Nykaa Pilots 10-Minute Deliveries In Mumbai To Fight Quick Commerce Onslaught
by Bhupendra Paintola · Inc42SUMMARY
- Nykaa has launched a 10-minute delivery pilot in select parts of Mumbai covering 5% of its SKU base
- In September, Nykaa had stated its intention to accelerate next-day and same-day deliveries to cater to the growing demand for quick commerce-like models
- Quick commerce platforms, including Blinkit, Zepto, Swiggy Instamart, BigBasket and Flipkart Minutes, have looked to capitalise on the festive season demand by bulking up the beauty and personal care SKUs
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Listed beauty marketplace Nykaa is reportedly looking to jump into the quick commerce fray in a bid to recapture market share from the likes of Blinkit, Zepto, Swiggy Instamart and others.
An ET report claims Nykaa has launched a 10-minute delivery pilot in select parts of Mumbai covering 5% of its SKU base.
In September, Nykaa had stated its intention to accelerate next-day and same-day deliveries to cater to the growing demand for quick commerce-like models. Nykaa chairperson, MD and CEO Falguni Nayar had said at the company’s AGM that currently next-day deliveries comprise 60% of all orders from the marketplace’s top 110 cities.
Quick commerce platforms, including Blinkit, Zepto, Swiggy Instamart, BigBasket and Flipkart Minutes, have looked to capitalise on the festive season demand by bulking up the beauty and personal care SKUs.
For many D2C beauty brands, listing on these quick commerce platforms means moving closer to the consumer base. Plus, QC platforms cater to impulse shopping, a big draw for new-age beauty brands.
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“We have seen a very fast adoption of skin care and beauty products by quick commerce platforms which will only increase in coming months. This might hit the niche players like Nykaa, Purplle and others that have been market leaders. We expect small-ticket purchases and non-make up product orders to spike during this festive season on quick commerce platforms,” Satish Meena, adviser at market intelligence firm Datum Intelligence, told Inc42 earlier this month.
Several of Nykaa’s private labels are listed on Blinkit, Zepto and Swiggy Instamart, which would undoubtedly have shown Nykaa what quick commerce offers. But on the flipside, Nykaa’s core marketplace business has suffered from the rise of quick commerce.
Ahead of its Q2FY24 results, Nykaa claimed to have registered consolidated revenue growth in the mid-twenties in the second quarter of the ongoing financial year 2024-25 (FY25).
The company said its beauty vertical saw strong performance, while the fashion vertical continues to lag behind.
Nykaa is not alone in wanting a taste of the quick commerce magic. In recent times, the model is being extended beyond grocery to fashion and lifestyle categories such as beauty and personal care.