The company is increasingly also getting involved with business-to-business-to-consumer (B2B2C) business, where it has deep partnership and full stack offering to players like Nike
Emphasising that customer acquisition is a key area of investment for the company, Anchit Nayar, Executive Director And Chief Executive Officer, Beauty, FSN Ecommerce, stated that India is underpenetrated in terms of its beauty consumption.
“We do feel that India is underpenetrated in terms of its beauty consumption, and we want to be drivers of that penetration and that growth. So, we have been investing behind customer acquisition,” Nayar said during the company’s earnings call.
Nayar added that the company is now at about 18.7 million annual unique transacting customers, which is a 26 per cent growth year-over-year and almost four million customers. “We sell one fragrance every five seconds. We sell close to 2,000 lipsticks every hour and one moisturiser every two seconds. So, despite India being a market that still is highly underpenetrated when it comes to beauty consumption, you can see the scale of the market at play here,” Nayar noted.
The company opened 11 new stores in the recently concluded quarter, taking total retail store count to 276. It expanded into four new cities, taking the total to 94 cities. The company also introduced new fragrance-only store concept called Nykaa Perfumery.
“We are increasingly also getting involved with B2B2C business, where we have deep partnership and full stack offering to players like Nike. You must have heard the announcement, it came post the quarter end, where we have partnered with Nike to run their D2C business,” highlighted Falguni Nayar, Executive Chairperson, Managing Director And Chief Executive Officer, FSN Ecommerce.
The company owns more than 12 consumer brands of significance. Amongst these 12 brands, the top five are Dot & Key, Kay Beauty, Nykaa Cosmetics, Nykd and Twenty Dresses. All the brands put together account now for USD 400 million annualized gross merchandise value (GMV), Nayar noted.
Strengthening its decade-long partnership with L’Oreal in the country, Nykaa will now be taking over the end-to-end India operations of Kiehl’s. The company has signed an exclusive distribution agreement with L’Oreal Luxe.
“We are happy to say that we are taking over the Kiehl’s operations in India and we will provide end-to-end full stack services for Kiehl’s in India,” Anchit Nayar, Executive Director and Chief Executive Officer, Beauty, FSN Ecommerce, stated during the company’s earnings call.
This includes operating their direct-to-consumer website, freestanding stores as well as retailing the brand on Nykaa’s website and Nykaa stores, Nayar added. The company has further strengthened its relationship with L’Oreal in the third quarter with three brands that they are bringing into India in partnership with Nykaa.
