AURORA'S P.G.
COLLEGE NAMPALLY
DEPARTMENT OF MANAGEMENT
ACADEMIC YEAR 2023-2024
MBA II YEAR III SEMESTER
A Case Study on NYKAA’s E-Commerce
Strategy
Habib Nikhil:- 2129-22-672-012
Aily Aishwarya:- 2129-22-672-014
Balkonda Laharika:- 2129-22-672-015
Thanakanti Amrutha:- 2129-22-672-016
Case Study:-
Nykaa’s e-commerce Strategy
Nykaa is a Mumbai-based retailer of beauty, fashion, and health products, established as an Indian e-
commerce set-up by Falguni Nayar in 2012. It sells Nykaa Naturals and products from over 1200
global Brands. In 2015, the company switched from an online-only to an omnichannel model. It
opened up Numerous retail locations in major cities in three main formats: Luxe, On Trend, and
kiosks. Nykaa sells its products through its website, mobile app, and 80+ physical locations.
Cosmetics, skincare, haircare, perfumes, bath and body, luxury, and wellness products for men and
women are among the Company’s specialties. Nykaa Fashion opened its first store in Delhi in
December 2020. The company provides extensive material such as product evaluations, beauty how-
to videos, expert- written essays, and even an online beauty magazine. The Nykaa helpline is
intended to assist customers in Selecting products and services tailored to their specific needs. Nykaa
launched Nykaa PRO in 2020—a Membership program that offers Nykaa app users exclusive
accessibility to professional beauty products And deals. Nykaa, a direct-to-consumer e-commerce
brand stocks products purchased directly from producers. They Store the goods in their warehouses,
where third-party vendors list products. Nykaa’s products are Available for purchase online or at one
of the company’s physical retail locations. Huda Beauty, MAC, Dior, and Givenchy are among the
international premium beauty brands represented in the Luxe format, as is Nykaa Beauty, the in-
house beauty collection. The Nykaa On Trend format chooses products by category based on their
popularity. Beauty assistants Are available at the brand’s kiosks to aid beginners in selecting the
appropriate products from a wide Range of brands. Furthermore, the organization verifies the
authenticity of its items and adheres to fair Pricing. Any product damage is the company’s
responsibility. Nykaa has partnered with makeup artist Namrata Soni to launch its premium beauty
brand, Kay Beauty, and collaborated with fashion influencer Masoom Minawala to launch its fashion
category. The company Has a dedicated blog and YouTube channel where it provides beauty tips,
product reviews, and tutorials. The company’s loyalty program, Nykaa Rewards, offers customers
points for purchases, which can be Redeemed for discounts on future purchases. Nykaa has also
launched a premium loyalty program, Nykaa Prive, which offers personalized recommendations and
early access to new products.
Nykaa has launched exclusive collections in collaboration with Masaba Gupta, Huda Beauty, and Dior.
The company has also partnered with celebrities such as Katrina Kaif, Shraddha Kapoor, and Bhumi
Pednekar to launch their own beauty brands on the Nykaa platform. The company’s annual sale
event, Nykaa Pink Friday Sale, offers discounts on a wide range of products And attracts a large
number of customers. Nykaa also runs targeted promotions, such as seasonal Discounts, festive
offers, and flash sales, to drive sales and customer acquisition. The company has also made a number
of strategic acquisitions to expand its product range and services. Here’s a summary of Nykaa’s
funding and acquisitions: Funding: Nykaa raised $3.5 million in a Series A funding round led by
private equity firm TVS Capital (2015), $12.5 million in a Series B funding round led by Hero Group’s
Sunil Kant Munjal and existing Investor TVS Capital(2016), $24 million in a Series C funding round led
by Lighthouse Funds, with Participation from existing investors TVS Capital and Max Ventures (2018),
$14 million in a Series D Funding round led by TPG Growth, with participation from existing
investors(2019). Acquisitions: Nykaa acquired 20Dresses, a fashion e-commerce platform that offers
a personalized Shopping experience to customers (2018), online fashion platform Pipa Bella, which
specializes in Jewelry and accessories (2019), on-demand beauty services platform, Femina Flaunt,
which offers home Beauty services(2019), the homegrown skincare brand Dot & Key, through the
subscription and purchase Of equity shares(2021), Nykaa has generated a total of $148.5 million in
13 rounds of fundraising. Their most recent fundraising Came through a Secondary Market round on
November 26, 2020. When the company went public on November 10, 2021, it opened at $2,018.00.
Nykaa’s IPO in November 2021, which was one of the biggest in Indian e-commerce sector was
valued at Around Rs 5,352 crore ($717 million).The IPO was oversubscribed by more than 80 times.
The retail Portion of the IPO was oversubscribed by over 13 times. Nykaa’s successful IPO highlights
the strong investor interest in India’s e-commerce sector and reflects The company’s strong growth
trajectory and potential. The IPO has also provided Nykaa with access to Capital to fund its expansion
plans and invest in its business.
Discussion Questions:-
1. Why is the Nykaa Marketing Strategy So Successful?
2. Would you say Nykaa as a brand is successful? Explain.
3. Does the access to funding by Nykaa reflect its growth
potential?
4. Nykaa has used the acquisitions route for growth in the
ecommerce segment. Is it justified in using this path?
Case Study Analysis:-
Case Introduction:
NYKAA’s is a Mumbai retailer of the beauty, fashion, and healthcare
products, established from over 1200 global brands. In 2015 they
switched there companies ONLINE TO OFFLINE.
NYKAA sell its products through its websites mobile apps, physical
locations. They sell cosmetics, skincare, haircare, perfumes bath
and body, luxury and wellness, products from men and women’s
NYKAA launched NYKAA peo in 2020 for beauty products and deals.
Key Products:
Some of key products which are sold by NYKAA are:-
• Makeup products
• Skin care products
• Hair care products
• Health care products
• Fragrance
BACKGROUND
• The Brand NYKAA follows an Inventory based Model
with warehouses in mumbai, pune, new Delhi, Kolkata,
Haryana, and Bangalore, they claim to have more than
2lakhs products across 2000Brands.
• In 2020, Nykaa was priced at Rs Billions, which made
it the first ever unicorn startup led by an Indian
Woman
• In addition to its primary e-commerce business it and
established an offline presence through 16 Brick and
mortor stores across India. It has three offline stores
formats including NYKAA trend, NYKAA lux, and
Nykaa Beauty kiosks.
• In 2015 NYKAA launched its collection of Indian house
beauty products under NYKAA Cosmetics, extending it
across other categories like eyes, lips, nails, and face.
Customer Satisfaction:
• Most of the customers are Very Satisfied by Nykaa’s
Cosmetic Products.
• Nykaa provides best and tested Cosmetic Products to
their Consumer.
• Nykaa attracts Consumers by innovating Brand New
Health Care Products and Natural Products.
Growth of Nykaa:
The following picture shows the growth of Nykaa from
year 2021-2023:-
Discussion Questions
1. Why is the Nykaa Marketing strategy so
successful?
• Nykaa’s success strategies lies in its effective use of
Digital Marketing, Collaborations, and Diverse product
range. The brand capitalized on the growing trend of
Online shopping in the Beauty Industry and create an
Online platforms, Offering Customers a wide selection
of products from various brands.
• Nykaa strategy is so successful because they follow a
User-Friendly Online Platforms, diverse Product range.
Strategic influencer partnerships has positioned Nykaa
as Leader in the Beauty and Cosmetics Industry.
• Nykaa success can be attributed by adapting the
Digital Landscape into the Online beauty market, and
Creating a strong Brand image through Effective
marketing.
2. Would you say Nykaa as a brand is successful?
Explain.
• NYKAA features in the prestigious annual TIME 100
Most Influential Companies List 2022. Ten years after
being founded by entrepreneur with the goal of
inspiring Indian women, Nykaa has evolved into one of
India’s largest cosmetics and lifestyle brands.
• Overall, Nykaa has been successful in providing a
convenient and reliable Platform for customers to
purchase their favourite beauty and wellness products.
Its focus on customer service, affordable pricing, and a
wide range of products has made it a popular
destination for beauty enthusiasts in Indi.
• With its targeted customer base expansion by including
girls, women of all spheres of life, and even men,
Nykaa’s digital marketing strategies created a strong
brand positioning.
3. Does the access to funding by Nykaa’s reflect its
growth potential?
• Nykaa raised funds amounting to about 1,600 million
Indian rupees in March 2020. This was an increase of
more than 600 million Indian rupees from the previous
year’s funding Nykaa is an online multi-brand beauty
and personal care products retailer. The Mumbai-
based company plans on becoming public soon.
• Nykaa anticipates 23% growth in Q2; strong beauty
segment performance despite festive season delay –
Industry News | The Financial Express,
• Nykaa’s fashion vertical GMV rose 50 per cent to Rs
724.4 crore during the reported quarter on YoY basis,
and annual unique transacting customers grew 50 per
cent YoY to 24 lakh in December 2022 quarter.
4. Nykaa has used the acquisitions route for the
growth in the ecommerce segment. Is it justified
in using this path?
Nykaa acquired
1) 20Dresses, a fashion:- A e-commerce platform that
offers a personalized shopping experience to customers
(2018)
2) Pippa Bella:- An online fashion platform which
specializes in jewellery and accessories (2019)
3) Famine Flaunt:- An on-demand beauty services
platform which offers home beauty services(2019),
4) Dot & Key:- The home-grown skincare brand which
offer various Makeup Sets.
Nykaa’s Acquisitions plan can be a strategic route for
growth in the ecommerce segment, As it allows to
quickly expand their customer base, product offerings,
or technological capabilities. Nykaa’s Acquisition plan
is justified as it helped to generate more revenue and
give a best Cosmetic Products which attracts consumers
towards the Company.
Conclusion
As we saw Nykaa has strengthened itself in providing
products that are affordable and has been able to do well
through its Omni channel 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.
