August 17, 2022

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India’s Nykaa looks to triple store count in retail expansion – CEO

MUMBAI, Dec 1 (Reuters) – Indian cosmetics-to-trend retailer Nykaa strategies to far more than triple its brick-and-mortar merchants to 300, founder and Main Government Falguni Nayar mentioned, noticeably constructing its offline presence in the region.

Nayar declined to give a timeline for the rollout but reported the enterprise was targeting 100 towns, including to the 84 retail stores it by now operates in 40 cities.

“The system of shop growth had slowed down due to (COVID-19) pandemic for a yr or so,” Nayar reported in an job interview for the Reuters Upcoming conference broadcast on Wednesday. “But this year we have revived our shop rollout.”

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While Nykaa mainly operates as an e-commerce platform providing all the things from international beauty brand names to jewelry, Nayar mentioned the physical outlets, focusing on Indian shoppers seeking to obtain contact-and-sense items, had been a significant part of the small business.

In spite of immediate expansion of e-commerce and the likes of Amazon.com in India’s close to $900 billion retail market place, most shoppers however buy merchandise offline.

Nykaa has mentioned it is concentrating on a sub-segment of that sector – the $70 billion splendor, individual care and style industry.

Like numerous other merchants, Nykaa was hit tough by the pandemic as operate-from-home procedures reduced demand for business office put on, cosmetics and footwear. The company past thirty day period reported a 96% slump in quarterly profit.

But factors are searching brighter as the COVID-19 pandemic eases, and India’s festive and wedding day period gains tempo.

“Plainly there is a revival in make-up (products and solutions) which was pre-pandemic,” said Nayar, a 58-yr-old former expense banker, in a Nov. 25 interview.

Nayar garnered substantial general public attention previous month when her enterprise made a glowing stock market place debut with a valuation of $14 billion.

Top personal fairness firms this sort of as TPG and Fidelity, and Indian Bollywood stars Alia Bhatt and Katrina Kaif, have economically backed FSN E-Commerce Ventures (FSNE.NS), the company that owns Nykaa model.

Nykaa, which resources quite a few merchandise from Europe, is also focussing on ramping up exports of its have non-public models to the United Kingdom and the Center East.

Continue to, Nayar mentioned India continues to be the precedence supplied the country’s large development prospective.

A lot of Indians, Nayar noted, are “however to obtain their very first look at, initially automobile, first property – I imagine India is in a extremely distinct place as opposed to other created economies.”

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Reporting by Abhirup Roy Supplemental reporting by Chandini Monnappa Enhancing by Aditya Kalra and Jane Wardell

Our Expectations: The Thomson Reuters Believe in Ideas.