Nykaa is a retailer of beauty, fashion, and health items with its headquarters in Mumbai. Falguni Nayar founded Nykaa as an Indian online store in 2012. According to the successful Nykaa marketing plan, the e-commerce company sells Nykaa Naturals items as well as goods from more than 1200 international brands. The business transitioned to an omnichannel approach in 2015 from an online-only one. Luxe, On Trend, and kiosks are the three primary retail formats that it established at multiple places around major cities.
Nykaa sells its items , through its website, mobile app, and in more than 80 physical stores. The company's specialty include bath and body, luxury, health, and cosmetics items for both men and women. In December 2020, Nykaa Fashion established its first physical location in Delhi, making the fashion industry omnichannel.
In 2020, Nykaa introduced Nykaa PRO, a subscription programme that offers Nykaa app users unique access to deals and professional beauty products.
A Comprehensive Business Model
Using an inventory-based business model, Nykaa is a direct-to-consumer e-commerce company. Products that were bought directly from producers are kept in stock by the company. Third-party suppliers advertise and sell their things on the website. This helps Nykaa have a tighter grip on its products and helps them prevent the entry of any fraudulent things into the market. The warehouse sites of Nykaa from which the goods are sold directly include New Delhi, Mumbai, Pune, Haryana, Kolkata, and Bengaluru.
Nykaa’s products are available for purchase online or at one of the company’s physical retail locations. Among the worldwide high-end beauty brands offered in the Luxe format are Huda Beauty, MAC, Dior, and Givenchy, as well as Nykaa Beauty, the in-house beauty line.
Based on consumer demand, the Nykaa On Trend format selects products by category. At the brand's kiosks, beauty consultants are ready to help beginners choose the right products from a variety of brands. The company also confirms the legitimacy of its products and upholds fair pricing. High profit margins are offered by the inventory business model, and any product damage is the company's problem.
Nykaa’s Content Marketing Strategy
With some of the top content marketing initiatives under its belt, Nykaa uses high-end content to exhibit global trends, which has turned out to be a winning recipe for the brand name. People consume content, thus the company has developed a distinctive approach that creatively utilises the power of content by assembling a passionate group of young professionals. A thorough YouTube marketing strategy is part of the Nykaa marketing mix.
YouTube Marketing:
Nykaa has a YouTube channel called "Nykaa TV" that offers people video instructions for using cosmetics and fashion products and being up to date with society. The company's YouTube channel does not include any products for sale; instead, it concentrates on providing consumable content to its target customers, such as beauty, personal care, makeup hacks, and much more.
Nykaa’s YouTube playlist has a wide range of content, including beauty horoscopes, bridal makeup techniques, celebrity beauty secrets, and so on.
Website Marketing:
The firm has gone to significant lengths to advertise, whether on its website or through its mobile application, according to the extensive Nykaa marketing plan. The target audience may always access new and updated content because of Nykaa's emphasis on brand positioning through the website. The company employs customised adverts, tutorials, and blogs on its main platform to boost online sales. The website seeks to influence the fashion and beauty sectors. Additionally, it has been emphasising providing individuals with high-quality products and services at low prices. The platform seems to have a lot of promise for expansion and dominance in the future.
Email Marketing:
Nykaa has cleverly used email marketing to its full potential. As part of its promotional efforts, the company sends out emails to highly engaged buyers, including trending content that provides a glance at current industry trends. These emails also present an early look at any upcoming sales, urging consumers to visit the online store. Their email marketing plan has performed exceptionally well, with high open rates, engagement rates, and conversion rates. It has clearly been achieving the overall Nykaa marketing strategy goals.
Influencer Marketing and Building a Network
Influencer marketing continues to be one of the most efficient and cost-effective methods to engage with clients when compared to more conventional platforms, and is thus a crucial component of the Nykaa marketing strategy. Nykaa, despite having star Janhvi Kapoor as their brand ambassador, mainly relies on influencers and content creators to promote new brand launches and sales.
Since they aid in educating and assisting consumers in making the best selections for themselves, influencers are a crucial component of the company's content marketing strategy. In order to increase customer engagement and trust, Nykaa is a firm believer in building long-term relationships with influencers. Through this approach, a community of individuals who exchange ideas and suggestions, find inspiration, learn new things, and watch new videos, has been created.
At the same time, it got global recognition with its highly publicised collaboration with Indian actress Katrina Kaif. Nykaa Network is an interactive beauty website where users may speak with other beauty enthusiasts. They can consult specialists for beauty guidance as well. In order to make consumers happy with their purchases, the firm frequently includes presents with special orders. It's a great way to keep customers around longer.
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Current Situation
Shares of most modern consumer technology businesses saw a dramatic bounce in 2023 after seeing widespread selling in 2022. However, the “Nykaa” brand owner is missing from the list.Over 7% of the company's shares fell over that time period, and in April, they even hit a 52-week low of Rs 114.25. It lost close to 38% of its share in the previous year.
Early in 2023, the chief commercial operations officer, chief business officer, chief executive of wholesale business, business vice president of Nykaa Fashions, and vice president of finance left the company.
A couple of months back only, the company has appointed a new chief financial officer and a few senior leaders in verticals across technology, product, finance, legal, marketing, and business.From a high of 53.4% in the March quarter of 2022, the company’s operating margin shrunk to 20.3% in the September quarter. While the profitability improved to 30% in the March quarter of 2023, some analysts have flagged concerns on this front given the stiff competitive environment.
