Nykaa in the Spotlight: A Case Study
I dare you to find someone in India who hasn’t heard of Nykaa. Everyone and their grandmother know about Nykaa! How did this happen? Their unprecedented success cannot all be chalked up to good old luck, they did something right, or rather, a lot of things right, and we are here to learn.
How Did Nykaa Happen?
A fierce, former Managing Director at Kotak Mahindra Capital Company, Falguni Nayar, founded Nykaa in 2012. She launched it as an eCommerce portal with a range of curated beauty and wellness products.
Falguni worked at Kotak Mahindra for over 17 years and then decided to start her own venture, which is now one of the most sought after, profitable, and well-known companies in India and abroad as well.
Hence, don’t chicken out of good ideas because you think it’s ‘too late’.
Fun Fact: ‘Nykaa’ is derived from the Sanskrit word nayaka, meaning ‘one in the spotlight’.
How Does Nykaa Work?
Nykaa follows an inventory-based model and has warehouses in Mumbai, New Delhi and Bangalore. Along with its primary e-commerce business, it has 68 brick-and-mortar stores across the country. Nykaa offers over 3 lakh products from over 1,500 brands! These numbers are massive, and they never cease to grow. They have covered all the ground there is to cover.
They have two offline store formats, Nykaa Luxe and Nykaa On Trend. The Luxe format features Indian and international luxury brands along with Nykaa Beauty, their own collection of beauty products.
In 2015, Nykaa launched their own collection of beauty products, and they just kept on growing. What is important to note here, is that their growth and expansion never seemed blind. They always came out with products that people wanted to buy. It wasn’t a robotic structure churning out low-quality knick knacks to milk their brand as much as they could. They launched liquid lipsticks when those were the rage, essential oils when natural remedies were the new thing, and so on. They always supplied the demand with top-notch products at competitive prices.
In March 2016, they introduced their private labelled products in the bath and body care category. And in 2020, when the world has never been more unitedly in the dumps, they launched Nykd by Nykaa, their line of comfort first lingerie for women. In a time when no one is leaving their homes, buying new clothes or putting on lipstick, they launch a new product that flies off the shelves as soon as it drops—much like their other products.
So Why Do People Flock to Nykaa?
Nykaa offers what no other platform does. They have gotten their hands on a vast number of international brands that Indians never dreamed of obtaining so easily. Huda Beauty, Becca, Charlotte Tilbury, Wet n Wild, Olaplex, Too Faced, Pixi you name it!
They are constantly partnering with new international brands as well as Indian celebrities. In October 2019, Nykaa partnered with Bollywood actress Katrina Kaif to launch the brand Kay Beauty, which is exclusively available at Nykaa.
Apart from this, Nykaa almost always has a sale going on, they offer discounts that one just wouldn’t find elsewhere.
And of course, marketing.
Nykaa and Marketing
Nykaa offers products that range from makeup to hand sanitizers and even sexual wellness. They have always wanted to cater to an infinite pool of people. So, their target audience is anything but narrow, and this translates into their marketing.
As a part of Nykaa’s digital marketing strategy, they have targeted every demographic, regardless of age and interests. This included students and professionals without time to visit stores and even people who prefer to shop in person.
Nykaa has a creative team of young professionals as part of their content strategy. They create relatable and trendy content that appeals to a vast audience. The content tends to be attractive and yet informative, hence delivering value while also offering entertainment. It attracts a variety of audiences by generating content for various platforms (Social media, website, blogs posts, video content, tutorials, web series etc).
Social Media Marketing:
Nykaa has a YouTube channel ‘Nykaa TV’ that is populated with video guides for the products that they sell. The channel has over 1 million subscribers! That’s one million people watching hacks and tutorials about things they want to buy off of Nykaa. It is an incredibly effective marketing tool.
Their Instagram page has nearly 2 million followers! This platform has nearly the same content as their youtube page, but in short form, more aesthetically cohesive and far more active. That’s 2 million people that see stunning images of Nykaa’s products on their feed every single day.
Apart from the millions of people that follow them, they also tap into tens of millions through influencers. Not only do they partake in long term campaigns with large influencers on a constant basis, but because Nykaa has become the only place to buy beauty, they get a large amount of free marketing just by virtue of influencers talking about them on a regular basis.
The key takeaway here is Nykaa’s ability to actually build trust amongst its customers that makes it almost impossible for them not to return for more. With the introduction of new customers on a daily basis, Nykaa has a plan in place that looks out for each one of these customers. This trust has been developed as a result of a variety of elements working together in tandem to form a seamless system that just does so damn well. Customers are spoilt for choice, they receive 100% authentic products, at unfathomable discounts, delivered to their doorsteps, at the speed of light, endorsed by their favourite influencers with the constant promise of MORE.