Nykaa is an Indian company founded by Falguni Nayar in 2012, headquartered in Mumbai. It sells beauty, wellness, and fashion products across websites, mobile apps, and 100+ offline stores. In 2020, it became the first Indian unicorn startup headed by a woman. Nykaa sells products manufactured in India as well as internationally. As of 2020, it retails over 2,000 brands and 200,000 products across its platforms
Background
The inconsistencies witnessed in the market of beauty products gave the initial impetus to Falguni Nayar, the founder of the company. The beauty and cosmetic products market of India was not at par with the scope of the products, as it was in other nations like France and Japan, though the market demand was high
Founder
The Founder and CEO of Nykaa is Falguni Nayar, known as the richest self-made woman in India, and is listed in the 10th position among the richest self. Nayar was a student of IIM Ahmedabad from where she completed her MBA in Finance. She then joined Kotak Mahindra Capital Company. She served with the bank for 18 long years after which she resigned to dedicatedly follow her entrepreneurial dream : Nykaa.com
Nykaa - Name, Tagline & Logo
The brand name 'Nykaa' is derived from the word 'nayaka', which means 'one in the spotlight' in Sanskrit. The company's tagline is 'Your Beauty, Our Passion'. The brand color was very carefully chosen because the brand targets ladies, and the colors red and pink would perfectly reflect a modern girl's flaws and vibrancy
Investors & Acquisition
The Nykaa investors include Lighthouse, Steadview, Sunil Kant Munjal of Hero Group, and Fidelity Management, among others. In May 2019, Nykaa acquired 20Dresses.com, a private women's styling platform. The same year, it launched its first celebrity partnership brand, Kay Beauty, with actress Katrina Kaif. In 2021, Nykaa Fashion acquired the Indian fashion jewelry brand, Pipa Bella, and the Indian skincare brand, Dot & Key. In 2022, Nykaa acquired an 18.51% stake in the beauty brand Earth Rhythm. Earth Rhythm is an Indian skincare brand that aims to deliver smart and safe skincare products
Corporate Social Responsibility
Nykaa extends social and financial help to causes such as education, health, women's rights and empowerment, rural development, and disaster management. Some of its notable CSR partnerships are with SPARSH India, CARE International Confederation, PRIDE, Milaap, Nanhi Kali, Make a Wish Foundation, Benefactory, Sneha, GiveIndia, and PM CARES Fund
Marketing Strategy
- Overview
- E-commerce firm selling Nykaa Naturals and products from over 1200 global brands
- Operates on an inventory-based business strategy with stock purchased directly from producers
- Provides extensive material including product evaluations, beauty how-to videos, expert-written essays, and an online beauty magazine
- Offers Nykaa PRO membership program for exclusive access to professional beauty products and deals
- Retail Formats
- Transitioned from online-only to an omnichannel model in 2015
- Retail locations in major cities in three formats: Luxe, On Trend, and kiosks
- Nykaa Fashion is omnichannel with the opening of its first store in Delhi in December 2020
- Product Range
- Specializes in cosmetics, skincare, haircare, perfumes, bath and body, luxury, and wellness products for men and women
- Carries international premium beauty brands such as Huda Beauty, MAC, Dior, Givenchy, and Nykaa Beauty in the Luxe format
- Content Marketing
- Relies heavily on content marketing with blogs, beauty tutorials, DIYs, and more
- Nykaa has its own blog called "Nykaa beauty book" for publishing beauty, makeup, and personal care articles
- Utilizes YouTube channel "Nykaa TV" for video assistance, beauty tips, and makeup hacks
- Types of Marketing Strategies
- Robust marketing strategy with digital marketing at its core
- Targets customers in Tier 1, 2, 3, and 4 cities
- Comprehensive YouTube marketing plan through the "Nykaa TV" channel
- Utilizes search engine optimization (SEO) to improve organic traffic and brand visibility
- Email marketing campaigns with trending content and early access to sales
- Influencer marketing plays a significant role in promoting brand launches and sales
- Nykaa has received accolades, awards, and recognition for innovation in retail and e-commerce
- Omnichannel Experience
- Offers products through website, mobile app, and 80+ physical retail locations
- Includes kiosks, pop-up stores, and dedicated offline locations
- Nykaa Fashion's omnichannel approach enhances its market position
Advertisement Campaigns
- Tum Hi Ho Nykaa - Nykaa’s Ad Campaign Empowering Women
This brand film challenging gender stereotypes was released on 5th October, 2021. Nykaa empowers women to be the Nayaka (Protagonist) of their own story in a two-minute brand film.
The last lines of Nykaa's latest marketing film, Kahaani koi bhi ho, tum hi ho nayaka, are a resounding reminder of its origins, a message for every woman to embrace and cherish her place in the world.
Shalini Raghavan, Group CMO at Nykaa, says : “The story of every woman, who imagines and discovers her life’s own narrative, needs to be told and celebrated. How a woman chooses to express herself is about heart and intuition and at Nykaa we will always be her champion. Through this film we reiterate this commitment to ignite her flight to be the nayaka of her own story.”
Since its inception, Nykaa has been an ardent advocate of women taking control of their own stories, and has found methods to honour their tenacity. The essential spirit of brand Nykaa is woven throughout this stunning story : subtle but crucial reminders of the transformational potential of beauty, which is beyond physical manifestation.
- #WhatMakesYouBeatiful Ft. Laxmi Agarwal
Nykaa purchases products directly from manufacturers and stores it in their #WhatMakesYouBeautiful ft Laxmi Agarwal Campaign
Nykaa, as a brand, wishes to make beauty more accessible and empowering to all. With Laxmi Agarwal, they wanted to put across a message to women everywhere: You can be any kind of beautiful you want and makeup is simply a tool to celebrate and express yourself with. The campaign wanted to talk about many nuanced and intricate traits that make a woman beautiful
- #AllThatYouLove Campaign Ft. Janhvi Kapoor
The campaign highlighted the unapologetic relationship every Nykaa woman has with her beauty products, while also tipping a hat to the brand’s own relationship with consumers.
Featuring a playful conversation between Kapoor and her partner, the film significantly established a simple fact that women love being beautiful and their relationship with beauty products goes deeper than one can imagine. From make-up to skincare, when it comes to making themselves look beautiful, women truly enjoy every bit of the process. In line with this insight, the brand invites women to play, explore & experiment with Nykaa and claim all that they love, no matter what stage of the beauty journey they’re at
These ad campaigns are not only aired on television but successfully spread over YouTube and Instagram and digital and mainline media at large
