Beauty and personal care brand Recode Studios claimed to have ended FY22 with net revenue of Rs 15 crore, on the back of a net profit of Rs 48 lakh, Dheeraj Bansal, founder, Recode Studios, told Brandwagon Online. “Of this, our own in-house brands account for 75% of the total revenue, while other brands account for the rest 25%,” Bansal added. The Recode Studios platform sells an array of brands such as London Pride Cosmetics, Wow Skin Science, Riyo Herbs, Malibu, Chic Nutrix, among others, besides its own products.
On average, the company claims to earn a 30% commission from the sale of third-party brands. According to Bansal, the most popular brands on its platform besides Recode Studios are Riyo Herbs, London Pride brushes, and Power Gummies. “We provide shipping and customer services for all the sales made on our website. Our average order value is Rs 1,100,” he added. Products such as eyeliner, primer, and liquid lipstick, account for nearly 50-60% of the total revenue.
The company claims to have a substantial omnichannel presence, as brick-and-mortar stores account for 40% of its total sales. Under its offline segment, nearly 50% of its user base comes from towns of Punjab and Delhi NCR besides other markets. “We have 300 offline stores and three franchise stores. By the end of the year, we plan to open franchise stores in Chhattisgarh and Maharashtra,” Bansal asserted.
At the moment, the company is working towards its expansion plan in the Northeast and the South of India. “Currently, we have accounted for 10 lakh sales from Tamil Nadu and five to six lakh sales from the Northeast region,” he claimed.
When asked about the marketing approach for its expansion, Bansal said that the company caps its marketing spends at 15% of the net revenue. Beyond the national boundaries, Bansal added that within three to four years the company would move to the Middle Eastern market.