Nykaa-success-story- Bio, facts, Net worth, Business, Income, Growth, Investments, Challenges Faced. Personal life.
Nykaa-success-story- Bio, facts, Net worth, Business, Income, Growth, Investments, Challenges Faced. Personal life.
The cosmetics industry is expected to increase from an estimated $1.3 billion in FY2020 to $2.89 billion by FY2026, a double-digit compound annual growth rate of 16.39% through FY2026.
The remarkable expansion of the cosmetics sector can be attributed to the rising demand for these items, mostly from youth and young adults, as well as the industry's swift digitalization, which has greatly benefited everyone.
One of the major companies in the cosmetics sector, Nykaa takes pride in offering a large selection of wellness, fashion, and beauty items to both physical and online consumers. In addition, Nykaa hopes to have a significant impact in the personal care industry with the introduction of GLOOT and Nykd, and its entries into the men's and women's innerwear markets!
Nykaa: Commercial
Nykaa is a global leader in the cosmetics and personal care sector, which is expected to reach $33.33 billion by 2027. The market was valued at $24.53 billion in 2022, with a compound annual growth rate (CAGR) of 6.32%.
Nykaa: Concerning
Nykaa is a beauty retail brand that offers men's underwear among its trendy items and cosmetic goods for sale both online and offline. In-depth information such as product reviews, expertly written articles, beauty how-to videos, and even an e-beauty magazine are also provided by the company. The Nykaa hotline's mission is to help customers choose products and services that are tailored to their needs. The real products that the beauty and wellness business proudly displays are procured straight from the manufacturing brands and can be delivered!
Nykaa already ships its products to several countries in the Indian subcontinent, including Nepal. Shortly, it will also start shipping abroad!
Nykaa: When Did It Begin?
Falguni Nayar, the company's founder, received her initial inspiration from the irregularities observed in the cosmetic product market. Even if the market demand for beauty and cosmetic products was high, India's market did not match the extent of the products as did other countries like France and Japan. Moreover, the products were found to be unavailable in numerous locations around the nation, which ultimately resulted in the establishment of Nykaa.
Falguni Nayar started Nykaa back in year 2012. With just three employees and little experience in the retail, technology, and cosmetic product industries, Nayar created Nykaa. Since the company's founding in 2012, about sixty orders have been placed. Nykaa didn't, however, lower its pricing point. It didn't cut the tariffs to increase sales, although it could have done so.
"We would prefer to sell the correct lipstick shade at full price rather than the incorrect shade at half price," Nykaa's founder and CEO once declared.
It began as an internet company and gradually transitioned to an omnichannel approach.
Nykaa is a Mumbai-based firm that is well-known for the extensive selection of fashion, intimate apparel, and beauty and cosmetics products that are offered through its online stores, app, and website.
The team and founder of Nykaa
Falguni Nayar
Nykaa, one of the largest lifestyle and fashion platforms in India, was founded by Falguni Nayar. Currently ranked as the 10th richest self-made woman globally, the founder and CEO of Nykaa is regarded as the wealthiest woman in India. Falguni's estimated net worth as of the recent filing was Rs 57,000 crore. It took her a year and 963% growth to equal her riches.
Nayar obtained her finance MBA at IIM Ahmedabad, where she was a student.
Nayar joined A F Ferguson & Co. as a manager and worked there for more than eight years after completing her MBA and graduation. She afterward started working for one of India's top investment banks, Kotak Mahindra Capital Company.
Nayar led Kotak Securities at first, and in December 2007, he was appointed Managing Director of Kotak Investment Banking. She worked for the bank for eighteen arduous years before leaving to devote herself fully to her business endeavor, Nykaa.com.
After more than 25 years of employment in the corporate world, Falguni began her entrepreneurial journey as Nayar approached 50 years old.
In India, Nayar is also acknowledged as a Founding Member of the Asia Society. She is listed as an Independent Member of the Tata Motors Board and several other boards, such as the Aviva Insurance Board and Dabur India.
Falguni, being a conscientious homemaker and a successful entrepreneur, is an example to everyone in Nykaa and beyond. Falguni was a wonderful leader because of her dedication to her work, a keen eye for detail, and active participation in all facets of the company. Additionally, she has proven that, when it comes to business, "age is just a number" and set a great example for the entire globe.
Throughout her career, Falguni has received numerous honors, such as the FICCI Ladies Organization (FLO) award for the top female achiever in the banking industry and the Business Today award, which recognized her as one of the top 25 women in business.
One of the most well-known maxims that Falguni Nayar lives by and frequently shares is "Retail is all about detail."
Nykaa's Goals and Objectives
The three main tenets of Nykaa's mission are personalization, information, and curation. The company's philosophy is to provide its clients with the best options available so they may make the best decision possible for their needs in holistic beauty.
Nykaa's mission statement is as follows:
"Inspiring Indians, both men and women to make fashion & lifestyle choices that best suit them."
Nykaa: Name, Slogan, and Icon
The Sanskrit word "nayaka," which means "one in the spotlight," is the source of the brand name "Nykaa."
'Your Beauty, Our Passion' is the company's slogan. Nykaa and Peanut Butter collaborated, leading to the creation of another tagline, "Beautiful Anytime, Anywhere."
The brand caters to women, and pink and red would perfectly capture the imperfections and vitality of a modern girl. For this reason, the brand's color was chosen with great consideration.
Nykaa: An Approach to Marketing
Nykaa's strong marketing approach, which is centered around digital marketing, has allowed it to establish itself as one of the most capable competitors in the beauty and fashion sectors. The brand offers itself to all possible clients in Tier 2, 3, and 4 cities in addition to concentrating on marketing in Tier 1 cities.
Marketing on Social Media
To sell its in-house brand My Nykaa, Nykaa has four social media accounts: Nykaa beauty, which promotes its e-commerce platform; Nykaa fashion, which advertises its e-commerce clothes store; and Nykaa beauty book, which offers a wealth of beauty and cosmetic advice.
The business actively promotes the brand on social media by maintaining accounts on a variety of channels. The brand also uses its social media handles to share material that its influencers generate. Consequently, influencer marketing is crucial to Nykaa's promotion.
YouTube Promotion
Nykaa has a comprehensive marketing plan for YouTube. The firm uses its YouTube channel to provide its target customers with consumable content, such as beauty, personal care, and cosmetic hacks, rather than concentrating on selling things.
In addition, the brand occasionally targets its clients with YouTube advertisements. As a result, Nykaa's YouTube marketing is supported by pertinent advertisements and high-quality content that keeps viewers interested.
Marketing of Content
Nykaa's content marketing is its main source of income. The audience can choose from a range of consumable materials offered by the D2C beauty and fashion marketplace, which encourages them to become consumers.
The firm Nykaa utilizes its site, "Nykaa beauty book," to post posts about makeup, personal care, and beauty. In addition, the brand produces videos for DIY projects, beauty lessons, and other purposes.
Marketing of Events
Another crucial marketing tactic Nykaa uses to reach its target audience at the ideal moment and location is event marketing.
Nykaa is still associated with the prestigious Femina Miss India pageant, which is one of the biggest beauty pageants in India, having sponsored it successfully several times.
In addition, Nykaa supports several college celebrations and events, including the Mumbai college festival Mood Indigo, the Red Brick Summit, and the 2019 IIM Ahmedabad.
Nykaa: A Business Framework
Nykaa is an online retailer of direct-to-consumer goods that operates on an inventory-based business strategy. The company buys its goods straight from the producers and stores them in specially designed warehouses in Bangalore, Mumbai, and New Delhi. These goods are offered for sale on the Nykaa website as well as in its three physical store formats, Nykaa Luxe, Nykaa On Trend, and Nykaa Kiosks.
The company's inventory-led business model has helped it achieve significant profit margins and has produced a successful enterprise. In addition, the company maintains reasonable pricing and guarantees the authenticity of its items.
Nykaa - Model of Revenue
Nykaa generates revenue in the ways listed below.
Selling of goods
The main source of income for the brand is the sales of both its products and those of its affiliated brands.
Banner ads
The business receives a lot of traffic from its banner ads, many of which result in sales.
Other revenue streams for the brand include commissions, discount income, and other forms of money.
Nykaa: Expansion
Leading online retailer Nykaa specializes in selling fashion, beauty, and cosmetics. The company is already listed, and it is valued greater than some of the biggest and most established companies in India, including Godrej, Bharat Petroleum, SBI Card, and Coal India.
Nykaa became the leading e-commerce and beauty retail platform in less than 4 years.
Currently, Nykaa states that it has over 17 million active users and processes over 1.5 million orders monthly. Here are a few more examples of the brand's expansion as of October 2021:
There are purportedly over 15 million users registered on Nykaa.
- It has 105 locations in India.
- Its 23 warehouses are located in 11 locations across India.
- The company claims to have more than 4000 brands available.
- Nykaa offers over 3.1 million SKUs that are accessible for purchase online, through its app, or in-store.
Due to the coronavirus pandemic, Nykaa experienced difficult times during the lockdown, with the company experiencing a decline in sales of up to 70% in April 2020. However, the company moved swiftly, getting rid of all the other non-deliverable inventory and effectively cataloging all that was required to keep them stocked. Shortly after, the business began utilizing its hyperlocal delivery service to advance its physical storefronts.
Following the COVID-19 pandemic, Nykaa recovered quickly, and by the end of 2020, it had more than 90% of its prior disease level back.
The unicorn cosmetics, fashion, and beauty products firm saw a significant shift in consumer behavior toward key categories, such as personal skin and hair care products, which allowed it to grow faster than its competitors following the coronavirus pandemic. Additionally, the company's transition from an online to an omnichannel retail model had a significant role in the same. All of these not only altered consumers' opinions of the brand but also assisted Nykaa in reaching audiences that it had previously either failed to reach or was unable to.
In October 2020, as the company began to recover from the pandemic, it also unveiled the Nykd intimate clothing brand. It has investigated the same market once more, but this time it will feature products related to men's athleisure and innerwear.
On July 6, 2022, Nykaa announced that it was entering the men's innerwear market with the launch of GLOOT, a brand that will serve as a representation of Nykaa for athleisure and underwear. Following the news of the firm's debut into the men's athleisure and innerwear categories, shares of the parent company of Nykaa instantly surged. The very following day, it closed 4% higher at Rs 1,453.9 on the BSE. Men's undergarments will start at Rs 499, while GLOOT athleisure items will start at Rs 899.
