New Delhi: 1 Hair Stop, a hair topper and extension startup is expecting 30 per cent year-on-year (YoY) revenue growth in this fiscal on the back of its offline expansion plans and sustainable strategies, Raina Grover, co-founder of the company told ETRetail in an exclusive interaction.
In this fiscal year, the firm looks to reach a revenue of Rs 34-35 crore. In the fiscal year 2022-23, its revenue stood at Rs 27 crore and was at Rs 20 crore in its previous fiscal 2021-22.
Sharing its current profit margin, Grover said that the brand maintains a profit margin of 30-35 per cent. She also stated, “We have always been profitable since we started.”
The brand presently makes hair products for women and sells them only through its own website. It said that the majority of its business comes from metro cities including Bengaluru Mumbai, Hyderabad, Delhi, and Kolkata.
Speaking on its products, Grover said, “It is like an investment and it also helps enhance your look. It takes a few minutes to transform the consumer’s look with our DiY solution.”
With its products, the firm looks to be present in the offline market to showcase the quality while providing the touch and feel of the product and educating the consumers.
When asked about the sourcing of its raw material, the brand shared that the Indian temples auction the raw material (hair) to suppliers and they supply it to the brand. The processing to make a finished product is done at its own manufacturing facility.
As the firm has its manufacturing facility, Grover said, “We have the first mover advantage” in this category. So, it does not maintain inventory and take orders to make the products as per consumer demand.
In October this year, 1 HS plans to open an experiential center in Hyderabad to engage consumers with the brand and products. The investment made to set up the experiential center is about Rs 60 lakh, the brand said.
The hair topper brand is also actively negotiating and sampling haircare products with international suppliers.
With this move, it aims to diversify its haircare range to cater to a broader spectrum of customer needs and preferences. Further, it looks to collaborate with salon networks to extend its reach and offer customized solutions to a wider audience.
Sharing about its portfolio expansion, it said to come up with a haircare range along with a semi-permanent extensions range.