Cosmetics and beauty retailer Nykaa.com is betting big on its private-label business, and will focus on ramping up the distribution of the Nykaa label in the offline retail space.

It is also looking to ramp up its ‘Nykaa Naturals’ range, in line with the fast-changing consumer preferences for natural formulations in grooming products.

Reena Chhabra, CEO, FSN Brands, the private-label arm of the beauty retailer Nykaa.com, said: “We have been following the omni-channel strategy and the Nykaa label products are already available across 850 multi-brand outlets in the country. We have been focusing on building the brand’s presence in general trade stores in the northern and western region. This year we will focus on ramping up the distribution in the eastern and southern regions. Also, we will look at making our products available through the modern trade stores across the country.”

The company hopes that the Nykaa label will be available across over 2,000 stores by March 2019.

It also plans to expand the Nykaa label as a full-scale cosmetics brand with the addition of products such as liquid lipsticks, lip glosses and specialised facemasks, made specially for Indian consumers.

“We introduced Nykaa Naturals with the launch of essential oils and have now extended it to the hand-crafted luxury soaps. We will launch carrier oils soon. We are also working on adding face and hair products range to the Nykaa Naturals line,” she added.

Tools and accessories

Also on the cards are plans to expand the Nykaa’s presence in the tools and accessories space, including hair equipment. The company could also look at adding two additional brands in the colour cosmetics space in the future. “The private-label business grew by nearly 2-2.5 times in 2017. We expect to grow at the same pace this year, too. We aim to be among the top three brands in every category in the next 3-4 years,” said Chhabra.

She said that not only is the private label highly profitable, it also enables the company to fill in the gaps in the market. “Indian consumers are now closely following global make-up and beauty trends and they want these trends to come to the country faster. Also, as more and more consumers are getting added to the market, they are also making higher number of purchases of beauty and cosmetics products in a year,” she added. The Indian cosmetics industry is expected to grow at 20-25 per cent CAGR as per industry estimates.

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