Nykaa.com, India’s largest multi-brand beauty platform, is betting big on the private label business which has seen a commendable growth in the last few years.
Elaborating on the growth story, CEO, FSN Brands, Reena Chhabra says, “We are very happy with the growth story of Nykaa private label. From last quarter to this quarter, we have grown almost 120 percent and from last year to this year, we have grown more than 250 percent. We have done extremely well in the last year due to increasing consumer demand.”
“We started the beauty advisor channel some time back and now we have about 40 stores in advisor channel. In distribution segment, we are present in 965 stores. We are also expanding our Luxe and On Trend stores. Recently, we have entered new markets like Kolkata, Bengaluru, Hyderabad and Coimbatore and next month we will be foraying into Guwahati,” she further adds.
Within a few years of the launch, the brand has become a favourite among the Millennials.
“A lot more Millennials have been coming to our website and they have been telling us about trends and what we are doing is that we are listening to them and launching products that they have been telling us to launch,” reveals Chhabra.
“Another USP of Nykaa private label that has made the brand the first choice of the Millennials is that the quality and the price points that we are offering is much better than the competitors. Moreover, we ensure to provide colours that are really trendy and are in vogue,” she adds.
This year, the brand has been launching one new product every week. Currently, it has launched Ultra Matte Lipstick range and it has already started getting great response from consumers.
Nykaa Ultra Matte Lipstick range is a tribute to the most iconic beautiful women that inspired the world with their original blend of grit, grace, glamour, and gravitas that echo far beyond the ages. Dedicated to all the women who changed the world with their enchanting beauty, sparkling wit and appeal, this collection speaks for women who are their own version of perfection.
In the words of Chhabra, “The colour we wear on our lips tells a lot about our personality and are a great way to express our own style. This collection is inspired by the iconic women of the golden era. Each lipstick shade name is inspired by one of these women, and reflects an inherent quality in her. Each shade has a different colour and a personality of its own.”
At present Nykaa private label contributes 10 percent to the overall revenue of Nykaa.com. The brand has been grown 200 plus percent year-on-year whereas the beauty market is growing by 17-18 percent.
The maximum contributor to the revenue are nails and lips. We are eyeing to be number three brand in India in cosmetics, says Chabbra.
“We will soon be available at Shoppers Stop, Lifestyle and New U. We are going to expand our Bath and Body range. We already have this range but we are now revamping it and soon that will come in a big way. Apart from this, we will also be expanding our perfumes and naturals range,” she asserts.
At present, Nykaa has more than 500 SKUs and by this fiscal end the brand is eyeing to add 200 plus SKUs.
“Average ticket size offline is Rs 600 size plus with an average basket size of 2.5 products and we have similar number on e-commerce,” reveals Chabbra.
The brand is eyeing 2,000 points of distribution by next year end and by this fiscal end it is expecting to reach 1,300-1,400 points of distribution.