FirstCry, India’s largest multi-channel retailing platform for mothers, babies, and kids’ products in terms of GMV, for the year ending December 2023, plans to expand its global footprint by setting up new modern stores and warehouses in the Kingdom of Saudi Arabia (KSA). FirstCry, an Indian MNC, first fortified its international presence by becoming the largest specialist online mothers’, babies’, and kids’ product retail platform in the UAE, in terms of GMV, for the year ending December 2022. The company then shifted its focus to KSA, rapidly scaling up to become the largest online-first platform for mothers’, babies’, and kids’ products in the region.
To further solidify its position and replicate the India playbook, the company proposes to utilise an aggregate of Rs155.6 crore towards the expansion plans overseas, out of which Rs72.6 crore is proposed to be utilised for setting up 12 new modern stores in KSA and Rs83 crore is proposed to be utilised for setting up new warehouses in Riyadh, Jeddah, and Dammam, KSA, admeasuring an aggregate of approximately 0.25 million sq ft. This expansion is a key component of FirstCry’s strategy to maintain its leadership in the parenting ecosystem in India and beyond.
FirstCry expanded its international presence in the United Arab Emirates (UAE) in 2019 and the Kingdom of Saudi Arabia (KSA) in 2022, broadening its reach across these markets. The company’s strategy involves addressing customer needs through a variety of channels: an online platform, modern stores, and general trade retail distribution in India; and primarily online platforms in the UAE and KSA.
As of 31 December 2023, FirstCry’s platform in India, UAE, and KSA offers a wide range of SKUs from over 7,500 brands, including third-party Indian brands, global brands, and home brands. During the 9 months ending 31 December 2023, the platform added 842 new brands, bringing the total to 7,516. In the UAE and KSA market, FirstCry offers an extensive product range, including apparel, footwear, baby gear, nursery items, diapers, toys, and personal care products. The inventory includes over 262,000 SKUs from more than 3,600 brands. The company also operates its own warehousing and logistics facilities in these regions, ensuring efficient delivery services.
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The entire last mile delivery in the UAE is managed in-house, with most of the deliveries being made on the same day or the next day for the 9 months ended 31 December 2023. In KSA, a majority of the shipments are managed and delivered through its own logistics network, ensuring better customer experience. It offers ‘Vrooom Delivery’ services for selected products through the online platform. Items ordered under this service are stored in its own warehouses, which enables faster pickup and shipping to the customer.
“We have expanded internationally in select markets, establishing a presence in UAE and KSA in 2019 and 2022 respectively, where we aim to replicate our India playbook. According to the RedSeer Report, we are the largest specialist online mothers’, babies’, and kids’ product retail platform in the UAE, in terms of GMV, for the year ending December 2023. Further, in KSA, we are the largest online-first mothers’, babies’, and kids’ product-focused retail platform, according to the RedSeer Report. After the UAE, we aim to replicate our India playbook in KSA,” says co-founder Supam Maheshwari, MD & CEO, Brainbees Solutions Ltd.
FirstCry Arabia’s mobile application has seen growth, with downloads exceeding 3.6 million by 31 December 2023. This is a marked increase from previous years, reflecting the platform’s growing popularity. The company has built a unified app in Arabic and English, which enables a parent to choose their country and language of preference to place their respective orders. As of 31 December 2023, the company reported 0.41 million Annual Unique Transacting Customers in international markets. For the nine months ended 31 December 2023, FirstCry reported international revenue of Rs569.06 crore, accounting for 11.82 per cent of total operations.
The UAE Childcare products market is estimated at Rs20,800 crore (approximately $2.6 billion) in CY2023 and is projected to grow at a CAGR of ~4 per cent till CY2028 to reach approximately Rs24,000-28,000 crore (US$3-3.5 billion).
The KSA market, which is the largest in the GCC, is expected to expand from Rs54,100 crore in 2023 to Rs64,000-68,000 crore by 2028.
There is a huge opportunity for childcare-focused e-commerce entrants in the coming years due to a lack of specialty brands and growing demand for childcare products in the UAE and KSA. In the UAE childcare products market, FirstCry competes with organised horizontal online players such as Amazon and Noon and vertical players such as Namshi, and Mumzworld, among others. In KSA, FirstCry competes with major players like Amazon and Noon but holds a unique position as the largest online-first, mothers’, babies’, and kids’ product-focused retail platform. u
LANCELOT JOSEPH
lancelot.joseph@businessindiagroup.com