Fsn E-commerce Ventures Ltd. · NSE:NYKAA
Fsn E-commerce Ventures — Shareholder Meeting (September 2023)
52 slides from Fsn E-commerce Ventures's shareholder meeting presentation, Sep 18, 2023
Slide 1: FSN E-Commerce Ventures Limited
FSN E-Commerce Ventures Limited September 18, 2023 National Stock Exchange of India Limited BSE Limited Exchange Plaza, 5th Floor, Corporate Relationship Department, Plot No. C/1, G Block, 2nd Floor, New Trading Wing, Bandra – Kurla Complex, Rotunda Building, P.J. Towers, Bandra (E), Mumbai – 400 05
Slide 2: 11th Annual General Meeting
11th ANNUAL GENERAL MEETING 18 September 2023 1
Slide 3: Nykaa's journey over the years
Nykaa’s journey over the years 30x Revenue Rs 5,144 Crs Rs 171 Crs FY17 FY18 FY19 FY20 FY21 FY22 FY23 Introduced Korean Launched Kay Beauty in Launched Launched Nykaa Launched beauty in India partnership with Katrina Kaif Nykaa Fashion Stream SuperStore, an Opened 100th retail store 10th anniversary
Slide 4: Nykaa – India's preferred lifestyle retailer
Nykaa – India’s preferred lifestyle retailer With a mission to help consumers step into the spotlight of their own lives, we focus on Curation, Content, Convenience, and Trust to bring customer delight, every step of the way Rs 9,743 Crs GMV [41% YoY growth] Rs 5,144 Crs 6,400+ brands across Revenue
Slide 5: 4
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Slide 6: Strong and steady growth in beauty & personal care
Strong and steady growth in beauty & personal care GMV GMV YoY Growth * 3-year GMV CAGR 33% 18 MM Cumulative customer base 39% 1/3rd of the Indian BPC online consumer Rs 6,649 Crs * Rs 5,009 Crs 50x Visits in a year per customer Best in class in e-commerce Rs 3,354 Crs Rs 2,490 Crs 4x * Orders per y
Slide 7: Evolution of the Beauty platform over the years
Evolution of the Beauty platform over the years Launched owned brand Launched Nyveda, a Nykaa potent Steam, Launched Ayurveda in-app content Acquired Dot The Ordinary brand Launched aggregation & Key, ranks #1 in Nykaa Pro hub with skincare skin care Fulfilment Partnership ‘Watch and brand centres w
Slide 8: Diverse and wide Beauty brand partners ecosystem
Diverse and wide Beauty brand partners ecosystem * 3,400+ International & Domestic Brands Global Brands Luxe Brands FMCG Brands Mass & Masstige Brands D2C Brands Korean Brands Cult Brands 7 * For FY23
Slide 9: Global Store proposition: partner of choice for Indian expansion
Global Store proposition: Nykaa - partner of choice for Indian expansion * 35+ Global Brands Global Store Marketing & brand Contract & registration Price & GTM Distribution After sale support building 8 * For FY23
Slide 10: Growing our physical footprint efficiently catering to consumer demand
Growing our physical footprint efficiently catering to consumer demand 145 Physical BPC Stores** Highly curated assortment of 80-100 brands Brick & Mortar stores turn EBITDA profitable in less than a year of launch * 8.3% Of overall BPC GMV [67% GMV YoY growth] ** KIOSK 60 Cities * For FY23 9 * * As
Slide 11: Focus on building trust and empowering customers
Focus on building trust and empowering customers Authenticity Educational content Guided selling ‘In a minute’ Nykaa stream celebrity series live Viral makeup Beauty Basics looks 10
Slide 12: STORE KIOSK
Peachy Book STUEFILES. yyy ty ‘ean STREAM NiIKAR CONSCIOUS NKA am LUXE THE LUXURY STORE NWikAhbon reno FASHION STORE HIDDEN GEMS Wi Elobalstore FASHION NMKAK pies) ou SEI Icross! privé NiKAr collection BORDER line LUXE privé FASHION
Slide 13: Diversification to address larger TAM in India
Diversification to address larger TAM in India Consolidated GMV mix FY2019 FY2020 FY2021 FY2022 FY2023 5.4% 2.6% 1.0% 26.4% 7.0% 25.3% 16.1% 1.7% 68.2% 72.1% 92.7% 82.9% 98.3% A total addressable market of ~$100 Bn, reaching over BPC Fashion Others $180 Bn by 2027 Others includes our new businesses
Slide 14: S: Wo =<
S: Wo =<
Slide 15: Fashion business has scaled rapidly in the last years
Fashion business has scaled rapidly in the last 5 years Fashion GMV 3-year GMV CAGR 140% Rs 2,570 Crs Rs 1,752 Crs Rs 653 Crs Rs 28 Crs Rs 187 Crs FY2019 FY2020 FY2021 FY2022 FY2023 ** ** 2.5 MM ~2x AOV 2nd Unique customers transacting in FY23 v/s industry average most preferred platform * of choice
Slide 16: Strong connect with brands to offer differentiated curated collections
Strong connect with brands to offer a differentiated curated collections Growth of key brands popular with the Indian audience Global Store – bringing unique international brands to India (1) 650+ (1) ~700 Brands / Retailers like Alo, 2,850+ Brands including Puma, Biba, Revolve, Cider, Little Mistre
Slide 17: Building Proposition through focused assortment
Building Proposition through focused assortment 650+ International brands 300+ Niche Homegrown brands Hottest Global Niche, Brands from across Homegrown the globe - Turkey, Sweden, Labels from across India UK, US and more that are truly rare finds ~25%* GMV contribution to ~6%* GMV contribution to w
Slide 18: Serving the Underserved
Brand/ Retailer Manufacturer Focus on Underserved Focus on BPC & Wellness Retailers i.e. Beauty centre, pharmacy Serving the Underserved 17
Slide 19: SuperStore by Nykaa: Serving the underserved retailers through technology
SuperStore by Nykaa: Serving the underserved retailers through technology Fragmented Retailer Remains Not a level playing Distribution Underserved field 18
Slide 20: Proven execution ability and strong product market fit
Proven execution ability and strong product market fit Onboarded Retailers 1,51,885 4x 38,095 FY22 FY23 Orders (‘000) 729 15x 49 84%+ FY22 FY23 Sales from Tier 2+ cities in FY23 19
Slide 21: House of Brands: Consumer brands portfolio
House of Brands: Consumer brands portfolio 12 BPC owned brands 13 Fashion owned brands 25 owned brands 20
Slide 22: House of Brands: Consumer brands portfolio (BPC)
House of Brands: Consumer brands portfolio (BPC) 21
Slide 23: House of Brands: Consumer brands portfolio (BPC)
House of Brands: Consumer brands portfolio (BPC) 22
Slide 24: House of Brands: Consumer brands portfolio (BPC)
House of Brands: Consumer brands portfolio (BPC) 23
Slide 25: Kay Beauty: India's much loved and awarded celebrity beauty brand
Kay Beauty: India’s much loved and awarded celebrity beauty brand India’s First Celebrity Beauty Brand in partnership with Katrina Kaif B R A N D A WA R D S Rs 128 Crs * ~300 GMV Offline stores [ 2-year GMV CAGR of 86%] 24 * In FY23
Slide 26: House of Brands: Consumer brands portfolio (Fashion)
House of Brands: Consumer brands portfolio (Fashion) 25
Slide 27: House of Brands: Consumer brands portfolio (Fashion)
House of Brands: Consumer brands portfolio (Fashion) 26
Slide 28: House of Brands: Consumer brands portfolio (Fashion)
House of Brands: Consumer brands portfolio (Fashion) 27
Slide 29: House of Brands: Consumer brands portfolio (Fashion)
House of Brands: Consumer brands portfolio (Fashion) 28
Slide 30: Nykd: Our award-winning brand focused on simplifying lingerie
Nykd: Our award-winning brand focused on simplifying lingerie for Indian women Rs 85 Crs * GMV [ 2-year GMV CAGR of 250%+] 4 900+ EBOs Selective doors * In FY23 29
Slide 31: Our Content Platforms: 360-degree approach to marketing
Our Content Platforms: 360-degree approach to marketing 30
Slide 32: International Expansion: Omnichannel presence in GCC
International Expansion: Omnichannel presence in GCC GCC * Omnichannel, multi brand beauty retail business in GCC USD 30 BN+ ** X BPC market size Strategic Alliance between Nykaa and Apparel group * GCC countries include Kingdom of Saudi Arabia, the United Arab Emirates, Kuwait, Oman, Qatar, and Bah
Slide 33: Diverse and inclusive workforce
Diverse and inclusive workforce * 45% On-roll female workforce * 6,900 Total workforce * 188 On-roll employees in leadership role * * 3,700 3,177 Off-roll contracts workforce On-roll employees * 33% of Nykaa leadership are women Derived from the Sanskrit word ‘Nayaka’ meaning one in the spotlight, N
Slide 34: Strong relationship with the lifestyle ecosystem
Strong relationship with the lifestyle ecosystem Brand Partners Suppliers 6,400+ 4,900+ Influencers MSME Vendors 5,000+ 840+ Logistic Partners Registered Retailers (eB2B) 5 Employment enablers for 1.5 Lakh Registered Nykaa Pro Users delivery partners * All figures as of FY23 end 75K+ 33
Slide 35: Women's day initiative: Empowering women through skill development
Women’s day initiative: Empowering and uplifting women through skill development 34
Slide 36: Our Values - Sustainability, Inclusivity & Community
Our Values - Sustainability, Inclusivity & Community part of Nykaa’s identity 35
Slide 37: Nykaa Foundation: Our CSR arm focused on empowerment
Nykaa Foundation: Our CSR arm focused on empowerment Empowering future Transforming Lives Nykaa Chair at IIM-Ahmedabad Helping marginalized young women become skilled beauty professionals Transforming Education Foundation Focus on Children’s health Enabling the skilling of doctors in treating clubfo
Slide 38: Nykaa 10x10: Moving towards a better planet
Nykaa 10x10: Moving towards a better planet Introduced Paperless Picking Nykaa 10X10 Initiative 323 tonnes* of plastic X recycled in FY23 * Increased order fulfillment 80% sustainable packaging capacity by improving picking process and achieved zero paper utilization for orders processed 37 * For FY
Slide 39: Nykaa 10x10: Regional Fulfilment Strategy
Nykaa 10x10: Regional Fulfilment Strategy Nykaa Meeting the demand with right warehouse at right location Total Capacity of 10X10 1.5 million sq. ft ** Initiative Delivering to ~98%*of the Getting closer to the customers serviceable pincodes in India Capacity Demand H1FY22 H2FY22 H1FY23 H2FY23 Key I
Slide 40: Advocacy of empowerment and inclusion at Nykaa's core
Advocacy of empowerment and inclusion at Nykaa’s core 39
Slide 41: Shining the spotlight on ESG focused brands
Shining the spotlight on ESG focused brands * 140+ Brands * 600+ Brands Link → Nykaa Beauty: Conscious at Nykaa Link → Nykaa Fashion: The Responsible Collection 40 * For FY23
Slide 42: Discretionary Spend: To witness strong growth given demographic and economic shifts
Discretionary Spend: To witness strong growth given demographic and economic shifts India’s fast-growing GDP per capita 15% CAGR $5500 $2500 $2000 2020 2022 2030 With GDP per capita growing, consumption expected to grow at 25% CAGR till 2030, share of discretionary spends expected to increase 41 Sou
Slide 43: BPC: India per capita spend is under-indexed; large headroom for growth
BPC: India Per Capita spend is under-indexed; large headroom for growth India India’s position on the S curve by 2030; GDP per capita $5,500; BPC per capita: $45-50 BPC per Capita: $15 $50 Nykaa BPC is currently at $80 GDP per Capita: $2500 $5500 2022 to 2030 42 *per customer
Slide 44: Beauty & Personal Care: One of the fastest growing markets
Beauty & Personal Care: One of the fastest growing markets with changing landscape CAGR % 2020-35E Skin Care 20.2% Cosmetics 16.3% Fragrances 15.4% Overall BPC Market size of USD 30 BN+ Baby Care 15.2% in 2027 India BPC 12.4% Others 10.9% Online BPC will continue to take market Deodrants 10.5% share
Slide 45: India Fashion Market: Potential size and its growth drivers
India Fashion Market: Potential size and its growth drivers CAGR % Nykaa Fashion is part of the fastest growing online segment, i.e., the premium fashion market 14% USD 147 Bn** Online Premium Fashion Market in 2022 (AOV > Rs 1,500) : 10 -15% USD 49 Bn, 33% USD 77 Bn** USD 15 Bn, USD 51 Bn, 19% 34%
Slide 46: India Fashion Market: Potential size and its growth drivers
India Fashion Market: Potential size and its growth drivers 1200 United States Germany Denmark 1000 Fashion per Capita (USD) Canada India United Arab Emirates Sweden Fashion per Capita: 800 India’s position on the curve by 2030; Australia Portugal $54 $160 GDP per capita $5,500; Fashion per capita:
Slide 47: Shaping the Digital Landscape: The Surge of India's Internet Economy
Shaping the Digital Landscape: The Surge of India's Internet Economy India’s Internet economy rapid growth Ecommerce size in India (USD Bn) 5-6x Internet economy’s share of GDP Ecommerce (B2B & B2C) 2010 $8-10B $50-60B 0.5% will account for 50% of Internet economy 350-380 2022 $155-175B $320-350B 4-
Slide 48: Ecommerce habits and category composition shift as incomes rise
Ecommerce habits and category composition shift as incomes rise Value share of ecommerce by category Market Opportunity in 2027 Growth-mature stage USD 147 BN 27% Growth stage 33% Early stage 14% 9-10% 34% BPC Apparel Consumer electronics USD 31 BN 32% 32% 30% 38% While overall ecommerce penetration
Slide 49: BPC & Fashion: To witness strong growth given demographic and economic shifts
BPC & Fashion: To witness strong growth given demographic and economic shifts Share of e-com transactions by age group 37% 31% 24% 8% <1% 18-24 25-34 35-44 45-54 55-64 Gen Z GenZ - Millenial Millenial Gen X Baby Boomer Share of 11% 17% 14% 11% 8% Population 92% of ecommerce transactions coming from
Slide 50: Thank you
Thank you 49
Slide 51: Glossary
Glossary Term Description Unique customers identified by their email-id or mobile number who have placed at least one Order on our websites, mobile applications or physical stores during the last 12 months ended as on measurement date. Annual Unique Transacting Customers Annual Transacting Customers
Slide 52: Disclaimer
Disclaimer By attending the presentation or by reading the presentation slides you agree to be bound as follows: This Presentation is prepared by FSN E-Commerce Ventures Limited (“Company”) and is for information purposes only without regards to specific objectives, financial situations or needs of
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