Falguni Nayar’s profit-making magnificence and private care startup Nykaa has gained many hearts in India. Out there at our fingertips, India boasts of a number of manufacturers, together with Sugar, WOW Pores and skin Science, mCaffeine, Purple, MyGlamm, and so forth., who promote many wanted merchandise on-line and in bodily retail shops.
Nonetheless, the state of affairs in our neighbouring nation Bangladesh is kind of completely different. The sweetness and private care, in addition to ecommerce sectors, are nonetheless of their early days with a handful of gamers.
For instance, international magnificence model Revlon — which entered the Indian market in 1995 — was solely launched in Bangladesh in 2022 after an unique partnership with a neighborhood magnificence startup, Shajgoj.
The pressure behind Shajgoj
Dhaka, Bangladesh-based Shajgoj — which interprets to ‘to adorn or gown up’ — is a magnificence ecommerce startup launched in 2013 by Nazmul Sheikh, Sinthia Sharmin Islam, and Milky Mahmud.
But it surely was solely in 2018 that it began promoting magnificence and private care merchandise within the nation — catering to nearly 400,000 prospects.
By its on-line platform and two flagship shops in Dhaka, Shajgoj sells 10,000 magnificence and private care merchandise from over 400 famend manufacturers.
The Aha second
A former telecom engineer working in Nigeria, Nazmul bought the concept of beginning Shajgoj throughout a go to to Dubai.
“My spouse Sinthia and I had been visiting the Dubai Mall when she discovered a cosmetics retailer and spent nearly two hours hoarding cosmetics. Once I requested her what was so particular about them, she informed me that these merchandise weren’t obtainable in Bangladesh. And we realised the extremely undersized magnificence sector of the nation,” recollects Nazmul.
In keeping with Allied Market Analysis, in 2020, Bangladesh’s skincare merchandise market measurement was valued at $1.23 billion, anticipated to garner $2.12 billion by 2027, registering a CAGR of 8.1 p.c between 2021 and 2027.
On the time, Nazmul says, as a bootstrapped firm, exploring a distinct segment market by means of content material was powerful.
Earlier than the founders may launch the sweetness ecommerce platform, they needed to create the demand for its merchandise for nearly 5 years by commonly publishing blogs on subjects, together with magnificence, hygiene, and skincare, for higher public consciousness.
“The preliminary workforce consisted of fine content material writers who researched subjects equivalent to magnificence and skincare routines, merchandise that swimsuit completely different pores and skin varieties, private hygiene, and others,” he provides.
Right this moment, Shajgoj continues to create each video and written content material to achieve extra customers. It competes with ecommerce web sites, together with Evaly, Priyoshop, and Daraz Bangladesh.
Lack of genuine merchandise
In keeping with Nazmul, ecommerce in Bangladesh is slowly however organically rising with the presence of Amazon, Flipkart, and Alibaba. Nonetheless, a distinct segment market like magnificence and private care wants extra devoted gamers.
Furthermore, most of the magnificence merchandise offered within the nation are of substandard high quality. A 2018 examine discovered that over 50 p.c of pores and skin whitening lotions bought on-line in Bangladesh contained increased ranges of mercury than permissible.
“In India, you might have Nykka, Flipkart, Amazon, Meesho, Myntra, and so many different ecommerce platforms that promote genuine magnificence merchandise. However, in Bangladesh, the apprehension towards ecommerce platforms is kind of actual. On this state of affairs, promoting genuine merchandise performs an important function in creating the belief for ecommerce amongst prospects, each outdated and new,” Nazmul says.
Bangladesh’s magnificence merchandise market has witnessed huge development and adjustments, particularly amidst the COVID-19 pandemic.
“Earlier, Shajgoj noticed a 60 p.c demand for make-up merchandise. The pandemic created a shopper behaviour shift, and at the moment, nearly 40 p.c of the demand is for skincare and hygiene merchandise,” Nazmul explains.
With 165.8 million smartphone customers in Bangladesh and nearly 28.8 p.c of the nation’s inhabitants getting access to the web, the demand for magnificence merchandise is predicted to alter additional.
Shajgoj plans to discover these adjustments to develop by 400 p.c. Nazmul says the goal is kind of scalable because the firm projected a 5X and a 4X annual development price in 2020 and 2021, respectively.
“We’re planning to accumulate extra prospects, arrange extra shops, and likewise launch our non-public label,” he provides.
In the meantime, the startup’s 300-plus sturdy workforce sees practically 180,000 month-to-month orders on its ecommerce web site.
In March 2022, Shajgoj raised $2.15 million in its seed fund spherical from Surge — Sequoia Capital India’s fast scale-up programme — and SBK Tech Enterprise.
On the time, Sonia Bashir Kabir, Managing Director of SBK Tech Ventures, stated, “Shajgoj’s mission to empower ladies from all walks of life aligns very effectively with SBK Tech Ventures’ funding technique and help for gender equality. We’re dedicated to investing in startups, which resolve large-scale issues by leveraging expertise, and we’re assured in Shajgoj’s stellar imaginative and prescient and proficient workforce.”
Platforms like Shajgoj are enabling ladies from all walks of life to really feel lovely and assured in their very own pores and skin.