Myntra, One of the renowned fashion market place company based in Bengaluru, India estimates a target of $100–150 Million business by 2019 for its personal care and beauty segment, which was rolled out about 9 Months back.
The company is also in plans to introduce private labels in coming 6 Months.
Chief Executive of Myntra, Ananth Narayanan said,” Our prime focus respective to the selection of brands is categorized as per premium and mass premium. We will soon roll out an option for private labels through which the gap will be filled, in terms of pricing parameter for the segment.”
The category will comprise cosmetics of color for nails, lips, perfume, for both women and men in lower end segment, comprising deodorants.
Senior Vice-President, women and emerging businesses, Myntra, Bindu Mendonca stated that beauty and personal care are one of the strong categories, whereas fragrances and cosmetics colors are some segments in which the users can experiment.
“Myntra will also start with private labels for men in grooming category, which accounts for one-fourth of revenue in the personal care category, in the current stage,” said Narayanan.
As per the experts, it is claimed that about 35% margin can be generated through the private label category in online retailing business, and if compared to other brands the margins are 15% maximum.
With focusing on the business expansion through widening the categories, Myntra also intends to boost the user engagement on the app.
“The regularity of the trade is high in this category compared to apparels and it’s unit economics is also profitable. We are eager to spend some heavy finance in the category in the coming forecast period. The online portal now also has hallucination tools in the color options and will commence new product sampling for its customers who are regular shoppers on site,” said the company.
As per the data provided by Myntra, an average cart size of the shopper in terms of personal care category is 1.5X of the average size of all the categories. The online personal market is set at $150 Million and is expected to grow by 100% in the coming next two years.
Retailers such as Purplle and Nykaa have a strong grip over this category. Superior opportunities of growth and high-profit margins can be expected from the luxury and premium segments. Thus, users will take time to adopt these categories and to get mature about the products.