Nykaa’s Success Story
Even though one’s perception of beauty is subjective, the global beauty industry has never lost its allure. Along with consistent expansion, the sector has attracted a continuous stream of devoted clients across many generations. Who among girls doesn’t enjoy putting makeup? Cosmetics are a vital part of all of our lives, whether we’re practising makeup tutorials, experimenting with different colours on free days, getting ready for a wedding or other event, or just applying a fast light layer before work.
However, those times when customers had to physically visit cosmetic stores are long gone. Why should brick and mortar businesses be the sole option when there are now online cosmetics stores that enable clients to order things whenever and wherever they want?
There are still a few platforms that have managed to maintain stability despite the COVID19 pandemic lockdown, which has caused the Indian economy to plunge to new lows in recent months.
Nykaa is one of these e-commerce sites for health and beauty products; it has emerged as the top choice among Indians who love cosmetics. Everyone who has even the tiniest interest in using wellness and beauty products has heard about Nykaa at some time in their lives. This is an online retailer that focuses on selling cosmetics and beauty products. This platform, which was founded in 2012, has been crucial in dispelling the idea that e-commerce and beauty retail are ineffective in India.
Following the launch of its IPO and the overwhelming response it received, Nykaa has recently become a household name, making its founder Falguni Nayar one of only a handful of self-made billionaire women in India. As a result of Nykaa’s record listing, according to Bloomberg Billionaires Index, her net worth increased to $6.5 billion.
Nykaa's Beginnings
Falguni Nayar instituted it in 2012, and it has its main office in Mumbai. She entered the market to clean up the unjust practises in the cosmetics sector. The industry was not up to par despite the enormous demand. Her experience in investment banking has taught her to value a company’s long-term viability. Despite the fact that it was a capital-intensive industry, she made the decision to raise and provide the necessary funds. The business was the first to offer a single point of shopping for all domestic brands, foreign brands, luxury and prestige brands, premium brands, niche brands, and cult brands.
Nykaa's Business Model
In contrast to Nykaa, the latter allows customers to make purchases from products listed by independent sellers. By doing this, Nykaa is able to protect its customers from shady merchants and preserve the legitimacy of the marketplace.
In addition to this, having a physical presence, creating private labels across categories, and working exclusively with major brands in the beauty and fashion industries have all contributed to making it stand out in the crowded e-commerce market where customers are typically vendor-skeptical and searching for the best deal.
Additionally, the organisation has three types of offline stores: On Trend, Luxe, and Kiosks. Trendy and stylish brand merchandise is the focus of On Trend & Luxe. While Kiosk specialises in showcasing high-end and upscale brands like Dior, MAC, Huda Beauty, Estee Lauder, and many other illustrious names.
Furthermore, the business established the Nykaa Network online platform to communicate with beauty enthusiasts. They are able to connect with customers more easily and give them a special experience thanks to this.
How is Nykaa operating now?
This startup with headquarters in India started off as the only e-commerce platform. Since that time, the business has been steadily growing.
It began with online business but later expanded into physical storefronts. The company currently operates 76 physical outlets. It used to only be active in the women’s market. But it launched Nykaa Men in 2019 to enter the men’s market. The company currently offers 300+ brands in its women’s, men’s, and children’s clothing departments.
The brand’s current reputation among its audience has been significantly impacted by the switch from online to hybrid mode, which also gave the brand access to a previously untapped market. It demonstrates how it works to include customers across all price points.
The business moved swiftly enough to enter the market of providing necessary personal care products to a sizable customer base. They changed from a hybrid mode to a pure-play online mode over night. The more than 70 offline outlets were supposed to offer nationwide hyperlocal delivery. They also introduced a category that concentrated on hand sanitizers, PPE Kits, thermometers, and other crucial hygiene products to meet the rising demand.
The company also claims that in order to diversify their product offering, they are entering the home essentials and travel care markets. The business also entered the market for intimate apparel under its fashion label the Nykaa brand.
One can say Nykaa has become the Amazon of the cosmetics sector. Because of this platform, the myth that e-commerce and beauty retail doesn’t work well in India has been decisively disproven. The company’s plan to start the IPO has been postponed due to an ongoing increase in sales and profitability.
Step into the future of beauty and fashion with Nykaa! The platform is focused on delivering quality products and services to you at great rates, plus they’ve recently launched exciting new products endorsed by celebrities. Check out all their fresh collections now! #NykaaFashionGlowUp