With a rich background in senior leadership roles within leading soap and detergent brands such as Jyothy Labs, KP Khalid, the Managing Director of Cutee the Beauty Soap, ventured into entrepreneurship in 2007 with the establishment of Good Buy Soaps and Cosmetics Pvt. Ltd., a manufacturing unit of soaps, detergents, and cleaning products. Later, in 2014, he launched a cosmetic soap brand called Cutee the Beauty Soap, which carved its niche in the competitive FMCG landscape, particularly in rural Kerala.
Reflecting on the journey, Khalid reminisces, “Our manufacturing unit was set up in 2007, initially catering to companies like Jyothy Labs and KP Namboodiri’s. The inception of the Cutee brand in 2014 was a pivotal moment for us.” He highlights the challenges faced by Micro, Small, and Medium Enterprises (MSMEs) in accessing competent suppliers during the early 2000s, particularly in product categories dominated by industry giants. “The emergence of supportive policies from major suppliers like the Adani Group and others significantly eased the procurement of raw materials and technologies for players like us,” Khalid adds.
The quality of products, especially in the cosmetic soap category, was once a daunting challenge for smaller players attempting to compete with behemoths like Unilever. However, Khalid notes, “The landscape shifted post-2010, with increased accessibility to quality raw materials and technologies. This enabled us to offer consumers high-quality products at competitive price points, disrupting the market dominated by larger players.”
“We are able to provide consumers quality products at a good price range (lower than companies like Unilever, Wipro etc). Our products are priced at Rs 35 and of late we are running offers where the products are available for Rs 28. We are giving more margins to retailers,” Khalid underlines. “Consumers today are ready to experiment with products, and there are smaller brands posing challenges to big players like Unilever,” he adds.
“Take Tamil Nadu, for example; brands like Power and Arasan have more popularity among consumers,” he adds.
Cutee the Beauty Soap found its stronghold in rural Kerala, boasting a market share of 40-42% in the region and a respectable 21% share statewide. “Our Sandal soap, a consumer favorite, sells around 2.5 million pieces per month in Kerala alone,” Khalid proudly states. While Kerala remains the brand’s primary market, Cutee has made inroads into neighboring states like Tamil Nadu and Karnataka, albeit with a modest revenue contribution. In Kerala alone, the brand sells around 5 million pieces per month.
Marketing plays a crucial role in Cutee’s expansion strategy, with the brand allocating 3-4% of its revenue to promotional activities. “We prioritize General Entertainment Channels (GEC) for advertising, often opting for title sponsorships of reality shows,” Khalid reveals. The brand also embraces digital and Out-of-Home (OOH) channels to engage with its target audience effectively.
Looking ahead, Khalid shares ambitious plans for geographical expansion. “We aim to penetrate markets in Karnataka, Andhra Pradesh, Tamil Nadu, and are already laying the groundwork in states like Maharashtra by appointing distributors,” he concludes.
