Brands from fashion to beauty to skin care appear to be taking digital routes to build a loyal customer base. SkinKraft, a direct sales brand specializing in customized skin and hair care products, plans to spend 80-90% of its total advertising on digital platforms in FY2010. “This is the first year we spend on branding. Our spending is primarily on digital channels such as Youtube and Facebook. A significant portion is also allocated to influencers. Spend a bit offline. It may happen, but it’s not concrete yet, “SkinKraft co-founder and CEO Chaitanya Nallan told BrandWagon Online. According to him, SkinKraft currently generates over 1,00,000 orders a month, with average ticket prices ranging from Rs 800 to Rs 1,000. In addition, the number of monthly repeat purchases exceeds 30%.
According to Nallan, metro and Tier 1 cities make up 30-40% of SkinKraft’s total sales. Tier 2 on the other hand accounts for 30% of total sales, with the rest coming from Tier 3 cities. In addition, most of the demand for these products comes from the age group of 18-35 years. “Our skin care is popular in the northeast and demand for hair care products comes primarily from the metro. We have recently expanded to Tier 3 cities, and there is a lot of demand from these cities. It’s expected, “said Nallan. Given the growth seen during the pandemic, the company is also considering expanding its distribution network through collaboration with the e-commerce market, including: Amazon, Flip cart, Nykaa, Myntra and more.
Inknut Digital Private Limited, the listed parent company of Skincraft, reported net income of Rs 1.7 billion in 2020, but net sales of Rs 47.3 billion, according to regulatory filings accessed by business intelligence company Tofler. Was recorded. The company claims that 2021 net sales tripled to Rs 15 billion. However, the company refused to reveal its profit or loss for the current term. “Our value proposition is highly differentiated and caters to the unique needs of our customers, mainly because they relied primarily on digital platforms, despite their expectations for growth thanks to Covid. The pace has increased, “Nallan added. Going forward, the company is aiming for net sales of Rs 25 billion in 2010 through informed choices by today’s consumers. Approximately 40-50% is expected to come from Skin Kraft. It also plans to enter offline retail.
In August 2020, SkinKraft entered the men’s grooming market with a customized men’s skin care product in India. The company claims that the men’s grooming category, launched under the SkinKraft and Vedix subbrands, contributes about 20-25% of the company’s revenue today.