‘Baby steps’: Nykaa set to take brand portfolio overseas to Mauritius, UAE, US
The Nykaa House of Brands is a portfolio of around 10 in-house brands, including Nykaa Naturals, Nykaa Cosmetics, and Kay Beauty.
According to the firm, the group of brands accounted by roughly 11.2% of its total gross merchandise value (GMV). In the first quarter ending June 22, the brands grew 95% year on year.
The strength of the portfolio is giving the firm confidence to explore opportunities in new markets overseas. At the moment, the company has made a few small advancements, including listing its products on Middle Eastern e-tailer Noon and started an Arab social media accounts for Nykaa.
“We want to take many of our owned brands in beauty and personal care area to countries like Mauritius… There are plans for more in the Middle East because we see it as an attractive market for our private labels including Kay Beauty and also Nykaa Naturals,” said Falguni Nayar, executive chairperson, managing director and CEO of parent company of FSN E-Commerce Ventures Limited.
Speaking during the firm’s Q1 earnings conference, she added that the firm is looking into expanding its hair, bath and body ranges into the US through Amazon.
“These are all baby steps being taken right now. These are early days, but I think there is definitely one thing we are seeing globally – that the global consumer is looking at interesting brands from different countries. And there is a belief… that some of the most successful brands of the future will come out of India,” said Nayar.
She elaborated that firm has brands that have the potential to succeed overseas. “We are doing this only for the brands that we own and if our brand has something that appeals to a certain set of customers, then it can succeed. We do have brands like Kay Beauty which we do believe can do well in the international market.”
Finding the next great Indian brand
In addition to its recent moves in the Middle East, the firm is also partnering the Estée Lauder's New Incubation Venture, the venture capital arm of the cosmetics major.
Through this partnership, Nykaa will be launching a program to help develop Indian beauty brands, said Anchit Nayar, executive director and CEO, beauty e-commerce, Nykaa.
“We will accept applications and then identify brands early on in their journeys being built in India that are truly unique and that can potentially carry the, what we like to say is carry the flag of Indian beauty globally. We have seen Korean beauty do incredibly well, Japanese beauty do well, French pharmacy beauty. So, we do think that it's time for us to identify the next set of Indian brands who will go international.
“We have great traditions of beauty in India including Ayurveda that we think could be a big benefit to the global markets. We are looking to identify the next set of brands who we can help foster, mentor, fund and then take them globally.”