The top online marketplace for beauty products Nykaa, has declared its intention to go worldwide by building its first location in Dubai during the current fiscal year.
With the help of the Apparel Group, Nykaa plans to deliver its famous beauty and personal care (BPC) items to the GCC area as part of its worldwide development strategy.
Falguni Nayar the CEO and MD of Nykaa, expressed her enthusiasm at this accomplishment.
She said, "We are now expanding our BPC company to the GCC area in cooperation with the Apparel Group, taking our playbook global. The first store in Dubai will open within the current fiscal year.
Rozita Nouruzi has been named CEO of Nysaa, Nykaa's omnichannel beauty company in conjunction with the Apparel Group in the GCC, in keeping with this development. Because of her position of leadership at Sephora in the Kingdom of Saudi Arabia, Nouruzi provides a plethora of expertise.
The UAE-based Apparel Group's partnership with Nykaa last year made it possible for it to enter many GCC nations, including the UAE, Saudi Arabia, Qatar, Oman, Kuwait, and Bahrain.
The BPC business intention to go global is supported by Nykaa strong expansion in this market.
Nayar predicted that in the future years, growth in the beauty categories of skincare, cosmetics, and perfumes will outstrip that of personal care items in the company's annual report.
Furthermore, it is anticipated that the luxury category would expand more quickly than the bulk section.
Nykaa is concentrating on growing internationally while still adhering to its omnichannel shopping approach. "Omnichannel retailing continues to remain an integral part of our BPC strategy," Nayar added, "while we believe that digital will continue to be the dominant part of our business."
As of FY23 departure, the company's BPC network included 145 outlets altogether, with formats including Nykaa Luxe, Nykaa On Trend, and Kiosks accounting for more than 8% of the BPC GMV.
Nykaa has had significant progress financially. The BPC GMV of this company increased 33% YoY in FY23 to INR 6,649.1 Cr.
With a 24% YoY increase to INR 1,850.8 Cr, the segment's GMV showed that the growth trend persisted into Q1 FY24.
The BPC vertical of Nykaa operated 152 physical outlets as of the end of June 2023, bringing in INR 151.2 Cr. The firm saw a spectacular turnaround with an 8.2% YoY gain in net profit to INR 5.4 Cr in Q1 FY24, despite a 49% YoY fall in net profit to INR 20.9 Cr in FY23.
The overall income for Nykaa in FY23 increased by 36% YoY to INR 5,174 Cr.
Nykaa is positioned as a significant participant in the global beauty and personal care industry as a result of its strategic expansion into Dubai and its steady development trajectory.
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