NYKAA: A Monopoly Over Beauty

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Nykaa

So, NYKAA was started back in 2012 by Falguni Nayar, an ex-directing manager of Kotak Mahindra. After serving for 20 years as a venture investor and merchant at Kotak, she decided to follow her dream by starting her own Lifestyle company. Nayar an IIM graduate who at the age of 50 left her job, founded Nykaa.

Falguni Nayar’s net worth as of 2018 was 280 Crore Indian Rupees. She has been awarded as the ‘Most Powerful Woman In Business’ by India Today in 2017.

“I wanted to stand for those women who want to be beautiful for themselves, not for men or other women” -Falguni Nayar

Nykaa emerged as a unicorn startup after acquiring a net worth of 1 billion dollars in 2018. It has currently taken over the beauty, wellness and fashion industry in India. The name of the company is derived from a Sanskrit word ‘Nayaka’ which means ‘one in the spotlight’, and no doubt that it is. It has six warehouses in New Delhi, Haryana, Kolkata, Pune, Bangalore and Mumbai. The company claims to sell 25 products every minute. It retails more than 2000 brands with over 200,000 products across its platforms. Nykaa also started their own brands in 2017 called ‘Nykaa Cosmetics’ and ‘Nykaa Naturals’. Alia Bhatt and Katrina Kaif also invested in the company in 2016 through secondary funding

In 2018, Nykaa along with Femina organised Nykaa Femina Beauty Awards. Also, the company recently acquired Pipa Bella to strengthen their jewellery sector.

Marketing Strategy

Influencer Marketing pays a vital role in Nykaa’s promotion. It helps in connecting with the audience as well as educating them at the same time. The company runs several campaigns online over social media, like the campaign- #WhatMakesYouBeautiful in partnership with Laxmi Agarwal, an acid attack survivor and activist. The company is also associated with Nanhi Kali Foundation which supports education for unprivileged girls in India. The company also runs a huge promotion campaign with young influencers on Instagram and YouTube.

“This is different from Kareena Kapoor selling Kajal or Aishwarya Rai promoting a shampoo, these are 23-25 years old girls who look and talk like the customer instead of speaking from a pedestal” – Falguni Nayar on Influencer Marketing.

Katrina Kaif recently launched her beauty brand called ‘Kay Beauty’ in collaboration with Nykaa, which opened more doors for the influencers to come in. Influencer marketing not only reaches out to more target audience but also cuts the promotion costs.

Nykaa Man

Nykaa being a women’s beauty and fashion retailer launched its men’s collection in 2018. This was a great move to expand the company as well as to promote men’s grooming. Especially in India, where beauty products were tagged as feminine. They added wide range of products from beard oils, shaving sets, sports nutrition to skin care and wellness products. This was a big step towards encouraging men’s grooming in India.

Business Model

Nykaa follows an Inventory style of business model. In this, the company first buys the product from other brands and distributors before selling them on their website. This model sets Nykaa apart from other competitors, as it assures quality and speedy delivery every time.

Know More: Marketplace Vs Inventory Model

Future Plans

This beauty company is having an eye on getting listed on stock exchange by the end of 2021 or early 2022 with a valuation of over $3 Billion Dollars. This would be a really great heads up for the traders and investors.

The company is also targeting to open up 180 new stores by 2024, in order to increase their offline presence in the market. Though having a strong online grip in the market, the company is now focusing on offline market as well.

Also Read: 5 Tips To Become A Successful Entrepreneur

Aman Shah

Aman Shah

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