Nykaa Aims to Triple Offline Presence with 300 Stores
Nykaa is reviving its offline strategy, aiming to open 300 stores across 100 cities. CEO Falguni Nayar highlights the importance of physical stores in complementing its online dominance in the beauty and fashion space. Indian cosmetics-to-fashion retailer Nykaa plans to more than triple its brick-and-mortar stores to 300, founder and Chief Executive Falguni Nayar said, significantly building its offline presence in the country.
Nayar declined to give a timeline for the rollout but said the company was targeting 100 cities, adding to the 84 retail outlets it already operates in 40 cities. "The process of store expansion had slowed down due to (COVID-19) pandemic for a year or so," Nayar said in an interview for the Reuters Next conference broadcast on Wednesday. "But this year we have revived our store rollout."
Though Nykaa largely operates as an e-commerce platform selling everything from global cosmetic brands to jewellery, Nayar said the physical stores, targeting Indian consumers wanting to buy touch-and-feel products, were a critical part of the business. Despite the rapid growth of e-commerce and the likes of Amazon.com in India's near $900 billion retail market, most shoppers still buy products offline.
Nykaa has said it is targeting a sub-segment of that sector - the $70 billion beauty, personal care and fashion market. Like many other retailers, Nykaa was hit hard by the pandemic as work-from-home rules reduced demand for office wear, cosmetics and shoes. The company last month reported a 96% slump in quarterly profit. But things are looking brighter as the COVID-19 pandemic eases, and India's festive and wedding season gains pace.