Nykaa, the prominent beauty and fashion platform, has significantly enhanced its delivery capabilities, now offering same-day and next-day services across 110 cities in India. This expansion is part of the company’s strategy to strengthen its connection with consumers by growing its warehouse network.
The firm reported that nearly 60% of its order volume from these cities is being fulfilled within the next day. Falguni Nayar, the Chairperson, Managing Director, and CEO of Nykaa, shared insights during the company’s 12th Annual General Meeting, highlighting that this initiative has evolved over recent months, with plans for further nationwide rollout.
Nayar emphasized the importance of expanding the warehouse network, which has increased from 18 in FY21 to 44 by FY24. This strategic move has led to notable improvements, including an 18% reduction in order-to-delivery time and a 19% decrease in fulfillment costs. The time taken from order to delivery has improved significantly, dropping from 4 days in FY21 to just 2.3 days in FY24.
In addition to enhancing urban delivery, Nykaa has introduced warehouses in non-metro areas and adopted a regional fulfillment model. This shift has contributed to reduced air shipments and split shipments, ultimately lowering the cost per shipment by the end of FY24.
As of March 31, 2024, Nykaa has expanded its reach to serve 27,800 pin codes, covering nearly 98% of serviceable locations across the country. Nayar also mentioned the company’s investment in generative AI to further improve customer experience. The platform now offers both same-day and next-day delivery services across 110 cities in India, a strategic move aimed at bolstering its connection with consumers.
Reflecting on the broader changes in the retail landscape, Nayar noted, “The digital transformation we have witnessed in the past decade has been incredible and unprecedented. Nykaa has positioned itself at the forefront of this evolution, capitalizing on the growth opportunities presented by the millennial and Gen-Z populations, advancing technologies, and the rapid digitization of commerce.”
