D2C brands switch focus to smaller creators as influencer rates surge

The early years of Honasa Consumer—the parent company of Mamaearth, one of India’s biggest direct-to-consumer (D2C) success stories—were a slow grind. The company, which began with baby products before extending its tentacles into the wider beauty and personal care space, was up against deep-pocketed FMCG behemoths. With the latter able to enlist A-list celebrities to hawk their products, Mamaearth couldn’t outshout them for consumer attention. 

Instead, it relied on an army of influencers—from mom bloggers to YouTube and Instagram content creators—to reach consumers. While it did sign on actor Shilpa Shetty Kundra as a brand ambassador in a deal that saw Kundra receive equity in the company, the company’s influencer marketing is massively credited with its rise to prominence.

Indeed, even as the company has since gone public, raising Rs 1,700 crore in the process, and now has the ability and name recognition to onboard big-name ambassadors, influencer marketing remains a major growth lever for the company. As per its IPO documents, the company plans to spend around Rs 11.5 crore, cumulatively, on influencer campaigns in FY24 and FY25. This is its third-largest advertising expense, after only TV and digital ads.