Nykaa: The Indian giant in the beauty retail sector

By Aditya Kumar Gupta

It’s no longer a surprise to see Indian names soaring high above reputed international personalities and organizations, be it the case of personnel appointment or businesses, India clearly has a definitive edge. Nykaa is no exception to this precedent. With its incredible leadership and innovative strategies, Nykaa has managed to establish itself along the lines of giants like Sephora in the beauty retail sector.

Nykaa’s secret to success

Nykaa was set up in 2012 by Falguni Nayar, a veteran investment banker who saw an opportunity in the beauty retail environment and turned entrepreneur. Since then, she has taken her company to great heights. Adwaita Nayar, her daughter and a Harvard Business School graduate, aids her throughout the daily business. Adwaita has three attributes she makes sure she implements in running a business, they are: Be tough, look up to tough women and make decisions which lead to a win-win outcome.The implementation of these attributes has taken Nykaa where it is today.

In the era of clicks, getting back to bricks

Nykaa has been felicitated with the award of being ‘The most innovative e-commerce company’, which comes as no surprise. After a deeper evaluation and analysis of its strategies, it has been found that the integration Nykaa has created between the offline and online dimensions is of primary importance. With an established online presence, Nykaa has plans for expansion and setting up of 120-150 offline stores with special themes such as Nykaa trends to sell products flourishing in the market.

Falguni Nayar was inspired by the prime importance given to beauty sections in stores like Sephora and Bloomingdales that she too wishes to establish a similar theme in Indian stores, something which is currently not prevalent. A physical store adds the aspect of trial before purchase which is still a prerequisite amongst most beauty product customers. Though in the near future, this need may be eradicated with the development of augmented reality.

Customer experience is the key

It is the online market where Nykaa has truly flourished leaving its competitors far behind. Falguni Nayar recognized the importance of technology and smartphones in the current generation and capitalized on it. Making Nykaa products available at the touch of a button brought customers closer to making purchases thereby generating sales for the company. In addition, the social media presence of Youtubers and Instagram models, help in the promotion and better usage of Nykaa’s products. Nykaa has successfully established a personal bond with its customers through its well thought out strategies of personalised promotions.

Nykaa has a definitive edge over the giant, Sephora when it comes to the range of products. It has over 400 brands and 35, 000 products available on its website which have led to 216 crores turnover in 2016-17. A curated catalogue, well-structured website, and a wide range of products is the reason behind Nykaa’s 15,000 orders per day record. The company does not offer discounts out of its pocket, but only forwards company discounts. Its motive is to create a brand value in the minds of its consumers as a premium retailer of quality products and not one of a cheap seller.

Falguni Nayar has taken her vision and made it a reality which is evident through her turnover of nearly 250 crores and global brand presence. She has found what others lack and made it her company’s selling point. Innovative strategies and customer centricity are bound to bring more customers into Nykaa’s sphere, leaving all other competitors far behind.


Featured Image Source: Visual Hunt