How Dot & Key Cracked The Speed & Scale Code To Make A Mark In India’s Booming BPC Market

Social media-savvy young Indians are driving the latest consumer trends, especially in the beauty and personal care (BPC) sector.

But as buzzwords like “paraben-free,” “natural” and “fruit-enriched” become commonplace, beauty brands must genuinely deliver on their promises to meet the expectations of a discerning younger audience. In response, many newcomers to India’s BPC market are rising to the challenge.

One notable example here is Dot & Key. 

Interestingly though, its journey didn’t begin with a targeted focus on the younger generation. Instead, it was born from a personal struggle. 

Anisha Saraf, an avid swimmer, faced severe tanning issues due to chlorine exposure and harsh sunlight. After searching the market in vain for suitable products, Anisha and her husband, Suyash Saraf, decided to create their own solution. This personal need, combined with Suyash’s expertise in FMCG, led to the launch of Kolkata-based Dot & Key in 2018.

In essence, it’s a brand designed for young women, from late teens to early 30s, addressing a range of skincare needs with fruit-based ingredients. With a diverse portfolio of 100+ SKUs spanning more than eight categories — sunscreens, moisturisers, face washes, lip care and more — it has successfully expanded its offerings to cater to a wide array of skincare needs.

The Sarafs leveraged social media platforms, mainly Instagram, where influencers inspire millions to pick what’s hip and hot. 

Then, in 2021, Dot & Key partnered with Mumbai-headquartered third-party logistics (3PL) provider Emiza. 

This collaboration has enabled it to scale effectively by accommodating increased inventory needs, implementing accurate demand forecasting algorithms and ensuring efficient order fulfilment. 

“We are able to efficiently manage fresh and return inventory through effective batch management and regular inventory counts, maintaining the freshness and accuracy of their stock,” said Ajay Rao, Emiza’s founder and CEO. This ensures seamless fulfilment, crucial for Dot & Key’s scaling needs.

Dot & Key’s impressive growth is evident, with over 60 Lakh customers and counting.

Dot & Key claims its net sales grew 3.4x YoY between FY23 and FY24. They are targeting a revenue of INR 350 Cr in FY 25.

Dot & Key’s Formulations To Grow Customer Base

The Sarafs were aware that building brand recall would not be easy unless they could address consumers’ pain points and turn one-off shoppers into loyal brand advocates. Therefore, they conducted thorough market research before adopting a nature-forward approach for a healthier, cleaner impact. 

From the start, quality has been a key part of Dot & Key’s brand identity, as it aims to produce the best after plenty of iterations. Suyash calls this micro-detailing, which is required to create go-to essentials that earn a lot of customer love.

 “Say we want to launch a sun stick, a popular alternative of sunscreen lotions. Initially, we will have 62+ prototypes of the same formulation. Then, our in house R&D experts test and iterate before releasing the final product. That’s the level of detailing that goes into every product,” he added.

The brand sources ingredients from India and across the world, tests raw materials and conducts in-process inspections and random samplings during production. (It has tied up with third-party players who specialise in different product categories and follow good manufacturing practices.) Final products are tested for safety, efficacy and compatibility with various skin types. 

The digital-first D2C brand also emphasises that communication with customers is a key growth driver and listens to them carefully for continuous improvement. 

However, Dot & Key’s social media engagement takes the cake when it comes to customer relationships and trust building. The brand educates its  social community about using the right product for their skin and motivates them to consistently use skincare for healthy skin

It recently partnered with Shanaya Kapoor (daughter of actor-producer Sanjay Kapoor), a prominent social media face who will soon make her film debut. This strategic move aligns with its attempt to target the young audience by presenting a ‘fresh face’ as the brand ambassador.

Conquering Issues Of Speed & Scale 

In a consumer-first world, the defining factors of customer satisfaction boil down to quality, availability and fast delivery. Dot & Key quickly realised this and entered marketplaces like Nykaa, Myntra and Amazon, as well as quick-commerce platforms like Blinkit and Zepto. 

It has started working on offline expansion, and its products are available across 170+ Nykaa outlets and several retail shelves across India. Although most of its customers are currently concentrated in metros, the brand has seen growing traction in Tier II, III and beyond. Hence, there is a requirement for an omnichannel presence, Suyash tells Inc42.

 But with scale came the need for an enabler to help the brand deliver its products quickly and efficiently. To ensure that Dot & Key would always be at the top of its game, even during demand spikes in festival and holiday seasons, the founders started looking for a 3PL partner specialising in ecommerce order fulfilment and inventory management. They picked Emiza in 2021.

As a case in point, Suyash said that during last year’s Diwali surge, Emiza quickly scaled up operations, optimised workflows and deployed extra staff to meet delivery demand without delay. “Its proactive approach and scalable infrastructure are vital for high customer satisfaction during peak periods,” he added. These strategies ensure that Dot & Key can handle increased order volumes efficiently. 

The brand has also seen significant enhancements across critical metrics. For instance, SLA compliance has risen from 90% to 98%; order processing time has dipped by 50%, from 48 hours to 24 hours, and return processing time has come down from seven to four days. “These improvements result in faster delivery and better service for our customers, ensuring a smoother and more efficient logistics process,” explained Suyash. 

“We’ve partnered with Dot & Key for nearly four years, expanding from one to four locations. Post-Nykaa acquisition, we remain their 3PL partners. It’s been wonderful to see their growth with Dot & Key believing Emiza contributed to their success,” said Rao from Emiza.

Rao delved deeper into how Emiza optimises return management, especially for BPC brands.

He said, “We adhere to stringent quality checks and ensure returned inventory is back on the shelf within 48 working hours. Managing returned inventory from various batches is a unique challenge in the BPC sector, but Emiza addresses this by storing returns in designated areas to ensure returned inventory is consumed first prior to consuming fresh stock.”

Will The Focus On ‘Missing’ Dots & Solution Keys Unlock Bigger Success?

Curious about the brand’s offbeat name, we looked at its website to find that it strives to identify the missing dots in one’s skincare regime and provides solutions or keys. Interestingly, the same approach can help it create a niche in a competitive market crowded with new-age contenders like Juicy Chemistry, The Derma Co, Nat Habit and Organic Kitchen.

However, Dot & Key has recognised a couple of missing dots and is working on solutions to emerge as a go-to beauty brand.

For one, the BPC market, especially the clean beauty segment, is growing exponentially. Although India-specific data is not available, clean BPC brands will reportedly account for 5-10% of the total BPC market, pegged at $28 Bn by 2030.

To cater to the bigger Bharat market beyond metros/Tier I, Dot & Key is amplifying its brick-and-mortar presence in 2024, planning to set up offline kiosks and double down on existing retail partnerships. 

Now, with Nykaa’s increased stake, the founders are optimistic about the brand’s growth potential. 

Dot & Key appears to be on the winning path with its targeted marketing efforts and a comprehensive product portfolio that resonates with its audience and can make a significant impact in the BPC space.