Nykaa, one of the leading e-platform retailers of beauty and wellness products for women as well as men. The phenomenal success of Nykaa has boosted several startups to implement their business model. Now Nykaa stands as one of the successful private startups in the country. At present, Nykaa delivers its beauty products associated with nearly 2400 brands, which account for 1.9+ lakh products in their warehouse.
How does Nykaa work?
Nykaa is an e-commerce site-based company that works on omnichannel marketing methods. From their origin, in 2012 the company’s growth curve went higher due to their implementation of new business models and marketing strategies in the Indian country. The features of Nykaa includes
- Nykaa delivers its products directly to the customers with the help of collaboration with delivery services like E-come express, Delhivery, and Bluedart.
- Nykaa is committed to providing authentic brand products, traditional brand products, international brand products, prestige brands products, cult brand products, and domestic products to all their levels of customer. Also, they are providing beauty advice through marketing campaigns, blogs, seminars, and other streaming platforms with the help of a beauty expert.
- When you order a product in Nykaa, they are dispatched from one of the warehouses of Nykaa. New Delhi, Mumbai, and Bangalore are the places where the Nykaa warehouses are located.
- Nykaa will get their products directly from the manufactures in a bulk quantity which then later got stored in their warehouses. It is responsible for fixing the pricing for the products available. Also, it took responsibility for any damage to the products.
- To extend their services Nykaa also made a footprint in offline retail stores too. They sell their offline retail products with more than 72 stores under the banner of three Nykaa stores namely
- Nykaa Luxe
- Nykaa On-trend
- Nykaa Kiosk
- It has 1.9+ lakh of products for the categories like essential makeup, bridal makeup, grooming appliances, fragrance, bath and body essentials, hair care essentials, skincare essentials, personal care, health and wellness essentials products.
- Nykaa services of delivering the product are now available to most of the postal codes in the country. Like other e-commerce sites like Amazon and Flipkart, Nykaa is also providing delivery free of cost for products above 499.
- Some of the leading competitors of Nykaa include Purplle.com, Amazon, and Flipkart.
- In Nykaa you can find international brands like Mac, Lakme and national brands like Himalaya too.
This is how Nykaa works on delivering cosmetics products to the customers.
What is the Nykaa Business model?
The business model arises from the founder of Nykaa, also known as a beauty entrepreneur Ms.Falguni Nayar while shopping the cosmetic products in the Sephora store. There she finds the variety of products of different brands under a single banner named Sephora. She implemented this strategy in our country which created Nykaa.
Nykaa decided to adopt the inventory model which is one of the rarest business models in India where most of the companies neither follow nor willing to adopt it. But this team stands out of the circle by adopting them.
In the inventory model, Nykaa will buy all its products from the manufacturers directly. After buying these products, they are all stored as inventories in their warehouses. This will help the customers to know the availability of stock which will create trust over the brand that they would have enough stock all the time.
The founder feels that she has a lot of products to choose from the list, a variety of different brands, trained professionals, and expert advice while shopping in the Sephora store. Nykaa too provides customers, a variety of products of different brands ranging from international brands to domestic brands for the customers to choose which will be the best-suited product for them from the list.
Omnichannel marketing technique
Nykaa has used technological upliftment as a development tool for branding and selling its products. This strategy particularly helps Nykaa to develop a friendly environment between customers. This has uplifted the user interface of the site. People find it easy to navigate to their website through all channels by using different platforms and different devices.
A Nykaa customer can seek a piece of expert advice for the product she needs to buy. She can raise a query for the product she received. The customer service team will get to her within a limited time. You can contact customer service through different platforms like Facebook, the official website, through a phone call, through SMS, and through in-app inbuilt messenger.
You can also browse through the products and you can order them by using these different platforms. This omnichannel marketing technique enhances the brand’s trust in the people.
- During the origin of Nykaa, India was undergoing a smartphone revolution. Using this scenario Nykaa has easily shifted the retail business to online retail sales.
- Nykaa has achieved its breakeven point in 2017, this is because of its friendly user interface. They have made online shopping more convenient than visiting offline stores. Even the payment methods become more and more convenient to the users by offering debit card payments, COD, UPI, and credit card payments.
- Customers find it easy to discover their desired product from the 1.9+ lakh available products by using simple keywords and following expert advice. 50% of their customers are their traditional customers while the other 50% are attracted through digital marketing techniques like email marketing, affiliate marketing, etc…
- At present Nykaa is in a keen interest in establishing offline stores. This will help the customers to sample their high-value brand products and their own brand products.
By following these business models and marketing strategies, Nykaa remains “a woman’s paradise” for their beauty and wellness”.
How do you replicate it?
Initially decide your primary business model like the inventory model to Nykaa. Then try to stick to the below-mentioned techniques to enhance your business
- Try to advertise your products with influential people. Make them provide professional and expert advice on your products. This will help you to take your brand value to people more easily.
- Follow the customer review, suggestions, and feedback on your products through active interaction with them through email, phone, and SMS. Continuously improve your site based on the valuable feedback from the customers.
- Make a social media platform to showcase your brand value and its quality. Do an affiliate marketing program with the help of professionals and try to make blog and video reviews with content creators and allow them to post on behalf of your company across different social media platforms.
- Be cautious in providing a unique shopping experience to your target customers by knowing what they actually need.
In this way, we can replicate the Nykaa business model. If you were looking for developing an app like Nykaa, reach our mobile app development company to make your app developed from the hands of experience.