How Just Herbs Built a ₹100 Crore Ayurvedic Beauty Empire

Introduction

Just Herbs, an Ayurvedic skincare and beauty brand, has disrupted the beauty industry with its innovative product offerings, including its viral “ghee lipsticks.” Founded by Arush Chopra along with his wife and co-founder, Megha, and his biochemist mother, the brand has grown into a ₹100 crore business by leveraging consumer insights, innovative product development, and a strong digital presence.

This case study delves into the strategies that fueled Just Herbs’ meteoric rise, providing key business insights for entrepreneurs, business students, and marketing professionals.

Background and Founding Story

• Arush Chopra, a Chandigarh-born entrepreneur, had a background in investment banking before venturing into the beauty industry.
• His mother, a gold medalist in biochemistry, left her banking career to study Ayurveda, blending scientific and Ayurvedic principles to develop herbal skincare formulations.
• The idea for Just Herbs originated from his mother’s backyard experiments with herbs and flowers.
• The brand’s name, “Just Herbs,” was inspired by the simplicity of its ingredients.

Market Opportunity and White Space Identification

1. India’s Growing Beauty Market:
   • The Indian beauty and skincare industry was still nascent compared to global markets like Japan and Korea.
   • The demand for clean beauty products was rising, driven by increased awareness of harmful chemicals in traditional cosmetics.
2. Ayurveda’s Market Potential:
   • Ayurveda, once considered niche, has gained mainstream acceptance.
   • Just Herbs positioned itself at the intersection of Ayurveda and modern skincare.
3. Consumer Shift to Clean Beauty:
   • Early on, Just Herbs focused on offering paraben-free and clean formulations.
   • As the market evolved, the brand moved into new segments, including serums, face oils, and eventually Ayurvedic makeup.

Business Model and Go-to-Market Strategy

1. Differentiation through Product Innovation

Just Herbs adopted a “problem-solving approach” to product development rather than simply creating new formulations:

• Ghee Lipsticks: A revolutionary product in the Ayurvedic beauty space, developed using crowd-sourced consumer feedback.
• Skin Tints & Lightweight Makeup: Developed in response to customer complaints about cakey and heavy makeup.
• Crowdsourced R&D: Engaged with consumers via WhatsApp and Facebook groups to test formulations before launch.

2. Digital-First, Omnichannel Strategy

• D2C (Direct-to-Consumer) Website: The brand began as an online-first company, optimizing its website for conversions.
• WhatsApp Consultations: Early success was driven by offering free skin consultations via WhatsApp, fostering trust and loyalty.
• Facebook Community Building: A dedicated Facebook group of 3,500+ women provided real-time feedback and organic product recommendations.
• Marketplace Presence: Just Herbs expanded to platforms like Flipkart, Blinkit, and Nykaa, ensuring visibility in both skincare and makeup categories.
• Offline Expansion: Contrary to conventional wisdom, Just Herbs opened physical stores in smaller cities, targeting non-digital shoppers.

3. Leveraging Organic Word of Mouth

• The brand focused on acquiring 100 super advocates in each city—local influencers and community leaders who would organically promote the brand.
• Relied on non-professional influencers rather than paid endorsements, making recommendations more authentic.
• Naming Lipstick Shades After Real Women: This unique marketing move generated organic engagement and loyalty.

4. Channel-Specific Marketing Strategy

• Social Media-Driven Marketing: Focused on engaging storytelling rather than just product advertising.
• PR & Earned Media: A viral article in Mint boosted brand credibility and visibility.
• Retail Strategy: Opened small-format stores in residential areas rather than premium malls to engage customers at the neighborhood level.

Growth Challenges and Resilience

1. Fundraising Struggles: Several investor deals fell through, leading to financial uncertainty.
2. COVID-19 Disruptions: The launch of ghee lipsticks coincided with the national lockdown, raising concerns about demand. However, the product thrived due to online virality.
3. Scaling Production for Breakable Lipsticks: Manufacturing ghee-based lipsticks was challenging as they kept breaking. The team spent 2.5 years perfecting the formula.

Despite these challenges, Just Herbs maintained a “cockroach mentality”—prioritizing survival and adaptability over aggressive, unsustainable growth.

Key Business Lessons

1. The Power of Crowdsourced Product Development

• Early consumer engagement helped Just Herbs create products that directly addressed customer pain points.
• Open community feedback led to better R&D and pre-launch buzz.

2. Scaling a D2C Business Requires a Channel-Specific Approach

• The brand focused on one channel at a time before expanding to others, ensuring maximum penetration.
• Understanding product-channel fit (e.g., compact beauty kits for WHSmith airport stores) optimized sales.

3. Word-of-Mouth is the Best Marketing Tool in Beauty

• Building a strong community of early adopters ensured organic growth.
• Naming lipstick shades after real women created emotional connections with consumers.

4. Offline and Online Can Coexist for Maximum Growth

• Despite being a digital-first brand, Just Herbs saw significant success with neighborhood retail stores, highlighting the importance of a hybrid strategy.

Conclusion: A Blueprint for Beauty Entrepreneurs

Just Herbs’ journey from a small backyard project to a ₹100 crore Ayurvedic beauty brand offers invaluable insights into consumer-centric product development, digital-first branding, and omnichannel growth. By staying agile, engaging directly with consumers, and leveraging community-driven marketing, the brand has successfully positioned itself as a leader in the Ayurvedic beauty segment.