Brands
Marico q-o-q marketing costs down 10.4% in Q4-2015, but up 15.8% in FY-2015
BENGALURU: Indian consumer products in beauty and wellness space company Marico Limited spent 10.4 per cent less towards advertisement and sales promotion (ASP, marketing) in the fourth quarter ended 31 March, 2015 (Q4-2015, current quarter) at Rs 137.15 crore (11.2 per cent of net Total Income from Operations or TIO) as compared to the Rs 153.02 crore (10.5 per cent of TIO) in the immediate trailing quarter, but 12.5 per cent more as compared to the Rs 121.91 crore (11.4 per cent of TIO) corresponding year ago quarter (Q4-2014). During FY-2015, the company’s ASP at Rs 649.82 crore(11.3 per cent of TIO) was 15.8 per cent more than the Rs 561.17 crore (12 per cent of TIO) in FY-2014.
Notes: 100,00,000=100 Lakhs = 1 crore = 10 million
During the 13 quarter period starting Q4-2014 until the current quarter, the highest amount spent by the company towards ASP was in Q1-2015 at Rs 192.18 crore (11.8 per cent of TIO). The company’s highest ASP spend in terms of per centage of TIO was in Q3-2013 at 14.1 per cent (Rs 152.82 crore). While in absolute rupees, ASP shows a linearly increasing trend during the 13 quarters under consideration, in terms of per centage TIO, the trend declines linearly during the same period. Please refer to Figs. A and A-1 below.
Marico’s TIO in Q4-2015 at Rs 1226,25 crore was 15.6 per cent less than the Q3-2015 TIO of Rs 1452.23 crore but was 14.4 per cent higher than the Rs 1072.76 crore in the year ago quarter. The highest TIO reported by the company during the 13 quarters under consideration was in Q1-2015 at Rs 1623.13 crore. TIO shows an increasing linear trend during this period. Please refer to Fig B below.
For FY-2015, Marico reported 22.3 per cent growth in TIO at Rs 5732.98 crore as compared to the Rs 4686.52 crore in the previous year – refer Fig A-1 above.
PAT in FY-2015 at Rs 573.46 crore (10 per cent TIO) was 18.1 per cent more than the Rs 485.38 crore (10.4 per cent of TIO) in FY-2014.
PAT in Q4-2014 at Rs 110.04 crore (nine per cent of TIO) was 31.2 per cent lower than the Rs 159.88 crore (11 per cent of TIO) and was 24 per cent more than the Rs 88.77 crore (8.3 per cent of TIO) in Q4-2014. During the 13 quarters under consideration, PAT shows an increasing linear trend both in terms of absolute rupees and in terms of per centage of TIO. Please refer to Fig B below:
Marico claims that it touches the lives of one out of every three Indians, through its portfolio of brands such as Parachute, Parachute Advansed, Saffola, Hair and Care, Nihar, Nina-r Naturals, Livon, Set Wet, Zatak, Mediker, Revive and Manjal. The company says that its international consumer products portfolio contributes to about 25 per cent of the group’s revenue, with brands like Parachute, HairCode, Fiancée, Caivil, Hercules, Black Chic, Code 10, Ingwe, X-Men, L‘Ovite and Thuan Phat.
Marico MD and CEO Saugata Gupta said, “We continued our journey of delivering sustainable profitable growth this quarter. Simultaneously we are taking definitive long term steps in creating the organization of the future especially in our identified areas of transformation. We are confident of a gradual improvement of the sector growth in the coming quarters especially in the urban markets while the rural consumption trends will depend a bit on the performance of the monsoon.”
Brands
Malaika Arora launches accessories brand Maejoy
The Bollywood star’s lifestyle brand, built with Myntra and Exceed Entertainment, promises aspirational fashion without the high price tag
MUMBAI: Malaika Arora is not the first Bollywood star to put her name on a brand, and she will not be the last. But Maejoy, the accessories label she has launched in partnership with Myntra Jabong India Private Limited (MJIPL) and talent outfit Exceed Entertainment, at least has a sharper pitch than most. The brand drops with 250-plus styles spanning handbags and lab-grown diamond jewellery, two categories that sit squarely in the sweet spot between aspiration and affordability, and lands on Myntra’s platform from day one, putting it in front of millions of shoppers without breaking a sweat.
The handbag range covers the full gamut: crossbody bags, structured shoulder bags, bucket bags, totes, workwear classics, backpacks and clutches, rendered in synthetic leather, raffia, braids, satin, rhinestone and metallic finishes. The jewellery line runs to rings, earrings, pendants, bracelets and tennis bracelets in silver, gold and rose-gold tones, set in 925 sterling silver with IGI and GCI certified lab-grown diamonds. The brand’s guiding philosophy, “The Joy of Being Me,” stakes its claim on individuality and self-expression; its three brand pillars, Authentic, Empowering, Accessible, are the usual suspects, though the lab-grown diamond bet is savvier than it sounds. Lab-grown stones now sell at a fraction of the price of mined ones, and the category is growing fast in India as younger buyers wise up to the arbitrage.
“Maejoy is a labour of love. Throughout my career, whether on screen, in business, or through my personal style, I’ve championed the idea that fashion should be empowering yet effortless. The brand aims to democratise global fashion trends while offering women something that extends the feeling of luxury every day, be it a lab-grown diamond or a perfectly crafted handbag,” said Malaika Arora, founder of Maejoy
MJIPL, the B2B wholesale arm of Myntra, is putting its design and brand-building muscle behind the venture. Suman Saha, chief experience officer and head of house of brands at MJIPL, was bullish on the tie-up.
“Maejoy brings together Malaika Arora’s distinctive style perspective with a strong proposition in the accessible yet elevated accessories space. We believe the brand’s fashion-forward designs and thoughtful positioning will connect strongly with discerning consumers.”
Suman Saha, chief experience officer, head of house of brands, MJIPL
Afsar Zaidi, chief executive of Exceed Entertainment, the talent management firm that helped broker the deal, has worked with MJIPL before and was characteristically direct about what makes Arora an unusually bankable partner.
“Building celebrity-led brands requires a delicate balance of authenticity and market viability. Malaika is a rare talent who commands equal respect as a fashion icon and a savvy businesswoman. We are proud to facilitate this partnership that brings together her creative clout and Myntra’s brand-building excellence,” said Zaidi
Celebrity fashion brands live or die on one question: does the star actually wear it, or is the cheque the only thing they signed? Arora, who has spent three decades as one of Bollywood’s most-watched style references, has at least built a plausible case. Maejoy is live now on www.myntra.com and the Myntra app. The real test, whether shoppers buy the handbag or just the hype, starts today.
