17 November 2022, Mumbai:
Nykaa’s next big focus is to hit profitability. The Mumbai-based company’s shares have undergone a correction amid a broader rout in technology stocks, both globally and in India.
The omnichannel beauty retailer has gained on the back of the festive and wedding season, so has not seen any drop in demand. Nykaa Superstore is a third-party distribution platform and is a win-win for retailers and Nykaa.
This distribution channel is self-serving, has intelligence on what is more popular in the retailer’s area, and helps new brands launch on Nykaa’s platform.
One lakh small retailers and mom-and-pop stores like pharmacies, specialized beauty stores, have signed up. Nykaa is an on-trend brand and dominates beauty with 30 per cent plus of the online beauty market. But in fashion, it has just a two percent market share and thinks getting to five per cent will be a big business.
Nykaa has launched private labels and closed multiple acquisitions post the IPO. Private labels will play a significant role for the company, which has eleven of these – 20 Dresses was acquired pre-IPO and then followed the launch of the lingerie brand Nykd, both of which are now clocking Rs 100 crores in GMV annual revenue run rate.
The company always carefully evaluates build versus buy decisions.
