Besides women founders, there is so much more common between Mamaearth and Nykaa. These Indian brands have been able to make inroads into the strongholds of MNCs. They are shaking the beauty and personal care fields while displaying amazing scale and profits.
It is through the sheer commitment and resilience of the co-founders of these brands that they have been able to capture new internet users and beauty amateurs.
The new look of these brands has completely turned heads in the market. No wonder various beauty brands in India have been present for years, but Mamaearth and Nykaa have attracted attention to various locally made products. Also, these brands have been able to carve out shelf space at stores across the nation, which was mainly reserved for MNCs.
The online beauty market in the country is estimated to be around $1.3 billion. Nykaa holds a share of 38%, whereas Mamaearth holds 5.4%, as per Redseer. Also, they have made inroads into offline retail, which is going to break through the $15 billion market in the future.
The strategy of these brands
These brands have been able to gain market share via endorsement deals with renowned celebrities and influencers, including digital marketing arrangements with YouTube, Instagram, etc.
They have been growing gradually and have managed to make headway during the change in customer interest. Indian customers, especially young customers, were appreciating ‘Hallyu’ or Korean pop culture and discovering content revolving around beauty.
The Indian customers, involving 60% females, understood their skin and cosmetic needs. Thus, both companies grabbed this opportunity.
This is the reason they adopted the not-so-unique flywheel, which is: engagement content, new customers, customers learning about their needs and becoming aware, customers looking for new products, products that fulfill their needs, and using content for discovery.
This has helped them to break the stronghold. However, the brands and companies in the West are beginning to understand this.
Where is this leading for India?
It is a time when making in India has led to prominence, and companies like Nykaa and Mamaearth are going to lead the way. They will play a significant role in building recognizable global products.
The public listing, along with quarterly results, might draw attention to the companies. However, there is so much more to Nykaa and Mamaearth than their stock price. According to Falguni, ‘Stock prices are going to go up and down. But the important thing is to create an inherent value for the business.’
