MANAGING E - BUSINESS ASSIGNMENT

Name: Mayank Singh

Roll no.: PGP23070
Section: C
SECTION: A

1.Business model of NYKAA:

NYKAA is a D2C consumer products e-
Commerce brand, which relies on an inventory-based business model. The company purchases its
products directly from the manufacturers and keeps them in its designated warehouses located in New
Delhi, Mumbai, and Bangalore. These products are sold either on the website of NYKAA or through its 3
offline store formats: Nykaa Luxe, Nykaa On Trend, and Nykaa Kiosks.
The inventory-led model of business of the
company helps the company witness high-profit margins and has resulted in a profitable business.
Besides, the company also ensures the authenticity of products and follows competitive pricing.

2.The management principles (NYKAA):

a) I have learnt about Agile Management from NYKAA. Agile Management is a
project management technique pioneered by Japanese manufacturers and now
widely popular in the software development industry. Senior executive in the
"Nykaa.com: A Passion for Beauty" case study can use Agile Management
technique to a vast range of activities such as product and service innovation,
streamlining of processes, business model innovation, and manufacturing activities.

b) NYKAA also taught me about omni – channel that how I can use omni- channel in
business for management. NYKAA’s 360-degree coordinated marketing and
content strategy which has been developed over the last seven years, makes it one
of the largest omni-channel beauty players in the country.

c) This company also taught me about content writing that how much right content
and right amount of content is important for a business. NYKAA’s content strategy
 has always rested on education, curation and personalization, seeking to transform
the traditional buying experience through new-age technology and narratives.

d) NYKAA also taught me about tools that is very useful for managing customers.
Tools like the monthly buying guides and seasonal/festival specific stores for
guided selling like: Summer Store, Monsoon store, Diwali Store, Eyeliner and Kajal
store, Foundation Finder, Lipstick Finder, Skincare by age are created for the
convenience and benefit of the customer.

e) NYKAA taught me that today the impact of data is very good option for managing
customer and convey the messages to the customers. Here I am talking about
mobile data. India is today the cheapest when it comes to mobile data. So that
technology, which is powered by certain operators, will definitely help me take my
video content to larger audiences. And, I believe that there is truth around the
phrase, a minute of video is equal to reading thousand words of content.

3.Understanding of the company prospects,

competitors and potential growth(NYKAA):

a) Nykaa's growth profile is superior to both its international peers as well as Indian retailers, hence
it has good growth prospects. Nykaa’s key strength is its inventory-led business model, allowing
it to offer authenticated products, ensure availability and efficient distribution. 
b) In my understanding, the market competition for Nykaa will not be limited to other digital native
rivals such as SUGAR Cosmetics, Purplle or MyGlamm. Instead, e-commerce giants like
Amazon and Flipkart will also be in the fray for online retail.
c) The company is also betting big on its B2B business.
Fashion is another segment Nykaa is looking to go big on.
 The beauty business, the largest contributor to the revenues is also seeing a healthy growth
traction.
Cosmetics-to-fashion retailer Nykaa plans to more than triple its brick-and-mortar stores to 300,
significantly building its offline presence in the country. the physical stores, targeting Indian consumers
wanting to buy touch-and-feel products, is a critical part of the business.
Nykaa should Invest in subsidiaries to fund the setup of new retail stores.
They should invest in Capital expenditure for setting up new warehouse so that they can easily
supply the products to retail stores and consumers.
 Section c:

Metaverse:

The metaverse is a concept of an online, 3D, virtual space connecting users in all aspects of
their lives. It would connect multiple platforms, similar to the internet containing different
websites accessible through a single browser.
The concept was developed in the science-fiction novel Snow Crash by Neal Stephenson.
However, while the idea of a metaverse was once fiction, it now looks like it could be a reality
in the future.
Examples:
While we don't yet have a single, linked metaverse, we have plenty of platforms and
projects similar to the metaverse. Typically, these also incorporate NFTs and other blockchain
elements. Let's look at three examples:
1. Second Live: Second Live is a 3D virtual environment where users control avatars for
socializing, learning, and business. The project also has an NFT marketplace for
swapping collectibles. In September 2020, Second Live hosted Binance Smart
Chain’s Harvest Festival as part of its first anniversary.
2. Decentraland: it is an online, digital world that combines social elements with
cryptocurrencies, NFTs, and virtual real estate. On top of this, players also take an
active role in the governance of the platform. Like other blockchain games, NFTs are
used to represent cosmetic collectibles.
Metaverse as future of marketing:

"Metaverse Marketing" is the digital marketing of the future. Metaverse is a new marketing

ecosystem that works like the blockchain. It's decentralized, so it has no servers or
administrators. It is a new marketing strategy that allows you to connect with your customer
base in ways that have never been possible before.
Like the shift from tv, radio, and banner advertising to social media, search engines, and
others, we are now shifting from digital advertising to metaverse marketing.

1. Advertising: Today, businesses in display advertising that we can locate on google or

other search engines use words and supporting graphics. However, these graphics

will become 3D with the industry's shift, making the work a little tricky. this is going
to give digital marketers more freedom in how they advertise and sell products.
2. Social Media Marketing: We can say the social media platforms may look like Roblox
or Fortnite, where you would have a 3D character in AR and visit websites like

visiting game rooms in a game . The possibilities are endless.

3. Content Marketing: The Metaverse is still a new concept to all marketers, which
enables experimentations and unique approaches. The future of marketing is on the
Metaverse. It's essential to start planning your brand's path to success on the
Metaverse now. A Metaverse is an exciting place where users can create, experience,

and share new realities.

 Section B:

NFT:

A non-fungible token is a non-interchangeable unit of data stored on a blockchain, a form of

digital ledger, that can be sold and traded . Types of NFT data units may be associated with
digital files such as photos, videos, and audio. Because each token is uniquely identifiable,
NFTs differ from blockchain cryptocurrencies, such as Bitcoin.
NFT ledgers claim to provide a public certificate of authenticity or proof of ownership, but the
legal rights conveyed by an NFT can be uncertain. NFTs do not restrict the sharing or copying
of the underlying digital files, do not necessarily convey the copyright of the digital files, and do
not prevent the creation of NFTs with identical associated files.
NFTs have been used as a speculative asset, and they have drawn increasing criticism for
the energy cost and carbon footprint associated with validating blockchain transactions as
well as their frequent use in art scams.
Ownership of an NFT does not inherently grant copyright or intellectual property rights to the
digital asset a token represents. While someone may sell an NFT representing their work,
the buyer will not necessarily receive copyright privileges when ownership of the NFT is
changed and so the original owner is allowed to create more NFTs of the same work. In that
sense, an NFT is merely a proof of ownership that is separate from a copyright.

Impact of NFT:

the majority of NFTs use the Ethereum blockchain, which uses a proof-of-work system to
confirm each new block. That means all the computers on the network (i.e., miners) race to
solve a complex problem. The first computer on the network to solve it receives the right to
confirm the block and collects the gas fees associated with each transaction in the block, as
well as a reward.
As the price of Ether climbs and gas fees increase, the value of solving that problem in the
proof-of-work system also increases. As a result, miners are incentivized to invest in more
computer power, which draws an increasing amount of energy from the power grid. If that
energy comes from sources that emit greenhouse gases or are otherwise harmful to the
environment without anything to offset it, it will negatively affect the environment.

Implications of NFT:
1. The minting of an NFT by the author of a creative work may have broader positive
implications when it comes to the current international state of artists' resale rights.
The minting and sale of NFTs is largely unregulated, but also highly accessible to an
international audience.
2. While there have been decades-long disputes over artists' resale royalty rights in the
U.S., also known as droit de suite, NFTs present potential workarounds for artists in this
respect. Currently, the EU, UK, Australia and the Philippines officially recognize artists'
resale royalties, whereas the U.S., as a whole, has long fought the idea — even the
California state equivalent was held to be preempted by the U.S. Copyright Act by the
9th U.S. Circuit Court of Appeals in 2018, effectively limiting the resale right to resales
which occurred during 1977. 
3. By contrast, NFT platforms do offer artists the possibility to claim resale royalties on
subsequent sales of the artists' work not otherwise traditionally offered in certain
countries.
Although it remains to be seen what potential long-term impact NFTs will have
on both domestic and international copyright laws, for now it appears the typical hurdles
to copyright owners exist, albeit with some added benefit.