India-based cosmetics and fashion retailer Nykaa ramps up retail expansion in India. The retailer currently operates 84 brick-and-mortar stores in 40 cities and aims to increase its store network to 300.
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Nykaa is targeting 100 cities as part of its strategy to boost its offline presence in India. The retailer has not yet disclosed the timeline for the rollout.
“The process of store expansion had slowed down due to the Covid-19 pandemic for a year or so, but this year we have revived our store rollout,” said Nykaa founder and CEO Falguni Nayar in an interview with Reuters.
Operating primarily as an e-commerce platform for cosmetics and fashion from global brands, Nykaa is expanding its retail network to address the critical need of consumers who prefer to touch and feel the products before purchasing.
Despite rapid growth of e-commerce, most shoppers still buy products offline. Nykaa is targeting a sub-segment of India’s near USD900 billion retail market: the beauty, personal care and fashion market which is valued at USD70 billion.
Nykaa was hit hard by the pandemic as work-from-home rules reduced demand for office wear, cosmetics and shoes. In November, the company reported a 96 percent drop in its quarterly income. However as the COVID-19 restrictions ease, and India’s festive and wedding season gains pace, the market is expected to return to growth.
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The retailer, sourcing many products from Europe, also focuses on exporting its own private brands to the United Kingdom and the Middle East. However India remains the priority market given the country’s massive growth potential.