The Cettire Ltd (ASX: CTT) share price is in focus after revealing that it’s planning to enter a new category, the global luxury beauty segment via a new website vertical.
Cettire is an online retailer that sells hundreds of thousands of products through around 1,700 luxury retail brands.
Cettire’s beauty category expansion
The online retailer revealed that this new category it’s expanding into represents a global market opportunity of around A$100 billion within the broader personal luxury goods market.
It has entered supply arrangements and is currently finalising its commercial proposition with a view to ‘soft launch’ by 31 March 2022.
Cettire has access to more than 25,000 luxury beauty products from more than 600 brands. It’s expecting to offer a range of different product types including skincare, cosmetics haircare, fragrances and others.
It will sell both women’s and men’s products and will be available to customers in all existing markets.
I think that more potential retail sales will be helpful for the Cettire share price and long-term profitability.
Why is it doing this?
Cettire’s strategy is to grow its addressable market by entering luxury retail categories that are logical extensions for the ASX share’s technology and distribution capabilities.
The company said that continuing broadening of Cettire’s product range and selection provides opportunities for Cettire’s rapidly rising customer base to buy multiple high value items across different categories at a single online destination.
This addition also presents further opportunities to accelerate the introduction of new customers to its luxury website.
Management comments
Cettire founder and CEO Dean Mintz said:
“Beauty represents a large and growing adjacency within the global personal luxury goods market. It is a natural extension of our range, particularly as we continue to rapidly scale site traffic and active customers while growing brand awareness globally. The scope to integrate fashion and beauty provides excellent potential for cross-promotion and provides a further point of differentiation for Cettire.”
Summary thoughts on the Cettire share price
I think this is a good move for the business. The more it can sell to more people, the more it’s going to gain people’s shopping attention and greater scale will help with operating profit margins.
Is it a buy today? It has risen a lot since I first mentioned it several months ago, though it has fallen more than 30% since the high in November 2021. It could be a long-term opportunity as long as it can keep scaling and it maintains good relationships with the brands it’s selling.
However, there may be other ASX growth shares that could be better value in this market decline.
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