Myntra is Planning a Facelift with Private Beauty Labels
Fashion portal targets $100-150m business by March 2019 for beauty & personal care segment
Bengaluru: Myntra is targeting $100-150-million business by March 2019 for its beauty and personal care segment, launched about nine months ago.
The fashion portal is also in talks to launch private labels in six months. “Our focus in terms of the brands we have tied up with has been premium and mass premium. We will launch a private label in the categories where we see a gap to bridge in terms of pricing for the mass segment,” said Ananth Narayanan, chief executive, Myntra.
This includes colour cosmetics for lips, nails and eyes and fragrances for both men and women in the lower end segment, including deodorants.
“Personal care and beauty are strong brand play, while colour and lower-end fragrance is something users are willing to experiment with,” said Bindu Mendonca, senior vice-president, women and emerging businesses, Myntra.
The portal will also launch its labels in men’s grooming products, which make up one-fourth of revenue in the personal care category at present, said Narayanan.
According to experts, private labels in the category can yield up to 35% margins for the online retailer vis-a-vis other brands where margins are 15% at most.
MECHANICS OF EXPANSION
With emphasis on growing the business in this category, Myntra plans to increase user engagement on the app. “The frequency of business in the category is higher than apparel and it is unit economics profitable. We are willing to invest big in the category over the next five years,” said Narayanan. The portal has also built visualisation tools in the colour segment and will start new product sampling for consumers who shop for apparel on the site.
According to data shared by Myntra, average basket size of the personal care shopper on the platform is one and a half times that of the average. The overall online personal care and beauty market is pegged at $150 million and set to grow100% over the next two years. “Speciality retailers (such as Nykaa and Purplle) have a good hold in this category. High margins and scope of growth will be in the luxury and super-premium category, though user behaviour to buy these products online will take time to mature,” said Shubham Anand, head, retail and consumer packaged goods, RedSeer Consulting. The frequency of business in the category is higher than apparel
ANANTH NARAYANAN Chief Executive, Myntra.