Direct-to-consumer beauty brand Earth Rhythm is expanding its sales to offline stores by opening kiosks in the country’s top cites, as intense competition in the beauty segment as well as increased cost of doing business online prompts brands to chase newer channels of growth.
The brand, launched in 2019, plans to open 12 kiosks in tier I and II cities as part of its offline sales plans, the company, backed by online fashion commerce platform Nykaa, said. After the initial launch phase, the company plans to open over 70 kiosks in India and overseas. It aims to generate 10% of the its FY23 revenue via omni-channel sales.
In April 2022, Earth Rhythm raised $ 8 million in a Series-A round led by Nykaa.
In an interview, Harini Sivakumar, chief executive and founder at Earth Rhythm, said that online-first brands are now eyeing offline channels as consumer mobility resumes.
“There’s been a shift post pandemic, everybody wants to get out. Footfalls have tremendously increased as against pre-pandemic levels. Consumers now want to step out and experience products that they spent on online over the last few years," she said.
Meanwhile, Sivakumar said building large stand-alone stores is capex intensive, as a result, the company is looking at small-sized kiosks.
Demand for beauty and personal care online has reached a saturation point and repeat purchases are down, she said. This is because more online brands have entered the market.
“That means we are spending more money to acquire a customer because platforms like Google, Amazon, Facebook, Instagram and YouTube are charging more. That is turning expensive," she said adding that the company is eyeing more traditional channels of sales.
Earth Rhythm kiosks are being launched in New Delhi, Bangalore, Mumbai, Chennai, Chandigarh, Raipur and Dehradun. The kiosks will display close to 90 products across face and hair care, bath and body and makeup.
“Many customers still enjoy making in-person purchases from brick-and-mortar establishments. Going hybrid therefore gives us a competitive advantage and aids in growing our clientele," said Sivakumar.
Mint had earlier reported that more and more online-first brands were pushing their products in offline stores as consumers resume visits to malls and markets. Meanwhile, a decline in investments is also prompting startups to conserve cash and ensure profitable businesses.
