By leveraging Estée Lauder’s international reach and Nykaa’s local presence, Randhava said, the program will provide brands with a forum to build brand awareness and amplify growth.
The wider objective of the incubator is to develop the prestige and premium beauty offer in India. “We look for entrepreneurs who are creative and innovative,” says Randhava. “Product effectiveness is essential and a key factor in achieving a premium price. We really strive to ensure that this premium or extra level of experience is shaped across all touchpoints. innovation in production, storytelling and consumer engagement.
Beauty in India: a booming market
The Indian market is buoyant, says Nayar de Nykaa. “India is one of the fastest growing beauty and personal care markets in the world.” However, without support and mentorship, it is difficult for Indian brands to grow. The offer of experienced mentorship is as important as the financial support, he stresses.
India’s beauty and personal care market is currently valued at $15 billion and is expected to grow by 9.6% this year, according to Euromonitor International. Although it is small compared to the United States, which is worth $102 billion, or China, at $88 billion, rapid growth is predicted for the next few years by The Estée Lauder Companies, which has made its entry into the Indian market in 2005. Two years later, Estée Lauder invested in the Indian beauty brand Forest Essentials, based in New Delhi and a leading Indian brand in prestige skincare.
The Estée Lauder Companies was an early partner of Nykaa, listing beauty products on the platform from its inception. A $720 million IPO in 2021 valued Nykaa at nearly $14 billion. Now described as a “consumer technology” company, Nykaa started out as an online retailer. It owns over 110 multi-brand beauty stores in India and works with over 3,000 domestic and international beauty brands.
Both Nayar and Randhava are looking for brands with global potential, although India is the initial focus. “We have a good idea of what Indian consumers are looking for and we have a good understanding of what makes sense for the Indian market,” says Nayar.
Canadian-born Deciem is a clear example of how The Estée Lauder Companies helps emerging beauty brands grow in the global marketplace. The brand’s sales were just $14 million when Estée Lauder made an initial investment in 2017. “During the period we were in a minority position, the brand grew from $14 million to nearly $500 million today,” says Randhava. Deceim was able to rely on the internal networks of the American conglomerate, in particular the R&D teams and the distribution expertise. “We launched Deciem in Nykaa a few months ago – and it’s already become the number one player in the skincare market,” she says.
The Estée Lauder and Nykaa companies are accepting applications from August 1 through September 30. Selected participants will be announced in November.
With additional reporting by Kati Chitrakorn.
Comments, questions or comments? Email us at [email protected].
More from this author:
After a major intellectual property win for Manolo Blahnik in China, should more luxury brands take action?
Matchesfashion adds management changes with new Farfetch COO
The Modist version 2: inside the relaunch of the modest fashion retailer