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Delhi News Daily > Blog > Fashion > Why Forest Essentials is resisting the race to scale – Delhi News Daily
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Why Forest Essentials is resisting the race to scale – Delhi News Daily

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Last updated: August 25, 2025 2:32 pm
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Contents
A cautious omni-channel pivotGlobal standards and a steady expansion modelCompetitive landscape: “Discounting isn’t a long-term strategy”Key takeaways for businessesJoin the community of 2M+ industry professionals.Subscribe to Newsletter to get latest insights & analysis in your inbox.All about ETRetail industry right on your smartphone!

Forest Essentials, India’s homegrown luxury Ayurveda brand, is quietly doubling down on its long-term playbook even as the country’s premium beauty market faces an influx of heavily-funded digital-first players. For executive director Samrath Bedi, the brand’s focus remains unwavering: build with patience, stay true to the product philosophy and let credibility drive the expansion.

Founded in 2000 in a garage in Uttarakhand by Mira Kulkarni, Forest Essentials has grown to over 170 stores across India, the GCC and the UK. But unlike many D2C challengers chasing aggressive scale, the brand has stayed conservative in its rollout. “We’ve never announced numbers like 500 stores in a year. Every location is chosen carefully and every process is in place before we move,” Bedi says.

Having pioneered the term ‘luxury Ayurveda’ at a time when Indian retail was still dominated by mass and mid-market brands, Forest Essentials continues to differentiate on supply chain integration and product formulation. Bedi points out that most new-age beauty players outsource manufacturing to contract formulators and focus on packaging. “We spend 18 months to two years on a product. It’s our own formulation, not something off the shelf that’s tweaked. Consumers recognise that,” he says.

A cautious omni-channel pivot

While the company started out entirely offline—building customer relationships through high-touch brand-owned stores—it began testing online formats as early as 2010 in response to growing interest from international consumers. That digital presence has since evolved into a strategic customer acquisition channel rather than a pure-play sales engine.“We don’t compete in the online discounting bloodbath,” Bedi says. “Online helps us reach new cohorts, so we use smaller pack sizes and strong content to draw them in, but we won’t dilute the brand’s pricing or positioning.”

Forest Essentials has no plans to go fully digital. Instead, it is sharpening its omni-channel strategy by integrating AI capabilities into its CRM and store operations to personalise communication and understand evolving consumer preferences. The idea, Bedi notes, is to combine the emotional touch of offline retail with the precision of data-driven systems.

Global standards and a steady expansion model

The turning point for Forest Essentials came in 2008 when Estée Lauder acquired a minority stake, marking its first-ever investment in an Indian brand. The partnership helped the company adopt global supply chain standards and quality benchmarks while still retaining independent control. “It was a deliberate choice,” Bedi says. “They’re family run and share our long-term approach. It wasn’t just about numbers.”Even now, expansion is tied closely to domestic demand cycles. The company has recently moved into tier-III cities and seen what Bedi calls “phenomenal” response, driven by increasing exposure and rising willingness to pay for authentic, high-quality products.

Competitive landscape: “Discounting isn’t a long-term strategy”

On competition from the newer D2C players, Bedi is pragmatic. He welcomes the expansion of the market but cautions that “a lot of them are just mimicking each other”, adding that price wars and heavy discounting will eventually erode trust. “Credibility and trust are what drive longevity. You can’t shortcut that.”

At a time when investors are pushing for faster scale and faster exits, Forest Essentials is opting for the opposite: deeper supply-chain integration, long-term vendor relationships and a continued emphasis on training its in-store “beauty ambassadors”. According to Bedi, the emotional aspect of the customer experience is as important as the product itself.

“We want the customer to feel something when they walk into a Forest Essentials store. That intangible part builds the brand as much as the tangible product,” he says.

Key takeaways for businesses

  • Build before you scale: Forest Essentials prioritises process, vendor alignment and service standards before expansion.
  • Differentiate at the supply chain level: Proprietary formulations and tightly controlled sourcing are the brand’s defensible moat.
  • Use digital as an acquisition tool, not a discount channel: The brand leverages online for sampling and storytelling without diluting pricing.
  • Long-term partnerships matter: The Estée Lauder stake is less about funding and more about accessing best-in-class global standards.
  • Trust drives longevity: Bedi believes credibility is the key to surviving in a crowded, fast-shifting market.

Watch more: https://retail.economictimes.indiatimes.com/future-brands-of-india

  • Published On Aug 25, 2025 at 11:37 AM IST

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