BUSINESS REPORT

ON NYKAA
TABLE OF CONTENT:
BUSINESS COMMUNICATION

PRESENTED BY,
VIKAS ADITYA(RA2152006010006)
LOGESHWARAN (RA2152006010014)
ANOO(RA2152006010027)
SOWMIYA(RA2152006010021)
REENA RAJAN(RA2152006010017)
  Detailed study on nykaa business model.

 The woman behind NYKAA- Falguni Nykaa

 Story of Nykaa
 Team
 Nykaa Business Model
 Nykaa Marketing Strategy 
 Problems Faced in Early Stages
 Expansion of Nykaa’s Business
 Financial Statistics

DETAILED STUDY ON NYKAA BUSINESS

MODEL:
 If you are a girl or have a girlfriend who loves makeup then you
would have heard of Nykaa.
 Have you wondered how the Business Model of Nykaa formed?
 How do you get such high discounts on Nykaa?
 Do you know about the mind behind creating your favorite E-
Commerce Store?
 Nykaa’s business is an E-commerce website and a multi-brand
retailer.
 It offers beauty and wellness products for men and women.
 After reading this detailed Nykaa Case study, you’ll be clear about

the business model of Nykaa, marketing strategy, swot analysis.

It deals in high- end products from brands like MAC, Lakme, etc.

The value of these products is high.

It implies that the value of the commission is also high. 

Nykaa ships in the entire country to almost every zip code.

They use the services of leading courier companies like E-com Express,
Delivery, etc.

Today, Nykaa sells more than 35,000 products from 650 brands.

THE WOMEN BEHIND BUSINESS MODEL OF

NYKAA - FALGUNI NAYAR:
  Falguni Nayar is known as a beauty entrepreneur.
 She led a revolution in the market of beauty and wellness
products.
 She was born and raised in Mumbai.
 Falguni Nayar is a graduate of the Indian Institute of Ahmedabad.
 She took a job as a management consultant after completing her
degree MBA in Finance.
 Her husband whom she met at business school, took a job in
finance.

STORY OF NYKAA’S BUSINESS:

 Nykaa a private company was founded by Falguni Nayar
in 2012.

 After Falguni left Kotak Mahindra, she started seeking

opportunities to become an entrepreneur.
 Falguni Nayar got the idea of starting Nykaa when she
once walked a Sephora store.

 She was amazed by the variety of brands available at the

store.
 She bought products worth hundreds of dollars. 
 The sales associates showed her the best way to use
them.
 They recommended her best beauty products without any
bias.
 She felt that there is a dearth of multi-brand chains in India
in beauty and wellness.
  At the age of 50, Nayar gave up her stellar career at Kotak
Mahindra and turned into an entrepreneur.
 That’s how Nykaa Business Model was formed.

TEAM:

Founder- Falguni Nayar

Nihir Parikh – Chief Business Officer for the E-commerce

Business

Sanjay Suri – Chief Technology Officer.

Sachin Parikh – Chief Financial Officer

Madhavi Irani – Chief Content Officer.

Hitesh Malhotra – Chief Marketing Officer.

Manoj Jaiswal – Chief Supply Chain Officer.

NYKAA BUSINESS MODEL:

Nykaa is one of the rare companies which follow an Inventory
based E-commerce model.

INVENTORY MODEL:

 The company stores the stock of goods purchased directly

from manufacturers.
 They store the products in their warehouses.

 Nykaa’s business has warehouses in New Delhi, Mumbai

and Bangalore.

 The products are sold directly from there.

 In this, the profit margin is high. 

 The responsibility of any damage lies with the company.

 They achieved their breakeven after 5 years of operations.

 Initially, the cost to acquire a customer was Rs. 1000

which has now reduced to Rs.200-300.

 Nykaa has its offline presence in 35 stores.

 Nykaa has two store formats – Nykaa Luxe and Nykaa

On-Trend.

 The costs include the salaries paid to employees,

maintenance costs and the marketing costs.
 The Luxe format features luxury beauty brands.
 The On-Trend format features curated products by
category based on their popularity. 
 Nykaa’s target audience is in the 22-35 age groups.
 As I discussed earlier,
 The company achieved a break-even point in 2017.
 After which what it received was profit.
 Last year, the revenues accounted for 214 crores which
now has increased to 570 crores.
 The company decided not to launch their IPO until profits
reach 200 crores.
 The company is still a private company.
NYKAA MARKETING STRATEGY:

 They use online advertising to promote their products.

 Nykaa collaborated with Femina to host the ‘Nykaa.com

Femina Beauty Awards’ in 2015 and 2016.

 The award function was organized to highlight the best products in

different categories in the Indian market.

 They provide easy shopping experience, the virtual makeover tool,

beauty advice, tutorials and celebrity looks.

 NYKAA uses digital marketing as a means to market their

website. 

 The average cart size of NYKAA is worth Rs.1250- Rs.1550.

 Their monthly traffic on the website is about 17 million.

 50% of customers are routine customers.

 The rest have to be attracted through online advertising and social

media marketing.

 “Our average ticket size is high, and we have four items in a cart

on an average.”, Falguni says.

 Recently Janhvi Kapoor became the first brand ambassador of

Nykaa business under Nykaa cosmetics.

 It was done to attract a young audience towards their products.

  Janhvi appears in print, digital and electronic advertisements.

 She also plays an active role in social media campaigns through

her Instagram handle.

NYKAA COMPETITORS:
Purplle.com:
Purple is an online store which sells cosmetics, fragrances, skin and hair
care products. It is based in Mumbai.

Truggo:
Truggo is an online platform that helps users to book an appointment in
salons and spa.

It allows the users to bid an amount that they are comfortable paying for
the services.

PROBLEMS FACED BY NYKAA IN THE EARLY

STAGES:
In the early stages, they faced problems in collaborating with big brands.

Reason:

The brands were not convinced with the idea of putting their exclusive
products at the same place where low-cost products are also available.

They felt that it can ruin their brand value.    

EXPANSION OF NYKAA’S BUSINESS:

Nykaa expanded its business by launching its product line, Nykaa
cosmetics in 2015.
This implies that the entire profit will solely be earned by the company.In
March 2016, Nykaa introduced private labeled products in the bath and
body care category.

To capitalize on the growing interest among male consumers towards

grooming and personal hygiene, Nykaa launched NykaaMan.com.

 It is India’s first multi-brand e-commerce store dedicated to men’s

grooming.

 It was launched in July last year.

 NykaaMan.com offers products in categories like shaving,

haircare, grooming kits and sports nutrition with exclusive brands.

 For example- The Shave Doctor, Clinique for Men and Beardo are
only available in India with Nykaa Man.

 For women, Nykaa business Model brought brands like MAC,

Estee Lauder to their platform.

 This made them the first company to do so.

  At present, it sells over 850 brands across makeup, skincare, and
hair care and wellness categories.

 Nykaa aims to increase their offline footprint to 180-200 Nykaa

stores in the next 4-5 years.

FINANCIAL STATISTICS:

 Nykaa’s business requires a huge amount of money to fund their

projects.

 Nykaa has raised a total of $107.9 M in the funding of over 8

rounds. 

 The latest funding was raised on April 1, 2019, in a Series

E round. 

 Nykaa’s business had raised $9.5 million from TVS Capital in

2015.

 It was followed by raising Rs 82 crore from Sunil Munjal and the

Mariwala family last year.

FINANCIAL REPORT FOR THE YEAR ENDING ON

31ST MARCH 2020:
 Revenue / turnover of NYKAA E- RETAIL PRIVATE LIMITED is

Over INR 500 cr

 Net worth of the company has increased by 35.08 %

 EBITDA of the company has increased by 124.28 %

  Total assets of the company has increased by 68.91 %

 Liabilities of the company has increased by 91.08 %

CONCLUSION:

Over the recent times Nykaa has launched a range of new products that
also incorporate celebrity endorsements. Alongside this, they have also
incorporated various fresh collections to include in their personal brand.  

The platform has a wide range of grand plans ahead to mark the beauty
and fashion industry and has been focusing on escorting quality
products and services to the users at suitable rates. The platform shows
a great degree of promise towards expanding and gaining an even
further dominant position in the future.