Case Study : Beauty on Budget: Purplle’s Winning Marketing Strategies

Living in a Tier 1 city, my go-to website for beauty and self-care products has always been Nykaa.

So, when I came across ads for Purplle, I initially didn’t pay much attention to it. Until I saw this ad:

A brand endorsed by Sara Ali Khan? If they have the budget to do that, they must be legit.

That’s when I looked up the brand and was surprised to see that it made a revenue of 500 Cr+ in 2023!

Purplle was founded by 3 IIT graduates – Manish Taneja, Rahul Dash, and Suyash Katyayani in 2012.

In recent years, the fashion industry has been booming in Tier 2, 3, and cities.

Where we have H&M in Tier 1, we have Zudio for Tier 2-4.

Similarly, against Nykaa, Purplle is the competitor for the price-conscious but aspirational consumers.

Let’s look at its marketing approach to establish itself as a credible source of beauty products in India.

Key Takeaways from Purplle’s Marketing

Target Tier 2 & 3 Cities:  Capture rising disposable income and tech-savvy consumers in developing cities. Affordability is Key:  Cater to value-conscious beauty enthusiasts with budget-friendly options and private labels. Social Media Savvy:  Leverage micro and mid influencers and user-generated content for engagement and brand trust. Gamification Boosts Sales:  Implement interactive campaigns during sales periods to increase website traffic and conversions. Mobile Optimization Matters:  Ensure a seamless mobile experience to improve website performance and user engagement.

Market Analysis:

The Indian Beauty market is expected to grow to $21 billion by 2027. The increasing demand all over the country is fueled by several factors:

Rising disposable income: 
As India’s economy continues to develop, consumers have more money to spend on discretionary items like beauty products.

Increasing internet penetration: 
With a rapidly growing internet user base, e-commerce is becoming a preferred shopping channel, especially for beauty products.

Growing awareness of personal care: 
Indian consumers, particularly millennials and Gen Z, are increasingly interested in personal care and beauty routines.

Purplle’s Target Audience:

Purplle understands its audience well. Their target market primarily consists of:

Demographics:

Women aged 21-35 (though they do cater to a wider range as well)Primarily residing in Tier 1, 2, and 3 cities in India (metros, major cities, and developing cities)

Psychographics:

Tech-savvy and comfortable shopping onlineKeenly interested in beauty trends and experimenting with new productsValue-conscious, seeking both quality and affordability

Purplle v/s Nykaa:

One of the biggest competitors of the brand in India is Nykaa.

Here are some advantages Purplle has over Nykaa in the Indian beauty e-commerce market:

Affordability: 
Purplle positions itself as a budget-friendly destination for beauty products. This focus on affordability, particularly through their private label brand, Good Vibes, allows them to reach a wider audience compared to Nykaa which has a wider selection of luxury labels.

Focus on Tier 2 & 3 Cities: 
While Nykaa has a physical store presence, Purplle has strategically expanded its reach beyond major metros, focusing on Tier 2 and 3 cities (major cities and developing cities) with a rising disposable income and growing demand for beauty products.
This allows Purplle to tap into a new and significant market segment that Nykaa might not be catering to as heavily yet.

Marketing Mix:

Purplle’s success in the Indian beauty e-commerce market can be attributed to its well-crafted marketing mix to create a compelling value proposition for beauty enthusiasts across the country.

Product:

Purplle caters to a wide range of beauty needs, but some key areas include:

• Makeup: Offering a diverse selection of makeup products from budget-friendly to high-end brands.
• Skincare: Catering to various skin types and concerns like hydration, acne, and anti-aging.
• Haircare: Providing a range of shampoos, conditioners, and hair styling products.
• Bath & Body: Offering an assortment of soaps, shower gels, lotions, and fragrances.

Price:

• Affordability: 
  Purplle positions itself as a budget-friendly destination for beauty products. This focus on affordability, particularly through their private label brand, makes them a preferred choice for value-conscious consumers.
• Competitive Pricing: 
  They maintain competitive pricing strategies across all product categories, ensuring they remain a viable option compared to other retailers.
• Promotional Offers: 
  Purplle frequently utilizes strategic discounts, limited-time sales, and loyalty program benefits to further incentivize purchases and drive sales volume.

Place:

• Online Focus: 
  Purplle primarily operates as an e-commerce platform, offering a user-friendly website and mobile app for seamless product browsing and purchasing.
• Strategic Offline Presence: 
  While their primary focus is online, Purplle recognizes the value of offline brand awareness. They utilize strategically placed billboards, print ads in relevant publications, and even event sponsorships to reach a wider audience and complement their online presence.
• Tier 2 & 3 City Expansion: 
  Recognizing the growing beauty market in developing cities, Purplle has strategically expanded its reach beyond major metros. This expansion allows them to cater to new customer segments with rising disposable income.

Promotion:

Purplle uses both online and offline channels to reach a wide audience and create a seamless customer experience.

Social Media Marketing:

Purplle currently has 1M followers on Instagram. They leverage a mix of organic and paid content to keep their audience engaged.

• Organic Content: 
  Purplle encourages user-generated content (UGC) through contests and hashtags, building a sense of community and authenticity.

Paid Content: They strategically partner with micro and mid-tier beauty influencers who resonate with their target audience. These partnerships promote products and tutorials, fostering trust and brand advocacy.

Gamification for Engagement:

Purplle goes beyond traditional marketing by implementing innovative gamified campaigns, especially during sales periods.

They use engaging formats like scratch cards, spin the wheel, or memory games to drive traffic and increase engagement with their platform,
These tactics add a fun element to the shopping experience, encouraging exploration and potentially leading to higher sales.

Interestingly, this strategy worked as it led to an 8.8% increase in add-to-cart & purchases. Their sales revenue also increased by 400%!

SEO and Content Marketing: 

In March 2024, 98.67% of visitors on purplle.com were from mobile. Now, we also have this information:

As you can see, the bounce rate is very high and the average visit duration is also low (Nykaa has an average visit duration of 07:26 min).

This suggests that the website might not be optimized well for mobile, leading customers to exit the website (or be redirected to the app).

They have a high number of visitors. But, to have higher conversion rates, Purplle can definitely look at ways to improve its website performance on mobile for a more seamless experience.

Additionally, Purplle creates informative and engaging content (blogs, tutorials) that positions them as a beauty authority and attracts organic traffic.

In a Nutshell:

Purplle’s success story is a testament to the effectiveness of a well-executed multi-channel marketing mix. Their focus on social media engagement, influencer partnerships, gamification, and a customer-centric approach has positioned them as a leader in the Indian beauty e-commerce space.

Additionally, by exploring future trends like AR/VR-powered beauty personalization, Purplle is well-positioned to continue leading the way and shaping the future of beauty shopping in India.