Thanks to its first international cooperation with Apparel Group, Nykaa penetrates the Gulf countries.
Falguni Nayar, the company’s initiator, said that Nykaa will hold 55% of the company’s shares, with Dubai’s Apparel Group holding the remaining 45%.
To strengthen its footprint in GCC (Gulf Cooperation Council) countries, Indian cosmetics and clothing store Nykaa on Thursday announced an alliance with Apparel Group, a Dubai-based fashion and lifestyle retailer. The remaining 45% will be held by the clothing company, leaving Nykaa with a 55% stake.
By establishing its first global strategic relationship with The Apparel Group, one of the largest retailers in the Middle East, Nykaa is innovating and strengthening its presence in the GCC countries.
Company founder Falguni Nayar told reporters in Mumbai today, “We look forward to replicating our unique beauty product offering across the GCC. She went on to say that due to our advantages, we would be able to create a compelling value proposition in the United Arab Emirates, Kingdom of Saudi Arabia, Qatar, Oman, Kuwait and Bahrain.
Nykaa is a cosmetics e-merchant created ten years ago. According to Nayar, the company will apply its proven track record in multi-brand retail and its unique beauty playbook to meet particular trends and hyper-personalized shopping experiences in new geographies.
They work with nearby businesses and have some of the best supply chain models, fulfillment processes and partnerships in the region. We have a partner in the garment industry who is too culturally compatible with us, and together we can create the business of the future in the GCC countries, she concluded.
A new retailer brand name with a professional management team working independently in an omnichannel retail environment will be created as a result of the collaboration. According to Nykaa CEO Falguni Nayar, the two companies will collaborate to launch a multi-brand cosmetics retail operation in seven GCC countries.
Apparel Group India strives to promote its brand in cities like Vadodara, Indore, Kochi, Trivandrum, Amritsar and Ludhiana. More than 1,900 points of sale and more than 75 brands are represented by the Group on all channels.
In addition to holding the franchise rights for several other global brands, including ALDO and Charles & Keith, it has just established the first Victoria’s Secret store outside the United States in Mumbai. “Over the years we have expanded our portfolios to include many other brands including Tommy Hilfiger, Calvin Klein and ALDO.
We see ourselves as leaders in the local retail industry with a focus on sustainability and a digital-first approach. We want to know how both organizations could benefit from each other’s skills and from the growing local beauty and personal care market. Sima Ganwani Ved, Founder and President of The Apparel Group, remarked.
She expressed hope that the GCC would experience the same level of triumph as Nykaa in India. The United Arab Emirates is home to Apparel Group, one of the largest retailers in the Middle East.
Elara Capital Sees 70% Growth as Nykaa Share Price Skyrockets on Bonus Issue; check the check-in date.
The release of the bonus helped Nykaa shares continue to rise on Tuesday, October 4. 1349.6 and 1348.95 per share, respectively.
Earlier on Monday, the counter jumped 10% intraday before closing up more than 2.5% at Rs 1,305 per share after FSN E-Commerce Ventures, the parent company of the e-commerce platform, announced the record date for the bonus issue, which is November 3. , in a commercial file. At the end of the last two sessions, the share price rose 6% on the stock market.
Based on a bullish outlook, national brokerage firm Elara Capital forecasts Nykaa’s share price to rise 70% from its current level. It has set a long-term target price of Rs 2,211 per share.
The stock hit its 52-week high at Rs 2,574 on November 26, 2021, just days after its initial market listing. Amazingly, Nykaa shares made their market debut on 10 November 2021 on the NSE at a 79% premium at Rs 2,018 over their issue price of Rs 1,125 per share. When it debuted on BSE, it had risen to Rs 2,001 by 78% off the issue price.
While the online BPC market in India is expected to grow at a low rate of 17.3% during this period, Nykaa is expected to strengthen its beauty and personal care (BPC) revenue at a faster rate of 32.4% in CY20 -25E. Nykaa “could retain its dominant position, fueled by a high-yield customer/use base” with a 26.8% market share in online BPC.
With a 3.3% market share in the online fashion sector, Nykaa’s fashion business is another fast-growing one. On a smaller scale, Nykaa’s revenue CAGR in this industry is expected to reach 60.4% in years FY23E to 25E.
At 8/12 and 20/35%, respectively, India’s BPC/online fashion penetration is lower than its global rivals, the US and China. The company, which has issued a buy recommendation on the business, believes that India has plenty of room to move towards premiumization and online shopping.
edited and proofread by nikita sharma