Nykaa or Sugar. Who amongst them will emerge as a winner, in the long run, in
the beauty space?
In the face of it, the question itself seems wrong. Why would I want to compare
Nykaa, a niche e-commerce player, with Sugar, a cosmetics brand? Sure, Nykaa
also has their own private labels which it sells on its platform. But the major
portion of their revenues is thanks to margins they make on the sales of other
popular brands.
But below that superficial veil, they are really data companies, churning out
massive amounts of insights on customers preferences, and how to pai which item
with what.
For Nykaa, the data source is fairly obvious. A customer who brought shade X of
foundation, rated Shade L of lipstick the highest. So presumably this shade
looks good on people of this complexion. Not to forget their AI scrapping
information from all the images and reviews their customers post.
"Fair point, but what's the data source for a brand selling on another platform
like Sugar does?", you ask! Well to know about that you'll have to read this
article (because that's the only way to beat the LinkedIn algorithm, and get
article to gain some traction)
So, do give it a read and let me know your thoughts :)
#business #strategy #data
Posted by Kamalika Poddar on LinkedIn
link: linkedin.com/in/kamalika-poddar
the beauty space?
In the face of it, the question itself seems wrong. Why would I want to compare
Nykaa, a niche e-commerce player, with Sugar, a cosmetics brand? Sure, Nykaa
also has their own private labels which it sells on its platform. But the major
portion of their revenues is thanks to margins they make on the sales of other
popular brands.
But below that superficial veil, they are really data companies, churning out
massive amounts of insights on customers preferences, and how to pai which item
with what.
For Nykaa, the data source is fairly obvious. A customer who brought shade X of
foundation, rated Shade L of lipstick the highest. So presumably this shade
looks good on people of this complexion. Not to forget their AI scrapping
information from all the images and reviews their customers post.
"Fair point, but what's the data source for a brand selling on another platform
like Sugar does?", you ask! Well to know about that you'll have to read this
article (because that's the only way to beat the LinkedIn algorithm, and get
article to gain some traction)
So, do give it a read and let me know your thoughts :)
#business #strategy #data
Posted by Kamalika Poddar on LinkedIn
link: linkedin.com/in/kamalika-poddar
