Leadpreneur's
17 Mar 2023
Success Story of India Top Beauty Platform...
Your Beauty, Our Passion
Falguni Nayar is the founder of Nykaa, the only unicorn startup in India that is headed by a woman. Nykaa brand name is derived from the Sanskrit word “Nayak “ which means “one is the spotlight”. It has partnered with Bollywood actress Katrina Kaif to launch its key products.
About Nykaa:
Nykaa is an Indian e-commerce company that specializes in beauty and personal care products.
Nykaa was originally established as an online-only brand but has since opened a retail outlet in many metropolitan cities across India.
The brand offers a wide variety of cosmetics, skincare, haircare, fragrances, bath and body, luxury, and wellness products for both women and men.
Founder, Founding Year, and HQ Location:
Falguni Nayar established Nykaa in 2012; it has its main office in Mumbai, Maharashtra, India.
Product Marketing countries:
Nykaa ships across India and Nepal.
Business Model:
Nykka is a D2C e-commerce brand.
D2C is an acronym for direct-to-consumer. A company manufactures a product on its own facilities and distributes it through its own channels.
These channels might include an e-commerce site, social media, and a physical store. It is applicable to practically every industry.
Growth:
Since its inception, Nykaa has become one of the leading e-commerce companies specializing in the sales of beauty, cosmetics, and fashion products.
Listed at a valuation higher than some of the oldest and largest businesses in India, such as Coal India, Bharat Petroleum, SBI Card, and Godrej, Nykaa continues to grow rapidly.
As of October 2021, Nykaa boasts 15 million registered users, 105 stores across India, 23 warehouses across 11 cities, and over 4000 brands available through its website, app, or stores. With over 3.1 million SKUs, Nykaa is one of the largest online retailers of beauty products in India.
In addition, in FY22, Nykaa established its Global Store, which is part of its imports section, to let consumers access select beauty and personal care goods from various well-known overseas companies. Huda Beauty, Charlotte Tilbury, Priyanka Chopra Jonas' haircare brand Anomaly, and Murad, a Canadian beauty brand, are all part of the vertical.
The company's Cross Border Store, which contains an additional 85 brands, is a subset of the Global Store. The Cross Border Store is a retail platform that allows worldwide businesses to sell directly to customers through the Nykaa app.
Investments:
Nykaa has been funded by 27 investors, with Morgan Stanley Asia and Aditya Birla Sunlife Mutual Fund being the most recent.
Investment sources have stated that in 2018, Katrina Kaif invested Rs 2.02 crore, while in 2020 Alia Bhatt invested Rs 4.95 crore in the parent company of Nykaa, FSN E-Commerce Ventures.
Total Revenue:
Nykaa has received $215.4 million in investment across 15 rounds. Their most recent fundraising came through a Post-IPO Secondary round on November 22, 2022.
Marketing Strategies:
1. YouTube Promotion :
A thorough YouTube marketing strategy is part of the Nykaa marketing strategy. Nykaa has a YouTube channel called "Nykaa TV" that offers video tutorials on how to use cosmetics and fashion items, as well as how to remain current in society.
The company does not sell anything on its YouTube channel; instead, it concentrates on offering consumable information to its target consumers such as beauty, personal care advice, cosmetic hacks, and much more.
2. Marketing via the Internet :
Nykaa places a high value on brand positioning via the website, which means that new and updated content is always available to the target audience. To enhance online sales, the company employs blogs, tutorials, and targeted advertisements on its primary platform.
The website's goal is to create an impact in the beauty and fashion sectors. It has also focused on providing customers with high-quality services and products at deeply discounted costs.
3. Influencer marketing and network development :
Influencer marketing, as compared to more traditional platforms, remains one of the most successful and cost-effective methods to engage with clients and is thus a vital component of the Nykaa marketing strategy.
Despite having star Janhvi Kapoor as its brand ambassador, Nykaa relies heavily on influencers and content creators to promote new brand launches and sales.
At the same time, it gained international attention due to its widely publicized cooperation with Indian star Katrina Kaif. Nykaa Network is a social beauty website where users may communicate with other beauty aficionados.
By executing this approach, the company has created the best plan for maintaining consumers and acquiring new ones. It serves people from both the top and middle classes.
Future:
The company intends to grow its offline operations. It plans to increase its offline presence by building 180 locations throughout India by 2024.
Nykaa is now looking to expand its fulfillment centers around the country in order to improve the client experience. It also intends to increase its warehousing capacity by 40%.