Living for a little more than four years in New York as an undergrad, I spent considerable time visiting Sephora, also known as heaven for a beauty enthusiast. But now that I’m back in India, my loyalty has shifted.
Join me in a 3-part blog series, as I explore Nykaa - the brand that made me switch my loyalty away from Sephora.
Hello, online beauty space
Standing strong at $3 billion a decade back, the beauty and cosmetics market has more than doubled to $6.5 million now and will continue to thrive for the next 5 years, reaching $20 billion. With Indian consumers having dipped their toes in the online space by experimenting with clothes and footwear first - they have warmed up to the idea of online shopping for beauty products. One major characteristic of these consumers, like the rest of us living in these digital times, is their need for information. For instance, Nykaa’s consumers “are constantly looking to find out more information” and “more than touch and feel, they need to be equipped with enough information and confidence to buy online”, according to Nykaa’s Nihir Parikh.
Once upon a time... before Nykaa
While attempting to dig up content published before the Nykaa and influencer era, I stumbled across makeupandbeauty.com, a makeup blog from 2009. Scrolling past the thread of comments on the posts, I recognized a running theme. A decade ago, women (in hindsight, the earliest adopters of online beauty shopping), were primarily concerned about the counterfeit products and modes of payment, in addition to their disappointment of zero discounts and high shipping fees - obstacles that we no longer face.
In 2010, while most women continued to enjoy going to the mall, to experience the touch and feel of products, some others began welcoming a new way of shopping, i.e. online, with open arms. As is seen from this image, some early risk takers, probably savvy online shoppers now, wrote about their first online experience with multiple websites, from Shastore, Fushionjewels to Flipkart - indicating that a segment of the audience was ready to meet their beauty needs without stepping out of the door. It is no surprise that now, beauty and hygiene-related are the third most Googled searches right after those for apparel and smartphones.
Also, the early 2010s weren't just the time of the digital boom but also of the must needed shift in e-commerce companies targeting women with the focus on self-care instead of just home chores. Launched in 2012, Nykaa continues to stand tall as the market leader in India's beauty and wellness sector.
Introducing the company that needs no introduction
A new member of the highly prestigious Unicorn club, Nykaa boasts a range of 35,000 products from categories like skincare, cosmetics, haircare, wellness and more for both men and women. The multi-beauty brand platform is a solid example of sustainable growth. Not only did it report the revenue number (Rs 1,159 crore in March 2019) that doubled when compared to the year-ago time period, but also made a profit of Rs 2.3 crores.
To read about Nykaa’s success story and my analysis of its digital presence, stay tuned for my next blog post.
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