Tier Contribution of Platforms for Facial Creams and Moisturisers

Overall in the eCommerce space Beauty segment is one of the top contributors to overall eCommerce order volume. As per Vumonic Datalabs estimates the Beauty Segment contributes more than 10% of overall items sold online. Additionally, 2022 has been a bumper year for the Beauty and Make segment. Especially, with many women returning back to work the demand for these product categories has hit the roof. 

Skincare is a complex category on its own – with many sharp subcategories - Bleaches, Cleansers & Face Wash, Cleansing Creams & Milks, Creams & Moisturisers, Face Masks, Face Pack, Facial Kit, Facial Scrubs & Polishes, Sunscreen & Aftercare, Toners. All of these subcategories have different benefits and in turn different platform preferences. 

We analyzed nearly 20K Creams and Moisturizers sold on these platforms from the period of Jan to March 2022 and it is clear that the consumer preferences for the choice of platforms vary across different Tiers within the Creams and Moisturizers sub-category. 

Overall the first important decision for any brand is – which platform can provide them scale. For this subcategory, Amazon sells almost the same volume as the rest of the platforms! This is a crucial point of any brand trying to make a space for itself, as strong partnership and execution on Amazon can go a long way. However, it is also important to note that during this period there were nearly 300 brands that were sold on Amazon – making it a tough marketplace.  

Nykaa like Amazon is getting much higher contribution from Tier 1 & 2 markets – This 

This is so because both these brands have done high decibel brand building in Tier 1 & 2 cities additionally they have a better fulfillment setup for these markets. 

On the other hand, Flipkart and Purplle have maximum Tier 3 contribution – This is so because the Tier 3 consumers are seeking value brands with strong support from platforms on delivery, returns, etc. And both these platforms perform exceptionally well in terms of relevant product mix and customer support. 

Consumer behavior data is crucial to know and should get baked into the strategy for efficient execution. This can be done effectively by using Vumonic’s behavioral data for eCommerce for many different categories.

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Written by: Anupam Asthana

Date:  27 Sept 2022

Vumonic Datalabs is a global consumer intelligence platform. We provide high-quality, deterministically linked, large structured data that can be used to derive deep consumer,  business, and market insights. Our proprietary data pipelines deliver unbiased actual transaction data collected in a privacy and secure manner via large global panels. 

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