Marico Kaya Enterprises Ltd, which operates the Kaya beauty and wellness chain, and launched its low capex, product-only format Kaya Skin Bar in 2013, is looking to further extend lower-cost retail units.
In an exclusive interview to Indiaretailing, Arvind R P, VP Marketing & Business Head – Product Retail, Marico Kaya Enterprises Ltd shared his plans to futher stir the growth of this format through Shop-in-Shops. “There are 12 Kaya Skin Bars today across Bangalore, Mumbai, Cochin and Bangalore. We are looking at adding 15-20 such stores per year in India. Along with that, plans are afoot to expand the format through the shop-in-shop format with leading department store chains. ”
Currently, the format retails over 50 specialised products spanning Acne, Anti-Aging, Pigmentation, Body and Hair categories.
Kaya Skin Bar is a low capex, expansion-friendly model. Typically, a single Kaya Skin Clinic would be around 1,500 to 2,000 sq ft, while a Kaya Skin Bar is a smaller format with a size varying from 150 sq ft to 300 sq ft. This format is designed for a quick turnover as it is a CAPEX-light model and comes with a considerably low operational costs.
Commenting on consumer reponse to Kaya Skin Bars, he added, “After studying the market, we realised that there’s a gap for premium products with the rigt pricing between super and mass products. Through our unique customized skin analysis and specilised products we have seen an excellent response from consumers. The stores are seeing high level of repeat purchase indidcating the high satisfaction levels of the consumers.”
Kaya refused to share the revenue percentage that the format has added to the company. However, on a consolidated basis, Marico Kaya Enterprises reported a net profit of Rs 0.63 crore in Q1 June 2014 compared with net loss of Rs 5.90 crore in Q1 June 2013. Revenue from operations rose 17% to Rs 75.20 crore in Q1 June 2014 over Q1 June 2013.
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