The online beauty and cosmetics category is getting hotter with horizontals looking to tap into the category to ensure they have a slice of the high-margin business pie. Amazon is looking to throw its weight behind its luxury offering within beauty in a bid to maintain volumes and shore up market share in the category dominated by Nykaa.

To that effect, Amazon India has tied up with Ayurveda brand Kama Ayurveda to launch its latest skin care range exclusively on the platform ahead of Kama’s brand outlets offline. This is in line with Amazon’s strategy to double down on luxury beauty as a category to retain customers.

“Luxury is an emerging but very fast growing segment. That segment is growing strongly at the rate of 3x in 2017. We have introduced new brands as well and now have 30 brands in luxury beauty,” said Meghna Apparao, Category Leader – Beauty, Amazon India.

Amazon’s luxury brand portfolio includes Indian brands such as Forest Essentials and Kama Ayurveda as also brands such as Elizabeth Arden, Calvin Klein, Paco Rabanne, Moschino, etc.

In a bid to differentiate itself from niche players such as Nykaa and Purplle, Amazon is looking to build its luxury beauty offering through a host of exclusivity led partnerships with brands beyond just strategies. With over 30 brands, the luxury segment offers 2,000 products on the platform across make-up, skin care, hair care, body and perfumes.

Amazon India currently retails 2 million beauty products across 19,000 brands with beauty forming amongst the top verticals for the platform in terms of units of transactions. The firm is also set to launch its own private labels under the beauty category, ET had reported in February.

“The in the beauty category has more than doubled in 2017. We introduced a slew of brands in the fourth quarter of 2017 so I expect that to reflect this year. Beauty is a strategic category that we are focussing on as we go forward,” said Apparao.

To the growth in the beauty segment which offers margins of 60-70% for online players, Amazon will focus on its luxury segment to growth by offering a wider selection of brands and strengthening discoverability through and other interventions.



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