Kaya to extend skincare products range to boost market presence

Kaya, an Indian beauty and wellness brand of consumer goods company Marico, is planning to extend its portfolio by adding 18 new skincare products and increasing the number of stock keeping units to 54 under its Derma Rx range.

The brand is also planning to venture into a smaller retail format under Kaya Skin Bars.

Under the new plan, it would launch five prototypes of the Skin Bars, which are also likely to be more inclined towards products rather than services, in cities such as Delhi and Bangalore.

The firm is planning to invest INR20m($0.38m) for each store, and is also likely to adopt a store-in-store approach with other modern trade retailers.

Kaya is also mulling making its brand accessible to consumers, with entry level price points for its skin care products at INR300 ($5), and even in services, to offer regular discounts especially during the festival season.

Marico, in May 2010, acquired the Derma Rx range of products in Singapore, with which the company leveraged its position in the skincare products segment and improved its range with premium offering under ‘Kaya Advanced’ along with the regular Kaya range.

Kaya chief executive officer (CEO) Ajay Pahwa told the newspaper The Hindu Business Line that as the brand improves its presence in the skincare business, it is expecting its products to contribute almost 60% of the turnover, while the balance would come from services.

Kaya, which has already started operations in West Asia and South East Asia, is looking to tap new markets now in the Far East, such as Vietnam and Indonesia.

According to the Pahwa, the Far East countries are more receptive and ready markets, as there are more women workforce in the countries, unlike the SAARC countries.

The brand, at the same time, is also improving its presence in Saudi Arabia and Malaysia where it has relatively fewer clinics.

Currently, Kaya has the maximum number of clinics in West Asia with 18, followed by Singapore with three, while in Bangladesh and Malaysia it has one each.

Kaya, with a sales turnover of INR2.4bn ($45.48bn) and a CAGR of 20% the Marico subsidiary, expects to double its turnover in the next five years.