The global beauty industry has always attracted an audience, regardless of age and generation. After all, cosmetics and skincare have been every girl’s most-used items. Whether it is watching makeup tutorials and practicing different ways of applying eyeliner to dressing up for office events and wedding functions, makeup has been a constant. In fact, it has acted as a milestone that every teenage girl is happy to achieve once she reaches the “appropriate” age.
Fortunately, we no longer live in an era where going to a store physically is considered a necessity when in need of cosmetic products. E-commerce platforms have become increasingly popular, especially those like Nykaa that stock beauty and wellness products. Nykaa was established in 2012 and has continued to garner high revenue even in times of a global pandemic as people buy products remotely during the lockdown period.
Nykaa is a platform that operates in India and focuses on multi-beauty, as well as personal care items. Initially, it was an e-commerce platform that allowed people to shop virtually. However, over the years, it has established a number of retail outlets around the country.
You will find cosmetics, skincare, haircare, perfumes, bath and body products, and other essentials here for both men and women. Research shows that Nykaa manages to earn more than 1.5 million every month by selling products across India.
One of the main reasons for Nykaa’s switch from an e-commerce platform to a physical store was to provide its audience with a holistic experience when choosing beauty products. In the cosmetic world, a physical trial is of utmost importance. Products like concealer, blush, and foundation cannot be chosen without physically matching the colors to your skin tone. Hence, once Nykaa had established a name for itself in the skincare market, it grew its name by opening retail outlets.
Luxe, On Trend, and Kiosks are the three formats where Nykaa’s stores are. The Luxes stores mainly focus on high-end brands, such as Dior, Huda Beauty, and Estee Lauder, while On Trend stores stock fast-fashion brands. There are also loads of grooming items available exclusively for men on Nykaa’s website.
Nykaa’s aim is to be led by the demand of its consumers. With more than 150 brands available across stores and on the website, Nykaa does not focus much on discounts. Instead, it wants to establish itself as a style-focused marketplace.
After her graduation from IIM Ahmedabad, Falguni Nayar began working as an investment banker. By 2005, she had achieved the role of a Managing Director at the bank. For 18 years, she worked in Kotak Mahindra. She decided to leave the banking sector and explore other options.
Soon, her interest was captured by the online beauty markets. Nykaa was inspired by the hundreds of e-commerce sites readily available to the public that provided trusted makeup brands and retailers. From the start, Nayar had always been into makeup and beauty products, and she wished to help other women in India groom themselves.
Nykaa was formed in 2012 when Nayar noticed how different India’s beauty industry was as compared to that of France and Japan. Even though the demand for cosmetics in India had always been high, many high-end products were not available in the country.
With the help of her husband, Naya established Nykaa. At first, Nykaa performed as an online corporation, after which it became an omnichannel marketplace.
What Sets Nykaa Apart from Other Cosmetic E-Commerce Websites?
Nykaa’s business model differs from those of celebrities starting their own brands and selling products to an already loyal following. At Nykaa, young girls are given the opportunity to talk to customers and guide them towards the correct choices.
The inventory model is made in a way where brands and distributors are made part of the website, after which consumers are given access to them. This differs from other platforms where products are sold by third-party sellers. Hence, Nykaa is considered to be safer for customers, while the chances of forged products are low.
Even as the pandemic shut down many businesses, Nykaa managed to adapt to the situation and demands of the time. Initially, its sales fell by 70 percent but soon, Nykaa began to understand the consumer market.
The beauty section integrated with travel care and home essentials as people rushed to book a flight to their homeland or found themselves stuck at home due to the ongoing lockdowns. Even though getting past logistical obstacles took some time, Nykaa was able to gain the trust of its consumers. A number of hygiene products, such as hand sanitizers, tissue rolls, masks, PPE suits, and thermometers, were readily made available on the platform.
There are more than 5 million users using Nykaa today. It also has 70 stores all over India with more than 500 brands and 130,000 items that can be found on its website, application, and physical retail stores.
Nykaa is not only an online retailer. It has a loyal user base because it is an omnichannel that also provides offline stores to its customers. Brands ask to become a part of Nykaa because the platform helps them become known, as well as ensures that their products are sold to the common public.
Coronavirus allowed the platform to delve into other essentials, and today, it has grown by 90 percent of what it was during pre-COVID times.