Online fashion retailer Myntra has identified beauty as the next growth engine. It has ramped up technology investments in the area and has forged partnerships with a host of global brands. In this interview, Anmol Sikka, senior director, and head, beauty and personal care, tells Alokananda Chakraborty how the brand is applying the learnings from fashion to the new focus area and discusses some emerging trends. Edited excerpts:
Myntra has significantly scaled up its beauty portfolio by adding a host of global brands. So how do you nudge users to try new products? This is a high-involvement category after all…
Indian consumers are seeking out solutions that are tailormade to suit their requirements. In that light, we are seeing people try existing brands, new brands and emerging brands. We have used multiple channels and initiatives to enable brand discovery. From using our influencer network to providing interesting video content on how to use BPC products, to offering tech-led personalisation via offerings such as virtual try-ons, product finders and AI skin analysers, to beauty nudges sprinkled across the app, we ensured that Myntra Beauty is visible across touch points.
One in three women shoppers on Myntra have already bought at least one beauty item and more than half of our insider base has shopped on Myntra Beauty. The Myntra-specific brand launches and our position as the platform of choice for international brands to foray into India have also helped in terms of optics to showcase the platform as the leader in the space.
You just mentioned “tech-led personalisation”. How crucial is that to move the needle?
One of our many standout tools is the AI Skin Analyser, a cutting-edge solution providing expert recommendations to customers to achieve their skincare goals. This innovative tool has led to marked improvements in conversion rates, with a significant increase in the average order value for users who engage with it. Impressively, over 70% of users complete the Skin Analyser journey, a statistic that surpasses industry standards. Our virtual try-on feature, available across popular makeup brands, has demonstrated twice the conversion rate for users who utilise it. Customer feedback highlights the higher accuracy of this experience compared to other solutions on the market.
Moreover, we employ gender-personalised navigation pills to enhance user experience. Here female customers encounter a “Beauty” pill, while male consumers see a “Grooming” pill, facilitating better awareness and exploration of relevant products. We have tried to eliminate the need for multiple apps.
Leveraging AI-led tools such as conversation commerce supported by Maya and MyFashionGPT, we offer assistance throughout the exploration journey. The platform’s Regime Building feature also aids customers in their beauty, personal care, and grooming goals, offering personalised regimes such as nighttime routines.
How have you leveraged the learnings and synergies in fashion for beauty? Have you spotted any new trends?
We are building beauty by drawing learnings from our expertise in building fashion — not showing everything to everyone but keeping the brands very sharp and the collection very curated. We are able to use targeting capabilities to better understand which user is going to buy an entry level product vis-à-vis one who is inclined towards a more premium product. About 55% of our Insiders base (part of Myntra’s loyalty programme) have purchased a beauty item.
With our penetration in fashion, today we are deeply entrenched into the affluent pockets and we are extending the synergies to build up our beauty portfolio. Till date, over a third of Myntra shoppers have experienced beauty, so we are sitting on a big base of premium shoppers and have huge head room to build adoption for Myntra Beauty.
We have also seen a significant increase in the number of male shoppers buying skincare products on the platform. In 2023, Myntra Beauty witnessed a 200% YoY growth in men’s skincare products with self-skincare, ingredients-led products as well as foundation and concealer also gaining popularity.
Where is the online beauty market headed from here?
The online beauty and personal care market in India will touch $10 billion by 2027. Similar to fashion, as the Indian consumer goes deeper in their BPC shopping journey, they are on the lookout for products ‘made for them’, and are willing to pay a premium for high-performing products. We have a huge user base — one of the largest premium user bases in the market today with a high propensity to buy fashion and beauty. Myntra has over 55 million monthly active users and added 75 million new users to its burgeoning base in 2023 alone.
We have a healthy mix of shoppers across metros and non-metros. The category has recorded 55% of all orders coming from metros and tier 1 cities, while tier 2-3+ cities and towns contribute to around 45% of the segment. Our beauty and personal care category is growing at a faster rate in T2 and beyond.