When people discuss holographic eyeliner or gradient / ombre lips, many may wonder if science fiction has made its way into the makeup industry. For a long time, K-beauty, especially Korean skincare, has been popular all over the world for its innovative product lines. But nowadays a wider range of cosmetics is emerging and Indian consumers are also a part of that change.

People are willing to spend a little more on fast and cruelty-free products while also looking for products that meet global standards. This has opened the doors for new-age beauty and personal care (BPC) companies that are trying to balance consumer needs with relatively affordable prices.

Amit and Mohit Goyal are brothers who have long been associated with the general and modern trade in the cosmetics industry. In 2013, she left her previous business and launched the brand Swiss Beauty. Comfortable and high-performance tinted cosmetics and skin care are offered.

Although it was inspired by Swiss beauty standards from the beginning, that's not what the name suggests. The brand has developed a wide range of palettes keeping in mind the different skin tones found across India to complement its unique features. According to the brand, the company claims to be vegan and free of any of the cruvalietylase parabens and alcohol. All of our products are FDA approved and PETA certified.

At a time when D2C (direct-to-consumer) digital-first models are emerging, Swiss Beauty has taken the bold step of opting for offline sales to reach a larger audience that is accustomed to buying products through traditional retail. This strategy played a crucial role in increasing its presence across India.

It made a strategic online push in 2019, aligning well with the e-commerce boom. Today, it has an omnichannel presence that includes its own website, beauty-focused marketplaces like Nykaa and Purplele, and more than 25,000 physical touchpoints across 550 + cities, including Tier II and III locations.

To eliminate problems related to warehousing, the brand collaborated with 3PL provider Emisa in 2022. This partnership has ensured a strong presence across various channels, which is a critical component of a true omnichannel brand, and has helped manage fluctuations.

When scaled, the brand added over 1.5 K SKUs, including face and eye makeup, lip colors, and more. It also offers an extensive skincare range and was launched as a vibrant line aimed at the youth.

When scaled, the brand added over 1.5 K SKUs, including face and eye makeup, lip colors, and more. It also offers an extensive skincare range and was launched as a vibrant line aimed at the youth.

R & D for quality and innovative product lines

When they launched their venture, the brothers leveraged their expertise to focus on three key areas to grow the brand.

Amit, who has experience in brand launching and positioning, took charge of the general merchandise market, while Mohit was in charge of the supply chain and operations for new product development. They also appointed Sahil Nair as the CEO of the company to ensure smooth running of the business.

Swiss Beauty has an in-house R & D team that benchmarks new products against industry-leading products and finalizes third-party manufacturers with manufacturing procedures and quality parameters that align well with the brand.

To keep up with the promise of 'quality', a wide range of ingredients are imported from Japan, Italy, Germany and Taiwan (ROC). All the raw materials are tested for quality as per the guidelines set by the Bureau of Indian Standards (BIS). They undergo a number of tests to enhance product safety for solid metals, pH factor, odor, viscosity, and stability. In addition, it is supplied directly to retailers and marketplaces, avoiding middlemen and further preventing margin dilution.

How Swiss Beauty is Using Omnichannel Smartly

Swiss Beauty has a presence in metros and tier I cities such as Delhi, Kolkata, Chennai, Bengaluru and Mumbai; tier II cities such as Jaipur and Indore (the top performers in this category) and tier III locations such as Bareilly and Nellore. The brand has its retail footprint in 500 + cities across categories.

Today, Swiss Beauty has easy access to comprehensive customer data and feedback collected from GT, MT, GT-BA, marketplaces, the D2C website, social media channels, and customer support. All of these provide critical inputs for need-gap analyses through analytics tools, and the new product development team works on those that meet a wide variety of requirements.

For the record, 5 5% of the brand's revenue comes from offline stores, 40% from online marketplaces, and 5% from the website. Its Tier I and II markets account for 80% of its sales (40% each), while Tier III locations are fast catching up with 20%.

The inclusive approach has its challenges, however. "Think of a product launch that has to happen simultaneously across all channels. Our delivery timelines need to be in sync, but reaching 25K physical counters will be very different from launching a product on multiple e-commerce platforms. Marketing for a diverse region is also difficult because the requirements are different, "Nayar added.

However, Swiss Beauty's strong offline footprint has helped it grow its digital presence, and those who order online appreciate the ease of access. Increasing demand for premium products, effective customer retention, and positive product reviews have boosted sales in key markets. Many of their products are bestsellers. The startup is catering to the growing sales demand with the help of its 3PL partner Emisa.

3PL Edge of Swiss Beauty

In the world of e-commerce, shoppers are looking for fast and efficient delivery, and brands that fail to do this are losing customers. Realizing the need for faster deliveries, Swiss Beauty outsourced order fulfillment to Emisa, a 3PL player that specializes in e-commerce inventory management and works with many other new brands such as Snitch, The Solid Store, and MameEarth.

Swiss Beauty says that Emesa is helping demand soar with a week's notice. The 3PL partner can manage 5x its regular supply volume by maintaining service-level agreements. Emesa has state-of-the-art fulfillment centers for multiple brands and can reallocate space and resources to meet the huge demand surge.

This partnership was mutually rewarding. "Swiss Beauty is a great company with a strong work ethic and deep business understanding. We are its key fulfilment partner and we look forward to growing with the company as it expands its fulfilment network across the country, "said Ajay Rao, Founder-CEO, Emisa

Indian BPC market to reach $30 billion; Will homegrown start-ups thrive?

Swiss Beauty has plans to expand both offline and online to emerge as a market leader. However, given that 55% of its revenue comes from the offline market, it is investing heavily in offline growth. At present, the focus is on modern trade and setting up more kiosks to ensure deeper market penetration and increase sales and brand awareness.

The brand aims to increase its general merchandise touchpoints from 25K to 30K in the next 12 months by expanding to Tier II locations and smart cities. Additionally, it plans to double the number of its Exclusive Brand Outlets (EBOs) to 24 and open 147 BA Assisted outlets across 12 Indian cities.

Setting up in-house R & D, manufacturing and QC labs is crucial if Hindustan Unilever (owner of Lakme) wants to compete with industry giants like L'Oreal Paris, Pat McGrath Labs and MAC with homegrown start-ups and D2C brands.

Industry experts believe that there will be enough room for home-grown disruptors to come up with innovative product lines to satisfy the global audience.

The beauty and personal care market is expected to grow from $5 billion in 2023 to $28 billion in 2030, at a CAGR growth of 28%.

Considering the knowledge of Ayurveda and the plant world, it is an opportunity for India to come up in this category. In addition, there are already two unicorns listed on the Homegrown Beauty Market - Mamaearth and Nykaa - which indicates the growing interest of consumers and investors. Given this context, it's time for a new breed of agile and adaptable companies like Swiss Beauty to capture the beauty market, which is dominated by consumers who have evolved with the help of 3PL partners like Emiza.