Nykaa Own Brand Landscape

Own brands contributed 13% of the total GMV of Nykaa fashion in 2022, up from 7% in 2021 (ET). Exploring the themes & takeaways of Nykaa's own brand universe. 

Marketplaces are hashtag#distribution channels with horizontal & vertical offerings. Once the distribution network works out, the adjacent possible  for any marketplace is to start their own brands for better margins. Also, access to sales & behavioural learnings (data) of customers inherently opens opportunities to start brands to fill in the gaps that are not yet being met by existing players. 

Nykaa primarily has two types of private labels: 

1. Started in-house. E.g., Nykd by Nykaa, Gajra Gang, Nykaa Cosmetics

2. Acquired or invested. E.g., Dot & Key, Earth Rhythm

These brands range in following categories:

1. Fashion, athleisure,  premium indo or indo-western clothing. E.g. 20 Dresses, RSVP.

2. Beauty & skincare. E.g. Nykaa Cosmetics, Dot & Key

3. Wellness niches. E.g Nudge Wellness, a brand which sells dietary supplements and nutricosmetics product. 

Key takeaways 

1) With a majority own brands, Nykaa is focusing on future trends & themes. Focusing on building or acquiring brands which are selling vegan, clean (Dot & key) or clinically sound (Earth Rhythm) skincare & beauty products. Such themes were also evident in western markets. E.g. L'Oréal acquiring clinically sound beauty brand IT cosmetics. A brands which did a net sales of $182M in 2016.

2) The aforementioned point is also applicable for fashion brands. Nykd by Nykaa is a brand that focuses on athleisure (innerwear).RSVP sells womenswear with modern aesthetics.

3) In terms of product and packaging design, own brands embody a modern aesthetic that appeals to millennials and younger generations.

4) Price points. Most (but not all) own brands sell products ranging from premium to luxury.

5) Merging very niche gaps. Dot & Key preach about making skin care products for the ignored body parts e.g Elbows & Knees etc. In the athleisure domain India still has a gap for a brand like Gymshark, with true utility and cult obsession. Nykd & Kica are focusing in these segments. 

6) Own brands are available on other marketplaces such as Amazon and Flipkart. 

7) Own brands beyond fashion, beauty or tangible products. Little Black Book’s acquisition  has become Nykaa’s gateway to content realm.