There are two types of young challenger brands: those that are still in their infancy and those that have recently emerged. This piece focuses on the latter, specifically those brands that, through their exceptional examples, have captured the attention of Mrunmay Mehta, CEO of WOW Skin Science, an eight-year-old brand operating in the beauty, personal care, and health segments.
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Speaking at the recently concluded afaqs! Challenger Brands conference, Mehta gave a brief address about the attributes that, from a marketing perspective, define a challenger brand. Before delving into these attributes, he emphasised that the biggest opportunities for disruption occur during shifts in consumer habits, particularly regarding how people spend their time and money.
“The pace of change today is unprecedented, but it creates new opportunities for brands to offer consumers innovative solutions,” Mehta said, citing the rise of e-commerce as a prime example. He explained that even established brands with significant market share may struggle on digital platforms as nimble competitors capture consumer attention.
For challenger brands, there are four pillars to success: carving out a niche, adapting to two-way communication, authenticity, and the ability to respond in real time.
Mrunmay Mehta
Carving out a niche
“A strong go-to-market insight in a niche area can turn a small player into a big success,” Mehta noted. He pointed to the rise of quick-commerce as a catalyst for unexpected innovations, such as healthy ice cream being delivered in 10 minutes, courtesy of Go Zero ice creams.
Labels to conversations
Mehta also discussed how brands are shifting from being labels to behaving more like people, creating two-way conversations with their audiences. He cited Netflix’s recommendation engine as an example of how companies are adapting to this new reality, where marketing is more about interaction than one-way communication.
Being authentic
Another crucial element for challenger brands is authenticity. Mehta asserts that, unlike in the past, when scale and widespread media presence built trust, today's consumers seek authenticity in raw communication.
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“Look at The Whole Truth. When the cost of chocolate went up, they stopped production, and its founder openly shared the reason with their customers. That level of transparency builds a connection that goes beyond a polished narrative,” Mehta said.
Real-time engagement: the new norm
Mehta shared an example from WOW Skin Science, where the brand responded to criticism from an influencer who posted a negative review. Rather than shying away from the feedback, the company shot a response video within half a day, with the founder personally acknowledging the critique.
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