Good Glamm Group to cut marketing spend for growth

Beauty and media business Good Glamm Group plans to reduce its marketing spend over the coming two years to count for less than 20% of its revenue. The business has almost halved its marketing spend in the past 18 months to get it to 30% of its revenue.

“My long-term goal in the next two years is to bring marketing spending down to under 20% of revenue,” said Good Glamm Group’s founder and CEO Darpan Sanghvi, ET Retail reported. “So, my aim is to be a 25% EBITDA [earnings before interest, tax, depreciation, and amortisation] company three years after listing and the only way to do that is if my marketing spend is around 20% of revenue.”
 
Good Glamm Group currently acquires between four and five lakh new customers each month through its website, ET Bureau reported. This customer acquisition is closely linked with its content and creator network which engages shoppers across social media.
 
“Our television spending has reduced because our brands are marketed into movies,” said Sanghvi. “Last year, we did zero TV spending, because we co-branded a line with Karan [Johar] and didn’t have to market on TV as we got more visibility via Koffee with Karan. So we brought our television ATL spending down to zero and intend to keep that this year as well.”
 
Good Glamm Group also has a celebrity partnership with couturier Manish Malhotra. The business’ beauty and personal care brands include The Moms Co, Organic Harvest, St Botanica, and Sirona among others.