Indian cosmetics retailer Nykaa plans to double brick-and-mortar stores

MUMBAI Reuters - 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. It also plans to increase its offline presence in the country.

Nayar declined to give a timeline for the roll out, but said the company was targeting 100 cities, adding to the 84 retail outlets it already operates in 40 cities.

We have revived our store rollout this year. Nayar said that physical stores, targeting Indian consumers wanting to buy touch- and feel products, were a critical part of the business, as Nykaa mainly operates as an e-commerce platform selling everything from global cosmetic brands to jewellery.

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 said it was targeting a sub-segment of the sector - the $70 billion beauty, personal care and fashion market.

Like many retailers, Nykaa was hit hard by the Pandemic as work-from- home rules reduced demand for office wear, cosmetics and shoes. A 96% slump in the quarterly profit was reported last month by the company, reut.rs 3 xylnxE.

Things are looking brighter as the COVID 19 epidemic eases and India's festive and wedding season gains pace.

Nayar, a 58-year-old former investment banker, said there was a revival in make-up products that were pre-pandemic.

Nayar garnered a lot of attention last month when her company made a glowing stock market debut https: reut.rs 32 xHMzO with a valuation of $14 billion.

FSN E-Commerce Ventures, the company that owns Nykaa brand, has been financially backed by top private equity firms such as TPG and Fidelity, and Indian Bollywood stars Alia Bhatt and Katrina Kaif.

Nykaa, which sources many products from Europe, is focusing on ramping up its exports of its own private brands to the United Kingdom and the Middle East.

Given the country's massive growth potential, India remains the priority, according to Nayar.

Many Indians are yet to buy their first watch, first car, first home, according to Nayar. I think India is in a very different place compared to other developed economies.