Nykaa is gearing up to mark its entry into the beauty retail landscape in Dubai during the ongoing fiscal year, as stated in the company's annual report for FY23. The beauty e-commerce platform's CEO and MD, Falguni Nayar, shared the plans, emphasizing the company's international expansion strategy alongside its partner, the Apparel Group. The debut store is set to open in Dubai, marking the beginning of Nykaa's global presence.
Nykaa's pursuit of overseas markets took a significant step when it joined hands with the Apparel Group, headquartered in the UAE, last year. This partnership aimed to introduce Nykaa's beauty offerings to nations such as the UAE, Saudi Arabia, Qatar, Oman, Kuwait, and Bahrain.
Rozita Nouruzi was recently appointed as the CEO of Nysaa, Nykaa's omnichannel beauty endeavour in collaboration with the Apparel Group in the GCC. Nouruzi, with her extensive background in specialty beauty retail, previously led Sephora in the Kingdom of Saudi Arabia.
Nykaa has witnessed robust growth within the beauty and personal care (BPC) segment, setting the stage for its international expansion. Falguni Nayar highlighted the anticipation of accelerated growth in beauty categories like skincare, makeup, and fragrances, surpassing personal care. Furthermore, the premium segment is expected to outpace the mass segment in growth.
In the context of BPC, Nykaa operates a network of stores under different formats, including Nykaa Luxe, Nykaa On Trend, and Kiosks. These formats collectively reached a count of 145 stores by the end of FY23, contributing over 8% to the BPC gross merchandise value (GMV).
The BPC vertical showcased remarkable performance figures, with a 33% YoY growth in GMV to INR 6,649.1 Crores during FY23. The trend continued into Q1 FY24, with the segment's GMV increasing by 24% YoY to INR 1,850.8 Crores. Nykaa's physical stores, a key component of its omnichannel strategy, tallied to 152 by June 2023, generating INR 151.2 Crores in revenue.
Despite facing a 49% YoY dip in net profit to INR 20.9 Crores during FY23, Nykaa rebounded strongly with an 8.2% YoY net profit growth, reaching INR 5.4 Crores in Q1 FY24. Throughout these financial ups and downs, Nykaa's overall revenue exhibited a notable 36% YoY growth to INR 5,174 Crores in FY23.
As Nykaa expands its global footprint and continues its pioneering efforts in the beauty retail space, the company remains poised for both national and international growth within the dynamic beauty industry.
