Nykaa, a leading beauty and fashion e-commerce platform, has initiated a pilot program for 10-minute deliveries in Mumbai, marking its entry into the competitive quick commerce arena.
This move aims to challenge platforms like Blinkit, Zepto, and Swiggy Instamart, which have gained significant market share by offering rapid delivery of beauty and personal care products.
The pilot currently covers around 5% of Nykaa’s SKU (Stock Keeping Unit) base in select areas of Mumbai, positioning the brand to cater to consumers seeking instant gratification through quicker deliveries. Nykaa had previously expressed its intention to improve delivery speeds, with a focus on next-day and same-day fulfillment. As of now, 60% of orders from the platform’s top 110 cities are delivered the next day, a figure Nykaa aims to enhance further.
The quick commerce sector, especially with players like Blinkit and Zepto, has surged in popularity by offering fast delivery of everyday essentials, including beauty and skincare products. During festive seasons, these platforms have expanded their beauty and personal care categories, driving impulse buying and increasing their customer base. This trend has allowed direct-to-consumer (D2C) beauty brands to tap into a more accessible market, offering a significant opportunity for growth.
Market experts have noted that quick commerce platforms have rapidly integrated beauty and skincare products into their offerings, attracting new-age consumers. This rise in demand has posed a challenge to established players like Nykaa and Purplle, especially in terms of small-ticket and non-makeup product sales. As the festive season progresses, quick commerce platforms are expected to see a surge in orders, particularly for affordable beauty products.
While Nykaa has already listed several of its private labels on platforms such as Blinkit, Zepto, and Swiggy Instamart, the growing dominance of these quick commerce brands has impacted its core marketplace business. However, the company has seen consistent growth, with consolidated revenues rising in the mid-twenties during Q2FY24. While Nykaa’s beauty segment continues to thrive, its fashion division has yet to catch up to similar levels of performance.
Nykaa’s venture into 10-minute deliveries is part of a broader trend where quick commerce is being extended beyond grocery, into categories like beauty, fashion, and personal care. With this initiative, Nykaa aims to reassert its position in a competitive market and offer a faster, more efficient shopping experience for its customers. As the competition intensifies, it will be interesting to see how Nykaa’s entry into this space impacts its overall growth and market leadership.
