TO STUDY NYKAA’S

ECOSYSTEM
 Research problem

■ How can Nykaa grow from the mid market sector to the premium
market
 Research objective

■ To study Nykaa’s ecosystem

■ To study online shopping market in India
■ To study the social persuasion marketing adopted by Nykaa in India
■ To study customer’s behaviour towards online shopping
■ To study Nykaa’s success rate in the mid market sector
 Literature review

■ https://ijritcc.com/index.php/ijritcc/article/view/2204/2204
■ https://www.rediff.com/money/report/can-a-cosmetics-e-tailer-teach-amazon-and-flipkart-a-
lesson/20170807.htm
■ https://yourstory.com/2018/05/nykaa-raises-24-million-in-fresh-funding-from-existing-investors
■ https://www.fortuneindia.com/enterprise/nykaa-adding-gloss-to-the-beauty-business/102337
■ https://www.vinculumgroup.com/nykaa-story/
■ https://www.whizsky.com/2017/09/case-study-nykaa-e-commerce-platform-beauty-cosmetics-products/
■ https://digiperform.com/nykaa-leveraged-digital-marketing-gain-50000-visitors-just-one-month/
■ http://www.ecoti.in/8zeRga
■ https://inc42.com/buzz/nykaa-man-to-contribute-about-2-of-nykaas-overall-revenue
 ARTICLES
■ “We plan to launch Nykaa exclusive store by next year”- Reena Chabbra (CEO) -
DECEMBER 06, 2018
■ Nykaa is marketplace know for retailing leading beauty brands off late Nykaa is
constantly expanding its private label range. Nykaa started as ecommerce market place
so they have rich database of discerning customers. There were many consumers who
were actively giving feedbacks about many products and beauty trends which were
available internationally but were not available in India, and there was huge demand for
those products. That inspired Nykaa to launch their own beauty brand. As of now, it has
five-six categories for Nykaa brand which are expanding constantly.
■ Apart from this, Nykaa is growing at 200-300% every year. In fact, each quarter on
quarter growth is more than 100%. So, besides selling on e-commerce, it has also started
selling in luxe stores along with general trade outlet now it has just entered premium
multi brand outlet. It is expanding very fast via this format. The aim is to be among the
top three cosmetics brands of India.
■ Nykaa : A former investment Banker's Online startup is giving a premium shade
to Indian Beauty Care. - By Suneera Tandon, October 13, 2017.
■ Founded in 2012 by former investment banker Falguni Nayar, an alumnus of the Indian
Institute of Management Ahmedabad, Nykaa helps shoppers access brands like Huda
Beauty, MAC, Maybelline, and Nyx in a market where specialised beauty stores are
few. Backed by Max-Ventures, TVS Capital Funds, and other private investors, Nykaa
clocked a turnover of Rs214 crore ($33 million) in FY17, setting India’s $6.5 billion
cosmetics market abuzz.
■ Though still nascent—it receives about 15,000 orders a day—Nykaa is charging forth in
a space dominated by large foreign as well as domestic companies such as Amazon and
Purplle, as well as offline retailers like Sephora.
■ Offering 400 brands and over 35,000 products online, the company now plans to launch
more offline stores to let customers try out new products before buying.
■ Online Beauty Marketplace Nykaa Grabs $11.32 Mn Funding At $453 Mn
Valuation- April 23, 2018.
■ After Breakeven EBITDA, Nykaa Now Aims To Achieve Profitability By FY19
■ With an aim to become profitable by FY19, online beauty marketplace Nykaa has
secured $11.32 Mn (INR 75 Cr) in a funding round at a valuation of $453 Mn (INR
3,000 Cr).
■ The latest funding round is part of $25.67 Mn (INR 170 Cr) funding round, in
which the investment was done through a mix of primary and secondary
transactions, which brought nearly $14.34 Mn (INR 95 Cr) for some existing
shareholders, ET reports.
■ Also, the plan is to use the funds to enhance retail distribution to boost its private label,
which currently forms less than 10% of its revenue, by expanding its offline presence
from 17 stores currently to about 55 stores by FY19-end.
■ Nykaa’s 4-day sale set to rake in Rs 85 crore, Firm revises FY19 revenue guidance
upwards to Rs 1200 crore - By Supraja Srinivasan, ET Bureau, November 26, 2018
■ Beauty retailer Nykaa saw a 5x growth in order volumes during its 4-day sale starting
last Friday, with average order values surging 46% on the first day alone. The ‘Nykaa
Pink Friday’ sale is expected to rake in gross sales worth $12 million or about Rs 85
crore over the 4 days for Nykaa.

This is the second edition of the sale for the firm which clocked gross sales of $2.5
million last year. This would imply a 5x growth in order volumes and gross merchandise
value since 2017.
■ “We had planned the sale to be at 3x of our usual order volumes and growth. But the
first day alone saw orders surge 5x. We have been surpassing our budgeted revenue
target by about 18% for the last couple of months. On the basis of this (sale) and the
recent monthly growth, we believe we will be able to significantly exceed our net
revenue target for FY19 to Rs 1,200 crore,” Falguni Nayar, Founder and CEO of Nykaa
told ET.
Nykaa Marketing Strategies:
Nykaa depends on content marketing for their marketing strategy. They provide high-
quality content to showcase the global trends that have proved a winning formula for the
brand name. On one hand, where Nykaa is using high-quality content to generate traffic on
the website, Nykaa uses email marketing and social media marketing for remarketing.
Nykaa also collaborated with Femina to host the ‘Nykaa.com Femina Beauty Awards’ in
2015 and 2016 to create the brand awareness.
Marketing through online mediums
 Communicating through the Content
■ As discussed earlier, the e-retailing brand makes use of high-end content forms for making the
people aware of the global trends that have made a brand a winning name. They have active blog
on beauty & wellness providing make-up tips and expert advices.
 Making it more engaging through the YouTube Channel
■ Realizing the importance of video advertising, Nykaa owns a dedicated YouTube channel “Nykaa
TV” that provides the consumers with up to date & best video guidance for using beauty &
wellness products. with the help of a number of “how-to videos” they help the users and
customers in choosing the right products as well as in using them in the right way.
■ YouTube Channel of Nykaa has garnered around 50K subscribers.
 Interactions through the Social Media platforms
■ Like every smart marketer would do, the marketing team at Nykaa leverages various social media
platforms for not just connecting to the consumers, engaging them and generating leads but also
converting them into sales by offering them with the various discounts.
 Funding
■ The company has raised 20 crore in funding from private investors that include HNIs
(high net-worth individuals) and non-resident Indians (NRIs) in June 2014 and last year
that was in 2015, it raised $9.5 million from a group of Indian investors.

 Collaborations
■ In collaboration with Femina, Nykaa hosted the ‘Nykaa.com Femina Beauty Awards’ in
2015 and 2016, which were the award functions created for highlighting the best
products & brands in beauty & wellness.

 Company’s Contribution towards Social Causes

■ In 2015, on the occasion of International Women’s Day, Nykaa raised funds for Project
“Nanhi Kali”, which is an Indian NGO for girl child education providing primary
education to underprivileged girl children in India.
NYKAA MAN To CoNTribuTe AbouT 2% To NYKAA’S
Overall Revenue

■ Online beauty and wellness marketplace Nykaa has added a new section
for men called Nykaa Man. The company expects its new section to
contribute about 2% to the company’s overall revenues. It further expects
the revenues from the men’s section to grow to about 10% of the
company’s overall revenues in a couple of years.
■ A media report cited Nykaa’s chief business officer Nihir Parikh as
saying, “About 15% of our social followers are men and about 20% of
our traffic comes from men and male products.”
 Hypothesis
■ Hypothesis 1:
NULL: Nykaa is not effective in Online selling of products.
ALTERNATE: Nykaa is effective in online selling of products

■ Hypothesis 2:
NULL: Customers are not satisfied with the pricing of the products offered
by Nykaa
ALTERNATE: Customers are satisfied with the pricing of the products
offered by Nykaa
 Research design

■ Observational Design:
The survey method is used which is carried out with help of a
questionnaire. The behavior of customer is studied and described in this
research, hence it can also be called as descriptive research.
■ Operational Design:
Primary and Secondary sources of Data were used. Also, the Questions
are easily formulated by visiting few Nykaa physical stores and
interacting students and working women setting a target audience of 20-
40 age group.
 questionnaire
1. How you often do you wear makeup?
NEVER SPECIAL OCCASIONS
WEEKENDS ONLY EVERYDAY

2. Where do you primarily purchase makeup from?

DIRECTLY FROM MANUFACTURER DEPARTMENT STORE
DRUG STORE ONLINE
SPECIALITY MAKEUP STORES

3. How much are you typically willing to spend on your skin products?
500-1000 1000-2000
2000-3000 3000+
4. List your top 3 makeup brands?
5. How often have you used nykaa?
ONCE TWICE
MORE THAN 2 TIMES ALWAYS
6. Do you like the discounts/ offers/ coupons offered by Nykaa?
YES
NO
7. How did you learn about Nykaa?
FRIEND WORD OF MOUTH
ADVERTISEMENT SOCIAL MEDIA
8. Did nykaa meet your expectations?
YES
NO
SOMEWHAT
9. Would you like to suggest some changes?
YES
NO
10. Feedback or Suggestions.
 Analysis
 Target Audience – Females between the age group of 20 years to 35 years
OCCUPATION
How often do you wear make up?

■ According to the responses,

66% of women wear makeup
only in special occasions.
■ Where as 18% of them wear
everyday which mostly
includes teenagers and
corporate workers.
■ 4% of women don’t prefer to
wear makeup.
 Where do you primarily purchase makeup from?

■ According to the survey, 40 women buy makeup from speciality makeup stores
■ 21 women prefer buying from online websites.
 How much are you typically willing to spend on your skin
products?

 Most of the women are willing to spend 1000-2000 on skin products.

 30% women spend around 500-1000 on skin products.
 List your top 3 makeup brands

■ As per the responses, most women prefer brands such as MAC,

Maybelline, Lakme and colorbar.
■ Women prefer buying international brands such as Fenty beauty, Sephora
and Bobbi Brown.
How often have you purchased from NYKAA.com?

■ According to survey, 17% women

have shopped twice from nykaa
■ On the other hand, 42% of them prefer
buying from nykaa.
Are you satisfied with the discounts/ offers/
coupons offered by NYKAA.com?

■ As per the survey most of the women are

satisfied with the discounts and offers and
coupons which are offered by nykaa.
How did you learn about NYKAA.com?

■ Many women learnt about nykaa through social media.

Did NYKAA.com meet your expectations?

■ As per the survey, most women feel that nykaa has met their
expectation.
 Conclusion

 As per our survey, the analysis Question no.2 says that women prefer
buying makeup from speciality makeup stores or departmental stores over
online websites.
 Therefore, we accept the null hypothesis
 According to the analysis of Question no.6, 68% women are satisfied
with the discounts, offers and coupons offered by nykaa.
 Therefore, we reject the null hypothesis