JOIN USHomegrown lifestyle brand, known for its colour cosmetics, Nykaa is looking at expanding its offline presence, which currently contributes to only 5% of the company’s revenues.
Alongside NykaaLuxe, which is its current mulit-brand store format across stores in Delhi-NCR, Mumbai and Bengaluru, the company plans to launch NykaaOnTrend — a format that seeks to cater to the young and aspiring customer base.
Adwaita Nayar, Head — Retail at Nykaa told DH, “The market for cosmetics is nascent in India, however, there is an upward trend in terms of spending, awareness and enthusiasm to indulge,” adding, “With NykaaOnTrend, we will introduce a unique merchandising methodology, which will have cosmetics displayed category-wise with only the top brands in each category.”
While NykaaLuxe is a luxury multi-brand outlet, which focuses on luxury brands, NykaaOnTrend will be about trending brands and products. Both formats intend to leverage technology more efficiently with effective videos and tutorials showcased at stores. “We are also doing cross walls, wherein each store will have a display wall of the other format,” she added.
With over 650 brands, including the likes of Estee Lauder, M.A.C, Clinique, and Bobbi Brown, Nykaa now markets around 60,000 SKUs.
Launching the latest NykaaLuxe in Bengaluru on Thursday, Nykaa Founder and CEO Falguni Nayar said, “We are essentially an online brand. That is how we started off. We get about 15 million visitors per month online, and it contributes to as much as 95% of our revenues. But offline becomes important to reach out to the aspiring customer and we are able to use our online learnings here.” The company is set to launch NykaaOnTrend in Bengaluru by the end of the year, and plans to have 30 stores across the country by 2020. Currently, each of its stores in Mumbai and Delhi are witnessing 15,000 footfalls every month.
The company's in-house brand Nykaa is one of the top five brands, and contributes to 8-10% of the revenues. "Nykaa is doing very well in nail and lips categories. In fact, it is outselling the top competitor by 10 times in the nail category," she said.
Started in 2012, the company has raised Rs 185 crore across three rounds of funding from HNIs, she said. Further it is also set to become EBITDA positive by September this year, she added. Last financial year, the company recorded revenues of Rs 214 crore, and hopes to touch Rs 775 crore this year.