According to two people familiar with the situation, local fashion and beauty giant Nykaa is in the process of turning some of its ordinary stores into Luxe ones in an effort to increase profits for its personal care and cosmetics division.
International premium beauty brands including Givenchy, Dior, MAC, and Huda Beauty are available in the company’s Luxe boutiques, along with its own line of cosmetics called Nykaa Beauty.
The company currently operates 221 physical locations, 78 of which are Luxe stores. The company’s initial goal is to turn ten to fifteen of the normal stores in large cities into Luxe. According to one of the people, they will then try to convert an additional 20 businesses.
Another insider stated, “After some dreary quarters, they are now looking to step up customer acquisition in BPC.”
In FY25, Nykaa anticipates a resurgence in sales growth. The company stated in its most recent update that it anticipates net revenue to increase in the low to mid-twenties in Q4 compared to the same period last year. Compared to the about 17% recorded in FY23, this would be higher.
The business opened 19 new locations in Q4 and reported solid retail performance bolstered by rise in same-store sales.
By bringing in Bollywood celebrities, the company has also increased promotion for the House of Nykaa items. Shanaya Kapoor was just named the brand ambassador for Dot & Key, while Rasha Thadani was named the new face of the cosmetics company.