Myn­tra is Plan­ning a Facelift with Pri­vate Beauty La­bels

Fash­ion por­tal tar­gets $100-150m busi­ness by March 2019 for beauty & per­sonal care seg­ment

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ANIRBAN BORA

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.

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