The impact and influence of Digital Age Marketing and AI algorithms on
consumer behavior with respect to growth and sales revenue of beauty and
fast-fashion brands: case study of Nykaa and Fab India

Prisha Jain

doi:10.46609/IJSSER.2026.v11i08.032

Title: The impact and influence of Digital Age Marketing and AI algorithms on consumer behavior with respect to growth and sales revenue of beauty and fast-fashion brands: case study of Nykaa and Fab India
Authors: Prisha Jain
Journal: International Journal of Social Science and Economic Research (IJSSER) ISSN: 2455-8834 Volume: 11 Issue: 8 Publication Date: August 2026 DOI: 10.46609/IJSSER.2026.v11i08.032
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Prisha Jain Sat Paul Mittal School
MLA 8 Jain, Prisha. "The impact and influence of Digital Age Marketing and AI algorithms on consumer behavior with respect to growth and sales revenue of beauty and fast-fashion brands: case study of Nykaa and Fab India." Int. j. of Social Science and Economic Research, vol. 11, no. 8, Aug. 2026, pp. 4133-4147, doi.org/10.46609/IJSSER.2026.v11i08.032. Accessed Aug. 2026. APA 6 Jain, P. (2026, August). The impact and influence of Digital Age Marketing and AI algorithms on consumer behavior with respect to growth and sales revenue of beauty and fast-fashion brands: case study of Nykaa and Fab India. Int. j. of Social Science and Economic Research, 11(8), 4133-4147. Retrieved from https://doi.org/10.46609/IJSSER.2026.v11i08.032 Chicago Jain, Prisha. "The impact and influence of Digital Age Marketing and AI algorithms on consumer behavior with respect to growth and sales revenue of beauty and fast-fashion brands: case study of Nykaa and Fab India." Int. j. of Social Science and Economic Research 11, no. 8 (August 2026), 4133-4147. Accessed August, 2026. https://doi.org/10.46609/IJSSER.2026.v11i08.032.
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ABSTRACT: Over the last decade, digital technology and artificial intelligence have quietly rewritten the rules of how the fashion industry and beauty brands sell to Indian consumers. This paper looks at how digital marketing and AI-driven algorithms are shaping consumer behaviour, and what that means for the growth, sales, and revenue of two very different home-grown brands: Nykaa, a beauty platform that was born online, and Fab India, a heritage ethnic-wear retailer that has had to adapt to a digital-first market. The central question is how far these technologies are influencing the decisions people make and whether that influence shows up in the numbers. The paper uses a mixed-method approach, relying on secondary data such as investor disclosures, credit rating reports, and industry publications alongside a more qualitative reading of each brand’s marketing strategy, SWOT analysis, and business model. For Nykaa, the analysis traces its dual-channel presence, inventory-led model, and marketing mix, and finds that revenue has climbed steadily since its 2021 IPO even though profit and share price have barely moved. Fab India’s story looks different: its push into sub-brands like FabNU and Fabessentials, its decision to pull back from IPO in 2023, and a financial turnaround in FY 2024-25 after several years of losses tied to interest costs and depreciation. What emerges is that digital tools have clearly helped both brands grow their top line, but converting that growth into real, lasting profit looks quite different for a digital-native company compared to a legacy brand still finding its footing online. The paper ends by suggesting a few practical directions for each brand, from leaning on high-margin private labels to tightening supply chains through technology, while also being upfront about the limits of working with secondary data and comparing a listed company to one that isn’t.

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