Case Study of Nykaa

Company Name~ Nykaa

Founder and CEO~ Falguni Nayar

Founded in~ 2012

Headquarters~ Mumbai, Maharashtra

Industry~ Beauty, wellness, healthcare

Parent organisation~ FSN E-Commerce Ventures Ltd.

Website~ www.nykaa.com

Falguni Nayar launched Nykaa in 2012. The Sanskrit word "Nayaka," which means "one in the spotlight," is the source of the English term "Nykaa." It includes a carefully designed department for personal care, fragrance, body and bath products, and much more. Additionally, it produces its range of goods under the names Nykaa Naturals and Nykaa Cosmetics. There are over a thousand domestic and foreign brands available on Nykaa. Nykaa ships its goods throughout India and Nepal and plans to expand to other international locations.

Where did it start?

Because physical trials are so important in the cosmetics industry, we decided to become an omnichannel shop. Colour matching is crucial to selling high-end or low-cost items in categories like brushes and makeup. So we realised we needed to develop a physical retail distribution to provide our customers with a comprehensive beauty experience."

Falguni Nayar, Founder and CEO of Nykaa

Falguni Nayar has always had business ideas crammed into her mind because she is a Gujrati native and the daughter of a successful businessman. Her first inspiration came from the inconsistent nature of the cosmetics industry. She decided to start because many regions of the nation still needed help to get the items.

She approached Kotak Mahindra Capital Company shortly after receiving her MBA in finance from IIM Ahmedabad. After 18 years of service to the bank, she quit in 2005 as the company's managing director to launch her career as an entrepreneur.

She is also listed by several boards, including those for Tata Motors, Dabur India, and Aviva Insurance. Women of all ages look up to her as a great source of inspiration. Insisting that "age is just a number" in business, she inspires women worldwide.

She receives several honours for her hard effort. She received the Woman Ahead award at the 2017 Economic Times Startup Awards and the Businesswoman of the Year award in 2019. The brand's primary goal is to make an ordinary woman remarkable in her familiar surroundings:

Nykaa Marketing Strategies:

Nykaa has grown to be one of the most famous fashion e-commerce companies. This results from the website's constant monitoring of digital marketing strategies. The brand targets every market segment. On numerous digital media channels, the business advertises its brand.

Social media marketing:

To promote the brand, influencer marketing is essential. As well as promoting its brands, Nykaa Naturals and Nykaa Fashion, the company also encourages other national and international brands through its four social media accounts.

Youtube marketing:

Nykaa frequently uses YouTube advertisements to market consumable goods to its target market. As a result, it has an effective YouTube marketing strategy, exciting content, and related advertising.

Content marketing:

Nykaa's blog, the "Nykaa Beauty Book," offers posts on fashion items, cosmetics tips, fashion hacks, video material, and much more.

Event marketing:

Nykaa has supported several well-known events, including the Fashion Miss India competition, the Mumbai College Fest, and Mood Indigo. These events are a crucial part of a plan to concentrate on specific audiences, eventually increasing brand recognition.

Falguni recognised that there was a great possibility in the internet space and evaluated all the numerous areas she might invest in or establish a company.

Nykaa business model

Nykaa supports a stock-based business strategy. The business acquires its goods directly from the producers and stores them in the specified warehouses. The goods are then offered in various Nykaa shops or online at nykaa.com. To maintain reasonable rates, the company guarantees the items' uniqueness.

Nykaa also has a revenue strategy for its company that includes product sales, banner advertisements, discounts, commissions, and other sources of money.

Nykaa customers:

Most of Nykaa's clientele are women between 18 and 45. Products for guys have also lately been introduced by Nykaa. Nykaa has an omnichannel presence that comprises an easy-to-use app and website, many shops, and specialised offline locations, all of which raise the brand's value in the market.

Several e-commerce platforms compete with Nykaa, including Amazon, Myntra, and Flipkart. To distinguish itself as the finest in the omnichannel industry, Nykaa continually updates its database.