The Busy Brains
26 May 2023
Nykaa, the current leader in the Indian beauty industry, bravely navigates internal and external changes while enthralling a sizable audience with its broad brand selection and national reach.
According to CEO Falguni Nayar, Nykaa, a significant participant in the Indian beauty and cosmetics sector, is unfazed by rivalry, recent share sales, and the departure of senior executives.
In a recent interview, Nayar stated her opinion that worries about competition are unfounded for a big, complicated company like Nykaa, which has over 15 million customers who transact, is present in 150 cities, and has 3,500 businesses on its platform. She dismissed the idea that competition poses a serious financial danger, asserting firmly that the overnight annihilation of their business is highly unlikely.
Nayar didn't think it was a big deal that five senior executives were departing the organisation. She explained their exits by pointing to a custom in which people frequently quit tiny businesses after holding prestigious positions.
Nayar emphasised right away that Nykaa has more than 50 senior executives, so the departure of merely five does not signify a more serious problem. To emphasise the strength of Nykaa's management team, she even went above and beyond by sharing the names of the senior leaders in several departments.
Nayar compared the difficulties encountered when Amazon first entered the Indian market a decade ago, around the same time Nykaa was introduced, to those encountered during that voyage.
She emphasised that creating and fostering a strong connection with customers is the management's top priority because this is what ultimately drives Nykaa's success. Instead than worrying about the competition, Nayar thinks that the goal is to drive the business forward and maintaining a robust consumer base.
Recently, Nykaa reported a 33% rise in revenue compared to the prior year in its financial results for the March quarter. However, compared to the tax credit received in the base quarter, net profit decreased as a result of greater tax expenses.
Nayar ascribed the underperformance in part to modifications made to the shareholding structure after the pre-IPO lock-in period was over. She pointed out that since the announcement of a 5:1 bonus issue for shareholders, the retail shareholder base has increased from 1% to 4%, and institutional investors are also exhibiting more interest.
Nayar reassured stakeholders that she, along with co-founders Anchit and Adwaita, remain fully committed to the company's future while declining to comment on Nykaa's stock price. Nayar emphasised their unwavering support for the company and its potential, reserving her direct comment on the stock price.
Shares of Nykaa are currently trading 1.9% higher at Rs 127.40, a sign that investors are optimistic about the direction the business is headed. Nykaa, which still holds a dominant position in the Indian beauty and cosmetics business, is devoted to growing its clientele, building trusting relationships with customers, and promoting further industry development.