Mamaearth, a rapidly growing brand under Honasa Consumer Limited, has made a name for itself in India’s beauty and personal care market by leveraging a digital-first, direct-to-consumer (D2C) approach. Over time, recognizing the untapped potential of offline retail, the company expanded its distribution network to include general trade and modern retail outlets. To improve supply chain efficiency, streamline inventory flow, and strengthen retailer relationships, Mamaearth launched Project Neev  — a ₹70 crore initiative aimed at shifting from a super-stockist-led distribution model to a direct distributor model.

The rationale behind this transition was clear: removing the super-stockist layer would allow greater transparency, better inventory control, and direct engagement with retailers. However, the shift led to unforeseen disruptions, straining the company’s supply chain. In Q2 FY25, Mamaearth faced a ₹19 crore net loss, its first since going public, along with a 7% year-on-year revenue decline. Additionally, the company wrote off ₹63 crore worth of unsold inventory.

Now, Mamaearth’s leadership faces a critical dilemma. Should the company continue with Project Neev despite the challenges, reintegrate super-stockists to restore balance, or adopt a hybrid model that leverages elements of both approaches? Additionally, how can the company refine inventory planning, demand forecasting, and distributor engagement to prevent future disruptions? These decisions will define Mamaearth’s long-term distribution strategy and supply chain resilience.

Learning objectives

1. Understand the role played by super-stockiest in a distribution network.
2. Identify the appropriate distribution strategies for various types of product offerings.
3. Understand the complexities associated with transitioning to a new distribution strategy amidst new product launches.