Anchit Nayar Says Consumers Not Cutting Back on Small Luxuries Despite Inflation

Despite the fact that inflation is hurting household budgets, consumers are still buying cosmetics and skincare on a regular basis. Nykaa, a high-end personal care retailer, is not yet impacted by a decline in consumption.

According to Nykaa, its customers are much more sophisticated and prioritise lifestyle over other costs.

“Nykaa is a slightly more premium realtor for beauty. We do sell a lot of mass brands but our consumers are slightly more evolved so it doesn’t seem to be impacting beauty consumption as of yet. Secondly, beauty as a category is a small luxury. If you are sacrificing some of your large luxuries like maybe you’re putting off buying a car, handbag but beauty is part of your everyday routine it’s essential to your lifestyle. So we are not seeing a dip in demand as yet,” said Anchit Nayar, CEO of Nykaa.

Over 3000 brands and 22 international brands have partnered with the e-commerce site for fashion, wellness, and beauty products to sell their goods on Nykaa.

The vast majority of Nykaa's sales come from smaller towns in tier II and tier III cities, in the same universe where consumer product companies have been struggling to find demand for some non-essential items due to high inflation.