Quick commerce is taking demand from neighbourhood stores: Nykaa's Falguni Nayar
Falguni Nayar, founder and chief executive of beauty and fashion retailer Nykaa, said quick commerce has impacted offline channels such as general and modern trade within the personal care category, and that the Mumbai-based company would not get into multiple categories of quick commerce “just for the sake of” ultra-fast delivery.
“The industry is developing in a manner…where quick commerce is taking demand from traditional neighbourhood stores,” she said in a virtual interview with ET, ahead of launching the second edition of Nykaaland, the company’s beauty and lifestyle festival where it collaborates with brands for new launches.
Nayar’s comment on the fast-growing quick-commerce channel comes at a time when various retail formats — including ecommerce — is impacted by the rapid rise of platforms like Blinkit, Zepto and Swiggy Instamart besides new entrants such as Flipkart Minutes, offering deliveries as fast as in 10 minutes.
Beauty is one of the fastest growing segments on quick commerce, but Nayar said her focus remains on enhancing speed across the country through her own network. «Quick commerce can cater to specific needs, but our focus remains on a more extensive network across the country, not just a few cities,” she said, adding that the jury is still out on the quick commerce model on its sustainability at a unit economics level beyond the revenue being generated on these platforms.
Nykaa, which doesn’t sell its owned brands on Blinkit, Zepto or Instamart, is running a 10-minute delivery pilot in
