Myntra reports that Gen Z shoppers now drive 60% of its beauty sales, with Tier-2 and Tier-3 cities contributing half of international brand demand. This shift indicates a broader transition in Indian consumer spending habits, where skincare is moving from discretionary to essential, forcing brands to adjust pricing and packaging strategies for mass adoption.
Myntra has reported a significant shift in its beauty business, driven by a surge in demand from Gen Z consumers and non-metropolitan regions. According to internal data from the platform, Gen Z shoppers are now responsible for 60% of total beauty sales. This demographic is not only purchasing more frequently, with repeat orders up by 70%, but they are also spending 20% more per transaction compared to the average customer. The data suggests that beauty and personal care products are increasingly being viewed as daily essentials rather than occasional luxury purchases.
The Role of Tier-2 and Tier-3 Cities
The growth trajectory for Myntra’s beauty portfolio is heavily supported by expansion in India’s smaller cities. Locations such as Ludhiana, Patna, and Nagpur have emerged as major hubs, currently accounting for 50% of the platform’s total demand for international beauty brands. This trend highlights the success of digital platforms in bridging the accessibility gap for global labels, which were previously limited to larger metros. For investors, this geographic penetration is critical, as it confirms that the aspirational consumption of international skincare brands is scaling rapidly beyond the top tier of Indian cities.
Evolving Product Preferences and Trends
Consumer interest is shifting toward ingredient-led skincare, with high demand for formulations featuring vitamin C, salicylic acid, and snail mucin. The influence of South Korean beauty trends remains a dominant force, evidenced by a 300% increase in search interest on the platform and a 200% rise in actual orders for K-beauty products. This preference for specific, effective ingredients is reshaping the inventory strategy for brands listed on the platform.
Competitive Landscape and Market Pressures
Broadening the product mix, the men’s grooming segment has also seen double-digit growth, with skincare orders rising by 78% and fragrance demand showing a 125% increase in searches for combo sets. However, this growth brings operational challenges. As younger consumers experiment with luxury and international offerings through smaller, value-driven formats, brands are under pressure to rethink their packaging and pricing strategies.
This shift creates a competitive environment that extends beyond Myntra. Companies like Nykaa, which has traditionally held a strong position in the pure-play beauty segment, are now competing in a market where e-commerce players are aggressively capturing the younger, non-metro audience. The ability of these brands to maintain profit margins while offering trial-sized products at competitive price points will be a key factor for investors to track. Sustained growth in this sector will depend on whether consumer interest in premium personal care remains resilient during periods of wider economic spending adjustments.