Nykaa is a leading e-commerce and beauty retail platform that has become a household name in India. The company was founded by Falguni Nayar, a former investment banker, in 2012. Nykaa became the leading e-commerce and beauty retail platform within just 4 years. Nykaa currently boasts of having over 17 million monthly active users and processes 1.5+ mn orders.
Nykaa’s story is a case study in innovation, leveraging its 360 degrees in marketing strategy. In the beauty and cosmetic industry of over 1.3 lakh+ products and 1500+ brands, clutter is hard to break. Getting noticed and creating a profitable beauty brand is often years of time, money, and investment. Nykaa’s marketing strategy is unique as it has created an ecosystem of content, commerce, and community.
| Founder | Falguni Nayar |
| Founded | 2012 |
| Headquarters | Mumbai, Maharashtra, India |
| Website | nykaa.com |
History of Naykaa
Falguni Nayar founded Nykaa in the year 2012. She was a former Managing Director of Kotak Mahindra Capital Company. Nykaa was launched as an eCommerce portal curating a range of beauty and wellness products. The brand name Nykaa is derived from the Sanskrit word nayaka, meaning ‘one in the spotlight.
Nayar founded Nykaa with limited knowledge of beauty products, retail industry, and technology, with just 3 employees. The company started in 2012, and has received around 60 orders in its initial days. In 2015, the company expanded from online-only to an omnichannel model and began selling fashion products. Nykaa became the leading e-commerce and beauty retail platform within just 4 years. Nykaa currently boasts of having over 17 million monthly active users and processes 1.5+ mn orders.
How did Naykaa become so successful?
Nykaa’s marketing strategy is unique as it has created an ecosystem of content, commerce, and community. Digital marketing is the foundation of Nykaa’s marketing strategy. Nykaa’s primary strategy for pitching customers is a digital marketing strategy. The brand concentrates its marketing efforts in tier 1 cities and targets customers in tier 2, tier 3, and tier 4 cities. One of the most important aspects of Nykaa’s marketing strategy is their focus on product quality. They invest heavily in research and brand development to ensure that their products are sourced at the best they can be. This commitment to quality has helped them build a strong reputation amongst consumers and industry experts.
Naykaa’s Business & revenue model
Nykaa’s business model is based on the online and offline sale of beauty and wellness products. Nykaa has a wide range of products from various brands and also has its own private label products which are sold exclusively on its platform. The company has also launched its own loyalty program called Nykaa Rewards which offers customers points for every purchase made on the platform. These points can be redeemed for discounts on future purchases.
Nykaa’s revenue model is based on the commission it earns from the sales of beauty and wellness products. Nykaa has a wide range of products from various brands and earns a commission on every sale made through its platform. Nykaa also has its own private-label products which are sold exclusively on its platform. The company has also launched its own loyalty program called Nykaa Rewards which offers customers points for every purchase made on the platform. These points can be redeemed for discounts on future purchases.
Strategies that helped Naykaa stand out from the crowd
Nykaa’s marketing strategy is based on the online and offline sale of beauty and wellness products. Here are a few of the strategies that helped Naykaa to stand out of the crowd in the competitive e-commerce beauty & retail sector:
- Nykaa has a wide range of products from various brands and also has its own private-label products which are sold exclusively on its platform.
- The company has also launched its own loyalty program called Nykaa Rewards which offers customers points for every purchase made on the platform. These points can be redeemed for discounts on future purchases.
- Nykaa’s marketing strategy is focused on product quality, research, and brand development to ensure that its products are sourced at the best they can be. This commitment to quality has helped them build a strong reputation amongst consumers and industry experts.
- Nykaa’s primary strategy for pitching customers is a digital marketing strategy. The brand concentrates its marketing efforts in tier 1 cities and targets customers in tier 2, tier 3, and tier 4 cities. Nykaa also uses influencer marketing, content marketing, social media marketing, and offers and discounts to attract customers.
