Your Company has been a pioneer in the space of aesthetic dermatology-backed solutionsin India & Middle East. Over the past 15 years your Company has been fast-evolving tomeet the changing needs of the consumers.
The Financial Year 18 was a year for many changes in the India business with a higherfocus on profitability metrics and the business saw a significant improvement in GrossContribution Margin.
In 2017-18 your Company embarked on a re-branding exercise in India from Kaya SkinClinic to Kaya Clinic to broad-base its relevance among the Indian consumers. Webelieve that with this re-branding your Company is poised to expand its relevance fromskin care to include hair care and other relevant spaces in the future. To reflect the newbranding and also to deliver a world-class consumer-experience your Company hasintroduced a new retail identity across 20 clinics in India. Each touch-point in these 20clinics has been designed to wow the consumer and elevate the brand experience for thenew-age consumer. These clinics set new standards in customer care comfort &experience.
Kaya Hair is an exciting opportunity to grow its share of the consumer's wallet inIndia from participating just in the consumer's skin care spends to now skin care andhair care. Kaya India has entered the hair care category in H2 of 2016-17 with a wideportfolio of advanced solutions spanning various hair care needs like hair loss hairthinning limp and dull hair and dandruff.
We have seen a wide base of customers highly satisfied with our hair loss solutions andthis augurs well for the future growth of the category. The new Root Regen range of retailproducts have been received very well and is poised to be a significant contributor to thebusiness in India.
A key objective in 2017-18 was to expand the access of the brand though wideavailability of its Kaya retail products in India. Today Kaya products are available inover 130 retail outlets across major departmental stores like Shopper Stop Lifestyle
Central Health & Glow and New U. To also cater to the fast-growing omni-channelcustomer Kaya retails through key partners like Nykaa Amazon Jabong and Myntra apartfrom its own portal shop.kaya. This ecommerce business is growing by 67% YoY andcontributes to 22% of the retail products business.
In the last year your Company won the "Retailer of the year" in the BeautyWellness and Fitness category by ET NOW and many more accolades recognizing our efforts inour people practices and marketing areas.
Your Company in the Middle East continues to be the leading brand in specialized skincare with a growing foothold in the region. Over the last 15 years Kaya Middle East hasgrown to offer its unique experience across 24 clinics covering the UAE Oman KSA andKuwait.
Your Company's Middle East's growth last year was affected by the uncertaintiessurrounding the Middle East economy. Like most other businesses your Company's also had asetback in the year after years of consistent performance. However the strength of ourofferings and brand was reflected in the consistently growing ticket size (value percustomer) in our business which signifies the higher value in our offerings that thecustomer perceives from us in spite of the pressure on spending.
Your Company is a strong resilient brand in the Middle East proven over time andtherefore we see it as a temporary setback. We have been working on investing time andmoney towards some huge initiatives / changes which will help our business tide againstthe worst of times in the future and probably shape the future of this category likeyour Company has always done.
In 2017 your Company in the Middle East unveiled an all-new experience with its newBrand Identity in the first clinic in BurJuman Mall one of Dubai's premier leisure andshopping destinations. A project which took more than a year with extensive research withour customers and employees yielded a positioning and identity which we believe willput the business in a new orbit in time to come. The new clinic heralds what could becalled "Skin Clinic 2.0". It represents the evolution of a skin clinicexperience into something that will set the benchmark for time to come. This work can beseen through our newly launched website in the Middle East www.kayaskinclinic.com.
Innovations have been one of the core pillars of this category and at Kaya we havealways put this in the forefront of our initiatives. Last year in Middle East we hadlaunched some winning innovations the biggest being the successful prototype of ourBody Contouring Solutions' which is planned to be scaled up across the region in2018. It's a unique approach to Body Contouring combining the best of solutions designeduniquely in-house to offer a differentiated and efficacious treatment. It opens up a newcategory for us the focus being our own existing loyal clients taking treatments inSkin.
Our focus in the Middle East continues to be to add more clinics in the GCC regionorganically and inorganically where we see synergies with customers and offerings. In2017-18 we expanded our footprint with two new clinics in Barsha Heights Dubai andMuscat City Centre Muscat. Both these clinics were in the new identity and have beenreceiving an overwhelming response from our customers. We continue to lead the network inthe category with this expansion.
Kaya is the only brand in the category in Middle East to receive SUPERBRAND statusand that too 8 years in a row from 2010 to 2017.
I look forward to the coming year we will be doing business with even greater devotionto you and our customers.
Chairman & Managing Director