Amazon to launch in-house beauty products to take on myntra
Amazon India is in talks with contract manufacturers and will launch private labels from makeup and makeup categories.
Following the tendency to launch domestic brands, Amazon is prepared to launch its own brands of beauty and personal care products, reports Economic Times. It is likely to compete directly with Myntra owned by Flipkart, which is also configured to launch its range of products in this category.
There are reputed manufacturers that handle manufacturing contracts for their customers and Amazon will take advantage of these entities to obtain their requirements. Amazon is likely to start with make-up care and products under this agreement.
The main reason for the launch of international products and brands is that it gives players of electronic commerce margins much larger than the popular brands they sell on their platform. These companies, many of them multinational companies, spend huge amounts on advertising their products and expect their loyal customers to “pull” their products. Consequently, they offer limited margins to retailers.
For marketers like Amazon, the customer is already within reach and there is very little advertising expenditure, except perhaps in their own property at no cost.
The only drawback of this strategy of launching brands of cosmetics or other products in any category is that the seller first must establish a strong customer base and have credibility and reliability before taking on established players.
Curiously enough, Myntra not only plans to launch its own brand of personal care products through its e-commerce platforms, but also wants to offer them through online establishments through partnerships. The online fashion marketer hopes to increase the contribution of the beauty and personal care product segment to its global income from current levels from 1% to 8% in a couple of years.
There are estimates that suggest that the Indian market for this category of products is around $ 300 million is likely to come out several times to about $ 3,500 million in 2022 and everyone is pursuing the same cake.
Another interesting development is that while online retailers are trying to use their platforms to launch their own beauty and personal care products to established players, such as Maybelline, Lakme and VLCC, for example, or interested in lighting up Your online presence and some of them have seen a sharp increase in revenue from sales of online sources.
It helped them reach customers in Level 2 and even Level 3 cities and towns in India without having to spend on creating a sales infrastructure in the brick and mortar space.
Therefore, it will be very interesting to see how the main players come to their respective markets and know who arises.