Certainly this is not IT kind of business where there is no proper path to profitability yet. To me this is a new age retail business. The new age dynamic team working on various possibilities and disruptions in retail.
Regarding margins, make up might have less because it is inventory based model. I guess in fashion, they should have more eventually. Also they are expanding their own private label brands in both make up & fashion so that piece should also add up eventually. Regarding their B2B business - where they would act as distributors, margins maybe lesser…however that part of business would give them strong hold on the entire make up ecosystem…
Having said that, i am not sure of what ideal margins are in Make up, fashion & distribution of make up business. Would be prudent to compare with Fashion margin of Trent and maybe make up margins of established global players like Sephora
Also, the distributors you checked with, are they associated with any brands? I would think Nykaa might have different margins for different brands they sell and also there may not be distributors in middle for some now or eventually as they themselves would act as one and directly buy from brands…so as compared to any other player in this business they should have best margins…
Disc. Above thoughts only for academic purposes. I can be completely wrong in all my asessments
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