In a significant development in India’s burgeoning beauty and fashion sector, Nykaa, a leading e-commerce platform, has announced that its in-house brands have collectively surpassed a Gross Merchandise Value (GMV) of Rs 2,100 crore in the financial year 2025. This milestone underscores the continued growth trajectory of Nykaa’s private labels in a competitive market.
Established by Falguni Nayar in 2012, Nykaa has carved a niche for itself in the digital commerce space, primarily focusing on beauty and personal care products. Over the years, it has expanded into fashion and wellness products, broadening its consumer base. The significant growth of its in-house brands, which include names like Nykaa Cosmetics, Nykaa Naturals, and others, highlights a strategic shift towards bolstering its brand portfolio to capitalize on the increasing consumer preference for private labels.
According to the company’s disclosure, its in-house brands now constitute approximately 10% of its overall GMV, illustrating a robust increase and the successful positioning of these brands in the market. Experts suggest that Nykaa’s approach of diversifying its offering and focusing on quality and consumer engagement through its private labels could be a vital component in its market strategy. This not only helps in margin improvement but also in building brand loyalty among its consumer base.
The success of Nykaa’s private labels could be indicative of a broader trend in the online retail sector, where companies are leveraging their platforms to promote in-house brands that offer better profitability margins than third-party products. Furthermore, these brands often have faster turnaround times for innovation and can be tailored more closely to consumer feedback and market demands.
The beauty and personal care industry in India is witnessing a dynamic shift with digital transformation playing a pivotal role. The rise of e-commerce has enabled access to markets that were previously untapped by traditional retail, especially in semi-urban and rural areas. The COVID-19 pandemic further accelerated this shift as consumers moved online, leading to a significant increase in digitally influenced purchases.
In the backdrop of this evolving market landscape, Nykaa’s financial growth not only highlights the company’s successful strategy in nurturing and growing its in-house brands but also mirrors the potential for scalability and sustainability in the digital-first business model. As the market continues to evolve, it will be interesting to see how Nykaa and other e-commerce players strategize their brand portfolios to harness the maximum potential of India’s diverse and burgeoning consumer market.
Investors and market analysts alike will be keenly watching Nykaa’s next moves, particularly in how it manages competition and navigates the challenges of a post-pandemic economic recovery. As reported by Economic Times, the achievement of Rs 2,100 crore GMV by Nykaa’s in-house brands in FY25 is a testament to the company’s innovative approach and its robust understanding of the Indian consumer’s evolving preferences.
