Eyeing for omni-channel expansion, Indian fashion and beauty retailer Nykaa plans to strengthen its offline presence and open 300 physical stores in 2022.
The company’s omni-channel expansion plan sets it on course to make its foothold stronger than before in the Indian cosmetics and fashion domain. Besides consolidating its presence, it is set to accelerate its exceptional revenue growth following its 57 per cent increase in revenues during 2019 to 2020, according to data and analytics company GlobalData.
According to GlobalData Q4 2021 Consumer Survey, online remains the most preferred option for shopping beauty and grooming products in India. However, 63 per cent of respondents still prefer shopping beauty and grooming products from physical stores. With a strong foothold in the online space, Nykaa aims to act upon consumers’ preference of offline channels that offer a trial of products to determine the quality and nature of the product.
“Nykaa displayed exceptional performance in the online cosmetics & fashion retail landscape during 2019 to 2020, which was among the most non-essential categories during the pandemic. With an established online presence, Nykaa now plans to capture market share in India’s overall cosmetics and fashion market, which is expected to be valued at US$ 188bn in India by 2025. The retailer’s strategy to expand offline will help it to cater to consumers who prefer to try on cosmetics & beauty and fashion products before purchasing,” commented Ankita Roy, Retail Analyst at GlobalData.
