Direct-to-consumer beauty and personal care brand Wow Skin Science saw a second year of revenue decline in FY24 but made significant progress in cutting its losses. The company reported an operating revenue of Rs 233.5 crore, a 9.6% drop from Rs 258.1 crore in FY23. While revenue fell, net losses decreased by about 24%, dropping to Rs 130.2 crore from Rs 213.5 crore the previous year.
Cost-Cutting Measures
Wow Skin Science, headquartered in Bengaluru, managed to reduce losses by focusing on cost-cutting. In FY24, the company’s total expenses dropped by 22.4% to Rs 377 crore, down from Rs 486 crore in FY23. Notably, advertising and promotional spending fell sharply by 46% to Rs 107 crore from Rs 200 crore the prior year. However, employee costs increased by 35% to Rs 53.5 crore.
Manish Chowdhary, co-founder of Wow Skin Science, shared the company’s future goal: “We’re focused on long-term growth with a clear path to profitability. We expect further loss reduction this year, aiming for near break-even by Q4 and full profitability next year.”
Diverse Market Channels
Founded in 2014 by Manish and Karan Chowdhary, Wow Skin Science operates across multiple channels, including its own website, offline stores, and popular e-commerce sites like Amazon, Flipkart, and Nykaa. The brand’s portfolio includes WOW Skin Science, WOW Life Science, Body Cupid, Nature Derma, and a new cosmetics line called Colour Cupid. The company has also expanded internationally, securing shelf space in Walmart, Kroger, and CVS in the United States.
Competitive Landscape
Wow Skin Science operates in a highly competitive D2C beauty and personal care market, facing brands like MamaEarth, Minimalist, and newer brands such as Foxtale. While Wow Skin reported a revenue dip, some competitors are experiencing growth. For instance, Minimalist saw its revenue increase by 89% to Rs 347 crore in FY24, while MamaEarth achieved Rs 1,920 crore in revenue and a net profit of Rs 147 crore.
Future Plans for Growth
Despite the competitive environment, Wow Skin Science continues to see growth in modern trade and quick commerce channels domestically. According to Manish Chowdhary, the brand is focused on strengthening its presence in these areas to support future growth.
