Nykaa, the leading beauty e-commerce player in India, has shrugged off concerns about increasing competition in the market. Anchit Nayar, CEO of Nykaa’s beauty business, stated that they have not yet witnessed any significant impact from new competitors such as Reliance Retail’s Tira. Speaking at the Nykaaland event in Mumbai, Nayar emphasized that a large majority of their business comes from repeat customers. While Nykaa is often seen as a pioneer in the beauty e-commerce sector, Nayar acknowledged that other players like Flipkart and Purplle were already operating in the space before them.
Nayar also expressed his faith in the prospects of India’s consumption story. With the growing number of middle and high-income households, urbanization, and digitalization of the beauty business, Nayar believes that Nykaa is well-positioned to benefit from these trends. He highlighted that their average customer spends around $80, significantly higher than the national average of just $5.
Meanwhile, Nykaa’s founder, Falguni Nayar, shares Nayar’s optimism about the industry’s future. She believes that the trend of premiumization, where consumers gradually shift towards higher-priced products, will continue to drive growth. Falguni Nayar also mentioned that premium products tend to address customer concerns better, leading to habitual use and a loyal customer base.
In terms of addressing barriers to growth, Anchit Nayar highlighted the importance of awareness, education, and availability of beauty products. Nykaa is actively working to overcome these challenges and is currently hosting its first-ever beauty event in collaboration with BookMyShow.com. The event showcases over 80 international and Indian beauty brands, featuring live music performances, food stalls, and various experiential activities such as foot massages and beauty courses.
The Nykaaland event has attracted notable influencers in the beauty industry, including Ashish Chanchalani and Diipa Buller-Khosla. Owen Roncon, the chief of business for live entertainment at BookMyShow, expressed excitement about the immersive and innovative experiences offered at the event. He emphasized that the collaboration with Nykaa opens up new possibilities for immersive beauty and entertainment experiences.
Overall, Nykaa remains confident in its position as a market leader in the face of increasing competition. The company’s focus on customer loyalty, industry trends, and experiential events demonstrates its commitment to providing a unique and engaging beauty shopping experience for Indian consumers.
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