How Swiss Beauty Is Reaching Shoppers Across 550+ Cities Through Omnichannel Play, Robust Logistics

When people discuss holographic eyeliner or gradient/ombré lips, many may wonder if sci-fi has found its way into the make-up industry. For a long time, K-beauty, particularly Korean skincare, has been popular worldwide for its innovative product lines. But a wider range of colour cosmetics are emerging nowadays, and Indian consumers are part of that shift.

Aspirational buyers are willing to spend a little extra for vegan and cruelty-free products, while also seeking products that meet global quality standards. This has opened doors for new-age beauty and personal care (BPC) players who are striving to balance customer demands with relative affordability.

Long associated with general and modern trade in the cosmetics industry, brothers Amit and Mohit Goyal left their previous business in 2013 to launch Swiss Beauty, a brand offering long-wearing, comfortable and high-functioning tinted cosmetics and skincare that is also pocket-friendly. 

Although inspired by Swiss beauty standards from the outset, the name was not chosen arbitrarily. Unlike what the name suggests, the brand has developed diversified colour palettes, keeping in mind the different skin tones seen across India to complement unique features. The line boasts of being vegan, cruelty-free and free of parabens, phthalates and alcohol, according to the brand. All its products are dermatologically tested, FDA-approved and PETA-certified.

At a time when D2C (direct-to-consumer) and digital-first models were just emerging, Swiss Beauty took the bold step of choosing offline sales to reach a larger audience accustomed to buying products through traditional retail. This strategy has played a pivotal role in amplifying its presence across India.

It made a strategic online foray in 2019, well in sync with the ecommerce boom. And today, it boasts an omnichannel presence encompassing its own website, beauty-focussed marketplaces like Nykaa and Purplle, and over 25,000 physical touch points across 550+ cities, including Tier II and III locations. 

To do away with warehousing-related issues, the brand partnered with 3PL provider Emiza in 2022. This partnership has ensured a robust presence across various channels, a critical factor for a true omnichannel brand and also helped it manage  fluctuating demands (but more on this later). 

As it scaled, the brand has added more than 1.5K SKUs, including face and eye make-up, lip colours, and more. It also offers an extensive skincare range and has launched Craze, a vibrant line targeting the youth. 

Unlike its peers, Swiss Beauty is still bootstrapped and has no immediate plans to raise funding. It did not divulge the financials but claimed 100% YoY revenue growth in FY24. It will launch new collections and enter new markets to emerge as an INR 1K Cr brand in the next two to three years.

How Swiss Beauty Banks On Quality, R&D For Innovative Product Lines

When launching their venture, the brothers leveraged their expertise to focus on three key areas to grow the brand.

With his experience in brand launching and positioning, Amit took charge of the general trade market, while Mohit was in charge of the supply chain and operations for new product development. They also appointed Saahil Nayar as the company’s CEO to ensure the smooth running of the business.

Swiss Beauty has an in-house R&D team that benchmarks new products against industry-leading merchandise and finalises third-party manufacturers whose production procedures and quality parameters align well with the brand.  

To maintain its promise of ‘quality’, it imports a wide range of ingredients from Japan, Italy, Germany and Taiwan (ROC). All raw materials are quality-checked per the guidelines set by the Bureau of Indian Standards (BIS). They also undergo several tests for heavy metals, pH factor, odour, viscosity and stability to maximise product safety. 

Besides this, it directly supplies to retailers and marketplaces, eliminating intermediaries and further preventing margin dilution. 

How Swiss Beauty Is Mastering Omnichannel Play, Leveraging Datavantages

Swiss Beauty is present in metros and Tier I cities such as Delhi, Kolkata, Chennai, Bengaluru, Mumbai and more; in Tier II cities such as Jaipur and Indore (best performers in this category), and in Tier III locations such as Bareilly and Nellore. The brand has its retail footprint in 500+ cities across tiers.

Today, Swiss Beauty has easy access to comprehensive customer data and feedback gathered from GT, MT, GT-BA, marketplaces, the D2C website, social media channels and customer support. All these deliver crucial inputs for need-gap analyses through analytics tools, and the new product development team works on those to meet diverse requirements. 

For the record, 55% of the brand’s revenue comes from offline stores, 40% from online marketplaces and 5% from its website. Its Tier I and II markets account for 80% of its sales (40% each), while Tier III locations are catching up fast with 20%.

The inclusive approach has its challenges, though. “Think of a product launch that must happen simultaneously across all channels. Our distribution timelines must be in sync, but reaching 25K physical counters will be very different from introducing a product on multiple ecommerce platforms. Marketing for such a diverse region is also tricky, as requirements vary,” added Nayar.

However, Swiss Beauty’s strong offline footprint has helped it grow digital presence, and those ordering online appreciate the ease of access. The growing demand for its premium products, effective customer retention and positive product reviews boosted its sales on key marketplaces. Many of its products also win best-seller badges. The startup meets the rising sales demand with the help of its 3PL partner – Emiza. 

Swiss Beauty’s 3PL Edge

In the world of ecommerce, shoppers look for fast and efficient delivery, failing which brands tend to lose customers. Understanding the need for speedy deliveries, Swiss beauty has outsourced its order fulfilment to 3PL player Emiza that specialises in ecommerce inventory management and works with several other new age brands like Snitch, The Souled Store, Mamaearth and more.

“The team at Emiza has always been responsive and accessible. We chose the 3PL provider when we rapidly scaled because it has a reputation for helping brands scale seamlessly. We are in our second year of partnership. And Emiza has kept its promise by ensuring strong performance metrics across all marketplaces,” said Nayar.

Swiss Beauty says Emiza helps it meet demand surge with a week’s notice. The 3PL partner can handle 5x its regular supply volume while maintaining service-level agreements. Emiza has in place state-of-the-art fulfilment centres for multiple brands and can reallocate space and resources to tackle large demand spikes.

Emiza’s founder-CEO Ajay Rao says the partnership has been mutually rewarding. “Swiss Beauty is an excellent organisation with strong work ethic and deep business understanding. We are its major fulfilment partner and look forward to growing with the company as it expands its fulfilment network across the country.”

Indian BPC Market Set To Reach $30 Bn; Will Homegrown Startups Thrive? 

Swiss Beauty has ambitious plans to expand offline and online to emerge as a market leader. However, it banks heavily on offline growth, as 55% of its revenue comes from the offline market. It is currently focussing on modern trade and setting up more kiosks to ensure deeper market penetration and drive sales and brand awareness. 

The brand aims to increase its general trade touch points from 25K to 30K in the next 12 months by expanding to Tier II locations and smart cities. Moreover, it plans to double the number of its exclusive brand outlets (EBOs) to 24 across 12 Indian cities and open 147 more BA-assisted outlets. 

Setting up in-house R&D, manufacturing and QC labs is critical if homegrown startups and D2C brands want to compete with industry giants like Hindustan Unilever (owner of Lakmé), L’Oreal Paris, Pat McGrath Labs, M.A.C. or Bobbi Brown. 

Industry experts believe there will be enough room for home grown disruptors to usher in innovative product lines to cater to a global audience.  

According to Inc42 data, the beauty and personal care market is expected to grow from $5 Bn in 2023 to $28 Bn in 2030, at a CAGR of 28%

India stands the chance to lead in this segment, given its native knowledge of ayurveda and the plant world. Besides, the homegrown beauty market already has two listed unicorns – Mamaearth and Nykaa – indicating the rising interest of consumers and investors alike. Given this context, it is now time for a new breed of agile and adaptive players like Swiss Beauty to capture the beauty market dominated by evolved consumers with the help of 3PL partners such as Emiza.  

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