Nykaa Enters Quick Commerce Arena with 10-Minute Delivery Service

India’s quick commerce sector is experiencing unprecedented growth, with new and established players capitalizing on the rising demand for instant deliveries, especially in metro areas. Initially focused on grocery essentials, the sector has now diversified into electronics, fashion, beauty, and even food. One of the most exciting entrants in this space is Nykaa, the beauty and fashion retailer, which has recently launched a 10-minute delivery pilot in Borivali, Mumbai.
With this strategic move, Nykaa joins the ranks of major players in the quick commerce sector, including Zomato’s Blinkit, Swiggy Instamart, Zepto, and Tata’s bigbasket. These companies are competing fiercely to redefine the convenience economy and set new standards for delivery speed and product variety. Nykaa’s entry into the quick commerce space is driven by more than just fear of missing out (FOMO). The company sees a significant opportunity in the remarkable demand for beauty products delivered within minutes. As beauty has emerged as a top-grossing category on quick delivery platforms, Nykaa aims to capitalize on this trend by expanding its quick delivery service under a separate brand name. Nykaa’s 10-minute delivery service poses a challenge to established platforms like Blinkit, Instamart, BigBasket, and Zepto, potentially impacting their sales of beauty products. The promise of rapid delivery may lead more shoppers to prefer Nykaa’s platform, reshaping market dynamics.
In this evolving landscape, horizontal quick commerce platforms like Blinkit and Zepto dominate grocery delivery. However, industry insiders believe there is ample room for vertical platforms that specialize in specific categories. Beauty, fashion, and home decor are becoming key areas where platforms like Nykaa and Myntra can leverage their expertise and optimize supply chain networks to gain a competitive edge. Myntra and Nykaa’s same-day delivery service, currently available in four metros, exemplifies how companies are adapting to changing consumer expectations.
Presently , a significant 10-15% of Nykaa’s orders in these cities are delivered on the same day, while next-day deliveries account for 85-90% of total orders. To improve same-day and next-day delivery rates to 65% in the top 12 cities and 60% in the top 110 cities, Nykaa is focusing on enhancing supply chain efficiency without major investments.
The quick delivery of beauty products extends beyond Nykaa. Varun Alagh, CEO of Mamaearth, emphasizes the critical role of quick commerce in his company’s strategy, noting that it is the fastest-growing sub-segment within its online commerce channel. In August, Mamaearth reported that over 10% of its online revenue came from quick commerce sales, primarily from the top 10 cities.
Nykaa’s bold move into the 10-minute delivery space, alongside other players’ rapid expansions, underscores that the quick commerce sector is here to stay.
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