National Institute Of Fashion Technology

NYKAA
Entrepreneurship and Sustainable business practices
FMS 2023-25
Submitted by- Submitted to-
Aanchal Pundhir Ms. Lipi Singh
Divya Satti Assistant professor
Kasturi Budhia
Richa Upadhyay
Shagun Chaudhary
Yashika Mittal
 INTRODUCTION

Nykaa is an Indian e-commerce company headquartered in Mumbai. It sells beauty, wellness and fashion products through its website,
mobile app, and over 100 physical stores.In 2020, it became the first Indian unicorn

startup headed by a woman.

Nykaa sells products which are manufactured in India as well as internationally. In 2015, the company expanded from online-only to an
omnichannel model and began selling products apart from beauty. As of 2020, it retails over 2,000 brands and 200,000 products across
its platforms.

Derived from the Sanskrit word ‘Nayaka’ meaning actress or one in the spotlight, Nykaa is all about celebrating the star in each woman,
and being her confidante and companion as she embarks on her own journey to discover her unique identity and personal style.From
the widest selection of genuine beauty products from around the world to beauty advice, Nykaa is truly passionate about catering to
your every beauty and wellness need
Raised with an entrepreneurial instinct Risk taker Never Giving up Attitude Ability to identify correct opportunity
• “I wanted to replicate that in India — a multi-brand retailer selling the best beauty, plus a
lot of education to help customers...I wanted to stand for those women who want to be
beautiful for themselves, not for men or other women. Indian women were ready for that
and that's why they related to Nykaa. It was a type of empowerment.”- Falguni Nayar

• Falguni stresses on the need for women to come out of their shells and be confident
about handling both professional and personal lives with equal panache. She says that if a
woman with strong determination and will power aims to do something, she will achieve
it.

• Nykaa is primarily an e-commerce website that offers beauty and wellness products from
all the leading brands including Lakmé, Kaya Skin Clinic, L'Oréal Paris, etc. It has its offline
presence in 17 stores and is expanding. It has over 850+ curated brands and 35,000
products.

• With Falguni Nayar at the helm of Nykaa’s journey, the brand is sure to see more and
more success in the coming years. The brand primarily focuses on women empowerment
and provides great career options for women.

SHE CAN BE IDENTIFIED AS A HUSTLER ENTREPRENEUR

Falguni Nayar is an Indian entrepreneur and the founder of Nykaa, the top beauty and fashion retailer in the nation.
Falguni was ranked 44th in the Forbes 2022 list of India's 100 wealthiest people. Falguni has a net worth of $2.7
billion, according to a Forbes report .
 SCALABLE START-UP

In 2012, Nykaa started out as an ecommerce platform curating beauty and wellness products from a wide
range of global brands. Soon after, Nykaa launched its first offline store in New Delhi and presently has over 68
offline stores across 20 cities in India. In 2015, Nykaa launched its in-house beauty products collection and
expanded to the bath and body care category in 2016. The brand gained worldwide recognition after much
publicized tie-ups with supermodel Gigi Hadid and Indian actress Katrina Kaifq, and more importantly its girl-
next-door marketing campaigns launched on social media platforms like Youtube and Instagram.
Nykaa has raised a total of $110 million in funding from investors such as TVS Capital Funds, TPG Growth, and
Lighthouse India, among others.
As of 2020, Nykaa has an estimated worth of $1.2 billion, making it one of the most successful startups in the
country. Thanks to the inventory-model, Nykaa was able to break-even in 2017, only 5 years after they started
operations. While the initial cost of acquiring a new customer was approximately INR 1000, it was brought
down to INR 200-250. In FY2019, Nykaa generated a revenue of Rs 1,159.32 crore, up 108% from the previous
fiscal year. The company turned profitable in FY19 with a profit of INR 2.51 crores.
BUSINESS MODEL
 BUSINESS MODEL CANVAS
KEY ACTIVITIES KEY PATTERNS CUSTOMER COST STRUCTURE
-Providing platform for Buyer Supplier Relationship SEGMENTS -Employees salaries
selling beauty, skin care MASS MARKET -Maintenance cost
CHANNELS
products of different -Customer looking for a For Technology and
-Owned Channel
brand. specific beauty products infrastructure.
-Partner Channel
-Production of new or as a one step solution -Marketing cost
products under their CUSTOMER RELATIONSHIP
CUSTOMER RELATIONSHIP for all beauty needs. -Cost to maintain stock
own brand name -Personal assistance
-Personal assistance -cost of Packaging
“NYKAA”. -Automated services
-Automated services Cost of Production

VALUE PROPOSITIONS
-Authentic products
(HUDA, CHARLOTTE TILBURY)
KEY RESOURCES REVENUE STREAM
-Easy access to wide range of products
-Employees -Online through
-providing skin analysis feature where you must
-Ecommerce websites NYKAA app
answer few questions and can get skin care or beauty
-Mobile apps -Offline Stores
products accordingly.
-Offline store
-Customer support services
-Inventory stocks
-Various mode of payments.
-Ratings and reviews from customers.
-Education and awareness of trends and products.
CHALLENGES FACED BY THE ENTREPRENEUR
COMPETITORS
Being a latecomer in the
cosmetics market, Nykaa
must battle numerous
professional players. Amazon
and Myntra are some of the
biggest players operating in
Nykaa's market. Besides, it
also needs to create a USP in
fashion.
OVERCOMING BUREAUCRACY
A case was filed against Nykaa by French cosmetic giant, L’Oréal, which had
filed a civil lawsuit against the Indian cosmetic startup in November 2019 at
the Delhi District Court, alleging that Nykaa has infringed copyright. The case
on Nykaa was due to the similarity that the French cosmetic major found in
some packaging that Nykaa does, which was like the Maybelline brand. The
court battle seemed long-drawn, which is why both the firms decided to call it
off and settle terms between them, which are currently approved by the Delhi
District as well as the High Court of Delhi. Under the new settlement terms,
L’Oréal has approved the new, modified artwork that Nykaa has created.

TECHNICAL
In the initial days when Nykaa started,
its website would crash every now
and then. When it touched 100 orders,
its system would shut down. However,
it fixed these issues and continued
growing the business.
FINANCIAL
Recalling the times of adversity and hardship that
Nykaa had to face during the pandemic,
The company was staring at a loss of Rs 42.5 crore
after Covid-19 struck in April 2020, as opposed to a
loss of approximately Rs 26 crore for a full year.
 REFRENCES
https://lapaas.com/nykaa-business-model-detailed-case-study/
https://www.slideshare.net/SutapaNandy/marketing-plan-of-an-android-app-nykaa-
presentation
https://www.case48.com/case/Nykaa-com-A-Passion-for-Beauty-Marketing-Strategy-
22745
https://economictimes.indiatimes.com/tech/startups/ipo-bound-nykaa-charts-post-
lockdown-recovery-reveals-house-of-brands-plan/articleshow/87256230.cms
https://en.wikipedia.org/wiki/Nykaa
https://www.nykaa.com/referral-program/lp
https://economictimes.indiatimes.com/small-biz/entrepreneurship/down-by-rs-42-5-
crore-in-a-month-how-nykaas-falguni-nayar-battled-the-first-covid-
lockdown/articleshow/90486114.cms?utm_source=contentofinterest&utm_medium=te
xt&utm_campaign=cppst