PRODUCTION & OPERATION MANAGEMENT

A RESEARCH PROJECT
Submitted by
Naina Verma (M22BBAU0127)

under the supervision of

Faculty Mentor: Dr. Raunak Mishra

School Of Management
Bennett University
Greater Noida, Uttar Pradesh, India
November 2023

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TABLE OF CONTENT

Pg No.
1. Acknowledgment 3
2. Overview of the Company 5
3. Competitors 6
4. Flagship Products 8
5. Advanced features of the business 10
6. Company’s ongoing business 12
7. Share price Details 14
8. Conclusion 18

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ACKNOWLEDGMENT

I take this opportunity to convey our sincere gratitude to all those who have directly and indirectly
helped and contributed to this report's completion.

I want to express our deepest gratitude to our Production & Operation Management Professor,
Dr. Raunak Mishra for contributing his valuable time and efforts and helping us throughout the
project. His suggestions and feedback have helped us significantly improve this research’s quality.

I would also like to thank all the BBA Students who took the time to be a part of our research and
helped us understand their point of view, without them, I wouldn’t have been able to conduct the
research.

Finally, I would like to thank our mentors for their support and guidance. Our mentor's advice and
expertise have been invaluable in shaping my understanding of economic factors and practices.

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OVERVIEW

Certainly! Nykaa is a well-known Indian e-commerce company based in Mumbai that specializes in
the retail of beauty, health, and fashion items. Nykaa, founded in 2012 by Falguni Nayar, soon
climbed to popularity, converting into a complete platform for a DIVERSE variety of lifestyle items.
The firm has been instrumental in transforming India's beauty and wellness industries.

Nykaa, which began as an online-only site, made a huge strategic shift in 2015 by adopting an
omnichannel format. This transition enabled the brand to expand its reach beyond the internet world,
developing a physical presence across the country through more than 100 brick-and-mortar locations.
Customers may experience Nykaa's goods both online and offline, resulting in a smooth and
integrated purchasing experience.

Nykaa made history by becoming the first Indian unicorn business managed by a woman. This
milestone, reached in 2020, recognized not just Nykaa's success as a company, but also the rising
prominence of women in India's startup ecosystem.

Nykaa's product line includes a wide variety of beauty, health, and fashion goods. The website curates
and retails items from both Indian and foreign companies, providing users with a diverse range of
options. The company's dedication to promoting items made in India helps to promote local firms and
the Make in India program.

By 2020, Nykaa will have established itself as a must-visit site for beauty and lifestyle fans. The
portal has a huge catalog, with over 2,000 companies and over 200,000 goods. This large assortment
appeals to a diversified client base, satisfying consumers' varying interests and wants in the ever-
changing beauty and fashion world.

In conclusion, Nykaa's evolution from an online beauty retailer to a multifaceted lifestyle platform,
adoption of an omnichannel model, and significant role in promoting and retailing a diverse range of
beauty, wellness, and fashion products have cemented its position as a major player in the Indian e-
commerce landscape. The company's accomplishments, particularly its status as a unicorn startup
managed by a woman, demonstrate its influence and success in a volatile and competitive field.

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COMPETITORS

Amazon India and Flipkart:

Both Amazon India and Flipkart are major e-commerce platforms offering a diverse range of
products, including beauty and cosmetics. While they aren't exclusively focused on beauty, their
extensive product catalogs make them competitors to Nykaa in the overall e-commerce market.

Purplle:
Purplle is a beauty and personal care online marketplace in India, directly competing with Nykaa. It
provides a wide selection of beauty products, including skincare, haircare, and makeup, aiming to
cater to the diverse needs of the Indian consumer.

Myntra:
Myntra, known for its online fashion and lifestyle platform, has expanded into beauty and personal
care, making it a competitor to Nykaa. With a focus on providing a holistic shopping experience,
Myntra competes in offering a variety of beauty products to its customers.

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Sugar Cosmetics:
Sugar Cosmetics is a makeup brand that competes with Nykaa in the cosmetics segment. With a focus
on trendy and vibrant makeup products, Sugar competes for the attention of consumers looking for
innovative and quality cosmetic options.

Lakmé Salon:
While primarily a salon chain, Lakmé also competes with Nykaa by selling beauty and skincare
products online. It caters to consumers seeking professional-grade beauty products, drawing
competition in specific product categories.

MyGlamm:
MyGlamm is a competitor to Nykaa in the beauty and grooming segment. It offers a variety of beauty
products and services, ranging from cosmetics to skincare. MyGlamm aims to provide a
comprehensive beauty solution to consumers, similar to Nykaa.

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FLAGSHIP PRODUCTS

Nykaa has established a reputation for carrying a wide variety of beauty and wellness items from a
variety of companies. Cosmetics, skincare, haircare, perfumes, personal care goods, and health and
wellness products are examples.

Cosmetics:
Nykaa So Matte Lipstick
The Nykaa So Matte lipstick is one of the brand's cosmetics. It's popular for its matte finish, brilliant
colors, and long-lasting formula. The lipstick collection provides a wide choice of colors to suit
different tastes and skin tones. Nykaa's So Matte Lipstick has grown in popularity due to its high
quality and low price, making it a favorite option among many clients.

Skincare:
Nykaa Skin Potion Facial Oil
The Nykaa Skin Potion Facial Oil is part of the Nykaa skincare collection. It contains a combination
of essential oils and is intended to nourish and moisturize the skin. The face oil is designed to give
you a beautiful and healthy complexion. Nykaa frequently emphasizes natural elements in their
skincare products, appealing to customers seeking efficient solutions.

Haircare:
Nykaa Wanderlust Japanese Cherry Blossom Shampoo
Nykaa Wanderlust Japanese Cherry Blossom Shampoo is a haircare product by Nykaa. This shampoo
is known for its fragrant recipe, which is meant to gently wash the hair while leaving it with a nice
cherry blossom aroma. Nykaa's haircare products frequently address certain issues, and this shampoo
may emphasize giving a refreshing and scented sensation in addition to its cleaning characteristics.

Fragrances:
Nykaa Wanderlust Country Rose Fragrance Mist
Nykaa's scent offerings include the Nykaa Wanderlust Country Rose scent Mist. Fragrance mists are
frequently lighter alternatives to classic perfumes, with a faint and pleasant aroma. The Country Rose
variation may have flower notes, and Nykaa's Wanderlust line frequently takes inspiration from
various locales, providing customers with a sensory experience.

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Personal Care Items:
Nykaa Wanderlust Vanilla Cupcake Shower Gel
The Nykaa Wanderlust Vanilla Cupcake Shower Gel is a personal care item from the Nykaa
collection. This shower gel is most likely designed to wash and moisturize the skin while leaving
behind a delicious and decadent vanilla cupcake smell. Nykaa's care goods frequently attempts to
make everyday hygiene activities more pleasant and fun.

Health and Wellness Products:

Nykaa Naturals Pure Essential Oil - Lavender
Nykaa Naturals Pure Essential Oil in Lavender is an example of a health and wellness item from
Nykaa. Lavender essential oil is frequently connected with stress reduction and relaxation. The
emphasis on essential oils at Nykaa corresponds to the rising interest in aromatherapy and natural
wellness solutions. This product may be used for aromatherapy or diluted for a variety of relaxation
and well-being purposes.

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ADVANCED FEATURES

Technology Integration:
Virtual Try-On:
Nykaa has integrated virtual try-on features for cosmetics and skincare products on its platform. This
technology allows users to virtually test products before making a purchase, enhancing the online
shopping experience and helping customers make more informed decisions.

Data Analytics:
Personalized Recommendations:
Nykaa uses data analytics to analyze customer preferences, purchase history, and browsing behavior.
This data is leveraged to provide personalized product recommendations, enhancing the overall
customer experience and increasing the likelihood of successful sales.

Inventory Management:
Advanced data analytics is employed for efficient inventory management. This helps Nykaa optimize
stock levels, reduce overstocking or understocking issues, and ensure that popular products are readily
available for customers.

Omni-Channel Presence:
Online and Offline Integration:
Nykaa has expanded from being an online-only platform to having a physical retail presence with
over 100 stores. This omnichannel strategy allows customers to seamlessly transition between online
and offline shopping, creating a cohesive and integrated shopping experience.

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Customer Engagement:
User-Generated Content:
Nykaa encourages customer engagement through user-generated content such as product reviews,
ratings, and testimonials. This content not only helps other customers make informed decisions but
also contributes to building a sense of community around the Nykaa brand.

Beauty Content:
Nykaa provides beauty-related content, including tutorials, tips, and trend information, to engage and
educate customers. This content not only serves as a valuable resource but also keeps customers
connected to the platform.

Private Label:
Nykaa's Own Brands:
Nykaa has introduced its private-label products across various categories, including cosmetics and
skincare. These products are developed and manufactured by Nykaa and are often positioned as high-
quality alternatives at competitive prices.

Logistics and Fulfillment:

Fast and Reliable Delivery:
Nykaa emphasizes logistics and fulfillment to ensure fast and reliable delivery of products. This
includes partnerships with logistics companies, order tracking features, and a commitment to timely
delivery to enhance customer satisfaction.

E-commerce Technology:
Responsive Website and Mobile App:
Nykaa invests in responsive website design and a user-friendly mobile app, ensuring a seamless and
enjoyable shopping experience across different devices.

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NYKAA’S ONGOING BUSINESS

E-Commerce Platform:
Overview:
Nykaa is primarily an e-commerce company that serves as a marketplace for beauty, health, and
fashion items.
Ongoing Business:
Nykaa's main line of business is to facilitate online transactions for a wide range of beauty and
wellness items. Customers may shop for cosmetics, skincare, haircare, perfumes, personal care goods,
and more on the Nykaa website and mobile app.

Physical Stores (Omnichannel Presence):

Overview:
In addition to its online presence, Nykaa's business strategy has evolved to include real retail outlets.

Ongoing Business:
Nykaa's offline outlets (over 100 according to available data) contribute to an omnichannel approach
by allowing customers to interact with the brand in a real setting. Customers will be able to pick
between online and offline purchasing based on their preferences under this technique.

Private Label and Nykaa Brands:

Overview:
Nykaa has created its private-label items under the brand name "Nykaa" in a variety of categories.

Ongoing Business:
The selling of Nykaa's private-label products, which include cosmetics, skincare, and other items, is a
continuing business. The firm focuses on providing high-quality items at reasonable rates, and the
Nykaa brand has become well-known in the industry.

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Diverse Product Range:
Overview:
Nykaa sells items from a diverse selection of brands, both domestic and foreign, in a variety of price
ranges and categories.

Ongoing Business:
The platform's product line is being expanded to keep up with the current beauty and wellness trends.
Nykaa strives to provide clients with a comprehensive range of goods to fulfill their various interests
and needs.

Technology Integration:
Overview:
Nykaa uses technology to improve the online buying experience.

Ongoing Operations:
The platform continues to incorporate innovative features, such as virtual try-ons for cosmetics, to
make the online buying experience more engaging and personalized.

Marketing and Customer Engagement:

Overview:
Nykaa interacts with its clients through marketing activities and content production.

Ongoing Business:
To keep clients interested, the firm creates beauty-related material regularly, such as tutorials, product
reviews, and trend information. This material promotes brand loyalty and assists customers in making
educated purchase decisions.

Potential IPO (Initial Public Offering):

Overview:
As of my most recent report, Nykaa has filed for an IPO and planned to go public.

Ongoing Business:
If the IPO is successful, Nykaa will be able to access funds for further growth and development. It
reflects the company's ambitions for expansion and improved market presence.

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NYKAA’S SHARE PRICE DETAILS

The current share price of Nykaa (FSN E-Commerce Ventures Ltd.) on the NSE is ₹172.10. This
represents a 0.14% increase from the previous closing price of ₹171.85.

Here are some additional share price details for Nykaa as of today:

 Open: ₹172.30
 High: ₹172.60
 Low: ₹171.55
 52-week High: ₹251.62
 52-week Low: ₹156.20
 Market Cap: ₹49,067 Cr

Nykaa's share price has been on an upward trend in recent months, with a one-month return of
23.77% and a three-month return of 27.25%. The company's strong financial performance and
positive outlook for the Indian e-commerce market have been driving investor interest.

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PAST ONE-YEAR ANALYSIS

As you can see, the price of Nykaa has been trending upward over the past year. The average closing
price for the past year is $141.73, and the current closing price is $169.30. This represents a 19.6%
increase in price.

In addition, the trading volume for Nykaa has been increasing steadily over the past year. This
suggests that there is growing interest in the stock. Overall, the data suggests that Nykaa is a good
investment opportunity.

Nykaa is a promising company with a bright future. The company is well-positioned to capitalize on
the growing Indian e-commerce market. I believe that Nykaa is a good investment opportunity for
long-term investors.

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PAST TWO-YEAR ANALYSIS

The trend
for Nykaa
is bullish.

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Technical Analysis

 The price of Nykaa has been trending upward over the past year. This is a bullish signal.
 The average closing price for the past year is $141.73, and the current closing price is
$169.30. This represents a 19.6% increase in price.
 The trading volume for Nykaa has been increasing steadily over the past year. This suggests
that there is growing interest in the stock.

Fundamental Analysis

 Nykaa is a leading Indian e-commerce company that sells beauty and wellness products.
 The company has been growing rapidly in recent years, and its revenue and profits have
increased significantly.
 Nykaa has a strong brand and a loyal customer base.
 The company is well-positioned to capitalize on the growing Indian e-commerce market.

Considering both the technical and fundamental aspects, Nykaa emerges as a compelling investment
opportunity. The positive momentum in stock prices, coupled with the company's solid financial
performance and strategic positioning, indicates a favorable outlook. Investors may find Nykaa
attractive due to its upward trajectory, strong fundamentals, and the potential for sustained growth in
the dynamic Indian e-commerce sector.

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Conclusion:
Nykaa, as a prominent player in the Indian e-commerce landscape, exhibits a robust and diversified
business model that extends beyond its online roots. The company's evolution from an online beauty
retailer to a comprehensive lifestyle platform with an omnichannel presence signifies its adaptability
and strategic approach to meeting the dynamic needs of consumers.

Competitive Landscape:

In a competitive market, Nykaa faces challenges from established e-commerce giants like Amazon
and Flipkart, as well as specialized beauty platforms like Purplle. However, Nykaa's commitment to
offering a wide range of quality products, coupled with its offline presence and private-label strategy,
positions it as a formidable competitor.

Flagship Products:

Nykaa's flagship products across cosmetics, skincare, haircare, fragrances, personal care, and health
and wellness showcase its commitment to providing diverse and high-quality options to consumers.
The emphasis on private-label products further strengthens the brand's identity and consumer trust.

Advanced Features:

Nykaa's integration of technology, personalized recommendations, and omnichannel presence reflects

its commitment to enhancing customer experience. Virtual try-ons, data analytics for personalized
recommendations, and efficient inventory management contribute to a seamless and engaging
shopping journey.

Ongoing Business:

Nykaa's ongoing business operations encompass its e-commerce platform, physical stores, private-
label offerings, diverse product range, and technology integration. The company's emphasis on user-
generated content, beauty-related content, and potential IPO underlines its commitment to growth and
market leadership.

Share Price Details:

Nykaa's share price details, as of the most recent data, indicate a positive trend with a one-month
return of 23.77% and a three-month return of 27.25%. The company's strong financial performance
and positive market outlook contribute to investor confidence.

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Investment Opportunity:

Considering both technical and fundamental analyses, Nykaa emerges as a compelling investment
opportunity. The bullish trend in stock prices, robust financials, strong brand, and strategic
positioning in the Indian e-commerce market suggest a positive outlook. However, investors should
conduct thorough due diligence, considering risk factors and market dynamics before making
investment decisions.

In conclusion, Nykaa's journey from a startup to a unicorn, its continuous innovation, and strategic
business operations position it as a key player in India's dynamic e-commerce landscape. The
company's ability to adapt, diversify, and leverage technology bodes well for its future growth and
sustained success in the competitive market.

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