Nykaa to add up more products and services to woo Indian beauty market

India: Beauty and personal care products marketplace Nykaa, which is run by FSN Ecommerce Ventures, is planning to add more products and services in its portfolio in order to achieve its goal of turning EBITDA positive by 2017. Nykaa has tied up with many salon and spa services in Pune, Mumbai and Bengaluru, and planning to launch fitness wear and costume jewellery along with this the company will feature wellness and cosmetology packages. The company is planning to introduce international brands from Korea and other countries.

Nykaa’s revenue comes from retail, advertising and brand surveys which the company carries out and other premium services which are listed on the site. As far as funding is concerned Nykaa has received INR800 million of funding so far and in its previous rounds of funding the company was backed by TVS Capital. In order to fund its Omni channel strategy and brand tie-ups the company is looking for subsequent rounds of fund raising.

According to TechSci Research, the consumers from Indian cosmetics industry have come a long way. Some years back the consumers in India was satisfied with simple red lipstick and black kohl eyeliner, but now the trend in cosmetics industry is changing and consumers want the whole package, which includes products ranging from hair care, skin care, cosmetics and others. Services like manicure, pedicure, facial, and hair styling, which were once considered as exclusive or premium things for women, have now become a part of grooming routine. Therefore, the companies are trying to expand their product portfolio in order to match the increasing demand of cosmetics products and services.

According to a recent report published by TechSci Research, “India Women’s Cosmetics Market Forecast & Opportunities, 2020”, the market for women’s cosmetics products in India is projected to grow at a CAGR of 16% during 2015-20. Growth in the market is being driven by increasing consciousness among women regarding their looks, in addition to aggressive advertising of these products. India women’s cosmetics market is highly competitive, and so major players are working towards optimizing their sales, by focusing on product development and innovative packaging to lure more customers. Companies are also roping in different female icons to feature in their product advertisements, as the aspiration to look more like their celebrity idols has been a major factor encouraging sales of cosmetic products in the country. Major players in women’s cosmetics market include HUL, Procter & Gamble, L’Oréal and Himalaya, among others.