Salient points
- Adwaita Nayar, CEO of Nykaa Fashion, said that while rapid trade is growing, it mainly benefits the personal care segment rather than the basic beauty category, which is not suitable for quick deliveries.
- The beauty activity of Nykaa continues to thrive, reporting a 30% growth on an annual basis of the gross value of the goods, also in the midst of a large slowdown in consumption expenses in the India market.
- The fashion vertical of Nykaa, led by Adwaita Nayar, is growing at a slower pace than beauty, reaching a 12% growth on an annual basis of the value of the gross goods, maintaining a distinct identity from fashion competitors.
While the players of and -commerce are prepared to combat the rapid battle of trade, Nykaa is adopting a cautious approach towards the segment. After piloting the Nykaa rapid trade platform now in PIN codes selected through Mumbai, Delhi and Bengaluru last year, the Beauty and Fashion Etailer says that its basic beauty category is not designed for 10 -minute deliveries and most of the traction comes from personal care products.“Almost 80% of what we sell is beauty and 20% is personal cure. Personal care is what is really collecting in rapid trade,” said Adwaita Nayar, co -founder of Nykaa and executive director and CEO of Nykaa Fashion. “The value of the gross goods of our beauty business (GMV) has grown to 30% on an annual basis in the last four quarters. So I don’t think we are witnessing an impact of rapid trade. It is difficult to know how growth would have been, but we are where we expected to be.”
Beauty is a category of discovery and inspiration, in which there is a lot of width and depth that must be served. The nature of rapid trade does not generally support that type of assortment, Nayar said to Et in an interview.He clarified that the Nykaa list is now treated separately with a focus on personal care and gifts rather than reflecting its main catalog of E -Commerce. The cautious tone contrasts with the way in which the horizontal rapid trade platforms such as Blinkit, Swiggy’s Instamart and Zepto have expanded aggressively in new categories such as electronics and fashion and beauty products. These companies have said that beauty and personal care are more rapid growth on their platforms.
Together with the biggest players like Myntra, several start -ups of rapid vertical trade emerged, supported by risk capitals, including the likes of the caliber of Slikk and blips in the fashion and clothing space.
Has recognized a wider change of delivery expectations. “It is not about 10 minutes, but people’s expectations for the global delivery speed are only going up,” he said.
Although discretionary expenditure slows down in some parts of the consumer internet market in India, Nykaa beauty activity continues to grow at a healthy pace, said Nayar.
For the quarter ended in March, FSN e-commerce, Nykaa’s mother-in-law, recorded a net profit of RS 19 crores, almost twice as twice what he reported the previous year. Operational revenues increased by 23.6% on an annual basis at RS 2,016.7 Crore, led by beauty and personal care gains.
“We are aware of the wider slowdown. We refer to many of these companies and understand how their growth rates are. But so far, Nykaa has not seen a similar impact,” Nayar said.
“On the basis of our estimates, the market of beauty and personal care online grew in the 1920s, while we grew up in the 1920s.”
On the contrary, vertical fashion, which Nayar has led in recent years, has been growing at a slower pace, although it has exceeded the overall growth of the sector to the growth of the GMV of 12% on an annual basis in the year 25.
“In reality, if you compare the value of net sales (of beauty and fashion) it is a more apple-metric metric. The division is 75:25 in GMV terms and 80:20 in NSV.”
His goal is not to make fashion greater than beauty, but to build a strong and profitable activity with a clearly defined niche.
Nayar said that the positioning of Nykaa’s fashion remains distinct from the Ftshionhion players like Shein, who has come to India through the Riliace industries.
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