How Visage Beauty is revamping its subsidiary Sara to meet customer's clean label demand

Labels like paraben-free, sulfate-free, cruelty-free, free from artificial preservatives have become common strategies to appeal to consumers today. It reflects a growing trend where the absence of certain ingredients becomes a key selling point for beauty and skincare brands.

With consumers becoming more conscious of what they consume and apply, the organic skincare market is seeing tremendous growth. 

According to a research, the global Ayurvedic market was valued at $6.50 billion in 2021. It is predicted to reach $21.12 billion by 2028 at a CAGR of 15.63%. Among all the segments, personal care products, including skin care, have the biggest market share and are expected to remain dominant in the coming years.

Recognising the growing demand for organic products, Visage Beauty & Healthcare, the parent company of beauty brand O3+, is revamping its organic beauty and skincare brand, Sara Beauty.

History of the company

Visage Beauty was formally incorporated in 2004 to specifically cater to the salon industry and provide customised products for beauticians and professionals. 

According to Vidur Kapur, the third-generation entrepreneur of the family-run business, the company initially did not prioritise establishing Sara as a separate brand. Instead, Sara’s products were primarily distributed through wholesale channels.

“Unlike Sara, O3+ invested in establishing organised distribution channels to reach its target market effectively as the aim was to establish it as a brand,” says Kapur. 

However, Sara was started much before that.  

“Our company has a rich history, dating back to the 1960s when my grandfather, KN Kapur, established a trading business specialising in salon products and tools like wax and hair clips,” he says. 

In 1989, Vineet Kapur, Vidur’s father, founded Sara as an extension of the family business. Back in the 90s, the demands of the beauty industry were different from what they are today. During that time, the company primarily imported European beauty products and supplied them to salons in India, catering to those looking for a more premium range. 

Simultaneously, there was also a demand for more basic products. Recognising this, Visage started manufacturing its own products under the brand name Sara, using the same distribution channels. Sara initially gained recognition for its facial products, including massage cream and shea butter made with natural ingredients. 

Kapur says, Sara’s product line diverges significantly from O3+. While O3+ focuses on skin solutions, Sara's products are consciously developed with sustainability in mind, prioritising natural and ayurvedic ingredients. 

“O3+ does not meet the demands for natural and sustainable products, and it is not recognised for that aspect in the market,” says Kapur. It also differs from O3+ in terms of pricing. The decision to revamp Sara and position it as a brand alongside O3+ was primarily driven by this factor.

When comparing prices, the Average Selling Price (ASP) for O3+ products range from Rs 830 to Rs 900, whereas Sara products fall in the range of Rs 450 to Rs 600. As for facials, O3+ starts at Rs 2,000, whereas Sara's facials start at Rs 700.

Revamping Sara

As Sara transitions from an unorganised distribution network to an organised one, the distribution strategies are evolving for the brand. Previously, it was available at 4-5 distribution points in Haryana, Punjab, Delhi, and Chennai. However, Visage is now redirecting its distribution network to different cities, leveraging the organic pull of the brand. 

Sara's product line is also undergoing changes to align more with ayurvedic principles and ingredients. While the brand had previously focused on fruit-based formulations, it is now incorporating more natural extracts. 

Noida-based Sara currently offers 55 SKUs (Stock Keeping Units) across seven categories. They include facial kits, cleansers & face wash, scrubs, D-Tan and masks, hair removal products, bleach & cream, as well as pedicure and manicure essentials.

Sara will offer ayurveda-certified products alongside other natural skincare offerings, capitalising on the rising demand for Ayurvedic products. Last year it obtained an AYUSH licence from the Ministry of Ayush.

“Sara’s essence lies in affordability, and the brand has successfully increased its reach by offering beauty products starting at Rs 55,” says Kapur. This competitive price point, coupled with sustainable practices, aims to garner attention from customers who want both value for money and eco-friendly solutions. 

“With Sara, the company aims to assist beauticians in Tier II and III cities who sought affordable products to meet these specific demands of their clientele,” he says.

The brand is also moving towards sustainable practices, resonating with environmentally conscious choices. These include introducing sustainable solutions for salons and the brand also plans to replace tissues used for facials with sponges.

It is also adopting sustainable packaging methods by using recyclable brown paper and FSC (Forest Stewardship Council) certified paper for packaging. The brand has shifted away from traditional packaging, opting for sturdy bottles made of recyclable plastic that eliminates the need for additional boxes. Currently, approximately 60% of Sara's packaging has transitioned to this more sustainable approach.

Differentiating in a crowded market

“There are several differentiating factors that set Sara apart in the market,” says Kapur. Firstly, it is a professional brand, and does not directly compete with the direct-to-consumer (D2C) brands in the natural beauty space. 

Secondly, Sara enters the market through the beautician channel, leveraging recommendations from beauty professionals. By establishing trust within the beautician network, Sara can effectively penetrate its target market. Kapur counts brands like VLCC, Nature Essence, and Lotus as competition, which also cater to beauticians.

“Sara’s products are made with natural ingredients and are free of toxins and harmful chemicals. The brand is PETA-certified and most of its products are vegan,” he says.

It currently has 27,000 followers on Instagram, and sells through its website and other ecommerce platforms like Amazon and Nykaa. It is available in 25,000 to 30,000 salons across India. It is also available through a network of freelance beauticians working for online salon services platforms like Urban Company and Yes Madam. 

“Since the brand’s revamp three years ago, there has been a noticeable increase in revenue,” says Kapur. In FY23, Sara’s revenue reached Rs 18 crore, and the turnover for Visage in FY23 stands at Rs 270 crore.

With the revamping efforts in place, Sara anticipates an 80% growth in revenue in FY24. The brand intends to expand its product range by adding 20 to 25 new SKUs, with a focus on expanding the hair removal category.