Written By: Bandana Gupta

A glitzy revolution is taking place in India's beauty franchise business. Driven by rising disposable incomes, urban millennial demand, and a massive shift towards premium self-care, investors are keenly eyeing high-potential brands to partner with. Among the many players, two names dominate conversations in 2025: Nykaa Luxe and The Body Shop. Both offer distinct value propositions, loyal customer bases, and strong brand equity. But which one offers a better return on investment and long-term scalability?

As the beauty franchise in India evolves beyond traditional salons and cosmetic stores, choosing the right brand is more than a matter of trend. It’s a strategic decision tied to consumer behaviour, brand innovation, and operational support. In this blog, we will compare the two beauty franchises, Nykaa Luxe and The Body Shop, across key business factors. Moreover, to help you decide where your investment will shine brighter in the year ahead.

Nykaa Luxe: The Indian Giant

The largest online cosmetics retailer in India, Nykaa Luxe, sells luxury beauty. Moreover, Launched in 2015, Nykaa Luxe has become a household name. Thus, offering a wide range of luxury beauty products from global and domestic brands. With a strong online presence and a network of offline stores, Nykaa Luxe has successfully tapped into the Indian consumer's desire for premium beauty products.

Top business and profitability drivers for investing in a Nykaa Luxe franchise in India 2025

Strong Brand Equity Nykaa has established itself as a leading and highly trusted name in India’s beauty and lifestyle retail industry. With a solid reputation built through years of curated product offerings, influencer partnerships, and customer satisfaction, Nykaa Luxe leverages this brand credibility to attract premium beauty consumers.

Omnichannel Integration Nykaa Luxe gains a strong competitive edge through the brand’s well-integrated online-to-offline retail strategy. Its seamless integration with Nykaa’s digital platform ensures a consistent customer experience, from browsing and buying online to discovering luxury products in-store, reaching both digital natives and traditional retail shoppers.

Impressive Growth Outlook Nykaa is projected to grow at a 20% CAGR from FY24 to FY27. Thus, reflecting its strong performance, expanding product portfolio, and rising demand for luxury beauty in India. 

Wide Consumer Reach From affordable skincare to premium makeup collections, therefore, Nykaa caters to a diverse consumer base. The Luxe format specifically targets high-income beauty buyers seeking international brands. Moreover, while still benefiting from the spillover of Nykaa’s broader consumer following.

High Earning Potential Nykaa Luxe and Nykaa On Trend stores are known for their high-margin product mix as well as curated brand experiences, making them highly profitable for franchise partners. Exclusive tie-ups and new launches further enhance footfall and sales.

Investment Range & Entry Franchising with Nykaa Luxe typically requires an investment of ₹50 lakhs to ₹1 crore. Also, depending on the store size, format, and location. The brand’s premium positioning ensures high returns when placed strategically.

Ideal Store Locations Nykaa Luxe thrives in high-footfall premium malls, high streets, and also upscale shopping zones within metro cities. These locations align with the brand's aspirational image and attract beauty-conscious, trend-savvy consumers.

The Body Shop: The Global Icon Of A Beauty Franchise

Known for its commitment to sustainability and cruelty-free products, The Body Shop has a strong global presence with over 3,000 stores across 65 countries. In India, The Body Shop has been present since 2003 and has established a loyal customer base.

Key Growth Drivers Behind The Body Shop’s Success

Ethical & Sustainable Practices

The Body Shop stands out for its unwavering commitment to ethical sourcing. This is through its Community Fair Trade program. The brand is recognised for its cruelty-free status and for promoting both environmental sustainability and social responsibility, values that are increasingly resonating with modern consumers.

Customer-Focused & Digitally Savvy

From a seamless e-commerce platform to personalised services and vibrant social media engagement, The Body Shop builds meaningful connections and loyalty through a customer-first approach.

Diverse & Safe Product Range

Its portfolio includes a wide selection of natural, dermatologically tested, and safe beauty products. Those, that cater to different skin types and personal preferences, all while maintaining transparency in ingredients.

Purpose-Driven Brand Values

The brand’s identity is deeply rooted in causes like empowering women, supporting fair trade communities, and advocating cruelty-free beauty. These values are not just marketing points; they’re embedded in every aspect of the business.

Strong Digital & Social Media Presence

With a bold voice on platforms like Instagram, The Body Shop creates compelling content and maintains an active dialogue with its audience, helping build a loyal and engaged community.

Sustainability at the Core

Beyond products, the brand actively works on eco-friendly packaging, responsible sourcing, and impactful community partnerships, reinforcing its credibility as a truly sustainable beauty brand.

Omnichannel Retail Strategy

Across India, The Body Shop is expanding its retail and digital presence. It's integrated online and offline retail experience ensures greater accessibility and convenience for customers.

Community-Centric Approach

Through social impact programs like Community Fair Trade, the brand nurtures long-term relationships with suppliers and communities while also fostering customer trust and loyalty.

Redefining Beauty Norms

Challenging conventional beauty ideals, The Body Shop promotes self-love, body positivity, and inclusive beauty, aligning with the evolving values of today’s consumers.

By championing these values and strategies, The Body Shop has positioned itself as a leader in ethical, inclusive, and sustainable beauty in India, creating a strong, purpose-driven franchise opportunity that continues to grow in 2025 and beyond.

Nykaa Luxe vs. The Body Shop: Comparing Two Powerhouses in Beauty Retail Franchise

Nykaa Luxe and The Body Shop are two prominent players in the beauty and skincare industry, each with its unique strengths and focus areas. While both retailers cater to the beauty-conscious consumer, they differ significantly in their approach and product offerings.

Nykaa Luxe: A Luxury Beauty Franchise Destination

Nykaa Luxe is a multi-brand retailer that offers an extensive range of luxury and premium beauty products from international and Indian brands. Its product portfolio includes high-end makeup, skincare, haircare, and fragrances. Some notable aspects of Nykaa Luxe include:

• Curated selection: Nykaa Luxe offers a vast selection of products from various brands, allowing customers to explore and discover new options.
• Luxury focus: The retailer primarily caters to the premium and luxury beauty segment, providing a luxurious and pampering experience for customers.
• In-house brands: Nykaa has its successful brands, such as Nykaa Naturals, Nykaa Cosmetics, and Kay Beauty, which expand its reach into different price points and product categories.
• E-commerce expertise: Nykaa has a strong online presence, known for its user-friendly platform, fast delivery, and frequent discounts.

The Body Shop: Beauty with a Purpose

In contrast, The Body Shop is a purpose-driven brand that emphasises natural ingredients, ethical sourcing, and a strong commitment to sustainability. Some key aspects of The Body Shop include:

• Natural and Ethical Values: The brand is widely recognised for its use of natural ingredients, commitment to cruelty-free testing, and support for community trade, making it a preferred choice among ethically conscious consumers.
• Body care expertise: The Body Shop is particularly renowned for its body butters, hand creams, and other body care products.
• Worldwide Reach: The brand boasts a strong global footprint, operating through a network of physical stores as well as a robust online platform.
• Partnership with Nykaa: The Body Shop has partnered with Nykaa to sell its products on the Nykaa platform, expanding its reach in the Indian market.

Overall, while both Nykaa Luxe and The Body Shop cater to the beauty and skincare needs of consumers, they differ significantly in their approach, product offerings, and values.

Nykaa Luxe vs. The Body Shop: Quick Beauty Franchise Comparison for 2025

1. Target Audience & Brand Pull

• Nykaa Luxe: Appeals to trend-focused Millennials and Gen Z who follow beauty influencers and viral products. Its draw comes from constant new launches and luxury appeal.  
• The Body Shop: Attracts a wider audience, from loyal older customers to young, eco-conscious buyers. Trust, ethics, and product quality drive loyalty.

Investment & Operations

• Nykaa Luxe: Higher CAPEX due to premium locations, stylish interiors, and large multi-brand inventory. Offers tech-driven support, real-time data insights, and strong omnichannel integration.  
• The Body Shop: Lower investment comparatively, with standardised store formats and a single-brand inventory. 

Product Range & Profitability

• Nykaa Luxe: The multi-brand model brings variety and footfall but requires careful inventory management. Margins vary by brand.  
• Own-brand makes margins stable and operations simpler at The Body Shop. High brand loyalty encourages repeat purchases, though overall growth is closely tied to the performance of the parent brand.

Location Strategy & Growth Potential

• Nykaa Luxe: Well-suited for urban centers and high-end retail environments. Best suited for investors targeting high-end urban consumers.  
• The Body Shop: Tier 1 and 2 cities are strong. 

The Verdict: Which Franchise Is Right For You?

There is no single "better" investment. The right choice depends entirely on your investment philosophy, risk appetite, and operational strengths.

You should bet on a Nykaa Luxe franchise if:

• You are passionate about the fast-paced, trend-driven world of luxury beauty.
• You are comfortable with complex inventory management and a data-driven approach to sales.
• You have access to high-value capital and premium real estate in a major urban center.
• You believe in the power of an omnichannel strategy and want to leverage a powerhouse digital brand.

 Acquire The Body Shop Franchise if,

• You are a firm believer in sustainable, value-driven business.
• You prefer a stable, time-tested operational model with consistent margins.
• You want to build a loyal community of customers based on trust and shared values.
• You are looking for a globally recognized brand with deep roots and a strong, reliable support system.

In conclusion,

choosing between Nykaa Luxe and The Body Shop is a choice between two distinct futures for the Indian beauty market. The Body Shop embraces a consistent, mindful, and values-oriented approach. Both are formidable players. Your task as an investor is to look beyond the glamour and decide which brand's philosophy and operational model truly align with your vision for success in the vibrant world of beauty franchising in India.

Disclaimer: The brands mentioned in this blog are the recommendations provided by the author. FranchiseBAZAR does not claim to work with these brands / represent them / or are associated with them in any manner. Investors and prospective franchisees are to do their own due diligence before investing in any franchise business at their own risk and discretion. FranchiseBAZAR or its Directors disclaim any liability or risks arising out of any transactions that may take place due to the information provided in this blog.