Not seeing any major impact of competition yet, says Anchit Nayar of Nykaa

• Anchit Nayar, CEO of beauty business of Nykaa said they have not seen any major impact of competition yet.
• The Indian consumption story is strong with a growing number of middle and high income households, urbanization and more, he adds.
• The company organized a Nykaaland event in Mumbai which showcases its brands along with entertainment, food and experiences.

Beauty e-commerce player Nykaa has been under the scanner due to many competitors entering the fray, importantly, Reliance Retail’s Tira. However, the listed niche omni-channel beauty retailer is not too worried.

“We have not seen any impact of it yet. A majority of our business comes from repeat customers. It’s a popular perception that we are the first movers in this area. We are not. Flipkart, Purplle have all been doing this business before us. But we now have a large share of the customer base,” Anchit Nayar, the CEO of beauty and e-commerce of Nykaa told reporters speaking on the sidelines of the company’s Nykaaland event in Mumbai.

Nayar also added that he believes in the India consumption story — with a growing number of middle and high income households, urbanization and digitalization of the beauty business. Their average customer spends around $80, whereas the average spend for an India is as low as $15 — he elaborated.

The founder of Nykaa, Falguni Nayar, CEO of Nykaa too believes that the trend of growing premiumization – from mass to masstige products, from masstige to premium; will continue. It will also be less affected by inflation.

“Once consumers use premium products and see that they address concerns better, it’s a habit that will be tough to shake off,” Falguni Nayar told Business Insider India on the sidelines of the event.

Awareness and availability of beauty

Anchit Nayar also added that awareness, education and availability are the barriers for the growth of the sector — and the company is solving them. The company is holding its first ever beauty event between November 4-5, in collaboration with BookMyShow.com.

Apart from showcasing over 80 iconic international and Indian beauty brands and their extensive product ranges in the exhibition, the event include entertainment with bands playing live music, food and other forms of games. Curated to look like a wonderworld, the event also has stalls for pampering and experiences like foot massages, hairdos, beauty courses and more.

“It’s our way to bring the world of beauty to consumers. It provides a lot of learning and is very experiential,” Falguni Nayar said.

Apart from Janhvi Kapoor, influencers in the space also attended the event on preview day like Ashish Chanchalani, Diipa Buller-Khosla, Aastha Shah, Sunayana Fozdar and more.

Owen Roncon, chief of business – live entertainment at BookMyShow, said that the event offers immersive and innovative experiences. “Offering an unparalleled experience to the audience is the primary goal for us with every new IP and with Nykaaland, the stakes are higher as we enter a new realm of beauty and entertainment – a buzzing industry waiting to be tapped in an immersive experiential manner,” he added.

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