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Hello reader,
As someone who grew up in the Irish countryside, the speed life moves in some of Asia’s biggest cities was overwhelming at first.
Stepping into the streets of Bangkok as a 22-year-old was like nothing I had ever experienced before. The sheer number of people who always seemed to be going somewhere at all times of day and night was dizzying – a far cry from County Armagh, where I probably saw more cows than people on my way to school.
Luckily I’m more used to big-city life these days, but things can still surprise me. Learning that people want beauty products delivered to their doors a mere 15 minutes after ordering them is one such thing that left my jaw on the floor.
As my colleague Samreen lays out in her article though, perhaps I shouldn’t be so surprised, as moving into the beauty segment makes a lot of sense for India’s quick commerce firms.
Today we look at:
- Why India’s quick commerce players have beauty on the brain
- VinFast gets approval to launch its US$1.2 billion Indonesia expansion
- Other newsy highlights such as Grab investing more in its digital bank and the ninth cohort of startups graduating from the Accelerating Asia program.
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Turns out you can rush beauty
Image credit: Timmy Loen
Quick commerce has traditionally been used mostly for grocery delivery, but Indian players in the space are expanding into beauty and personal care.
This segment offers higher margins and while it’s taking off in India, the same may not be true in Southeast Asia.
- From groceries to hair dyes: Quick commerce firms BigBasket and Blinkit initially provided deliveries for groceries, but now they also offer delivery of things like face masks, lipsticks, and hair dyes in as fast as 15 minutes. The trend seems to be taking off among urbanites, as BigBasket’s Seshu Kumar Tirumala tells Tech in Asia that the beauty segment already contributes 8% to 10% of the firm’s quick commerce revenue.
- Margin call: Quick commerce platforms have long been plagued with questions over the sustainability of their business model. Moving into segments like cosmetics may help answer those questions, as the products typically have margins of 10% to 15%, compared to 1% to 2% for grocery products.
- Not so fast: While the quick commerce trend in the beauty space seems to have legs in India, it’s unclear if it will take off in other markets. Alda Wardhana of East Ventures tells Tech in Asia that in Indonesia, same-day delivery may have potential, but 15-minute delivery may not be needed for beauty items.
Read more: Beauty ecommerce in India gets speedy makeover via quick commerce
VinFast + Indonesia = Vindonesia?
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