Nykaa is growing much faster than other sectors of fashion
Adwaita Nayar, CEO of the Nykaa Fashion said that E-commerce owned Nykaa Fashion’s private labels are growing much faster than other parts of the fashion business, said company in a post-earnings call on Tuesday.
Nykaa’s portfolio of private labels called owned brands includes skincare brands such as Dot & Key and Earth Rhythm, jewellery brand like Pipa Bella, and apparel retailers such as Gajra Gang and Kica.
“We try to touch on all categories and identify gaps in the assortment,” said Nayar adding that the etailer’s owned brands’ GMV now contributes to about 13 per cent of the overall fashion GMV, up from 7 per cent a year ago.
Explaining the distribution strategy, she shared that the brand has crafted very thoughtful distribution strategies for these brands. While some have their own physical stores and general, modern trade presence, others have their own D2C websites and/or be listed on marketplaces such as Amazon, she said.
Highlighting that the brand believes in a third-party strategy for its private labels, Nayar said that third-party sales are now contributing to almost about 50 per cent of the private label business on Nykaa Fashion.
The company posted its results for the quarter that ended September 30, 2022. Nykaa Fashion GMV grew 43 per cent Y-o-Y to Rs 5,99.1 crore during the period in review and contributed 26 per cent to consolidated GMV of Rs 2,345.7 crore.
Nykaa’s overall revenue from operations increased to Rs 1,230.8 crore in the second quarter while its net profit for the period grew 344 per cent Y-o-Y to Rs 5.2 crore, the company said in its exchange filing.
Talking about its growing focus on bringing international brands to India, Nayar said, “A big highlight of this quarter has been that fashion has doubled down and launched a very strong global store strategy.”
The company launched Nykaa Global Store in the last financial year, enabling consumers to buy products from foreign brands and overseas retailers. Nykaa recently announced its partnership with fashion e-tailer Revolve.
On the international front, Nykaa also announced its partnership with Dubai-based Apparel Group to expand its omnichannel and multi-branded retail operations in Gulf Cooperation Council (GCC).