men's grooming industry in India?

VG [00:03:20]: What's happened in the last few years is men have become very conscious of grooming. It used to be grooming as a correction maybe, or maintenance or top-up maybe, but currently, grooming has completely become a source of expression. Especially younger people, people under the age of 27 are extremely cognisant of how they look, how they feel and their exterior visage is an extremely important part. 2-3 things have happened. One is that from a hair removal point of view, south-of-neck grooming has become very, very common. People trimming or shaving underarms, chest, private parts, arms and legs is the new normal. Sometimes it is because of sports, sometimes hygiene, sometimes intimacy, but this is at an all-time high. Second is beard, which was a huge subculture for the last 10 years or so, is now finally on the way out. It will still take a couple of years to go finally out, but younger people today are not very comfortable sporting dense beards. Even if they have beard, they like stubbles. They don't like a very clean shave that a razor provides.

In terms of perfumes, the next biggest change that has happened over the last 4-5 years is that perfume wardrobing is happening. People are going away from deodorants directly into perfumes. They are having various variants on their dresser. Now people are very familiar, especially metro adults are very familiar of which perfumes at day, which at night, what according to the occasion. They know layering, which means that one on top of the other and create combinations. There's a unique scent that everybody wants to be associated with. This, by the way, has happened not demand-led because no perfume brand or personal care brand has done it. It's actually supply-led. Because two things have happened. One, there's been a lot of brands that have entered this category in the last five years because it's a very high-gross-margin category.

Second is dupes of foreign brands from the Dior Sauvage to the Creeds to all of it, Tom Fords of the world, everything, whatever… Davidoff. Everyone will have a cheaper cousin or two or many dupe brands who will clone them, reverse engineer them in a factory in Gujarat. Supply has really exploded. Deodorant is on the way out. It will take another 10 years for it to go finally out, but perfume is growing. What's also happening is that deodorant used to be the first grooming product for a young adult or young 15-17-year-old about to be adult. Today, it's a trimmer. People are buying a trimmer first, which is a huge change. Young guys are not very happy, not very comfortable with having patchy hair or fuzzy hair. That's that. In terms of haircare, market hasn't moved a lot. It's still very unisex products that are being used or whatever is used in the family. Of course, it's changing. People are evolving, but at the slowest pace in haircare.

The category is huge because people use women's products, but skincare has evolved a lot. Three subcategories have exploded. One is face wash, gentle cleansing. Cetaphil and Simple has exploded. Second is serums. Brands like Minimalist, etc, have exploded and then sunscreen. A lot of brands have exploded. These three subcategories for men have become very second nature now. Sunscreens, serum and face washes, these three are skincare, they have exploded. One thing is there. A lot of men's grooming brands have entered in the last 10 years. Not a lot of brands have succeeded. If you think you can count it on fingers, the number of brands that have done even INR 100 crore business, which is very tiny, by the way, because (audio distorts 08.04) been able to solve for the entire spectrum. There are brands who stand for niches, either hair removal or serums or sunscreens or cleansing, but no brand has been able to pick the entire spectrum.

Secondly, no brand has the authority also to do it. Now there are a lot of D2C brands who have come up in the last two years also, but they are tiny. It's Garnier, Philips, Nivea, Bombay Shaving Company, Man Company, Beardo, maybe there's another couple of them that I don't remember right now, and Gillette, of course. Gillette is a big daddy. These are the only companies that have survived. Another trend, Devanshi, is premiumisation is very clear. People are wanting to upgrade across formats, across pack sizes, across brands even. Role of AI, role of internet, role of YouTube is extremely high because some of these channels have been able to give the information needed to solve what you call it, the asymmetry in understanding, etc.

00:09:33] What is the market size of the men's grooming industry, and at what rate do you expect it to grow over the next 3-5 years?

VG [00:09:45]: I'll be honest, there are no fixed numbers here because a lot of men use a lot of unisex products. How we look at it is there is a hair removal market, which is around INR 7,000 crore. There is a fragrance market, which is around INR 5,000 crore. Everything else is tiny, but because they use unisex products and hence, that would be around another INR 5,000 crore-10,000 crore. You can say anywhere between, say, INR 15,000 crore to INR 30,000 crore, but there's no way to quant it out. We can quant it out using the men's grooming brands, but men using unisex products are extremely high number. Growth are very, very high. There is no reason why it will stop. Anywhere around 15% is the CAGR after COVID had exploded. '20-'22, it exploded. After '22-'26, it is around 15% CAGR. There's no reason to slow down because men are just getting started. Where women were 70 years back, men are now starting to go there. It's just going to explode.

DS [00:10:47]: What time period are we looking at for the 15% CAGR we're discussing?

VG [00:10:54]: '22-'26.

DS [00:10:59]: What about over the next 3-5 years?

VG [00:11:02]: I think unless there is a huge innovation, 15% should continue. If there is a huge innovation somewhere, then probably higher, but it will not come down. It can only go up.

DS [00:11:16]: 15%. Are you talking about the next 3-5 years?

VG [00:11:22]: Yes.

DS [00:11:24]: Would that include hair removal, as well as fragrances, or would that grow at a separate rate?

VG [00:11:33]: No, they would improve 15%. Hair removal might be slightly slower unless somebody actually finds a solution that competes with a barber. Hair removal might be, say, 10-12% and others might be at 17-18%, but put together, 15% CAGR will be there.

00:12:14] Across the different categories within the men's grooming industry such as electric products, fragrances, personal care, etc, which product category has the largest market share and is expected to be the fastest-growing?

VG [00:12:26]: Largest and fastest growing. On paper, hair removal has INR 7,000 crore. Fragrance would be another INR 5,000 crore. Haircare on paper is small, but because men use women's products on haircare and skincare, so haircare, skincare might also be INR 5,000 crore each. In terms of fastest growing, probably fragrance, skincare, then appliances and then razors and other stuff.

DS [00:12:58]: Why do you expect fragrance to be the fastest growing?

VG [00:13:05]: Again, same, 2-3 things are happening. People are seeking variety. It's a very flirtatious category. Second, there's a lot of supply. When there's a lot of supply, a lot of market explosion happens across tiers. This is not a metro phenomenon anymore. It's a deep rural phenomenon also, (audio distorts 13.24) is joining the party. Fragrance is going to explode.

DS [00:13:35]: Regarding the 15% CAGR that we spoke about as the growth rate, apart from the trends that you mentioned, are there any other key growth drivers that would help it grow at the rate of 15%?

VG [00:13:46]: No. We mentioned premiumisation. We mentioned the south-of-neck grooming. We mentioned variety-seeking behaviour. We mentioned outward appearance becoming extremely important. What else we mentioned? Cultural…

00:14:13] You touched on premiumisation. Which category within men's grooming has the strongest premiumisation potential over the next 3-5 years?

VG [00:14:21]: Strongest premiumisation potential you mentioned?

DS [00:14:23]: Yes.

VG [00:14:24]: Appliances, by far. I think the most premiumisation is going to happen in appliances. Appliances, not just for hair removal. Very soon, in the next five years, you might have appliances for a lot of other things.

DS [00:14:43]: What other appliances are we talking about?

VG [00:14:46]: Any, skin, hair. A lot of things. Can be anything. Globally, skin and hair appliances for women have shot up, but for men, they haven't. Just waiting to explode. Dryers, stylers, multi-stylers, volumisers, red light therapies, face masks, whatever, you can just name it. These have exploded for women.

00:15:15] Where do you still see high price-sensitivity within the men's grooming category?

VG [00:15:24]: I think soaps, deodorants, shampoos, blades, some of those categories, which are more commoditised, Devanshi.

00:15:42] Looking at well-established brands such as Philips, which has a strong advantage in men's grooming appliances through product reliability and a long-established offline distribution network, how are D2C players competing with the larger incumbents?

VG [00:16:03]: Brands like Philips are god. Gillette, Philips, these are gods. Gods are slow. The other brands are fast. That's one of the biggest advantages. Design trends, content trends, feature trends, all these three are… They come easily to new brands.

00:16:30] How much market share do D2C players have vs larger players?

VG [00:16:38]: Across categories, deodorants, fragrances high if you consider Bella Vita, a D2C brand. Then in deodorants, fragrances, the D2C brands would have, I think, 25-35% share. In hair removal, D2C brands will have a 6-8% share. Then in skincare, haircare is unisex, so D2C brands will have a very tiny share.

00:17:23] Do you see D2C players capturing more market share? Will the overall market positioning evolve over the next 3-5 years?

VG [00:17:35]: The bigger brands are also reacting. The bigger brands are buying smaller brands left, right and centre. They are also trying to build that capability. If bigger brands can build capability to be fast and react to the consumer in a way that consumer wants, then you never know, but otherwise, D2C brands are currently in terms… They are tiny, but they are growing way faster than the incumbents.

00:18:07] You talked about acquisitions. Do you foresee more consolidation happening in the industry?

VG [00:18:16]: Yes, 100%. Men have never had options. Men are not people who like to be spoiled for choice in this category. Men like certainty, men like lower number of brands and lesser decision anxiety or something. Eventually, it will consolidate into lower number of brands. Currently, everyone is trying to create a men's grooming brand.

00:19:07] What is the current percentage revenue split between online and offline sales?

VG [00:19:16]: It depends on the category. In hair removal, if you take trimmers, it will be 30% offline, 70% online. If you think non-trimmer hair removal, it will be 90% offline, 10% online. If you think about deodorants and perfumes, it will be 20-25% online, 75-80% offline. Skincare, haircare, they are unisex, so it's primarily offline.

DS [00:19:46]: For non-trimmer hair removal, you mentioned 90% offline and 10% online. Is that right?

VG [00:19:53]: That's correct.

DS [00:19:54]: Do you see these mixes changing over the next 3-5 years, with players going omnichannel with the impact of quick commerce? Do you see these ratios changing?

VG [00:20:05]: Yes, it depends on how quick commerce grows. If quick commerce explodes, then we are looking at a very different world than the current world. Then the online numbers will be very, very high.

DS [00:20:21]: How is q-commerce [quick commerce] impacting this market?

VG [00:20:26]: Quick commerce would be, in hair removal appliances, around 70% is online. Of that 70%, now one-third would be quick commerce. Not one-third, probably 30% would be quick commerce. In hair removal, non-appliances, 10% is online. Out of that, around 40% is quick commerce. Of deodorants and perfumes, around 20-25% is online. Out of that, around another 20% is quick commerce.

DS [00:21:09]: From the ratios you mentioned, what is the offline and online split? Where do you think it will reach over the next 3-5 years?

VG [00:21:21]: I'm betting big on quick commerce here. I think online will be 50-70% higher than wherever we are as percentage points. For example, if in hair removal non-appliances, if it is at 10%, I'm pretty sure it will be 15% before we know it. In deodorants and perfumes, it's 20% right now, it will be 30-35% before we know it. Appliances, it's already at 70%, online. It can go up to even higher, 80-85%, but yes, I foresee this happening in the next 2-5 years.

00:22:04] For grooming specifically, which products are benefiting most from q-commerce [quick commerce]?

VG [00:22:17]: All the replenishment stuff is getting most benefited like deodorants, razors, face wash, etc, but problem is they are not value-driving. Actual numbers (inaudible 22.30), high-AOV items like appliances. While the units are low on quick commerce, but what is happening is trimmers or body groomers like INR 3,000 and all, they were considered durables, and they are now available in 10 minutes. Let me research (inaudible 22.51) Amazon, Flipkart, that is getting cut short, which is why if you ask me about benefit, then you have to look at it in two ways. One is who's benefiting in volume. Volume is very clearly deodorants, razors, face washes, but in terms of value, which is the real one, all the high-AOV stuff, which is body groomers, trimmers, perfumes, they are benefiting.

00:23:24] How do you see online and social-led channels changing customer acquisition and brand-building in the men's grooming sector in India over the next 3-5 years?

VG [00:23:42]: There's a problem. The problem is that quick commerce or Amazon, etc, because they have grown, but there is a wall between them and Meta. Attribution completely breaks down. Somebody sees a reel, then goes to Blinkit and buys it, which is what we are seeing. Whenever we take up the ad spend on Meta, we see sales on Blinkit going up, but what happens is Meta does not see who's buying. That is breaking attribution. This is the problematic part, but apart from this, I think huge spends are going to go up in terms of brand building, performance marketing, platform-level search marketing because everything is going to be online. All the dealer boards and TV spends are going to come down in this category, probably will become zero. Then all of these spends will go into online.

00:24:33] Within customer acquisition, which channels are working best for men's grooming? How do they compare in terms of CAC [customer acquisition cost] and conversion?

VG [00:24:43]: Depends. CAC and conversion (inaudible 24.42). If we talk about CAC, then CAC, of course, will be cheapest on marketplace like Amazon and Blinkit because what you're doing is you're not buying any first-party data, you're getting a transaction. It'll be cheaper because people already have intent, they are going to search for the product. All you have to do is be visible. CAC is cheapest on marketplace and conversion is highest on marketplace, but the problem is that real brand building or real funnel expansion happens only when you're going to people who might not be in market today, who might have slightly lower intent and who are browsing whatever they are browsing on Meta. Meta will have very high CAC today and very low conversion today, but what will happen is because of marketing spends or something like Meta, marketplace will continue to have a cheaper CAC.

The summary is Meta on paper will be bad, but Meta is needed so that marketplace has better CACs and conversions. Quick commerce has the highest conversion because, you know it, it's logical. How many times do you open Blinkit and not buy anything? Of course, you open it only when you buy it. You don't go there to browse… You go there when you have a need. Hence, your search conversion is extremely high. Hence, everything will have higher conversion on quick commerce. It doesn't mean that the demand is starting there. It just means that the demand is captured there.

DS [00:26:14]: What is the average CAC, for example, if Meta ads are being used?

VG [00:26:22]: No. Anybody who's putting a number is lying because 2-3 things. One is across categories, it varies a lot. Second is across timelines, it varies a lot. The golden rule is if your LTV is 300 and if your CAC is 100, then you're still one-third of LTV, but nobody can put a number to it because sometimes what happens is your CAC might be equal to your AOV, which is saying one ROAS, but still because you see sales going up elsewhere, you still keep putting money. Hence, nobody can tell you CAC in this category. On paper, CACs are a lie.

00:27:05] You mentioned that Blinkit and Meta are doing really well in terms of discovery. Is there any channel that's doing really well in terms of conversion?

VG [00:27:17]: Yes, quick commerce. Quick commerce is the highest conversion, then other marketplaces like Amazon, Nykaa, Myntra. D2C is the lowest conversion.

00:27:54] What percentage of customers typically make a repeat purchase in men's grooming? How does this vary across categories such as razors, skincare, fragrances, etc?

VG [00:28:09]: Razors and blades is a twice-per-year phenomenon. Trimmers is once in 18 months phenomenon, although a lot of people are now buying second trimmers also, so it might be shorter. Fragrances is 4-5 times per year phenomenon because people want variety. Skincare like Cetaphil, Minimalist, Reginald, Derma Co are four times per year phenomenon.

00:28:51] Is there a specific reason why a customer would come back to the same brand, outside of a need basis? What drives repeat purchases for a brand?

VG [00:29:05]: If you have had a good experience with an entry-level product, then you premiumise, so create great entry-level products.

00:29:19] How penetrated are men's grooming products across India today? How does the consumption differ across metros, tier 1, tier 2 and tier 3 cities?

VG [00:29:30]: You're talking penetration. Penetration will be high for the soaps and the shaving and the deodorants and the blades of the world, and it will be very low for skincare, fragrance, body grooming, especially below metros, but the nuance is that penetration of commoditised categories being very high is a given because the categories have existed for a long time. Some of these new categories that are lower in penetration but are rising fast are the opportunity areas.

DS [00:30:15]: You mentioned there are some new categories. Could you elaborate on those? What would they include?

VG [00:30:19]: No, no. I'm saying the non-soaps, shaving, deodorants, the low-volume category, like trimmers and perfumes, they have low penetration, but they're growing fast.

DS [00:30:34]: How penetrated are they in tier 1, tier 2 and tier 3 currently?

VG [00:30:45]: In terms of all categories, penetration numbers?

DS [00:30:49]: In terms of an average or approximate figure.

VG [00:30:52]: No. It will be very, very difficult. I can tell you, overall, there are eight crore trimmers currently running in India, for example. It depends what your addressable market is. We can divide and figure out what the penetration is. These numbers will be very tough, very tough for anyone to tell you, especially in men's grooming. Soap, for example, is at a 94% penetration, but how much of that is men's soap, we don't know. There's no way to find out. Shampoos are at around 80% penetration, but no way to find out how much is men's shampoo.

DS [00:31:26]: Tier 1 cities seem to be fairly penetrated. What about tier 2 and tier 3 cities? How good or bad is the penetration, if we're just talking about it relatively?

VG [00:31:42]: Metros, it has become a regimen now. Tier 1 plus metros are decently penetrated. Problem is tier 2, tier 3, the growth is high, but the size is very small. I think once quick commerce goes to tier 2, tier 3 at some point of time in the future, we might see a supply-led penetration rather than a demand-led penetration.

00:32:12] What is the current channel mix for men's grooming products? If I'm comparing general trade, modern trade, e-commerce and q-commerce, what is the percentage breakup? What would be the channel mix for men's grooming products across these channels?

VG [00:32:30]: I'll tell you separately. You want mix? We told online, offline. Now you want it broken down?

DS [00:32:38]: Correct.

VG [00:32:43]: Trimmers, it's 70% online, 30% offline. In that 70% online, quick commerce would be 30% of that, Amazon, Flipkart would be around 55% of that and then rest everything would be whatever, 15% of the rest. On offline, modern trade and general trade are half and half. That's for trimmers and appliances. For hair removal, non-appliances, we have 90% offline, 10% online. In that 90% offline, around 30% is MT, everything else is GT. In that 10% online, it's 40% quick commerce, everything else is e-commerce. D2C is non-existent for hair removal, non-appliance. For appliances, a lot of brands are trying now, D2C is now growing. For perfumes and deodorants, it will be 20-25% online, rest offline. In that 20-25%, probably 20% will be D2C. Everything else will be e-commerce.

DS [00:34:01]: How do the gross margins compare across these channels?

VG [00:34:09]: Best gross margin is always D2C.

DS [00:34:13]: What is the approximate gross margin seen over here, if you could provide a range?

VG [00:34:18]: 70-80% for fragrances, 60-70% for skincare, haircare and 50-60% for appliances.

00:34:34] You mentioned that D2C would have the highest gross margins. What about the other channels such as modern trade, general trade, e-commerce and q-commerce?

VG [00:34:46]: Modern trade will also have a decently high gross margin. E-commerce will have the worst. Problem is the contribution margins are very different. D2C will have the best gross margin with the worst contribution margin. That's because the customer acquisition cost is very high for D2C, so even having the highest gross margins does not make it fly.

DS [00:35:11]: In terms of contribution margins, how do these channels compare?

VG [00:35:18]: Worst is D2C, always, always worst. Best will be something like offline, if done well. Then quick commerce, e-commerce will be in the middle.

DS [00:35:40]: Is there any range of the contribution margins that we're discussing?

VG [00:35:45]: No, no. It will vary very widely across companies. Depends on the marketing efficiency. You will have negatives also. You will have zeros also. You'll have 20s also. You have 40s also.

00:36:05] As men's grooming brands scale, how should they think about SKU breadth? Is it more effective to build a few high-repeat hero products and drive scale behind them, or to expand across adjacent categories to increase wallet share?

VG [00:36:22]: No, no, always hero products. That's the plan for every company. Philips, Gillette, Bombay Shaving, everyone knows what the hero products are, so hero products first. Breadth is an indulgence. If the hero business is doing good, then you can afford to do breadth. Breadth for growth is dangerous. If your hero SKUs are stagnated and you want to buy growth through breadth, that is a danger.

00:36:56] Is there an optimal number of SKUs that a brand should have?

VG [00:37:01]: No, it depends on the categories. In a category like trimmers, body groomers, the number of SKUs will be low. In a category like deodorants and perfumes where inherently you need variety, the number of SKUs will be high.

DS [00:37:24]: Correct, but would there be an optimal number – for example, should around 10 SKUs be added before a brand scales up? It's not impacting its inventory and there's no inventory stagnation happening when there are too many SKUs as well. Is that correct?

VG [00:37:40]: Nobody can give you a number. Bella Vita has 65-70 SKUs, Philips has probably 30 SKUs, but Bella Vita is smaller than Philips. Philips has grown aggressively in their breadth in the last 1.5 years. Bella Vita has stayed consistent. Everybody depends on the business priorities. You can't say 10 SKUs are okay or start by adding 10. You can't do it.

00:38:11] There has been significant consolidation in men's grooming, with Emami acquiring The Man Co in August 2024, Marico acquiring Beardo in 2027 and LetsShave being backed by a VC firm in 2023. What is the likely strategic rationale behind established FMCG players acquiring or investing in D2C men's grooming brands?

VG [00:38:37]: 2-3 things. One, we discussed speed. Large companies are slower. D2C companies are faster. What large companies do in nine months, D2C companies will do in 90 days. (1) Speed. (2) Understanding of content. (3) Understanding of consumer, younger consumer. Understanding of online business. What D2C brands don't have is distribution, sourcing or, what do you call it, patient capital, which large brands have. That is the marriage made in heaven. What large brands don't have, small brands have and vice versa. It's a mixed record. Beardo is doing good. TMC is doing bad.

00:40:13] What makes a men's grooming brand attractive to a strategic buyer today?

VG [00:40:27]: Same things, understanding of consumer, understanding of distribution, online distribution, understanding of what people are buying, speed. The same things that Minimalist or an Oziva or a Beardo or The Man Company is sold for, the same thing.

00:40:48] Do you expect consolidation to lead to a few dominant brands, or will there still be room for smaller D2C brands to build meaningful scale?

VG [00:41:04]: I'm hoping 2-3 more acquisitions in the revenue range of INR 100 crore-500 crore. The bottom will stay messy, that INR 50 crore-100 crore (inaudible 41.22). If you're lucky, you might get acquired, but now, for acquisition, you will need to be in that INR 100 crore-500 crore revenue zone because that means that you have decent understanding of the consumer and the market and all of those things.

00:41:41] Are there any common misconceptions about the men's grooming industry from an investor's perspective?

VG [00:41:52]: It looks extremely attractive on papers. Entering it looks very easy. Men are not that easy to convert or switch. Men are easy to please, hard to switch, where women are (inaudible 42.23), they are easy to switch, hard to please. Stereotypical, it might sound, but that's how consumers behave.

DS [00:42:32]: When you say they are not that easy to convert or switch, what exactly do you mean?

VG [00:42:40]: They don't switch brands. Men don't switch brands easily.

DS [00:42:46]: They'll be sticky. The stickiness of the brand is there. Is that correct?

VG [00:42:51]: Correct.

DS [00:42:53]: Is there anything that would make a customer switch?

VG [00:43:03]: Yes, better product, better pricing, better proposition, all of those things, but most of all, better communication to that man, because that man is not looking to switch. Now, you are introducing entropy into his life. The flip side of this is once switched to your side, the man stays loyal for a far longer time than a woman.

00:43:53] We talked about penetration into tier 2 and tier 3 cities. How does consumer behaviour change or compare in terms of product mix, price points or channel preferences?

VG [00:44:13]: As you go down from metros to rural, pack sizes become smaller, prices become smaller, offline becomes bigger, and because pack sizes are smaller here, the repeats become higher.

DS [00:44:36]: How different is the consumer behaviour? Is there any change in the preferences in terms of the product mix that we spoke about earlier in terms of size?

VG [00:44:47]: Yes. Every category. For example, in perfumes, deodorants will sell in tier 2, tier 3 and perfumes will sell in tier 1 and above. In hair removal, double-edged razors and double-edge blades will sell in tier 3 and rural, and system razors and trimmers will sell in tier 1 and metros. The more evolved offering will start with metros always, will go to tier 1, then tier 2. That's how economics works. All the smaller sizes and… Soaps, for example, will be a lower-tier phenomenon. Body wash will be a higher-tier phenomenon, just like that.

00:45:31] Are there any upcoming players in the men's grooming industry in India that are worth noting from a PE perspective?

VG [00:45:42]: No, nothing that is making us sleepless. We know it's a hard battle. We know it's easy to enter, but difficult to win. We are the small kids. We are doing decent.

DS [00:46:10]: Is there any question that I should be asking about men's grooming that I have missed out on?

VG [00:46:17]: No, very exhaustive. I was worried, so I was very fast. I just thought I'll try my best to give you the answers, but no, very exhaustive.

00:46:34] Are consumers actually increasing their grooming consumption or is spend simply shifting from traditional products?

VG [00:46:50]: Of course, grooming consumption is increasing. There are a lot of categories that people… Serums, for example, men were not even using.

00:47:25] As D2C brands expand offline, do they end up losing some of their competitive advantage?

VG [00:47:34]: Yes, of course. Yes, offline is a very difficult, very tough game for the D2C brands, like online is a tough game for the incumbents. Competitive advantages are low on offline for D2C brands and hence, D2C brands are counting on quick commerce to expand.

DS [00:47:53]: When you say they are losing some competitive advantage, what type of a competitive advantage are they losing? Why are they counting on q-commerce?

VG [00:48:05]: Offline works on relationships. Offline works on long-term families, distributor families, retailer families, credits in the market. Offline also has longer feedback loops. (Inaudible 48.18) there's a launch, and then it takes two years for you to get that stock back if it doesn't work. Now, that works for the larger companies who are slower, but for smaller companies who would have taken a lot of decisions basis the early sale and they would have placed the stocks on the shelves, and then after two years, they get to understand that all that stock has come back, now, that's problematic, that's fatal for a smaller D2C brand. It also doesn't have the advantage that the larger brands have over decades of building these relationships on the ground. I used to work with HUL. HUL will have 3-4 generations of families doing their distributorship. They will have hold on the market and all of that.

DS [00:49:22]: Which products are better-suited to online vs offline, or vice versa?

VG [00:49:30]: High AOV online, needs a lot of research online. Low AOV offline, needs to be distributed to the smallest inventory location near your house offline. Soaps, deodorants offline. Trimmers, perfumes online.

DS [00:49:48]: What would be an average AOV for men's grooming?

VG [00:49:58]: Around INR 1,000 for appliances, around INR 50 for non-appliances, hair removal. Around INR 400 for perfumes. Around INR 150 for deodorants.

DS [00:50:17]: What was INR 1,000?

VG [00:50:21]: Appliances, hair removal. INR 50 for non-appliances, hair removal. Around INR 400 for perfumes. Around INR 150 for deodorants.

00:50:38] Which channels are becoming more expensive as competition is increasing?

VG [00:50:54]: Meta. Meta creators. Creators also in a way Meta only.

DS [00:51:04]: Thank you so much for that. We will now conclude the Interview. Let me close by saying thank you so much for your time. It was a pleasure talking to you today. You have given me great insights across all questions, and you've walked me through all of them as well. Thank you so much.

Transcription ends at 00:52:12 of the recorded material