Nykaasays they are a premium retailer whose customers are much more evolved and prefer lifestyle over other luxury spending.
- The vast portion of the beauty ecommerce platform’s revenue comes from smaller towns in tier II and tier III cities.
- Anchit Nayar, CEO of Nykaa, said that popular products sold on Nykaa are active skincare brands like those of Derma Cosmetics, which says a lot about changing the consumer’s priority toward beauty and wellness.
Inflation could hurt household budgets, but consumers are not yet cutting back on discretionary items such as skin care and cosmetics. Premium personal care retailer Nykaa has not yet suffered from a slowdown in consumption.
Nykaa says her customers are much more evolved and prefer lifestyle over other expenses.
“Nykaa is a slightly more premium beauty broker. We sell a lot of mass brands, but our consumers are a little more evolved, so it doesn’t seem to affect beauty consumption yet. Second, beauty as a category is a small luxury. If you sacrifice some of your great luxuries like maybe you put off buying a car, handbag, but beauty is part of your daily routine, it is essential to your lifestyle. So we don’t see a drop in demand yet,” Nykaa CEO Anchit Nayar told http://gotechbusiness.com/.
The beauty, wellness and fashion products e-commerce company collaborates with more than 3000 brands and 22 global brands that sell their products on Nykaa’s platform.
Six out of 10 Nykaa products are sold in smaller towns
In the same universe where consumer products companies struggle to find demand for certain non-essential items due to high inflation, the vast majority of Nykaa’s sales come from smaller towns in tier II and tier III cities.
Nayar says customer behavior in smaller cities is very similar to that in large cities, all thanks to access to social media.
“In Nykaa, nearly 60% of our gross sales come from smaller cities — tier II, tier III and beyond. And what’s really interesting for us is that consumers in small towns exhibit behavior very similar to that in small towns,” says Nayar.
“This tells us that there is now universal access to information, much of it through social media, but platforms like Nykaa where a consumer sitting in a small town in Assam can access the same information in a big city like Mumbai. of this they have the same ambition, so we’re seeing very similar consumption trends across the country,” he added.
Nayar said that popular products sold on Nykaa are active skincare brands like those from Derma Cosmetics, which says a lot about changing the consumer’s priority toward beauty and wellness.
“If I had to name one or two big trends, it would definitely be active ingredients in skin care such as Derma Cosmetics. I wouldn’t name brands, but brands that serve more pharmacies, such as skin care brands,” says Nayar.
Nykaa is initially open to funding non-equity beauty startups
India has more KFCs and Pizza Huts than Canada or Mexico, and they are custom made too