Luxury brands prove lucrative for online Indian marketplaces

Luxury brands prove lucrative for online Indian marketplaces

Online beauty portals in India are increasing their focus on prestige products in a bid to expand their marketplaces and boost sales.

Beauty e-tailer Nykaa is said to be bringing on the full Estee Lauder Companies (ELC) range, from Tom Ford to Bobbi Brown, totally approximately 450 SKUS.

The move is hoped to grow the company three times over, with the luxury sector growing 10 times, according to the Economic Times.

And while these brands won’t be part of discounting initiatives, it is thought that the accessibility of these items will override any discount offers. Speaking to the ET, Harminder Sahni, founder of Wazir Advisors, said, “Masstige (for masses) brands don’t aid much when it comes to revenue churn since they are low-margin products and are available everywhere.
“These marketplaces will make money only when they offer something which is exclusive. Even if they charge a full price along with convenience charge, consumers will be bound to buy it.”