Cosmetics industry sees double digit fall post demonetisation
Demonetisation has taken the make up off the beauty industry as the makeup category has witnessed a “double-digit” fall in sales, according to industry estimates. Overall numbers for the last two months, however, were not available as this category is not closely tracked.
An industry official, on the condition of anonymity, said growth dropped across retail chains post demonetisation in a Times of India report.
Online beauty store Nykaa, too, missed its sales target in November. Nykaa clocked a 215% increase in year-on-year revenues in November 2016 as compared to November 2015.
When demonetisation caused a sudden crunch in cash in the hands of consumers, sales at Nykaa suffered minimal impact with revenues falling 5% below target for November 2016.
On the other hand, prepaid orders on Nykaa increased from 32% in the first week of November to 58% towards the end of the month, indicating that customers opted for cashless payments.
Falguni Nayar, founder & CEO, Nykaa, said, “Nykaa revenue has stayed on track despite demonetisation. While we did see a dip in sales in the second week of November, the increase in prepaid orders allowed us to finish the month with only a 5% target deficit. The launch of M.A.C Cosmetics along with other leading beauty brands like Clinique, Estée Lauder and K-beauty innovator Innisfree since November 2016 has generated a huge buzz on our platform.”
According to Euromonitor, the size of the Indian colour cosmetics market stood at Rs 5,380 crore in 2015.
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