There has probably never been a better time to launch a beauty brand in India. The pandemic and its consequent bearing on health nudged consumers to look beyond traditional brands and experiment with better alternatives — the past couple of years have seen an influx of new, young brands into the market, often promising to offer clean, cruelty-free and at times science-driven products and solutions. Unlike the past when a well-planned marketing blitz was perhaps enough for many companies to draw user attention, consumers today prefer to read the back label of a product and gain an understanding of the product composition before deciding to purchase it, say analysts.
And the trend is global. Nicola Kilner, CEO & co-founder at Canada-based beauty firm DECIEM says that the industry experienced a huge uplift at the start of the pandemic and throughout 2020, particularly with consumers taking more interest in their skin, placing more emphasis on skin education and investing in products and regimens associated with their concerns. “Being a science-led, education-first company, we are excited about the habits consumers are adopting,” Kilner tells Fortune India in an interview. Late last week, the company launched its flagship skincare brand The Ordinary in India in partnership with Nykaa. The Ordinary markets itself as a ‘science-backed’ skincare brand. While the brand products are already available on Nykaa’s online platform, they will also be sold through the retailer's brick-and-mortar chain of Luxe stores by the end of the summer.
India with its young population and growing economy is being chased by a plethora of global brands for business growth. A study by market research firm RedSeer Consulting says the country is home to the world’s largest population of Gen Z and millennials who together also happen to be the biggest consumer of BPC (beauty and personal care) and fashion.
Gen Z and millennials jointly form an estimated 51% of the population which translates into some 708 million people. “These consumers aspire to express their individuality through the in-trend BPC & fashion products and are financially & digitally capable of buying these products on a regular basis,” say analysts at the firm. Kilner expects India to be one of DECIEM’s top three or probably top two markets in the next three to five years. Many Indians follow Deciem and its brands on social media platforms, particularly Instagram and a common query that popped up in the comments section was often about the brand’s launch in India. India is among the company’s top 10 follower countries on Instagram, says Kilner.
The launch in the country was therefore a no-brainer for the firm. “It has been good to see the demand grow organically and now we are excited to launch in partnership with Nykaa. India is the biggest new market launch we have done in the history of DECIEM,” says Kilner. Although she did not disclose the investments earmarked for the market, Kilner says they are ‘huge.’ Kilner is also betting on India to drive the usage of The Ordinary’s Vitamin C Suspension 23%+ HA Spheres 2%, a skin serum. “On the Nykaa website, it (Vitamin C) is one of the most searched ingredients. The product is not among our top 10 items in North America or Europe,” says Kilner.
The US-based prestige beauty brand Estée Lauder Companies is the majority investor in DECIEM. Founded in 2013 by Brandon Truaxe, DECIEM sells online and also has an offline footprint in 44 countries through retail partnerships. Reportedly, Estée Lauder spent $1 billion last year to acquire a majority stake amounting to 76% in the company. Interestingly, Estée Lauder forayed into India way back in 2005 with the launch of its first MAC store in Mumbai with local retail partner Shoppers Stop. “From a distribution perspective, we will not be appearing in the Estée Lauder stores,” says Kilner.
DECIEM, which describes itself as ‘the abnormal beauty company’ because of the uniqueness embedded in its brand approach, owns a portfolio of three brands — The Ordinary, NIOD and Hylamide. Kilner hinted at the possibility of launching more brands in the market if the basket of products by The Ordinary is well received by Indian consumers. The initial response seems to have been promising. “India saw the biggest opening order we had ever had with any retailer,” Kilner says without disclosing the specifics.
