Private care and grooming startup Bombay Shaving Firm’s Chief Govt Officer (CEO), Shantanu Deshpande, in a social media submit, predicted that the premium skincare model, Minimalistwill ‘die’ or stop to exist within the subsequent three to 5 years.
“I’m keen to guess that the model Minimalist will die (or stop to exist in any significant means) within the subsequent 3-5 years,” mentioned Deshpande in his latest LinkedIn submit.
This view from Deshpande comes months after the premium skincare model was offered to the fast-moving client items (FMCG) large Hindustan Unilever (HUL) in January 2025.
Why does Deshpande suppose ‘Minimalist’ will die?
Shantanu Deshpande mentioned that the founders of the skincare model are ‘gone’ and the agency was offered for practically ₹3,000 crore in Janaury 2025. He even supported the founders and mentioned that ‘it was the suitable factor to do’ and he would have performed the identical.
“The founders are gone. They offered for a whopping 3000 cr, made 2000 cr for themselves, 1000 cr for others, and have left. It was the suitable factor to do. I might have performed the identical,” mentioned Deshpande in his submit, highlighting that the CEO who sponsored the deal is now ‘gone’.
Deshpande emphasised the danger of alienating the model additional, as the brand new CEO will reportedly be utilizing a mix of give attention to the core and the innovation half.
“A brand new CEO is on the helm of a struggling large. There can be a mix of ‘give attention to our core’ + ‘innovate and construct ourselves for the buyer’ that can additional alienate an orphaned model,” he claimed in his submit.
Aggressive Danger
In his submit, Shantanu Deshpande mentioned that the skincare model is just not “laborious to repeat” and highlighted that the business opponents will make sure the premiumisation within the area.
“Competitors is fast to swoop in. Not laborious to repeat a copycat, frankly. 🙂 Competitors will guarantee premiumisation – one other strategic lever for brand spanking new CEO – can be powerful. I personally have seen 10 pitch decks on this area,” mentioned Deshpande.
Return on Advert Spend (ROAS) and Return on Capital Employed (ROCE) can be key components within the ‘impatience,’ which is more likely to result in the operations ceasing to exist within the potential future.
“There’ll quickly be impatience round ROAS and ultimately ROCE. And the plug can be pulled in some unspecified time in the future, invariably,” he mentioned. “A model at 400-500 cr, worthwhile, properly run – will possible change into a zombie enterprise (there however why nobody is aware of) with the shareholders being 3,000 cr poorer.”
The Bombay Shaving Firm CEO additionally emphasised that Minimalist is underneath 1% of the FMCG large HUL’s market capitalisation. “So who even cares…” he mentioned.
“I so so so badly hope I am mistaken,” mentioned Shantanu Deshpande in his submit.
Hindustan Unilever Ltd. introduced on 22 January 2025 the acquisition of the web premium skincare model Minimalist for ₹2,955 crore. In response to Mint’s earlier report, the FMCG large will purchase a 90.5% shareholding within the firm.