Dec 16, 2016
Nykaa banks on private labels for growth, expects 750 crore turnover in FY17-18
Dec 16, 2016
Mumbai-based beauty e-commerce firm Nykaa is banking on its private label for revenue generation and expects it to double in the next financial year, said a top executive of the company on Thursday.
“We are on track to register Rs250 crore revenue for this year (FY2016-17), 10% (of which) will be from private label... In next year (FY2017-18) we are looking at Rs750 crore turnover, 20% of that should be from private label,” said Nykaa’s founder Falguni Nayar, in an interview.
Nykaa entered the private labels space by launching nail paints to boost its margins as they earn margins of 40-60%, which is 10-20% more than what the company earns by selling branded products on the platform.
As well as nail paints, Nykaa has also launched its own line of kohl, lipsticks and is looking to introduce more products in at least 10 beauty categories, such as eye makeup, essential oils, among others.
Founded in 2012, Nykaa started as an online retailer of beauty products. It currently lists products from 450 brands across categories such as make up, skin, hair, among others.
With horizontal marketplaces such as Amazon and Flipkart also offering beauty products, Nykaa does not consider them as competition.
“Even though they may be offering beauty products, it cannot match the range of high-end brands that Nykaa offers,” said Nayar.
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