In today’s blog we will take a closer glance at how Falguni Nayar became India’s first self made billionaire by selling beauty and cosmetic products online
What does Nykaa Do?
Nykaa is a cosmetics retailer that offers products both online and in stores. Product reviews, beauty how-to videos, expert-written articles, and even an e-beauty magazine are all available through the firm. The items that beauty and wellness firms promote are purchased directly from the manufacturers and are thus legitimate, as well as being delivered!
- Falguni Nayar, the company’s creator, was inspired by the anomalies she saw in the cosmetic product industry.
- Despite significant market demand, India’s beauty and cosmetics market did not match the extend of the items as it did in other countries such as France and Japan.
- Furthermore, most items were not available in various parts of the country prompting the development of Nykaa.
Nykaa has established itself as one of the most capable companies in the beauty and fashion field thanks to its solid marketing approach, which is centred on digital marketing.
The brand not only concentrates on Tier 1 cities, but also pitches all potential clients in Tier 2, 3, and 4 cities.
- Nykaa has four social media profiles for marketing its in-house brand My Nykaa: Nykaa beauty for e-commerce platform promotion, Nykaa fashion for e-commerce apparel shop promotion, and Nykaa beauty book for e-commerce beauty and makeup advice.
- The firm maintains profiles on a variety of social media sites to market the brand extensively. The brand also uses its social media accounts to share the material made by its influencers. As a result, influencer marketing plays an essential role in Nykaa’s promotion.
- Nykaa has a comprehensive YouTube marketing plan in place. The firm does not use its Youtube channel to sell items, instead focused on providing consumable content to its target customers, such as beauty, personal care advice, cosmetic hacks, and more.
- In addition, the firm uses Youtube advertisements to target its clients from time to time. As a result, Nykaa’s Youtube marketing is fuelled by targeted adverts and high-quality content that keeps the audience engaged.
- Nykaa is a direct-to-consumer (D2C) consumer items eCommerce firm with an inventory-based business strategy. The firm buys its items directly from producers and stores them in specified warehouses in New Delhi, Mumbai, and Bangalore. These items are available for purchase on Nykaa’s website or in one of the company’s three offline retail formats: Nykaa Luxe, Nykaa On Trend, and Nykaa Kiosks.
- The company’s inventory-led business strategy has helped it achieve significant profit margins and has resulted in a lucrative operation. Aside from that, the organisation verifies product authenticity and adheres to fair price.
The brand sells its own products and the products of its partnered brands, which is the primary source of the revenue of the brand.
The company’s banner adverts also assist it in attracting a large amount of visitors, many of which convert into sales. Discount income, commission income, and miscellaneous income are some of the brand’s additional revenue streams.
- Nykaa claims to have more than 15 million users.
- It has more than 70 locations throughout India.
- The corporation boasts approximately 500 different brands.
- Nykaa has approximately 130,000 goods available for purchase on its website, on its app, and in its shops.
The unicorn cosmetics and beauty goods firm has seen a significant shift in customer preferences into vital categories, such as personal skin and hair care products, which has helped it grow faster than its competitors following the coronavirus outbreak. Furthermore, the company’s transition from an online to an omnichannel retail strategy had a significant role in this. All of this not only improved customers’ perceptions of the brand, but also enabled Nykaa reach populations it had previously been unable to reach.
New Brand And IPO
As soon as the corporation began to recover from the pandemic’s impacts in October 2020, it established Nykd, an intimate apparel brand.
- Nykaa’s CEO, Falguni Nayar, recently reported that the platform’s sales and profitability had increased.
- This is why it will successfully make its initial public offering (IPO) on October 28, 2021, with a price range of INR 1,085-1,125 per share.
- For its next IPO round, the business had sought a valuation of $7.4 billion.
- Nykaa became a publicly traded company limited by shares on July 16, 2021, and submitted its Draft Red Herring Prospectus (DRHP) in August of the same year.
- To date, Nykaa has purchased three businesses. The firm recently purchased Dot & Key, a Kolkata-based skincare brand, on October 22, 2021, which was the company’s most recent acquisition.
- Nykaa now has a monthly active user base of over 5 million people. Take a look at some of the brand’s other growth milestones.
A walk through boAt's History
Falguni Nayar founded Nykaa
Became the first Indian unicorn startup headed by a woman.
Acquired the Kolkata-based skincare brand, Dot & Key
Nykaa launched its Initial Public Offering