India’s beauty boom moves beyond the D2C playbook

When global luxury beauty brand Charlotte Tilbury entered India in partnership with Falguni Nayar-led D2C startup Nykaa in 2020, the strategy was unmistakably digital-first. The brand debuted online before gradually expanding into Nykaa Luxe stores. Last month, Nykaa launched an exclusive Charlotte Tilbury boutique in Delhi, with plans to scale more such stores across India. The move reflects a larger shift underway in India’s beauty market: discovery may be digital, but conversion is increasingly becoming physical.

Nykaa itself recorded its largest-ever retail expansion in FY25, adding 76 stores to take its offline footprint to 313 stores across 99 cities. Its beauty business reported a 27% jump in GMV to Rs 3,892 crore, driven by growth across e-commerce, retail and owned brands. 

Meanwhile, the company has also started hosting a large-scale, immersive beauty and lifestyle festival, Nykaaland, co-produced by BookMyShow Live. After Mumbai and Delhi editions, Nykaaland now seeks to move to tier 1 and tier 2 cities. 

The pattern extends beyond Nykaa. Varun and Ghazal Alagh-led Mamaearth, one of India’s biggest D2C success stories, built its scale through influencer-led digital marketing before rapidly expanding offline after opening its first physical store four years ago. The brand now has more than 100 retail stores across India. 

On Thursday, Honasa Consumer Ltd, the parent company of Mamaearth and The Derma Co brands, reported a 178% jump in consolidated net profit at Rs 69 crore for Q4 year-on-year. “On the distribution front, Mamaearth billed approximately 120,000 outlets directly through distributors in FY26 and reached over 10,000 modern trade outlets”, the company said in a statement. 

Together, these moves underscore a deeper recalibration across India’s beauty industry. This multi-channel execution highlights the evolving dynamics of D2C retail vs ecommerce, where success increasingly depends on being present wherever the consumer is.

India’s beauty and personal care market, currently estimated at nearly $28 billion, is projected to cross $40 billion by 2030. Yet despite the rapid rise of e-commerce and social commerce, beauty remains fundamentally a trust-driven category where touch, trial and consultation continue to shape purchase behaviour, industry leaders say. According to global market research firm Euromonitor International, physical retail continues to dominate beauty purchases in India, particularly in categories requiring consultation and testing.

“What we are seeing today is that the beauty consumer funnel is no longer linear, it is inherently omnichannel,” a Nykaa spokesperson told e4m. “Discovery is largely digital, but conversion is increasingly fluid across online and offline touchpoints.”

“Our premium beauty categories continue to rely heavily on assisted selling, shade matching and product trials—areas where physical retail maintains a structural advantage. Offline stores are also helping brands deepen trust, reduce return rates and improve customer lifetime value,” Nykaa explains. 

Echoing the sentiments, Ashutosh Valani, Co-Founder of RENÉE Cosmetics, said consumers today move fluidly across channels rather than following a linear purchase journey. “E-commerce drives discovery, quick commerce enables convenience-led buying, while offline retail builds trust and stronger conversions,” Valani said.  

RENÉE currently operates across more than 30,000 retail outlets and plans to significantly expand its offline footprint over the next two years.

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Flywheel Ecosystem

The transformation is also demographic. By 2030, Gen Z and Gen Alpha are expected to become the dominant beauty consumers in India, with increasing focus on ingredient transparency, creator-led education and community validation. That evolution is reshaping how brands think about influence itself.

Abhishek Chakraborty, Head of Brand Communication, Digital & PR at Oriflame, said the industry is gradually moving away from the traditional linear funnel toward what he describes as a “flywheel” ecosystem.

“Consumers may discover products online through social media, creators and reviews, but personalised guidance and community trust remain critical in beauty and wellness,” Chakraborty said. “The future of beauty retail lies in integrating technology with human connection.”

The shift is being driven partly by economics as well, experts note. Platforms like Instagram and YouTube have made discovery dramatically easier, but sustained conversion is becoming more expensive amid rising customer acquisition costs, influencer saturation and category clutter. Offline retail, therefore, is no longer viewed as legacy infrastructure but as a strategic conversion layer.

Sachin Kumar, Founder of Bottle Openers, a digital marketing agency, believes the category is increasingly exposing the gap between digital attention and actual purchase behaviour.

“The digital channel has won discovery, but the physical shelf still wins conversion,” Kumar said. “Creator-led reels and tutorials help brands generate awareness, but for many consumers, especially in beauty, closure still happens after physical trials and in-store validation.”

 Q-comm & Communities 

Quick commerce is adding another layer to the beauty ecosystem, though not necessarily replacing offline retail. 

Platforms such as Blinkit and Zepto are rapidly expanding beauty assortments, riding on convenience-led and impulse purchases. According to RedSeer, India’s online beauty market has grown from roughly ₹21,000 crore in 2022 to ₹52,000 crore in 2025, with quick commerce emerging as one of its fastest-growing segments.

Yet industry executives caution against confusing fulfilment speed with conversion. Quick commerce works best when consumer intent already exists—typically in replenishment-led categories where trust and familiarity are already established. It accelerates delivery but rarely replaces the role of discovery, education or trial, especially in premium beauty.

Kumar added that ingredient transparency is becoming a major trust signal, particularly among consumers still skeptical of online-first brands despite heavy digital visibility.

He pointed to Minimalist as an example of how formulation-led positioning can evolve into a long-term brand moat. Beyond traditional performance metrics, Kumar said brands now need to prioritise consistency across touchpoints and community-led engagement.

“Brands like Wellbeing Nutrition and Swiss Beauty have maintained coherence in pricing, messaging and product experience across quick commerce, e-commerce and offline retail,” he said.

“The second shift is moving from followers to communities. Mamaearth invested in Instagram and YouTube creator partnerships, letting influencers demonstrate products authentically rather than running traditional ads,” Kumar quips.