Myntra to invest big in beauty, eyes $150 million business by 2019

By

Maverick Martins

Published
Aug 8, 2017

India’s leading online fashion retailer is looking to make massive inroads in the country’s fast-growing beauty and personal care segment, eyeing a $100-150-million business in the next two years.

Flipkart owned Myntra is already the leading player in the online fashion market in the country with a market share of around 30 percent. Flipkart, Jabong and Myntra combined hold a market share of 70 percent in India.
 
With the fashion market already reaching a saturating point, Flipkart firms are looking to slowly capture the beauty and personal care segment. Myntra launched the beauty segment on its platform last year and has plans to invest big in the category over the next five years.

"Our focus in terms of the brands we have tied up with has been premium and mass premium. We will launch a private label in the categories where we see a gap to bridge in terms of pricing for the mass segment," Ananth Narayanan, chief executive, Myntra was quoted as saying by the Economic Times.
 
"The frequency of business in the category is higher than apparel and it is unit economics profitable. We are willing to invest big in the category over the next five years," Narayanan added.
 
Myntra is investing heavily to upgrade its beauty sector offering various selection and brands which includes colour cosmetics for lips, nails, eyes and fragrances for both men and women in the lower end segment, including deodorants to compete with other beauty etailers in the country.

Beauty and personal care (BPC) market in India is expected to touch $10 billion by 2021 growing at an annual rate of 5-6 per cent, according to a report by Indian Beauty & Hygiene Association (IBHA).
 
"Personal care and beauty are strong brand play, while colour and lower-end fragrance is something users are willing to experiment with," said Bindu Mendonca, senior vice-president, women and emerging businesses, Myntra.
 
Myntra is also planning to launch its own private labels following in the footsteps of other beauty e-tailers like Nykaa to yield higher profits.