Nykaa’s Focus On Building Network, Not Quick Commerce: Falguni Nayar

Nykaa’s founder and chief executive Falguni Nayar has said that quick commerce will not be the only business channel for the company and that it will focus on addressing consumer demand on delivery once the sector reaches a certain size and scale.

Nayar was speaking to The Economic Times ahead of Nykaa’s annual event ‘Nykaaland.’ 

“The reality for us is that we will not get into additional categories for the sake of quick commerce and what we will do well is in our category where we have long-term interest and a long-term position to play,” she said.

According to her, the company’s focus remains on building an extensive network across the country, not just a few cities. 

“…Our vision is to build the beauty and fashion lifestyle in the country and that’s what we are doing; and quick commerce could be one of the small channels, but it cannot be the only” Nayar told ET, adding that “…it does not have a major impact on our mission.”

This comes after the beauty and fashion major recently launched a 10-minute delivery pilot in select parts of Mumbai covering 5% of its SKU base. Several of Nykaa’s private labels are listed on Blinkit, Zepto and Swiggy Instamart.

But on the flipside, Nykaa’s core marketplace business has suffered from the rise of quick commerce.

Earlier in September, the company had stated its intention to accelerate next-day and same-day deliveries to cater to the growing demand for quick commerce-like models.

Nykaa chairperson, MD and CEO Falguni Nayar had said at the company’s AGM that currently next-day deliveries comprise 60% of all orders from the marketplace’s top 110 cities.