IncNut Digital Private Limited, the listed parent company of SkinKraft, posted net revenue of Rs 47.3 crore while net profit stood at Rs 1.7 crore in FY20
From fashion to beauty and skincare, brands across sectors seem to be taking the digital route to build a loyal customer base. Direct-to-consumer brand SkinKraft, which specialises in customised skincare and hair care products, plans to spend 80-90% of its overall advertising dollar on digital platforms in FY22. “This will be the first year we will spend on branding. Our spends will primarily be skewed towards digital channels such as Youtube, Facebook, among others. A significant portion will also be allocated for influencers. We might even spend a little bit offline but that’s not concrete yet,” Chaitanya Nallan, co-founder and CEO, SkinKraft, told BrandWagon Online. As per him, SkinKraft currently generates over 1,00,000 orders a month, with the average ticket price being in the range of Rs 800-Rs 1,000. Moreover, 30% of the orders fall under repeat purchases monthly.
According to Nallan, metro and tier 1 cities account for 30-40% of the overall sales for SkinKraft. Meanwhile, tier 2 accounts for 30% of the overall sales and the rest is generated from tier 3 cities. Moreover, most of the demand for these products comes from the age group of 18-35 years. “Our skincare is popular in the North Eastern regions and the demand for hair care products comes primarily from the metros. We have recently expanded to tier 3 cities also, and there is a lot of demand from these cities that we foresee,” Nallan stated. Given the growth witnessed during the pandemic, the company is also looking at expanding its distribution network through collaboration with e-commerce marketplaces such as Amazon, Flipkart, Nykaa, Myntra, among others to reach a wider audience.
IncNut Digital Private Limited, the listed parent company of SkinKraft posted net revenue of Rs 47.3 crore while net profit stood at Rs 1.7 crore in FY20, according to the regulatory filings accessed by business intelligence firm, Tofler. The company claims to have registered a threefold growth in net revenues to Rs 150 crore in FY21. However, it refused to reveal its net profit or loss for this fiscal year. “Our value proposition is quite differentiated and caters to the unique needs of customers. Even as we had expected a growth, due to Covid, the pace increased as we relied primarily on digital platforms,” Nallan added. Going forward, the company is targeting a net revenue of Rs 250 crore in FY22 driven by informed choices by the consumers of today, of which about 40-50% is expected to come from SkinKraft. It also plans to get into offline retail.
In August 2020, SkinKraft forayed into the men’s grooming market with a customised men’s skincare range in India. The company claims that the men’s grooming category launched under sub brands SkinKraft and Vedix contributes to around 20-25% of the company’s revenue today.