Indian Cosmetics market is about to get a push in the positive direction by a unique startup. Vellvette Lifestyle Pvt Ltd, which runs the website of the same name, has secured US$ 500,000 in its first round of funding. This early stage investment was led by India Quotient (IQ) & participated by Mumbai-based angel investors, Nitin Agarwal and Siddharth Ladsariya. The team will utilize the funding to bolster the technology platform & procure more products for its clientele.
How does Vellvette work? While offering cosmetics online is nothing new, Vellvette has a wildly differing concept about generating buzz about products & get sales achieved in one single sweep. The company is all about offering ‘Samplers’ to customers who are actually willing to pay for testing cosmetics.
Generating revenue on a ‘Subscription Based’ model, Vellvette charges its customers about Rs. 399 (US$ 7) for a monthly subscription wherein a customer pays to get a box with three premium beauty product samples. These are miniature variants by which a buyer can decide if they want to opt for the larger bottle which costs substantially higher.
Quizzed about the latest investment India Quotient founder Anand Lunia explained the business process, “These samples can be used and they also help one decide whether she wants to buy full-size bottles. For brands, this generates sales and also marketing buzz when Vellvette customers rave about their products on social media. Vellvette makes money because it gets these product samples from the brands free of cost,”
It is truly ironic that customers are actually willing to pay to test cosmetics on themselves. However, since these multinational branded products are extensively field-tested before being introduced in the market, they should be safe for mass consumption. From a potential customer’s point of view she (or he) gets to try out the same at a very low price as compared to buying an expensive bottle & realizing it is not workable after a few days.
Website | Vellvette