Recode Studios’ in-house brands accounted for 75% of the total revenue, while third-party brands accounted for the remaining 25%
Bengaluru: Recode Studios, a digital beauty, and personal care brand reported net sales of Rs 15 crore on the back of a net profit of Rs 48 lakh for FY 2022.
“The year 2022 marked the beginning of economic recovery, with brand growth graphs on the positive side. With the threat of new variants of Covid hovering around the economy, things are expected to become uncertain again. But the lessons learned in the last few years will lead business entities to strategize well and make the best of the available resources,” said Dheeraj Bansal, founder of Recode Studios.
In-house brands of the company accounted for 75% of the total revenue, while other brands accounted for the last 25%.
In addition, the company claims to earn a 30% commission from the sale of third-party brands on its podium from an array of brands such as London Pride Cosmetics, Wow Skin Science, Riyo Herbs, Malibu, and Chic Nutrix, among others, besides Recode’s in-house products.
The brand’s yearly sales climbed from Rs 25 lakhs in 2018 to Rs 2 crore in 2019 and 2020, achieving 8 times growth. The brand registered an increase of 2.5% in 2021 with Rs 5 crore in sales and a growth rate of 300% with Rs 15 crore by the end of 2022.
After working primarily as a D2C brand early on, Recode Studios adopted an omnichannel strategy wherein brick-and-mortar stores account for 40% of its total sales. In addition, the cosmetic company has partnered with several stores across the country and has opened over 300 offline stores and three franchise stores. The brand intends to expand its periphery in the Northeast and the South of India and gradually, within three to four years, towards the Middle Eastern market.
