Beauty and personal care products have recently attracted a number of players in the eCommerce market due to high demand and low availability of such products, especially in tier 2 and tier 3 cities. From direct selling to subscription model one can easily find an online seller for such products offering best of their services.
Beautykafe, another such platform entered the niche beauty, skincare and fragrance market in October 2012. “The basic idea is to solve the problem faced by everybody in choosing and buying the right beauty product,” claims Ajay Jain, founder at Beautykafe. “The consciousness towards looking good is increasing but the awareness, education and availability of right products is a big problem.”
The startup aims to become a single largest platform where users can find beauty products of all brands with expert reviews, social recommendations and tutorials. The portal has over 400 national/international brands including Calvin Klein, Oriflame, Paco Rabanne, Park Avenue and Paul Mitchell, among others.
Currently bootstrapped, the startup is looking for funding to increase the growth rate and enhance shopping experience on the platform by integrating more personalised technology features. This will include integration of service providers like salons, beauty parlors in its workflow and developing a new shopping experience to buy beauty & wellness products as well as services.
Beauty products in India make about a INR 25,000 Cr market, which is growing at 20% CAGR. In urban areas, every household spends over INR 2000 per month on beauty products and services offering a significant market scope, and this amount is increasing exponentially as people are getting exposed to more international & expensive brands.
Indian eCommerce is still in nascent stage and large players like flipkart are setting up a good foundation, still the industry offers a significant scope for category specific online retailers who offer better experience and educate shoppers about the best beauty products and services that they should buy based on their profile, preferences, recommendations and previous experiences, believes Ajay. “There are several companies outside India like beautylish.com, sephora.com, birchbox.com have made it big and that’s what we want to do in India.” added Ajay. Few of the other niche players Beautykafe is competing with in India include Masticart, Enchantess, Purplle, Nykaa, and more.
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