A PROJECT

ON
“OPERATIONAL MANAGEMENT OF NYKAA THAT BOOST
GROWTH IN FASHION INDUSTRY IN INDIA”

NAME OF THE CANDIDATE: SYED SALHA UDDIN ASAD

ENROLL. NO. 22A2020275

BATCH: 2022-2023

NAME OF THE GUIDE: TIMSY JAIN

EDUCATIONAL QULIFICATION: PGDBA

YEAR OF PASSING: 2013

Institute of Management Technology (IMT), Centre for Distance Learning,

Meerut Road, Ghaziabad – 201 003, UttarPradesh, INDIA.

(2022 - 2023)

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 EXECUTIVE SUMMARY
The wellness and beauty industry in India is growing at a fast rate due to the young
generation, rise in middle-class and its incremental disposable income, urbanization,
digitalization, and an overall shift towards a much better and healthy lifestyle and personal
care. The growth rate of such cosmetic or beauty retail market in India is around 16% CAGR
and by the year 2025, it is expected to reach $20 billion. One such fastest-growing beauty
destination is “Nykaa” which has emerged as the largest omnichannel brand in India. Nykaa
is a market leader in online destination for beauty and wellness products in India.

Nykaa has more than 2500 brands and over 5 lac products to meet the demand of customers
and a one-stop-shop solution for them. It has six warehouses all over India to stock well-
curated and well-priced products. Nykaa is into the retail business and its products are totally
authentic that are sourced directly from different brands. The comprehensive collection of
Nykaa’s beauty & wellness products includes skincare, makeup, personal care, hair care,
fragrances, luxury, and wellness products for both male and female.

Other than retailing, Nykaa also keeps on advising through its different platforms, such as the
expert portal, the bio-monthly magazine i.e. BeautyBook, and the virtual makeover studio.
Nykaa today has become the biggest beauty brand as well as it symbolizes fashion,
affordability, and top-notch brands. The headquarter of the brand is in Mumbai and it has
various offline stores in different parts of India to enhance its public reach.

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 TABLE OF CONTENTS

CHAPTER 1 INTRODUCTION..................................................................................
1.1 Background of the Study ...........................................................................................
1.2 Statement of the Problem ..........................................................................................
1.3 Operations Management ............................................................................................
1.4 Fashion Industry in India ...........................................................................................
CHAPTER 2 OBJECTIVE AND SCOPE OF THE STUDY ....................................
CHAPTER 3 THEORETICAL PERSPECTIVE .......................................................
3.1 A Brief Background of Nykaa ...................................................................................
3.2 Use of Operational Management Strategies in Nykaa...............................................
3.3 Operational Business Strategies That Nykaa Follows...............................................
CHAPTER 4 METHODOLOGY ................................................................................
4.1 Explanation of the Method ........................................................................................
4.2 Method Used To Classify Data .................................................................................
4.3 Method Used To Present Data ...................................................................................
4.4 Swot Analysis of Nykaa ............................................................................................
CHAPTER 5 DATA COLLECTION ..........................................................................
CHAPTER 6 DATA ANALYSIS .................................................................................
CHAPTER 7 FINDINGS OF THE STUDY ...............................................................
CHAPTER 8 RECOMMENDATIONS .......................................................................
CHAPTER 9 CONCLUSIONS ....................................................................................
REFERENCES ............................................................................................................
QUESTIONNAIRE .....................................................................................................

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 LIST OF TABLES

6.1 Beauty products purchased in Nykaa based on fashion ............................................

6.2 Nykaa develop the high dependable operational management in the company ........
6.3 Nykaa high focus on service provision and customer focus in the company ............
6.4 Nykaa add quality of design products that were priorities of interest in the company
6.5 Nykaa provide high technical solutions by implantation operational management ..
6.6 Nykaa boost quality performance in online platform selection.................................
6.7 Nykaa clearly focus on customer satisfaction in the company..................................
6.8 Nykaa mainly focus on qualified services towards the customers ............................
6.9 Nykaa based on their reliability on the brand ............................................................
6.10 Nykaa implements satisfaction levels about the brand............................................

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 LIST OF CHARTS

6.1 Beauty products purchased in Nykaa based on fashion ............................................

6.2 Nykaa develop the high dependable operational management in the company ........
6.3 Nykaa high focus on service provision and customer focus in the company ............
6.4 Nykaa add quality of design products that were priorities of interest in the company
6.5 Nykaa provide high technical solutions by implantation operational management ..
6.6 Nykaa boost quality performance in online platform selection.................................
6.7 Nykaa clearly focus on customer satisfaction in the company..................................
6.8 Nykaa mainly focus on qualified services towards the customers ............................
6.9 Nykaa based on their reliability on the brand ............................................................
6.10 Nykaa implements satisfaction levels about the brand............................................

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 CHAPTER 1
INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Creating a successful business is all about finding the perfect idea and nurturing it with the
best resources and tools possible. That’s exactly what Falguni Nayar, founder of beauty and
fashion ecommerce platform Nykaa Business model did.

Nykaa, which is Sanskrit for Nayaka (one in the spotlight), is a Mumbai-based retail seller of
beauty, fashion and wellness products. The ecommerce startup lists products from over 1200
global brands along with its own line of products Nykaa Cosmetics and Nykaa Naturals.

1.2 STATEMENT OF THE PROBLEM

NYKAA is betting big on private-labels. Its portfolio includes personal care products,
essential oils, liquid lip balms, perfumes, and much more. With concept stores online it is
growing its business into clothing too.

Can NYKAA bridge the gap of people’s expectation to grow more?

Can the viewer’s buy the right product while watching tutorial videos?

These types of statements come to mind while watching their online shopping cart. How has
the operational management worked here for the smooth functioning of the website of
NYKAA?

1.3 OPERATIONS MANAGEMENT

Although productivity benefited considerably from technological inventions and division of

labor, the problem of systematic measurement of performances and the calculation of these
by the use of formulas remained somewhat unexplored until Frederick Taylor, whose early
work focused on developing what he called a "differential piece-rate system" and a series of
experiments, measurements and formulas dealing with cutting metals and manual labor. The
differential piece-rate system consisted in offering two different pay rates for doing a job: a
higher rate for workers with high productivity (efficiency) and who produced high quality
goods (effectiveness) and a lower rate for those who fail to achieve the standard. One of the

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problems Taylor believed could be solved with this system was the problem of soldiering:
faster workers reducing their production rate to that of the slowest worker. In 1911 Taylor
published his "The Principles of Scientific Management", in which he characterized scientific
management (also known as Taylorism) as:

• The development of a true science;

• The scientific selection of the worker;
• The scientific education and development of the worker;
• Intimate friendly cooperation between the management and the workers.

Taylor is also credited for developing stopwatch time study, this combined with Frank and
Lillian Gilbreth motion study gave way to time and motion study which is centered on the
concepts of standard method and standard time. Frank Gilbreth is also responsible for
introducing the flow process chart in 1921. Other contemporaries of Taylor worth
remembering are Morris Cooke (rural electrification in the 1920s and implementer of
Taylor's principles of scientific management in the Philadelphia's Department of Public
Works), Carl Barth (speed-and-feed-calculating slide rules ) and Henry Gantt (Gantt chart).
Also in 1910 Hugo Diemer published the first industrial engineering book: Factory
Organization and Administration.

In 1913 Ford Whitman Harris published his "How many parts to make at once" in which he
presented the idea of the economic order quantity model. He described the problem as
follows:

"Interest on capital tied up in wages, material and overhead sets a maximum limit to the
quantity of parts which can be profitably manufactured at one time; "setup costs" on the job
fix the minimum. Experience has shown one manager a way to determine the economical size
of lots"

This paper inspired a large body of mathematical literature focusing on the problem of
production planning and inventory control.

In 1924 Walter Shewhart introduced the control chart through a technical memorandum while
working at Bell Labs, central to his method was the distinction between common cause and
special cause of variation. In 1931 Shewhart published his Economic Control of Quality of

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Manufactured Product, the first systematic treatment of the subject of Statistical Process
Control (SPC). He defined control:

"For our present purpose a phenomenon will be said to be controlled when, through the use of
past experience, we can predict, at least within limits, how the phenomenon may be expected
to vary in the future. Here it is understood that prediction within limits means that we can
state, at least approximately, the probability that the observed phenomenon will fall within
the given limits."

In the 1940s methods-time measurement (MTM) was developed by H.B. Maynard, J.L.
Schwab and G.J. Stegemerten. MTM was the first of a series of predetermined motion time
systems, predetermined in the sense that estimates of time are not determined in loco but are
derived from an industry standard. This was explained by its originators in a book they
published in 1948 called "Method-Time Measurement".

The methods-time measurement may be defined as follows:

Methods-time measurement is a procedure which analyzes any manual operation or method

into the basic motions required to perform it and assigns to each motion a predetermined time
standard which is determined by the nature of the motion and the conditions under which it is
made.

Thus it may be seen that methods-time measurement is basically a tool of method analysis
that gives answers in terms of time without the necessity of making stop-watch time studies.

Up to this point in history, optimization techniques were known for a very long time, from
the simple methods employed by F.W.Harris to the more elaborate techniques of the calculus
of variations developed by Euler in 1733 or the multipliers employed by Lagrange in 1811,
and computers were slowly being developed, first as analog computers by Sir William
Thomson (1872) and James Thomson (1876) moving to the electromechanical computers of
Konrad Zuse (1939 and 1941). During World War II however, the development of
mathematical optimization went through a major boost with the development of the Colossus
computer, the first electronic digital computer that was all programmable, and the possibility
to computationally solve large linear programming problems, first by Kantorovich in 1939
working for the Soviet government and later on in 1947 with the simplex method of Dantzig.
These methods are known today as belonging to the field of operations research.

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From this point on a curious development took place: while in the United States the
possibility of applying the computer to business operations led to the development of
management software architecture such as MRP and successive modifications, and ever more
sophisticated optimization techniques and manufacturing simulation software, in post-war
Japan a series of events at Toyota Motor led to the development of the Toyota Production
System (TPS) and Lean Manufacturing.

In 1943, in Japan, Taiichi Ohno arrived at Toyota Motor Company. Toyota evolved a unique
manufacturing system centered on two complementary notions: just in time (produce only
what is needed) and autonomation (automation with a human touch). Regarding JIT, Ohno
was inspired by American supermarkets: workstations functioned like a supermarket shelf
where the customer can get products they need, at the time they need and in the amount
needed, the workstation (shelf) is then restocked. Autonomation was developed by Toyoda
Sakichi in Toyoda Spinning and Weaving: an automatically activated loom that was also
foolproof, that is automatically detected problems. In 1983 J.N Edwards published his "MRP
and Kanban-American style" in which he described JIT goals in terms of seven zeros: zero
defects, zero (excess) lot size, zero setups, zero breakdowns, zero handling, zero lead time
and zero surging. This period also marks the spread of Total Quality Management (TQM) in
Japan, ideas initially developed by American authors such as Deming, Juran and Armand V.
Feigenbaum. TQM is a strategy for implementing and managing quality improvement on an
organizational basis, this includes: participation, work culture, customer focus, supplier
quality improvement and integration of the quality system with business goals. Schnonberger
identified seven fundamentals principles essential to the Japanese approach:

• Process control: SPC and worker responsibility over quality

• Easy able -to-see quality: boards, gauges, meters, etc. and poka-yoke
• Insistence on compliance: "quality first"
• Line stop: stop the line to correct quality problems
• Correcting one's own errors: worker fixed a defective part if he produced it
• The 100% check: automated inspection techniques and foolproof machines
• Continual improvement: ideally zero defects

Meanwhile, in the sixties, a different approach was developed by George W. Plossl and
Oliver W. Wight, this approach was continued by Joseph Orlicky as a response to the
TOYOTA Manufacturing Program which led to Material Requirements Planning (MRP) at

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IBM, latter gaining momentum in 1972 when the American Production and Inventory
Control Society launched the "MRP Crusade". One of the key insights of this management
system was the distinction between dependent demand and independent demand. Independent
demand is demand which originates outside of the production system, therefore not directly
controllable, and dependent demand is demand for components of final products, therefore
subject to being directly controllable by management through the bill of materials, via
product design. Orlicky wrote "Materials Requirement Planning" in 1975, the first hard cover
book on the subject. MRP II was developed by Gene Thomas at IBM, and expanded the
original MRP software to include additional production functions. Enterprise resource
planning (ERP) is the modern software architecture, which addresses, besides production
operations, distribution, accounting, human resources and procurement.

Dramatic changes were occurring in the service industries, as well. Beginning in 1955
McDonald's provided one of the first innovations in service operations. McDonald's is
founded on the idea of the production-line approach to service. This requires a standard and
limited menu, an assembly-line type of production process in the back-room, high customer
service in the front-room with cleanliness, courtesy and fast service. While modeled after
manufacturing in the production of the food in the back-room, the service in the front-room
was defined and oriented to the customer. It was the McDonald's operations system of both
production and service that made the difference. McDonald's also pioneered the idea of
franchising this operation system to rapidly spread the business around the country and later
the world.

FedEx in 1971 provided the first overnight delivery of packages in the U.S. This was based
on the innovative idea of flying all packages into the single airport in Memphis Tenn by
midnight each day, resorting the packages for delivery to destinations and then flying them
back out the next morning for delivery to numerous locations. This concept of a fast package
delivery system created a whole new industry, and eventually allowed fast delivery of online
orders by Amazon and other retailers.

Walmart provided the first example of very low cost retailing through design of their stores
and efficient management of their entire supply chain. Starting with a single store in Roger's
Arkansas in 1962, Walmart has now become the world's largest company. This was
accomplished by adhering to their system of delivering the goods and the service to the
customers at the lowest possible cost. The operations system included careful selection of

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merchandise, low cost sourcing, ownership of transportation, cross-docking, efficient location
of stores and friendly home-town service to the customer.

In 1987 the International Organization for Standardization (ISO), recognizing the growing
importance of quality, issued the ISO 9000, a family of standards related to quality
management systems. There standards apply to both manufacturing and service
organizations. There has been some controversy regarding the proper procedures to follow
and the amount of paperwork involved, but much of that has improved in current ISO 9000
revisions.

With the coming of the Internet, in 1994 Amazon devised a service system of on-line
retailing and distribution. With this innovative system customers were able to search for
products they might like to buy, enter the order for the product, pay online, and track delivery
of the product to their location, all in two days. This required not only very large computer
operations, but dispersed warehouses, and an efficient transportation system. Service to
customers including a high merchandise assortment, return services of purchases, and fast
delivery is at the forefront of this business. It is the customer being in the system during the
production and delivery of the service that distinguishes all services from manufacturing.

Recent trends in the field revolve around concepts such as:

Business Process Re-engineering (launched by Michael Hammer in 1993): a business

management strategy focusing on the analysis and design of workflows and business
processes within an organization. BPR seeks to help companies radically restructure their
organizations by focusing on the ground-up design of their business processes.

Lean systems is a systemic method for the elimination of waste ("Muda") within a
manufacturing or service process. Lean also takes into account waste created through
overburden ("Muri") and waste created through unevenness in work loads ("Mura"). The term
lean manufacturing was coined in the book The Machine that Changed the World.
Subsequently, lean services has been widely applied.

Six Sigma (an approach to quality developed at Motorola between 1985 and 1987): Six
Sigma refers to control limits placed at six standard deviations from the mean of a normal
distribution, this became very famous after Jack Welch of General Electric launched a
company-wide initiative in 1995 to adopt this set of methods to all manufacturing, service

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and administrative processes. More recently, Six Sigma has included DMAIC (for improving
processes) and DFSS (for designing new products and new processes)

Reconfigurable Manufacturing Systems: a production system designed at the outset for rapid
change in its structure, as well as its hardware and software components, in order to quickly
adjust its production capacity and functionality within a part family in response to sudden
market changes or intrinsic system change.

Project Production Management: the application of the analytical tools and techniques
developed for operations management, as described in Factory Physics to the activities within
major capital projects such as encountered in oil & gas and civil infrastructure delivery.

1.4 FASHION INDUSTRY IN INDIA

India is a country with an ancient clothing design tradition, yet an emerging fashion industry.
Though a handful of designers existed prior to the 1980s, the late 1980s and the 1990s saw a
spurt of growth. This was the result of increasing exposure to global fashion and the
economic boom the economic liberalization of the Indian economy in 1990. The following
decades firmly established fashion as an industry across India.

History

Modern history

Post-independence focus on revival of traditional textile and design led to the rise of "ethnic
chic".

The history of clothing in India dates back to ancient times, yet fashion is a new industry, as
it was the traditional Indian clothing with regional variations, be it the sari, ghagra choli or
dhoti that remained popular until the early decades of post-independence India. A common
form of Indian fashion originates from Western culture. Fashion includes a series of sequins
and gold thread to attract customers and apply a statement to the Indian fashion community.

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A famous Indian fashion trademark is embroidery, an art of sewing distinct thread patterns. A
way to include the traditional look and create a new fashion statement includes embroidery
applied to different dresses, skirts, shirts, and pants to reflect the western culture influence as
well as include the Indian tradition.

As part of larger revival movement in the Indian textile industry, Ritu Kumar, a Kolkata-
based designer and textile print-expert started working on reviving the traditional hand block
printing techniques of Bengal, and making it a part of the fashion industry, established
"ethnic chic". She opened her first boutique in Delhi in 1966. In 1973, she first showcased the
Zardozi embroidery in her garments, which had its origins in the royal costumes dating back
to the Mughal era. This led to the revival of this lost art. In time embroidery became a
prominent feature of Indian wedding attire, and also one of the country's biggest fashion
exports. This was a period of revival, where various organisations, NGOs and indicuals were
involved in reviving traditional Indian techniques, in weaving, printing, dyeing or
embroidery, including ikat, patola (double-ikat), bandhani (tie-dye) and shisha (mirror
embroidery).

An early trendsetter in fashion was Bollywood (Hindi cinema), where costume designers like
Bhanu Athaiya started experimenting with film fashion in the 1960s. Athaiya started working
on period costumes in Sahib Bibi Aur Ghulam (1962) and Amrapali (1966), though she went
on to introduce varied trends through Teesri Manzil (1966), Chalte Chalte (1976), Karz
(1980) and Chandni (1989). These were soon followed by the mass market. Also situations
and themes in Indian cinema became westernised, making way for the display of diverse
fashion. Over the years, popular Bollywood trends have been the Madhubala's Anarkali-look
with kurtas and churidars in Mughal-e-Azam (1960), purple embroidered sari worn by
Madhuri Dixit in Hum Aapke Hain Koun...! (1994), to Rani Mukherji's short kurti-suits in
Bunty Aur Babli (2005), Veer Zaara suits and blouses from Parineeta. This comes besides
various fashion interpretations of the sari in films like Chandni (1989) with Sridevi, Main
Hoon Naa (2004) with Sushmita Sen and Dostana (2008) with Priyanka Chopra, which
became fashion trends.

However, in recent decades, with increasing exposure to the West, its influence is no longer
as strong as in previous decades. By the 2000s, with rise in the Indian diaspora around the
world and the non-resident Indians, Bollywood continues to exert far greater influence on the
fashion sensibilities amongst Indians around the world.

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1980s-1990s and fashion boom

By the early 1980s, the first generation of Indian fashion designers started cropping up,
including Satya Paul. However, it was Rohit Khosla (1958–1994) who became a pioneer in
the fashion industry, when he co-founded Ensemble" in 1987, with Tarun Tahiliani, Abu
Jani-Sandeep Khosla and others. Though the "Anarkali-style" has been around ever since, it
was first popularised after Mughal-e-Azam (1969). It was Abu Jani-Sandeep Khosla, who,
inspired by costumes of Mughal courtesans and Meena Kumari's costumes in Pakeezah
(1975), introduced the floor-length Anarkali-style of churidaar-kurta in 1988, which soon
became the Indian version of the ball gown.

In 1986, the Ministry of Textiles, Government of India opened the National Institute of
Fashion Technology (NIFT) in Delhi with the help of the Fashion Institute of Technology,
New York. It played an important role in bringing in locally trained fashion designers. By
2010, it had developed 15 branches across India, and smaller private fashion institutions had
also developed. Also in 1987, Tarun Tahiliani and his wife Shailja 'Sal' Tahiliani, founded
Ensemble, India's first multi-designer boutique in Mumbai.

In 1990, economic liberalisation of the Indian economy took place, which also propelled the
fashion industry. In the following decade, fashion industry experienced a boom, both in terms
of volume and trends. Designer Suneet Varma, inspired by his corsetry- raining in France,
introduced an indo-western, metal breast plate, followed by the "corset blouse" in 1992, made
with satin, polyester taffeta or stretch lace. It was designed to replace the traditional choli, or
Indian blouse worn with a sari. In its early years, the 1980s, Indian design largely focused on
haute couture; however, in the next decade, India saw a growth in the domestic retail
industry, as well as an influx of outsourced garment business from the western countries. This
meant better quality and larger manufacturing facilities available locally. Together, these
reasons spurred many Indian designers to start their prêt-à-porter (ready-to-wear) lines.

"God-printed T-shirts" were introduced by Manish Arora in 1997, along with Indian kitsch
and street art in saturated colors on fashionwear.[4] Another important reinvention was made
in 1998 by Monisha Jaisingh, who shortened the traditional kurta to develop the Kurti, which
became popular worldwide as the "Indian embroidered tunic". Also in the same year, the
Fashion Design Council of India was established, which later started the India Fashion Week
in Delhi, to promote Indian designers and manufacturers. In 2000, another Bollywood
costume designer, Manish Malhotra, became an important influence on Indian fashion.

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Having designed the trendy looks for actresses Urmila Matondkar in Rangeela (1995) and
Karisma Kapoor in Raja Hindustani (1996), he introduced the "cocktail sari" in 2000. Using
pastel colors, and fabrics like chiffon, satin or net, it revived the traditional sari in a modern
avatar. He was in turn inspired by the popular Bollywood saris of the 1960s and the chiffon
saris worn by the actress in Yash Chopra films, like Chandni (1989). This also started another
era of Bollywood fashion influence and its collaboration with leading designers, besides
leading actors and actresses occasionally walking the ramp for some designers.

By 2009, the Indian fashion industry, despite the ongoing recession, was worth ₹2.9 billion
(US$36 million). Also in the same year, Manish Arora, known for his quirky-kitsch, became
the first Indian designer to participate in Paris Fashion Week.

2010 onwards – change in Indian Menswear fashion

Lakme Fashion Week's Gen Next programme has been helpful in giving a launch platforms
for some of the newest and avant garde designers in this country. Fashion designers such as
Antar Agni, Mr. Ajay Kumar, Bloni are the some of the newest designers on the block. Mr.
Ajay Kumar is one such designer who has revolutionised the way Indian men perceive
fashion - introducing the signature print-on-print look for men. He has brought colourful
prints for men and with the likes of celebrities such as Ranveer Singh, Shahid Kapoor
popularising such looks, men in India have become more experimental and flamboyant in
their outlook. Antar Agni has introduced draped menswear which is quite popular amongst
the new age men who want to experiment with silhouettes.

Cities

Delhi, Kolkata, Mumbai and Chennai are important centers of fashion designing and
manufacture in India, followed by Bangalore, Hyderabad, Pune and other large cities.
Mumbai and Bangalore are the home of some of the top fashion rental services in India.

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 CHAPTER 2

OBJECTIVES AND SCOPE OF THE STUDY

Objectives of the study

In the upcoming situation our objective should be to study the following:

• To study the role of Operational Management of NYKAA in India and abroad

• To study how is the fashion and makeup industry going to cope with the development
in future? Is it all prepared to transform into all rounded solution to fashion?
• To study the future growth of the companies like NYKAA that is following
operational management techniques to spread internationally.
• To analyze the approach that helps marketers to capture more business through online
operational management.

Scope of the study

As the global network based at Mumbai and New Delhi NYKAA has been growing and
spreading the wings from national to international level. In all stages, NYKAA has boasts of
a distribution network online and service which is continuously monitored and kept
contemporary through evolving life cycles and is always ahead of competition.

The Internet is a critical channel for companies to advance and reinforce their businesses. The
expanded significance of Internet channels can be found in its commitment to spreading data,
upgrading consumer quality, enhancing consumer fulfillment, loyalty and maintenance and in
addition consumer discernment which thus prompts better profitability and extended market
share.

The greater parts of the aforementioned capacities of the internet are making it an absolute
requirement for the organizations to actualize new Social Media market plans plan for their
operational marketing strategies. There are various reasons which attach the consumers of
different age groups for following a particular brand through social networking sites. The
popularity of virtual communities reflects the fact that individuals are using new
technologies, such as the Internet, to fulfill both social and economic goals, where operational
management plays a vital role.

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 CHAPTER 3
ORGANIZATIONAL PROFILE

3.1 A BRIEF BACKGROUND OF NYKAA

Nykaa’s history is backed by 2012 when India’s online beauty industry was slowly growing
and players such as Flipkart, Amazon, and Limeroad were the main players. During that
time, Falguni Nayar launched Nykaa that focused more on a niche market of fashion and
beauty rather than a large variety of goods. Due to this, Nykaa experienced major success and
became a renowned brand in the retail and e-commerce industry.

Being an MBA graduate from IIM, Ahmedabad, Falguni Nayar, Founder & CEO of Nykaa
worked with Kotak Mahindra in their investment banking division. After working for 18
years in the same organization, she started her venture in the beauty and makeup industry.

The company had started with three variants of the Nail Enamel Collection of Nykaa i.e. pop,
shimmer, and pastel. Once they witnessed the quick success in nail enamels, other products
were launched by the company i.e. eyeliners, bath and skincare, highlighters, lipsticks,
fragrances, primer, sponges & applicators, concealer, and other makeup related products.
Nykaa further expanded by designing affordable, trendy, and superior quality products.

The company underwent into expansion mode in 2015 i.e. from online-only to omnichannel
model and started selling fashion products. The company introduced private labeled products
in 2016 in the category of bath and body care.

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“The power list” was launched by Nykaa Fashion in 2019 in partnership with Vogue India.
Further, in the month of October of the same year, it came into partnership with Bollywood
actress Katrina Kaif for launching the Kay Beauty brand.

Nykaa raised Rs. 100 crore in April 2019 in Series E funding round.

– Growth Journey of Nykaa

Business Model of Nykaa

Nykaa follows an inventory-based business model in which all items are stored at a single
place in an inventory and processing of orders is done as per the availability of products in
the stock. Using this inventory-based business model, Nykaa buys products directly from
stores and manufacturers. Nykaa has warehouses in different cities i.e. Mumbai, Banglore,
and New Delhi where such products are stored. These products are sold further on the
website of Nykaa or by using its offline store formants i.e. Nykaa Kiosks, Nykaa Luxe, and
Nykaa on Trend.

This business model facilitates Nykaa in ensuring the receiving of all bulk orders at once
rather than a single item at a time. As part of its business model, Nykaa follows the below
strategies to offer a hassle-free experience of shopping to its customers:

Omnichannel Experience

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Nykaa has provided an omnichannel experience to users by allowing them to try on some
brands (like Hudabeauty) that don’t have any retail outlets in India. Customers are also
provided with the facility to shop through a laptop or phone. Moreover, in case of any
confusion, customers can simply visit Nykaa’s stores and try products.

Network Community

There is a network community developed by Nykaa in which users can do conversation,

share their ideas and tips, learn and see new tutorials, and also, get inspired by others. This
strategy has helped the company to retain its customer base and also, in attracting new
customers. The offline presence of Nykaa is available in two store formats i.e. Nykaa Luxe
and Nykaa On-Trend.

Key Activities

Nykaa is mainly involved in two main value chain activities i.e. Primary and Supporting
activities.

Primary Activities

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Primary activities include below five categories:

Inbound Logistics

These logistics are related to sharing, receiving, and storing inputs of products. Material
handling, warehousing, and architecture are included in this for maintaining the database of
customers for Nykaa. The company has outsourced most of these activities.

Operations

In the operations process, the raw material is transformed into the final products. There are
quite broad activities in Nykaa’s café. This includes customer data collected from the
database of Nykaa for the purpose of making new strategies of the company as per the buying
behavior of customers.

Outbound Logistics

This is related to the distribution of the final goods of Nykaa to the customers and channel
partners. Retailers, wholesalers, and distribution channels are included in this.

Sales and Marketing

The main focus of sales and marketing activities in Nykaa is to create a sales medium through
which potential customers of the company can purchase its products. This category includes
various activities like pricing strategies, promotional activities, ad campaigns, and selection
of channels, etc.

Marketing Strategies of Nykaa

In the digital world, Nykaa works on a digital marketing model. Nykaa has adopted top-class
digital marketing strategies to target all types of audiences in every demographic having
internet access i.e. girls and women, students, and professionals. Nykaa uses below
mentioned different digital marketing strategies:

– Content Marketing

Nykaa has established a team of creative people and young professionals as a part of its
content strategy and by doing so, Nykaa is able to attract customers by creating trendy and
eye-catchy content that goes well with the mindset of the audience. The creative content also
attracts customers to purchase products of the company. The aim of Nykaa is to attract

20
audiences of different categories by developing trendy content for different platforms such as
blogs, websites, video content i.e. tutorials, web articles.

– YouTube-based Marketing

Nykaa has a dedicated youtube channel named “Nykaa TV” through which it engages its
audience using videos. This channel offers the best and latest video guides to customers for
how to use beauty and wellness products, and also, makes them aware of society’s latest
trends. Using a series of “how-to videos”, customers and users can choose the right products
and can understand the right way to use them.

– Platform Marketing

Nykaa promotes its brand on websites and mobile applications as both of these are specially
designed to attract audiences. Great importance is given to brand positioning through the
website of Nykaa across all the platforms. This reveals that there is the continuous
availability of updated and fresh content for the target audience of the company. To increase
online sales, Nykaa uses blogs, target ads, and guides.

– SEO (Search Engine Optimization)

To improve organic research and establish the presence of its brand, Nykaa is using SEO
services. By adopting the best SEO services, the company has optimized its content using
potential keywords that result in keeping it high in search results.

– Email Marketing

As part of a promotion strategy, Nykaa utilizes email marketing by sending emails to those
shoppers that are highly engaged. This also includes sending trending mailers to provide a
concise look at the industry’s popular trends.

– Influencer Marketing

Nykaa has also adopted influencer marketing strategies to create awareness during the launch
of its upcoming products. By collaborating with influencers, Nykaa could reach millions of
followers in days that enhanced their media value a lot. Nykaa has also introduced Jahnvi
Kapoor (Bollywood actress) as its brand ambassador.

– Social Media Optimization

21
Nykaa has also made a strong social media presence by leveraging various social media
platform in generating leads. Following social media platforms are used by Nykaa:

Facebook: Nykaa uses its Facebook fan page to share different offers and deal posts that have
increased its fan following by millions. A “shop now” option is also integrated to increase
reachability. This option links customers to the e-commerce website of Nykaa to shop beauty
products if they desire.

Instagram: the Instagram account of Nykaa is very creative and visual because different
videos are showcased across the world that consists of user-generated content. Different
range of products, deals, offers are advertised on Instagram of Nykaa and also, different
videos of many influencers are posted.

Snapchat: Nykaa has collaborated with Snapchat for a campaign to enter into a new type of
audience.

Services

In this, those activities include through which Nykaa can keep a close watch of information
related to post-sale data. It is also used to maintaining the information for further use related
to the progress of its goods.

Supporting Activities

There are a few supporting value chain activities too of Nykaa that are meant to support the
above primary activities. These supporting activities are as under:

• The infrastructure of the Firm

• Tech-development
• Human Resource Management (HRM)

These activities are further categorized into different industry-specific activities in which
Nykaa runs its operations. The above supporting activities are described below:

The Infrastructure of the Firm

This consists of quality management, planning, and legal services, general management, and
finance & accounting. These activities play a full role in supporting the value chain of Nykaa.

22
Planning and financing strategies of Nykaa are defined at the corporate level, quality
management, and legal and accounting work at the business unit level.

Technology Development

The most prominent factor in Nykaa is technology as it supports almost all functioning of the
company. Different activities such as technology selection, process engineering, field-testing,
and component & feature design are included in Nykaa’s technology development.

HRM

The human resource management of Nykaa facilitates the company in different key activities
such as hiring and selection of employees, assessing and developing skills of employees,
people planning, training, and compensation.

Customer Segment

Nykaa focuses on niche marketing strategy while targeting customers. The main customers of
the company are upper-middle-class society and mainly women. It also caters to the beauty
and wellness needs of men. Mostly the customers of Nykaa are in the age group of 18-50
years. Modern women are targeted by the company that is required to look groomed.

Nykaa’s customers can be categorized in below four categories:

Active Seekers

This category includes customers of 19-25 years old who require all advice on beauty
products. These customers are comfortable with technology, shop online, and read blogs.

Multi-Taskers

This includes customers who are 27-45 years old and who have less time and too much work
to do. This category consists of confident working females who are well aware of what they
want.

Beauty Aficionados

Customers of age group 25-45 years who are extremely conscious of beauty and style and
spends much time on browsing sites of new brands or products fall under this category.

Brand Seekers

23
This category includes customers between the age group of 25-45 years who are more
specific to brands and incredibly stylish. These customers often travel and are exposed to
international brands.

Value Preposition

Nykaa has a direct tie-up with brands and thus, it is able to deliver quality products with
discounts given by brands.

The company provides fast deliveries of products which is a great advantage of Nykaa as
most women prefer to shop online rather than visiting offline stores and it is convenient too
for them in terms of time-saving and cheaper.

Nykaa offers a one-stop destination for all types of products related to beauty and wellness.

The cost of the company’s products is also relatively cheaper as compared to other e-
commerce giants.

There are plenty of choices available in the wellness service of Nykaa and this includes their
exclusive GrabOn coupons to attract customers and provide them products at a discounted
price. Different seasonal coupons and deals are offered by Nykaa that includes a range of
exciting benefits to customers in order to provoke them to continue purchasing products from
the portal.

Nykaa has its own blog through which it displays free of cost beauty tips and also, it has a
beauty channel on YouTube to provide free makeup tutorials to its audience.

Nykaa’s key differentiators also include creating awareness among customers on unique
selling proposition (USPs) of online available products, giving sufficient information to boost
the confidence of customers in the company’s selected products, and provide
recommendations on specific products as per the unique needs of customers.

Key Resources

Key resources of Nykaa include the following:

Social Media

One of the key resources of Nykaa is its social media. The social media marketing of the
company is excellent and a great source of displaying advertisements and other useful and

24
informative content related to their products. Nykaa has a social presence on different social
medial channels such as Instagram, Facebook, Twitter, YouTube, etc. Through social media,
Nykaa is able to remain in constant touch with its customers.

Nykaa also has a YouTube channel i.e. Nykaa TV that consists of videos to help customers in
understanding different cosmetics they can use. These videos also help those customers who
are not aware of the type of products they should use and of which brand. These videos are
posted by Nykaa on a regular basis so that subscribers receive useful information.

Website and Online app

The website of Nykaa i.e. Nykaa.com is a great resource for the company for selling its
products online. Similarly, Nykaa’s app allows customers to select from more than 1 lac
beauty products online and more than 850 brands.

Using the website and app of Nykaa, customers can easily browse different products under
different categories ranging from makeup, haircare, skincare, health & wellness, men,
appliances, personal care, mom & baby, etc. The website and online shopping app of Nykaa
allow customers to purchase beauty products online with attractive discounts and at the best
prices.

Virtual Stores

Nykaa also has its offline virtual stores where customers can visit for beauty advice, virtual
makeover tool, free expert advice, assistance on the phone, and articles on beauty trends, etc.

Workforce

The team of Nykaa is highly energetic, motivated, and includes young people.

Technology

Different technology products and services are used by Nykaa that are its key resources that
include Google Analytics, HTML5, jQuery, etc. For its website, the brand is using 48
technologies including Google Analytics, Viewport Meta, and iPhone or Mobile Compatible.

Customer Relationships

Nykaa provides good customer service by following activities:

25
Online Content Creation

Nykaa has a content strategy that is aimed at educating and generating awareness among
customers who are looking for an excellent buying experience with advanced technology.
Through its content, Nykaa educates customers on its products available online and also,
recommends products according to the needs of customers. Adequate information is provided
on these products so that customers can select their desired products with confidence. Nykaa
customized its content in the form of IT lists, Beauty Book articles, Stores Product reviews,
Editor’s choice widgets.

Tools

Nykaa uses different tools to facilitate customers. Tools such as the monthly buying guides
and different seasonal or festival stores for sale guidance like monsoon store, eyeliner and
kajal store, summer store, Diwali store, skincare by age are specifically meant for the benefit
and convenience of customers.

Skin, Hair and wellness tool of Nykaa i.e. Routine Finder helps customers in making their
perfect beauty regimen and for this, products are recommended that best suit their skin, hair,
and wellness needs. This facilitates customers by educating them in products that work
together, their benefits, and their appropriate order to be used for better results.

One more tool is Beauty Book which is an in-house next-gen digital magazine of Nykaa that
focuses on expert advice, tutorials, and trends in different formats, and includes articles, FB
lives, web series, etc.

Customer Support Automation

In order to provide better customer service, Nykaa has automated parts of its customer
support. This has helped Nykaa in providing seamless conflict resolution to customers.
Through automation, Nykaa handles repetitive requests of customers related to returns,
refunds, cancellations, shipping inquiries, replacement concerns, payment hassles, etc. on its
app through bot-qualified questions. By automating customer support, Nykaa is able to
handle more customer queries in a detailed way that results in more after-sale customer
satisfaction and improved customer loyalty.

Nykaa Support

26
Nykaa provides customer support related to shopping, order, payments, and others by email
and customer care contact number. Also, it has a grievance cell to handle the grievances of
customers.

Key Partners

Key partners of Nykaa include beauty partners i.e. luxury beauty brands as the company sells
the products of these brands directly to the customers. These beauty partners include luxury
brands like M.A.C., Maybelline New York, Biotique, L’Oreal Paris, The Face Shop, Kama
Ayurveda, and many more.

Channels

Key channels of Nykaa includes its website and online app where customers can get useful
information about products and buy online. Different tools are available on the website of
Nykaa such as:

Try it On: This is a beauty tool through which customers can try different shades in the
makeup range of Nykaa. This tool also includes various options for different skin types.

Personalized Widget: This is a personal tool that Nykaa has provided for every shopper that
allows them to save videos of products that are recently viewed.

Videos of Product Pages Tool: This tool helps customers in understanding products in a
better way.

Get the Look Widget: Through this tool, shoppers can purchase products according to a look
they like.

Routine Finder: This tool suggests personalized products according to the daily routine of
customers.

Sales Channel

Nykaa has categorized its sales channel into four categories i.e. Kiosks, Web. Nykaa on
Trend, and Nykaa Luxe.

Cost Structure

27
Nykaa major expenses or costing of Nykaa includes the following:

Nykaa’s expenses that occurred in FY19 are shown below through graph:

Revenue Stream

The revenue of Nykaa is recorded at INR 1860 Cr in FY20 and EBITDA (earnings before
interest, tax, depreciation, and amortization) stood at INR 94 Cr (Source); Whereas, in FY19,
the company had earned revenue of INR 1160.98 Cr.

The Revenue model of Nykaa includes the following income sources:

28
Nykaa’s income of FY19 from different income sources are shown below through graph:

Ten years after being founded by businesswoman "Falguni Nayar" for the purpose of
promoting Indian women, NYKAA has evolved into one of India's largest seller of cosmetics
and lifestyle brands. Nearly 10 million people shop there online, and a November IPO raised
$700 million at a $13 billion valuation—turning Nayar, the CEO, into India’s richest self-
made businesswoman. Operational expansion and marketing led to a 23% drop in net profits
in the nine months to December, but revenue grew 65% year-over-year to $376 million. This
has led NYKAA to TIME100 most influential companies of 2022.

Since their introduction, they have not only redefined the art of selling e-beauty and personal
care in India, but have also been instrumental in promoting the growth of the previously

29
emerging ecosystem. From bringing the domestic brands, international brands, luxury and
prestige brands, premium brands, niche and cult brands and expert’s advice and videos,
coupled with their understanding of the needs and preferences of the consumers, to more than
72 Luxe and On-Trend and Kiosk Stores, an ever growing online community for beauty
buffs, and a Beauty Helpline, became the very best website. With 2400+, 100% authentic
brands NYKAA offers a well curated comprehensive selection of makeup and grooming
appliances, personal care, and health and wellness categories.

Manoj Jaiswal is the VP, Operations and CSO of the organization. He has ensured the
processes and operations run like clockwork. With more than a decade of experience in
companies, such as Seventymm Services Pvt. Ltd., Future Group, and ibibo Group, he is now
at NYKAA responsible for designing d-commerce, m-commerce, and e-commerce specific
creative implementations for sourcing order fulfillment, inventory management, and
warehouse operational management. After capturing online, NYKAA’s online database has
expanded its presence in almost all over India.

NYKAA’S VISION:

Bring inspiration and joy to people, everywhere, everyday.

NYKAA’S MISSION:

Creating a world where the customers have access to a variety of well-chosen, authentic
products and services that delight and elevate the human spirit.

30
3.2 USE OF OPERATIONAL MANAGEMENT STRATEGIES IN
NYKAA

Here are some common examples of operational strategies businesses used by NYKAA to
improve resource management and competitive advantage.

Corporate strategy

A business plan is very important in its strategy as it integrates its business objectives,
purpose and vision. The strategy also provides quarterly resources and objectives between
departments to help achieve overall business objectives. It covers all aspects of the business
in achieving common and well-defined goals. This is an ongoing strategy that ensures a
business is of greater value as a whole than in parts. It's important to constantly revisit it to
improve innovation and deliver value to consumers. These include portfolio strategies,
expansion strategies, business policies, and long-term policies that motivate employees and
attract investors.

Core competencies strategy

This strategy involves a business that recognizes and significantly enhances its capabilities,
resources, and skills in order to achieve sustainable competitive advantage. Key business
skills include its technological superiority, financial position, customer relationship
management, distribution system, market share, and effective processes. The strategy focuses
on areas of potential for business growth and applies this technology to other markets while
adding value to consumers.

Identifying basic business skills can also reduce production costs, improve income
generation, attract more skilled workers, and promote relationships with investors.

Competitive priorities strategies

An entity uses competitive driving strategies to differentiate its services, types, employees,
and products from its competitors. This includes the size of an integrated production business
plan to meet the needs of its target market. The strategy relies on a comprehensive business
plan and integrates its marketing strategy, production processes, and business culture.

In developing successful competing priorities, businesses incorporate features, such as

flexibility, cost, quality, and delivery of products and services. They can also evaluate

31
product features and offer variations to differentiate between products and services offered by
competitors. This helps to grow their customer base and provide services and products that
meet the needs of customers at competitive prices.

Customer-driven strategy

The essence of this strategy is to achieve sustainable profits by attracting and retaining
customers. It is about satisfying the needs of existing and potential customers within the
target market. The customer-driven strategy seeks to build customer loyalty, monitor the
content of business developers, manage customer feedback, and promote employee
marketing.

This approach involves recognizing trends in customer behavior, such as changes in popular
shopping among the population. Managing such trends helps businesses adapt to changes by
meeting new needs and minimizing threats in the marketplace. This also helps businesses to
utilize key skill areas that enhance their profitability and competitive advantage.

Market penetration strategy

Market penetration strategies help businesses gain access to the growing market power where
they have an existing customer base. An effective strategy includes data from market analysis
and competitor analysis to identify potential customers and how to access them. The goal is
to increase the percentage of people in the market who buy business goods or services in a
practical way.

These steps can take the form of directing business focus on purchasing, new, niche, or
market-based components.

Supply chain strategy

Supply chain strategies help businesses deliver their products and services from
manufacturers or suppliers to distributors and consumers. These strategies include increasing
profitability through data flow, services, and products within the supply chain categories. In
increasing value, these strategies also address the availability of immature goods, customer
services, marketing, funding, and product development.

A supply chain strategy is profitable if the total supply chain cost is less than the amount of
revenue generated by purchasing customers. Selecting areas with a high storage capacity of

32
products and reliable transportation options is a choice that contributes to supply chain costs.
It's also important to consider market uncertainty when developing supply chain strategies as
they're sometimes expensive to reverse.

Product development strategy

Product development strategy refers to a set of processes used by businesses to develop

existing products or to introduce new products to the market. These strategies cover all stages
of product development, from product launch to product delivery to end-users. These
strategies also improve the quality of products and services by considering the data market
research it provides.

A strong strategy provides the opportunity to turn ideas into profitable products, and then
develop into them to stay competitive. Businesses improve their product by increasing
product value, customizing features, providing trial times, and finding niche markets. It
works well to consider how different approaches offer strategy and to improve ourselves
based on data and information.

Cost-driven strategies

These strategies inform a business decision to base the price of its product on the cost of its
production rather than non-production factors, such as policies, power, and communications.
These are common strategies in stable markets or markets where prices are more likely to
influence the buying behavior of customer bases. Competing in such markets requires that the
business be less costly in its production process in order to provide competitive prices to
consumers.

33
3.3 OPERATIONAL BUSINESS STRATEGIES THAT NYKAA
FOLLOWS

Use a mission statement as a guide

A statement of intent includes action-oriented statements that describe the business purpose,
vision, and intentions of its customers. Developing a business strategy for a statement of
intent helps to define key objectives. It is easy to use power and explain plans to achieve
business goals for clearly defined objectives.

Incorporate industry best-practices

Studying the strategies used by well-established competitors and adapting their strategies to
suit product objectives is a great way to develop effective strategies. You can also improve
and improve existing methods and standards in the industry to get the upper hand over
competitors. The processes and strategies of companies outside the industry can also help in
creating high quality products and delivering unique services.

Develop a unique value proposition

In addition to elevating your products to industry level, it is important to develop different

price proposals in order to differentiate services from competitors. This includes creating a
unique marketing proposal, and attracting qualified customers to purchase products. Having
different products and services in the market place or on the same website online can give a
business a profit and promote product loyalty.

34
 CHAPTER 4
METHODOLOGY

4.1 EXPLANATION OF THE METHOD

Traditionally, knowledge has been produced from quantitative or qualitative approaches

within the positivistic research tradition. Observation is an important aspect of the method as
Qualitative research is a situated activity that locates the observer in the world. According to
the advocates of interpretive approaches claim that those methodological procedures and
claims for objective knowledge have significant theoretical limitations for advancing our
understanding of human and organizational phenomena.

The respondents were asked to rate the questions on five point Likert scale whereas the
statements were divided into Strongly agree, Agree, neutral, disagree, strongly disagree the
factor analysis were run on the data collected.

Number of Respondent (for primary Study): 100

4.2 METHOD USED TO COLLECT DATA

Primary data collection is the process of gathering raw data by researchers directly from main
sources through surveys, interviews, or experiments. Here we use the questionnaire with
close-ended questions for collecting the data.

4.3 METHOD USED TO ANALYSIS DATA

Simple percentage analysis will be used for the research with special kind of rates, percentage
are used in making comparison between two or more series of data.

4.4 SWOT ANALYSIS OF NYKAA

Talking about the Nykaa business, let’s understand how this corporation can cater to different
individuals using SWOT Analysis. SWOT Analysis of Nykaa helps us to understand
companies through the lens of internal and external factors. Internal factors refer to strengths
and weaknesses, which can be controlled by the corporation.

To better understand the SWOT analysis of Nykaa, refer to the infographic below:

35
Now first let’s begin with the strengths of the company from the SWOT analysis of Nykaa.

But, first, we would like you to take a look at this video that covers the story of a $13 Billion
startup built by a woman and how it took the Indian market by storm.

Strengths of Nykaa

As strength is an essential component of SWOT. Nykaa has several strengths that make them
one of the largest e-commerce companies in the beauty and wellness sector in India.

Innovation: Nykaa is constantly adding innovations to its product range and offerings to
capture the attention of customers and meet the dynamic business environment by shifting
from online-only to omnichannel.

Strong Social Media Interaction: Nykaa has been able to attract many social media users as
potential customers with regular online campaigns, contests such as Nykaa Beauty Femina
Awards, brand endorsement, magazines, and web series etc.

Useful Tip: If you are well-versed with the knowledge of several digital marketing skills such
as e-commerce management, social media marketing, content strategy etc. then e-commerce
brands like Nykaa are looking for skilled professionals just like you on the daily basis.
Opportunities for these sections assure excellent pay and a healthy career from booming e-
commerce companies like Nykaa who are breaking the bars of IPO market capitalisation.

36
Wide Range of Products: Nykaa has very well managed in showcasing a wide range of
products in both online and offline stores to prevent customers from migrating away from the
brand due to lack of stock.

Geographical Presence: Since geographic presence in different regions is considered to be

one of the company’s greatest strengths. It helps to determine the reach of the company in the
target market and ensures easy accessibility.

Affordability: As the ability to pay and willingness to buy is a factor determining demand.
Nykaa also has considered this factor and has priced its product keeping in mind the needs of
different classes.

Less Charging Suppliers: Access to suppliers that offer raw materials at a lower cost can
improve the overall efficiency of the business.

Property Rights: A company may own various intellectual property rights that can make the
product offering unique and exclusive, making it difficult for competitors to imitate.

Weaknesses of Nykaa

Everyone business has its positive and negative sides, so Nykaa’s. Though Nykaa is one of
the current market leaders in beauty product e-commerce companies in India, many
weaknesses can become a nightmare for Nykaa’s growth.

Poor Waste Management: Nykaa has been criticized by environmentalists for its poor waste
management and inability to integrate sustainability into its business operations.

R&D: Low spending on research and development activities may weaken the company’s
performance due to a lack of local/international market knowledge.

Delivery Charges: It offers free delivery for orders above Rs. 700, which excludes some of
the prospective buyers.

Customer Care: Nykaa has not been able to resolve customer complaints so effectively.

Decision-making Process: Decision making at Nykaa takes too much time, leading to costly
delays in bringing new products to market.

Opportunities for Nykaa

37
The environment within which our organization operates offers opportunities. An
organization can identify such opportunities and enjoy benefits arising from them by planning
and executing required strategies.

Expanding Reach to Population: The exponential growth of the population and especially the
existing or potential customer segments is a great growth opportunity for the company.

E-commerce & Networking: The emergence of e-commerce and social media networking as
a trend can be a great opportunity for Nykaa. It can ensure a strong online presence on
various social networks.

Government Subsidies: Government provided subsidies and other measures that make the
business environment friendlier are a positive external environmental factor for Nykaa.

Matching Lifestyle of Customers: Improving customers’ lifestyles and standards means more
consumption of consumer goods and services and more opportunities to encourage purchases.

Business Model: Nykaa’s business model is climbing a new ladder to increase its
international reach and boost profits.

New Technologies: The development of new technologies to support the production and
delivery process of products can be used to integrate innovation into business operations.
Advanced Technology integration can reduce costs, improve efficiency, and lead to the rapid
adoption of innovative products.

Following Trends: The changing needs, tastes, and preferences of customers can be an
opportunity if the company has good market knowledge.

Threats to Nykaa

Every coin has two sides, so does Nykaa have.

E-commerce Regulations: The altering legal framework and the introduction of new, stricter
regulations pose a major threat to Nykaa. Inability to comply with the changing regulations
increases the risk of costly litigation.

The Rise in Competitors: The increasing number of direct competitors such as purplle,
indirect competitors such as small businesses selling organic and cruelty-free products affects
the company’s ability to maintain and expand its customer base.

38
Health Concern: The growing trends of organic and cruelty-free products poses a great
danger if the products offered are not environmentally friendly. Nykaa should now focus
more on expanding its reach to natural and organic products.

Economic Conditions: During the pandemic, the purchasing power declined to an extent and
the business got affected in the first phase of lockdown as the economic conditions of people
deteriorated.

This ends our elaborative SWOT analysis of Nykaa. Let us conclude our learning below.

To Conclude

Nykaa has become one of the largest platforms for meeting all the beauty, wellness and
fashion needs of customers and has been successful in doing so.

As we saw Nykaa has strengthened itself in providing products that are affordable and has
been able to do well through its omnichannel mode but at the same time, it somewhere lacks
in doing R&D which will help its competitors to take Nykaa’s customers away from it.

Nykaa has so many opportunities to become more successful in its venture. But there are
many areas where Nykaa still has to work such as reducing the product cost by reducing the
internal expenses so that it can be affordable for the majority of people.

It should increase the frequency of marketing digitally with the campaigns globally to create
a better digital presence and to cut off the competition by influencing the minds of consumers
by frequent advertisement.

39
 CHAPTER 5

DATA COLLECTION

Primary data collection

Primary data is information collected through original or first-hand research. For example,
surveys and focus group discussions.

The objective of any study defines whether primary or secondary data is to be collected. For
example, if a company intends to enter into women’s apparel and wants the India market size,
then it can resort to secondary data like industry reports & newspaper articles while if it
wants to study the preference of consumers for a new type of fabric/style, then it must
conduct primary research like surveys.

Usually, collection of primary data is costly & more time-consuming than secondary data but
it serves a specific need and control biases.

Secondary data collection

Created later by someone who didn't have first-hand experience, Secondary sources describe,
discuss, interpret, comment upon, analyse, evaluate, summarize, and process primary sources.

A secondary source is one that gives information about a primary source. Secondary sources
involve generalization, analysis, synthesis, interpretation or evaluation of the original
information.

On the other hand, secondary data is information which has been collected in the past by
someone else researching the internet, newspaper articles and company reports.

40
 CHAPTER 6

DATA ANALYSIS

Table 6.1: Beauty products purchased in Nykaa based on fashion

Options Percentage

Agree 26

Strongly agree 53

Disagree 9

Strongly disagree 5

Neutral 7

Total 100

Chart 6.1:

5%
7%
9% 26% Agree
Strongly agree
Disagree

53% Strongly disagree

Neutral

Interpretation

From the above table 6.1 we found that 53% strongly agreed that Beauty products purchased
in Nykaa based on fashion

41
Table 6.2: Nykaa develop the high dependable operational management in the company

Options Percentage

Agree 38

Strongly agree 54

Disagree 5

Strongly disagree 2

Neutral 1

Total 100

Chart 6.2:

2% 1%

5%

Agree
38%
Strongly agree
Disagree
Strongly disagree

54% Neutral

Interpretation

From the above table 6.2 we found that 54% strongly agreed that Nykaa develop the high
dependable operational management in the company

42
 Table 6.3: Nykaa high focus on service provision and customer focus in the company

Options Percentage

Agree 23

Strongly agree 52

Disagree 11

Strongly disagree 7

Neutral 7

Total 100

Chart 6.3:

7%
7%
23%

Agree
11%
Strongly agree
Disagree
Strongly disagree
Neutral

52%

Interpretation

From the above table 6.3 we found that 52% strongly agreed that Nykaa high focus on
service provision and customer focus in the company

43
 Table 6.4: Nykaa add quality of design products that were priorities of interest in the
company

Options Percentage

Agree 24

Strongly agree 52

Disagree 18

Strongly disagree 3

Neutral 3

Total 100

Chart 6.4:

3% 3%

24%
18%
Agree
Strongly agree
Disagree
Strongly disagree
Neutral

52%

Interpretation

From the above table 6.4 we found that 52% strongly agreed that Nykaa add quality of design
products that were priorities of interest in the company

44
 Table 6.5: Nykaa provide high technical solutions by implantation operational
management

Options Percentage

Agree 21

Strongly agree 54

Disagree 13

Strongly disagree 9

Neutral 3

Total 100

Chart 6.5:

3%
9%
21%

Agree
13%
Strongly agree
Disagree
Strongly disagree
Neutral

54%

Interpretation

From the above table 6.5 we found that 54% strongly agreed that Nykaa provide high
technical solutions by implantation operational management

45
 Table 6.6: Nykaa boost quality performance in online platform selection
Options Percentage

Agree 23

Strongly agree 53

Disagree 11

Strongly disagree 6

Neutral 7

Total 100

Chart 6.6:

7%
6% 23%
11%
Agree
Strongly agree
Disagree
Strongly disagree
53% Neutral

Interpretation

From the above table 6.6 we found that 53% strongly agreed that Nykaa boost quality
performance in online platform selection

46
 Table 6.7: Nykaa clearly focus on customer satisfaction in the company

Options Percentage

Agree 25

Strongly agree 51

Disagree 12

Strongly disagree 5

Neutral 7

Total 100

Chart 6.7:

7%
5%
25%

12% Agree
Strongly agree
Disagree
Strongly disagree
Neutral

51%

Interpretation

From the above table 6.7 we found that 51% strongly agreed that Nykaa clearly focus on
customer satisfaction in the company

47
 Table 6.8: Nykaa mainly focus on qualified services towards the customers

Options Percentage

Agree 22

Strongly agree 55

Disagree 12

Strongly disagree 6

Neutral 5

Total 100

Chart 6.8:

6% 5%
22%
12%
Agree
Strongly agree
Disagree
Strongly disagree
55% Neutral

Interpretation

From the above table 6.8 we found that 55% strongly agreed that Nykaa mainly focus on
qualified services towards the customers

48
 Table 6.9: Nykaa based on their reliability on the brand

Options Percentage

Agree 21

Strongly agree 52

Disagree 12

Strongly disagree 7

Neutral 8

Total 100

Chart 6.9:

8%
7% 21%

12% Agree
Strongly agree
Disagree
Strongly disagree
52% Neutral

Interpretation

From the above table 6.9 we found that 52% strongly agreed that Nykaa based on their
reliability on the brand

49
 Table 6.10: Nykaa implements satisfaction levels about the brand
Options Percentage

Agree 23

Strongly agree 51

Disagree 16

Strongly disagree 7

Neutral 3

Total 100

Chart 6.10:

3%
7%
23%

16% Agree
Strongly agree
Disagree
Strongly disagree
Neutral

51%

Interpretation

From the above table 6.10 we found that 51% agreed that Nykaa implements satisfaction
levels about the brand

50
 CHAPTER 7

FINDINGS OF THE STUDY

7.1 Findings

• It is found that 53% strongly agreed that Beauty products purchased in Nykaa based
on fashion
• It is found that 54% strongly agreed that Nykaa develop the high dependable
operational management in the company
• It is found that 52% strongly agreed that Nykaa high focus on service provision and
customer focus in the company
• It is found that 52% strongly agreed that Nykaa add quality of design products that
were priorities of interest in the company
• It is found that 54% strongly agreed that Nykaa provide high technical solutions by
implantation operational management
• It is found that 53% strongly agreed that Nykaa boost quality performance in online
platform selection
• It is found that 51% strongly agreed that Nykaa clearly focus on customer satisfaction
in the company
• It is found that 55% strongly agreed that Nykaa mainly focus on qualified services
towards the customers
• It is found that 52% strongly agreed that Nykaa based on their reliability on the brand
• It is found that 51% agreed that Nykaa implements satisfaction levels about the brand

51
 CHAPTER 8

RECOMMENDATIONS

8.1 Recommendations

• The company Nykaa can pitch its beauty products for men which apparently do not
have a great reach amongst the consumers.
• As people are being more conscious about their skin, they are shifting to herbal
products. Nykaa can promote its herbal products in order to increase its consumption
which leads to increase in sales.
• The company can avail gift vouchers to its potential customers and new customers so
that they can attract them to repeat their purchase.

52
 CHAPTER 9

CONCLUSIONS

9.1 Conclusion

It is quite inspiring to observe the growth and presence of an online organization like
NYKAA to evolve into one of India's largest and best seller of cosmetics and lifestyle brands.
Nearly 10 million people shop there online—turning Nayar, the CEO, into India’s richest
self-made businesswoman. The VP (Operation) of NYKAA is responsible for designing d-
commerce, m-commerce, and e-commerce specific creative implementations for sourcing
order fulfillment, inventory management, and warehouse operational management. After
capturing online, NYKAA’s online database has expanded its presence in almost all over
India. This shows the operational management has boost NYKAA’s growth and presence in
India.

53
REFERENCES

1. Anjana, S.S., 2018. A study on factors influencing cosmetic buying behaviour of

consumers. International Journal of Pure and Applied Mathematics, 118(9), pp.453-
459.
2. Bhatt, S. and Bhatt, A., 2012. Factors influencing online shopping: an empirical study
in Ahmedabad. The IUP Journal of Marketing Management, 9(4), pp.51-65.
3. Jadhav, V. and Khanna, M., 2016. Factors influencing online buying behavior of
college students: A qualitative analysis. The Qualitative Report, 21(1), p.1.
4. Sharma, A., Bhola, S., Malyan, S. and Patni, N., 2013. Impact of brand loyalty on
buying behavior of women consumers for beauty care products-Delhi region. Global
Journal of Management and Business Studies, 3(7), pp.817-824.
5. Rastogi, A.K., 2010. A Study of Indian Online Consumers & Their Buying
Behaviour. International Research Journal, 1(10), pp.80-82.
6. Prasad, A. and Gudimetla, S., 2019. A Study of Digital Shopping Behaviour of
Women with Respect to Beauty and Personal Care Products. In Proceedings of 10th
International Conference on Digital Strategies for Organizational Success.

54
 ANNEXURE

QUESTIONNAIRE

1. Beauty products purchased in Nykaa based on fashion

• Agree
• Strongly agree
• Disagree
• Strongly disagree
• Neutral

2. Nykaa develop the high dependable operational management in the company

• Agree
• Strongly agree
• Disagree
• Strongly disagree
• Neutral

3. Nykaa high focus on service provision and customer focus in the company

• Agree
• Strongly agree
• Disagree
• Strongly disagree
• Neutral

4. Nykaa add quality of design products that were priorities of interest in the company

• Agree
• Strongly agree
• Disagree
• Strongly disagree
• Neutral

5. Nykaa provide high technical solutions by implantation operational management

• Agree

55
 • Strongly agree
• Disagree
• Strongly disagree
• Neutral

6. Nykaa boost quality performance in online platform selection

• Agree
• Strongly agree
• Disagree
• Strongly disagree
• Neutral

7. Nykaa clearly focus on customer satisfaction in the company

• Agree
• Strongly agree
• Disagree
• Strongly disagree
• Neutral

8. Nykaa mainly focus on qualified services towards the customers

• Agree
• Strongly agree
• Disagree
• Strongly disagree
• Neutral

9. Nykaa based on their reliability on the brand

• Agree
• Strongly agree
• Disagree
• Strongly disagree
• Neutral

10. Nykaa implements satisfaction levels about the brand

56
• Agree
• Strongly agree
• Disagree
• Strongly disagree
• Neutral

57