Nykaa, the listed beauty marketplace, is reportedly planning to enter the quick commerce sector to reclaim market share from competitors such as Blinkit, Zepto, and Swiggy Instamart.
According͏͏ to͏͏ an͏͏ ET͏͏ report,͏͏ Nykaa͏͏ has͏͏ launched͏͏ a͏͏ 10-minute͏͏ delivery͏͏ pilot͏͏ in͏͏ certain͏͏ areas͏͏ of͏͏ Mumbai,͏͏ covering͏͏ 5%͏͏ of͏͏ its͏͏ SKU͏͏ base.
Boosting͏͏ Delivery͏͏ Options:
In͏͏ September,͏͏ Nykaa͏͏ announced͏͏ its͏͏ plans͏͏ to͏͏ enhance͏͏ next-day͏͏ and͏͏ same-day͏͏ deliveries͏͏ to͏͏ meet͏͏ the͏͏ rising͏͏ demand͏͏ for͏͏ quick͏͏ commerce͏͏ models.͏͏ Falguni͏͏ Nayar,͏͏ Nykaa’s͏͏ chairperson,͏͏ MD,͏͏ and͏͏ CEO,͏͏ mentioned͏͏ at͏͏ the͏͏ company’s͏͏ AGM͏͏ that͏͏ next-day͏͏ deliveries͏͏ currently͏͏ account͏͏ for͏͏ 60%͏͏ of͏͏ all͏͏ orders͏͏ from͏͏ the͏͏ marketplace’s͏͏ top͏͏ 110͏͏ cities.
Continue͏͏ Exploring:͏͏ Nykaa accelerates͏͏ same-day͏͏ and͏͏ next-day͏͏ deliveries,͏͏ achieves͏͏ 60%͏͏ fulfillment͏͏ rate͏͏ in͏͏ 110͏͏ cities
Competing͏͏ in͏͏ a͏͏ Growing͏͏ Quick Commerce Landscape:
Quick͏͏ commerce͏͏ platforms͏͏ such͏͏ as͏͏ Blinkit,͏͏ Zepto,͏͏ Swiggy͏͏ Instamart,͏͏ BigBasket,͏͏ and͏͏ Flipkart͏͏ Minutes͏͏ are͏͏ aiming͏͏ to͏͏ capitalise͏͏ on͏͏ festive͏͏ season͏͏ demand͏͏ by͏͏ expanding͏͏ their͏͏ beauty͏͏ and͏͏ personal͏͏ care͏͏ SKUs.
For͏͏ numerous͏͏ D2C͏͏ beauty͏͏ brands,͏͏ partnering͏͏ with͏͏ quick͏͏ commerce͏͏ platforms͏͏ allows͏͏ them͏͏ to͏͏ get͏͏ closer͏͏ to͏͏ their͏͏ consumers.͏͏ Furthermore,͏͏ these͏͏ platforms͏͏ facilitate͏͏ impulse͏͏ buying,͏͏ making͏͏ them͏͏ particularly͏͏ attractive͏͏ to͏͏ modern͏͏ beauty͏͏ brands.
Continue͏͏ Exploring:͏͏ India’s͏͏ quick commerce sales͏͏ surge͏͏ 280%͏͏ in͏͏ two͏͏ years,͏͏ expected͏͏ to͏͏ reach͏͏ USD͏͏ 9.95͏͏ Bn͏͏ by͏͏ 2029
Anticipating͏͏ a͏͏ Surge͏͏ in͏͏ Beauty͏͏ Product͏͏ Sales:
“We͏͏ have͏͏ observed͏͏ rapid͏͏ adoption͏͏ of͏͏ skincare͏͏ and͏͏ beauty͏͏ products͏͏ on͏͏ quick͏͏ commerce͏͏ platforms,͏͏ a͏͏ trend͏͏ that͏͏ is͏͏ expected͏͏ to͏͏ grow͏͏ in͏͏ the͏͏ coming͏͏ months.͏͏ This͏͏ could͏͏ impact͏͏ niche͏͏ players͏͏ like͏͏ Nykaa,͏͏ Purplle,͏͏ and͏͏ others͏͏ that͏͏ have͏͏ been͏͏ market͏͏ leaders.͏͏ We͏͏ anticipate͏͏ a͏͏ surge͏͏ in͏͏ small-ticket͏͏ purchases͏͏ and͏͏ non-makeup͏͏ product͏͏ orders͏͏ on͏͏ quick͏͏ commerce͏͏ platforms͏͏ during͏͏ this͏͏ festive͏͏ season,”͏͏ said͏͏ Satish͏͏ Meena,͏͏ an͏͏ adviser͏͏ at͏͏ market͏͏ intelligence͏͏ firm͏͏ Datum͏͏ Intelligence,͏͏ earlier͏͏ this͏͏ month.
Many͏͏ of͏͏ Nykaa’s͏͏ private͏͏ labels͏͏ are͏͏ available͏͏ on͏͏ Blinkit,͏͏ Zepto,͏͏ and͏͏ Swiggy͏͏ Instamart,͏͏ providing͏͏ Nykaa͏͏ with͏͏ insight͏͏ into͏͏ the͏͏ advantages͏͏ of͏͏ quick͏͏ commerce.͏͏ However,͏͏ this͏͏ rise͏͏ in͏͏ quick͏͏ commerce͏͏ has͏͏ negatively͏͏ impacted͏͏ Nykaa’s͏͏ core͏͏ marketplace͏͏ business.
Ahead͏͏ of͏͏ its͏͏ Q2͏͏ FY24͏͏ results,͏͏ Nykaa͏͏ reported͏͏ consolidated͏͏ revenue͏͏ growth͏͏ in͏͏ the͏͏ mid-twenties͏͏ for͏͏ the͏͏ second͏͏ quarter͏͏ of͏͏ the͏͏ current͏͏ financial͏͏ year͏͏ 2024-25͏͏ (FY25).
Continue͏͏ Exploring:͏͏ Nykaa reports͏͏ mid-twenties͏͏ revenue͏͏ growth͏͏ in͏͏ Q2;͏͏ fashion͏͏ vertical͏͏ faces͏͏ slowdown
The͏͏ company͏͏ stated͏͏ that͏͏ its͏͏ beauty͏͏ vertical͏͏ performed͏͏ strongly,͏͏ while͏͏ the͏͏ fashion͏͏ vertical͏͏ continues͏͏ to͏͏ underperform.
Nykaa͏͏ is͏͏ not͏͏ the͏͏ only͏͏ player͏͏ keen͏͏ to͏͏ explore͏͏ the͏͏ quick͏͏ commerce͏͏ trend.͏͏ Recently,͏͏ this͏͏ model͏͏ has͏͏ expanded͏͏ beyond͏͏ groceries͏͏ to͏͏ include͏͏ fashion͏͏ and͏͏ lifestyle͏͏ sectors,͏͏ such͏͏ as͏͏ beauty͏͏ and͏͏ personal͏͏ care.
