Nykaa To Open First Beauty Store In Dubai In FY24: Falguni Nayar

SUMMARY

Nykaa will open its first store in the Gulf Cooperation Council region in FY24 as part of its international expansion plans, CEO Falguni Nayar said in the company’s annual report

Nykaa partnered the UAE-based Apparel Group last year to enter the UAE, Saudi Arabia, Qatar, Oman, Kuwait and Bahrain with its beauty offerings

Earlier this month, Nykaa said it had roped in Rozita Nouruzi as the CEO of Nysaa – its omnichannel beauty business in partnership with the Apparel Group

Beauty ecommerce marketplace Nykaa is set to open its first store in Dubai in the current fiscal year, as per the company’s annual report for FY23.

“We are now taking our playbook international, expanding our BPC (beauty and personal care) business to the GCC region in partnership with the Apparel Group. The current financial year will witness the first store opening in Dubai,” the company’s CEO and MD Falguni Nayar said.

Earlier this month, Nykaa said it had roped in Rozita Nouruzi as the CEO of Nysaa – its omnichannel beauty business in partnership with the Apparel Group in the GCC. Nouruzi has extensive experience in specialty beauty retail, having headed Sephora in the Kingdom of Saudi Arabia, Nykaa said.

Nykaa partnered the UAE-based Apparel Group last year to enter the UAE, Saudi Arabia, Qatar, Oman, Kuwait and Bahrain with its beauty offerings.

The international expansion of the BPC business comes on the back of Nykaa continuing to witness strong growth in the segment.

Nayar also said in the annual report that the company expects its beauty categories of skincare, makeup, and fragrances to grow faster than personal care in the coming years, with the premium segment growing faster than the mass segment.

“Omnichannel retailing continues to remain an integral part of our BPC strategy, while we believe digital will continue to be the dominant part of our business,” said Nayar. “Our BPC network of stores across formats of Nykaa Luxe, Nykaa On Trend, and Kiosks stood at a count of 145 as of FY23 exit and now contributes to over 8% of our BPC GMV (gross merchandise value).”

In FY23, Nykaa’s BPC GMV grew 33% year-on-year (YoY) to INR 6,649.1 Cr. In Q1 FY24, the segment’s GMV grew 24% YoY to INR 1,850.8 Cr.

At the end of June 2023, Nykaa’s BPC vertical operated 152 physical stores, yielding a revenue of INR 151.2 Cr.

In FY23, Nykaa’s net profit declined 49% YoY to INR 20.9 Cr while total revenue grew 36% YoY to INR 5,174 Cr. The beauty ecommerce major bounced back with an 8.2% YoY rise in net profit to INR 5.4 Cr in Q1 FY24.