21BPA027

A STUDY ON CONSUMER BUYING
BEHAVIORAL TOWARDS NYKAA
Project report submitted in partial

fulfilment for the requirements of the
Degree of
Bachelor of Commerce
BY
Samuel Jebaz J – 21BPA027
Under the Guidance of
Dr Brinda Kalyani P R M Com Ph D
Associate professor
Department of Commerce PA & CS
Sri Krishna Arts and Science College
Coimbatore 641 008

MARCH 2024
Sri Krishna Arts and Science College, Department of Commerce PA & CS

Affiliated To Bharathiar University
Kuniamuthur, Coimbatore -641008
DECLARATION
I hereby declare that the project report entitled “A STUDY ON

CONSUMER BUYING BEHAVIORAL TOWARDS NYKAA” submitted to
Bharathiar University, Coimbatore, in partial fulfilment of the
requirements for the award of degree of Bachelor of Commerce with
Professional Accounting is an original work and it has not been
previously formed the basis for the award of any degree, Diploma,
Associate ship, Fellowship or similar titles to any other university or
body during the period of my study.
Place: Coimbatore
Date:
Signature of the Candidate

Affiliated To Bharathiar University
Kuniamuthur, Coimbatore -641008
CERTIFICATE
This is to certify that the project report entitled “ A STUDY ON

CONSUMER BUYING BEHAVIORAL TOWARDS NYKAA “
ACKNOWLEDGEMENT
First and foremost, I thank the almighty for endowing his

immense blessing that helped in each step, towards the
completion of the Project Report.
I take this opportunity to express my deep profound gratitude

to our Principal, Dr. R. Jagajeevan for all his engagement,
aspiring support and providing his healthy co-operation
throughout the course. I express my thanks to our Dean, Dr.
Maria Williams and HOD, Dr. C. Dhanalakshmi, for all their
engagement and aspiring support to complete this report.
My deepest thanks to Dr Brinda Kalyani for guiding and

correcting various documents of mine, with attention and
care. She/He has taken pain to go through the project report
and make necessary corrections as and when needed.
Finally, I express my thanks to my parents who have

given support and encouragement in doing this project report
in a successful one.
SAMUEL JEBAZ J
E-mail samueljebazj21bpa027@skasc.ac.in
Mobile Number +91 9496688521
Papers Presented 0
Placement Details Nil

A STUDY ON CONSUMER BUYING
BEHAVIORAL TOWARDS NYKAA
CONTENT OF THE REPORT
S.NO. CHAPTER PAGE

NO.
1. INTRODUCTION 1
2. REVIEW OF LITERATURE 9
3. COMPANY OVERVIEW 15
4. DATA ANALYSIS AND INTERPRETATION 46
5. FINDINGS, SUGGESTIONS AND CONCLUSION 72
LIST OF TABLES
TABLE PAGE
TITLE
NO. NO
4.1.1 Percentage analysis of gender of the respondents 48
4.1.2 Percentage analysis of the age group of the respondents 49
4.1.3 Percentage analysis of the educational qualification of the respondents 50
4.1.4 Percentage analysis of the occupation of the respondents 51
4.1.5 Percentage analysis of the monthly income of the respondents 52
4.1.6 percentage analysis of the marital status of the respondents 53
4.1.7 percentage analysis of the marital status of the respondents 54
4.1.8 percentage analysis of the no of family members of the respondents 55
4.1.9 percentage analysis of a cosmetic product of the respondents 56
4.1.10 percentage analysis of expensive products is better than cheaper products 57
4.1.11 percentage analysis of that influence the respondents while choosing a 58

cosmetic brand
4.1.12 percentage analysis of the respondents while buying a cosmetic product 59
4.1.13 percentage analysis of that how much respondent spend on cosmetic 60

product
4.1.14 percentage analysis of that how long the respondents have been using a 61
cosmetic product
4.1.15 ranking the factors of importance while purchasing a product ranking 62
4.1.16 percentage analysis of that people faces any problem while using cosmetic 64
products
4.1.17 percentage analysis of that if yes, which type of problem do you face using 65
cosmetic product
4.1.18 percentage analysis of that recommended nykaa to your friends and 66
relatives
4.1.19 percentage analysis of that if yes, the reason for your recommendation 67
LIST OF EXHIBITS
EXHIBIT PAGE
NO. NO.
TITLE
4.1.A Pie chart represents gender of the respondents 48
4.1.B Pie chart represents the age group of the respondents 49
4.1.C Pie chart represents the educational qualification of the respondents 50
4.1.D Pie chart represents the occupation of the respondents 51
4.1.E Pie chart represents the monthly income of the respondents 52
4.1.F Pie chart represents the marital status of the respondents 53
4.1.G Pie chart represents the marital status of the respondents 54
4.1.H Pie chart represents the no of family members of the respondents 55
4.1.I Pie chart represents a cosmetic product of the respondents 56
4.1.J 57
Pie chart represents that expensive products is better than cheaper
products
4.1.K 58
Pie chart represents that influence the respondents while choosing a
cosmetic brand
4.1.L Pie chart represents the respondents while buying a cosmetic product 59
4.1.M Pie chart represents that how much respondent spend on cosmetic product 60
4.1.N 61
Pie chart represents that how long the respondents have been using a
cosmetic product
4.1.O Bar diagram represents of importance while purchasing a product ranking 63
4.1.P 64
Pie chart represents that people faces any problem while using cosmetic
products
4.1.Q 65
Pie chart represents that if yes, which type of problem do you face using
cosmetic product
4.1.R 66
Pie chart represents that recommended nykaa to your friends and relatives
4.1.S Pie chart represents that if yes, the reason for your recommendation 67
A STUDY ON CONSUMER BUYING BEHAVIORAL TOWARDS NYKAA
CHAPTER 1
INTRODUCTION
SRI KRISHNA ARTS AND SCIENCE COLLEGE, DEPARTMENT OF COMMERCE, PA & CS 1

[1.1] MARKETING
Marketing is the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients, partners, and society
at large. Marketing definition includes activities undertaken by a business establishment or an
individual to promote their services and products. Marketing includes promotion, advertisement
and selling product and services to the consumers.
Marketing is the key component of any venture and includes aspects like writing product
descriptions, designing website pages, improving customer services, establishing business &
market segments and conducting market research. Marketing involves strategies that aid in the
growth of a business venture.
[1.2] Objectives of Marketing
Marketing increases brand awareness among the target audience and aids brand visibility while
roping in new consumers.
Strong marketing campaigns help in increasing market share. The business world is strongly
competitive, and these marketing campaigns help in boosting the market shares.
Marketing is strongly based on market research, and one of the primary objectives of marketing is
to launch products and services based on the market's needs and improve return on investments
strategically.
Marketing helps challenge the brand to expand the business and get introduced to new local,
national and international markets, With a positive marketing plan can boost business profits and
optimize the conversion funnel. The most obvious objective of marketing is to boost sales,
increase customer loyalty, and capture new leads.

[1.3] Benefits of Marketing

Generating brand awareness: Marketing helps increase the consumers' acquaintance with
brands' motives and products. Marketing helps in bridging a loyal customer base.
Generation of traffic: Different methods of online marketing helps in the generation of traffic
and leads, which increases the brand's sales in the long run.
Increases revenue: Through website optimization, creating email campaigns and regulating
marketing strategies, brands increase revenue and sales.
Developing Trust: It has been observed that brands with strong marketing campaigns and
internet presence aids in building trust, which leads to increased purchases and loyal consumers.
[1.4] COSMETIC PRODUCTS:

[1.4.1] DEFINITION:
A “cosmetic product” shall mean any substance or preparation intended to be placed in contact
with the various external parts of the human body (epidermis, hair system, nails, lips and external
genital organs) or with the teeth and the mucous membranes of the oral cavity with a view
exclusively or mainly to cleaning them, perfuming them, changing their appearance and/or
correcting body odors and/or protecting them or keeping them in good condition.
In the U.S., the Food and Drug Administration (FDA), which regulates cosmetics, defines
cosmetics as “intended to be applied to the human body for cleansing, beautifying, promoting
attractiveness, or altering the appearance without affecting the body’s structure or functions. “This
broad definition includes any material intended for use as a component of a cosmetic product. The
FDA specifically excludes soap from this category.

[1.4.2] PURPOSE:
Is the purpose of the product wholly or mainly cosmetic i.e. is it intended to :
• Clean
• Perfume
• Change appearance
• Correct body odour
• Protect
• Keep in good conditioning.

If the main purpose of the product is not to perform one of these functions it is unlikely to be a
cosmetic.
THERE ARE TWO TYPES OF COSMETICS NAMELY:
1)Makeup products.
2)Skincare products.
[1.5] OVERVIEW OF THE PRODUCT

NYKAA is an Indian e commerce company and the largest beauty shopping destinations in India.
It was founded by Falguni Nayar, former MD of KOTAK Mahindra capital co.., in the year
2012.Nykaa is headquartered in Mumbai (formerly known as Bombay), the capital city of the state
of Maharashtra, India. The word “Nykaa” is derived from the Bengali word – “Neyka”, which
means one in the spotlight.
It is the only biggest multi-brand beauty retailer in India that sells nearly 500,000 beauty and
wellness products of various national and international brands. Nykaa ships to over 3000+ cities
across India. It currently has 2500+ brands among which 25 are luxury brands which include big
names like MAC, Clinique, Estée Lauder, NYX, Bobbi Brown, Calvin Klein. L'Occitane, and Yves
Saint Laurent etc.
Approximately, around 20,000+ orders fly out every day. Nykaa has 80 physical stores/outlets
categorized under 2 formats namely Nykaa on Trend and Nykaa Luxe, and also has popular

inhouse collection under it's a private label called the Nykaa collection. Nykaa can be accessed
through its 80 outlets running successfully across the nation, mobile app and also its webpage
(www.nykaa.com)
The discovery of art of photography and films, particularly, provided stimulation to a sudden
growth in cosmetics. As we saw images of famous people with perfect complexion and strong
sexual appeal, standards of a woman`s beauty started to change. Cosmetics have become a means
to beautify one`s physical appearance. During 1920`s, cosmetic history increased quickly. Between
the years 1927 and 1930, advertising expenses on the radio increased from $300,000 to $3.2
million on cosmetics. At first, a lot of the feminine magazines declined advertisements on
cosmetics. However, near the end of cosmetics had progressed and cosmetic advertising in
magazines become one of the magazine industries largest revenue- producing resources.
[1.6] STATEMENT OF THE PROBLEM:

• Cosmetic products must be manufactured at high level of quality to ensure that they are
safe and not hazardous to be used by the customers.
• Lack of variation and inconsistency of the quality.
• Nykaa is one of the leading shopping platforms in the beauty and cosmetics industry, the
effort has been made in the research report of the study in detail the company and an attempt
to explore what could be the factors that influence consumer buying behaviour and
satisfaction towards nykaa as a platform for the purchase of beauty products.
• In this study, therefore to understand the various factors affecting the consumer behavior
towards cosmetic products, research has been carried out to a study on consumer’s behavior
towards the brand leader in the online cosmetics e -commerce portal i.e, NYKAA
[1.7] SCOPE OF THE STUDY

The scope of this project is to help nykaa to know their status among the consumers. This would
also alert them the areas in which improvements are needed. Also, the study would be beneficial
to create more awareness of using products made in India, which would faster the economic

development of the country. This study aims to provide an insight into the perception of female
cosmetic consumers in the purchase and use of cosmetic products. The main aim of the study is to
find out the effectiveness of satisfaction level & expansion strategy by studying the buying
behavior of consumers.
This study is made to identify that the following 5 factors have a greater impact on consumer
buying decisions:
• Quality of the product.
• Product price
• Brand name.
• Product packaging
• Advertising.
[1.8] OBJECTIVE OF THE STUDY
• A study on consumer buying behavioral towards Nykaa

• To measure the satisfaction of females in the purchase and use of cosmetics.
• To know the factors influencing the consumers to prefer Nykaa.
[1.9] LIMITATIONS OF THE STUDY

• One of the major limitations faced while doing this study was time constraints. There was
only limited time to complete this study.
• The study is geographically restricted to a specific location only inside Coimbatore, and so
the results cannot be extrapolated to other places. Also, the results may differ from place
to place.
• The findings of the study are based on the data collected from sample respondents. There
is a chance of false data due to the lack of seriousness of the respondents while filling the
survey.

• This study measures only the online buying behavior and satisfaction of the consumers and
does not measure offline buying.
• The study is limited to only those respondents who wished to answer the questionnaire. 6.
Some of the respondents were afraid to give the true information in some cases.
• There may be a bias on the part of consumers while answering the questions.
• The study is confined to urban areas as it is assumed that the rural areas do not have a good
internet connection and so the entire findings are based on the urban consumers only.
[1.10] RESEARCH METHODOLOGY
[1.10.1] RESEARCH DESIGN:

A quantitative approach is a method use in the research. This method helps to analyze the data
statistically or we can say that numerical analysis is done through questionnaires and surveys. The
quantitative method focuses more on gathering numerical data and generalizing it across groups
of respondents or explaining a particular phenomenon.
[1.10.2] AREA OF THE STUDY:

Coimbatore is selected for the location of the study.
[1.10.3] SAMPLE SIZE:

The sample size selected for the research is 80 respondents.
[1.10.4] SOURCE OF DATA:

• PRIMARY DATA - Primary data is collected with an aid of Questionnaire to a set of
respondents who are believed to have desired information.
• SECONDARY DATA - Secondary data were collected through Internet.

[1.10.5] PROPSED TOOL:

Sampling technique.
[1.10.6] AREA OF THE STUDY:

The study was conducted only within Coimbatore city.
[1.10.7] TOOLS USED FOR THE STUDY:

• Percentage Analysis
• Ranking Analysis
[1.11] PERIOD OF THE STUDY:

The period of the study covers the period from month of January 2023 to March 2023.

CHAPTER 2
REVIEW OF LITERATURE

CHAPTER 2
2.REVIEW OF LITERATURE
Dr S.A. Mohamed Ali and Ramya N in their research study have mentioned that “Consumer
Buying Behaviour refers to selection, purchase and consumption of goods and services for the
satisfaction of their wants.” Consumer buying behaviour involves different processes. There are
many factors that influence an individual in ever purchase decision that he/she makes. And as said
by the authors, a purchase decision is the result of each and every factor that influences a consumer.
FACTORS INFLUENCING CONSUMER BUYING BEHAVIOUR

Several factors that influence the consumer buying behaviour are:
1)Internal or psychological factors
2)Social factors
3)Cultural factors
4)Economic factors
5) Personal factors
The above are the factors which measure the consumer’s motivation, perceptions, beliefs, attitude,
role, status, culture, sub-culture, social class, income, lifestyle, occupation and personality etc. The
five questions that support any understanding of consumer buying behaviour are who, what, why,
how, when and where do they buy.
Prasad A and Gudimetla S, 2019, in their study of digital shopping behaviour of women with
respect to beauty and personal care products, have said that “Online shopping behaviour is a
crucial part of e-commerce which is often given less importance when compared to the other
factors like technology, digital marketing etc.” Online shopping behaviour explains us about a

consumer’s overall perception and evaluation for product during they are buying the product which
could result in bad or good way. There are several variables to measure the behaviour, they are, the
preferred time of purchase, intention of the buyer, demographic and cultural backgrounds of a
consumer and also these could be the factors that influence a consumer.
In another study by Anjana SS, 2018, that before buying a product, consumers follow a series of
steps. They evaluate the product in such a way that the features of the product meet the consumer’s
needs and expectations. These needs consist of good quality with low or affordable price and
should deliver the consumer with value added features. When it comes to the product quality, price,
features, packaging etc. the consumer buying pattern differs. Consumers follow the fashion and
changing trends that affect their buying pattern.
K. G. Sankaranarayanan & Nandakumar Mekoth (2014), found significant difference between the
Usage and attitude of the clusters. This analysis resulted into the formation of three clusters viz.
Medium self-directed, heavy other-directed & occasional nonbelievers with varying
characteristics. In Addition, brand preference for body spray was found to vary by cluster and
brand preference for face Wash, shaving cream and face cream was not varying by cluster.
Surprisingly, heavy other directed Were reported to be the lowest spenders while occasional
nonbelievers were the highest spenders.
Anjali Sharma et al (2013), made an attempt to investigate the impact of brand loyalty on
consumer Buying behaviour for beauty products and aspects involved while purchasing cosmetic
products. Majority of respondents opined that quality is the most important factor at the time of
purchasing of the beauty products followed by brand and price. However, small group of women
feel packaging is the key factor for decision making. Researchers concluded that these factors are
generally responsible for switching to other brands and friends are the most powerful reference
group.

Ismail, Masood, Mehmood (2012) conducted a study to Determine the factors that affect the
consumer preferences for global brands in comparison to local ones. The research Was based out
of Karachi. The survey from 200 people Resulted that the most important factors are that influence
Consumer preference are price and quality.
Debiprasd Mukherjee (2012) conducted a study entitled “Impact of celebrity endorsement on

Brand Image‟. This study shows that consumers report higher self-brand connection for brands
with images that are consistent with the image of a celebrity that they aspire to be like, particularly
in the case when the image of the celebrity and the brand match.
In a study, the authors, Bhatt S and Bhatt A,2012, mentioned that factors such as time, availability
of products, affordable price, promotions that e-retailers provide and ease in payment methods
encourage the young minds to shop more online. We all know that internet is most used by the
people who lie between age group of 20-35 years. So, most of the e-retailers keep this particular
age group in mind before they promote any brand.
Hamza Salim Khraim (2011), analysed how factors of brand loyalty towards cosmetic brands
Influence the consumer buying behaviour. The findings of this study disclose that there is positive
and significant relationship between factors of brand loyalty namely brand name, product quality,
Price, design, promotion, service quality and store environment with cosmetics brand lloyalty.
According to a pharmaceutical journal by Niha Naveed, on average women use 12 skin care
products daily, and men use 6. Additionally, in relation to ethnic and skin care products, according
to U.S.
As mentioned in a study by A.K. Rastogi,2010 “Consumers decide whether, what, when, from
whom to buy. They can avail various mediums to buy the products.” As this paper is about the
e-commerce platform, we are going to discuss about the online shopping behaviour. The attitude
towards online shopping is not only affected by ease of use, usefulness and enjoyment, but also
there are factors such as consumer individuality, situational factors, product distinctiveness,
previous shopping experience and most importantly the faith in online shopping.

Jung & Sung (2008) conducted a study to measure and Compare the customer-based brand equity
of apparel Products by three consumer groups across cultures. Among The element’s studies, brand
quality and brand awareness for American college students were higher than those for South
Koreans in the USA and Korea.
Sondoh Jr., Stephen L et al (2007), examined the impact of brand image benefits on product
satisfaction and loyalty intention for color cosmetic product. Results revealed that brand image
benefits viz. functional, social, experiential and appearance enhances are positively related to
overall satisfaction and loyalty intention is significantly influenced by functional and appearance
enhance.
Elif A. Ergin et al (2005), carried on a research study with view to determining brand loyalty
among Turkish women with respect to skin-care products and enabling cosmetics players to
penetrate to the Turkish market and to shape marketing strategies. The results showed that there is
a brand loyalty among Turkish women for cosmetic products.
According to Pride and Ferrell (1993) Green marketing, also alternatively known as
environmental marketing and sustainable marketing, referring to an organization’s Efforts at
Designing, promoting, pricing and distributing products that will not harm the Environment.
Ramakrishna Rao, Rama Raju& Ram Prasad (1987) conducted a survey on “Husband and
Wife Involvement in Buying Decision Making in cosmetics”. One of the major findings of the
study is Husband who are young, highly educated & belong to high income group Are relatively
less Dominated than their older, less educated & low-income counterparts.
Subrahamanyam & others (1982) conducted a study on “Marketing of consumer goods” In

Vishakapatnam. It was found that large number of respondents purchased Consumer products.
From private retail shop followed by super bazaar & consumer cooperative store and housewife
Played a vital role in taking purchase decision.

Singh J.D. (1981) conducted a survey on “A study of Brand loyalty in India”. The study
Concluded that Indian consumers have been found becoming more & more brand loyal. Depending
upon the nature of the product, they have single or multiple brand loyalty Are „quality of the
product, „habit of use‟ and „regular availability‟ of the product.
Cunnigham, S.M. (1967) examined the pattern of consumer behavior regarding the selection of
ones favourite brand and its non-availability. He also analysed purchasing Regarding the number
of brands purchased, and the percentage of money spent on Most frequently purchased brands by
consumer.
Mitterstaedt, R. (1959) observed that brand loyalty may be the cause of purchase Dissonance felt
by the consumer at the time of purchase of certain product A. And such Experience may lead him
to repeat purchase of product B.

CHAPTER –3
COMPANY OVERVIEW

CHAPTER –3 3.COMPANY
OVERVIEW
[3.1] INTRODUCING NYKAA:
NYKAA is an Indian e commerce company and the largest beauty shopping destinations in India.
It was founded by Falguni Nayar, former MD of KOTAK Mahindra capital co.., in the year
2012.Nykaa is headquatered in Mumbai (formerly known as Bombay), the capital city of the state
of Maharashtra, India. The word “Nykaa” is derived from the Bengali word – “Neyka”, which
means one in the spotlight. It is the only biggest multi-brand beauty retailer in India that sells nearly
500,000 beauty and wellness products of various national and international brands. Nykaa ships to
over 3000+ cities across India. It currently has 2500+ brands among which 25 are luxury brands
which include big names like MAC, Clinique, Estée Lauder, NYX, Bobbi Brown, Calvin Klein.
L'Occitane, and Yves Saint Laurent etc. Approximately, around 20,000+ orders fly out every day.
Nykaa has 80 physical stores/outlets categorized under 2 formats namely Nykaa on Trend and
Nykaa Luxe, and also has popular in-house collection under it's a private label called the Nykaa
collection. Nykaa can be accessed through its 80 outlets running successfully across the nation,
mobile app and also its webpage ( www.nykaa.com)
[3.2] HISTORY OF COSMETICS:

The discovery of art of photography and films, particularly, provided stimulation to a sudden
growth in cosmetics. As we saw images of famous people with perfect complexion and strong
sexual appeal, standards of a woman`s beauty started to change. Cosmetics have become a means
to beautify one`s physical appearance.
During 1920`s, cosmetic history increased quickly. Between the years 1927 and 1930, advertising
expenses on the radio increased from $300,000 to $3.2 million on cosmetics. At first, a lot of the
feminine magazines declined advertisements on cosmetics. However, near the end of cosmetics
had progressed and cosmetic advertising in magazines become one of the magazine industries
largest revenue- producing resources.

[3.3] THE NYKAA STORY:
The Mumbai resident founder and the CEO of Nykaa, Falguni Nayar is a graduate of IIM
Ahmadabad, India. Before launching Nykaa, she served Kotak Mahindra Capital Co. for 18. years
but she quit her job as she always wanted to be an entrepreneur. She noticed that there was a huge
gap in the Indian beauty line market the demand was greater than the available mediums to buy
beauty essentials in the country. This led her to launch Nykaa with her husband Sanjay Nayar, a
banker by profession, and daughter Adwaita Nayar. Nykaa raised its business funding of about
40M USD in multiple rounds of funding from various investors and generated a turnover of about
39M USD in the very first five years. In the last 2 years, its revenue has raised to nearly 400%.
Nykaa follows an inventory - based business marketing strategy. All its products are sourced
directly from the original label/brand. The wellness and beauty industry in India are growing at a
fast rate due to the young generation, rise in middle-class and its incremental disposable income,
urbanization, digitalization, and an overall shift towards a much better and healthy lifestyle and
personal care. Due to the increase in disposable income in the past couple of years, especially the
previous decade, there is a rise in demand for skin and sun care products. Along with raise in
income, change in global economies, change in lifestyles, rising demands of skincare and sun care
products are also influencing the demand for these products. The change in climatic conditions
every few years, especially due to global warming has also led to an increase in demand for
cosmetics. The growth rate of such cosmetic or beauty retail market in India is around 25% CAGR
(Compound Annual Growth Rate) is being witnessed at global level as well in India also. Indian
cosmetics industry particularly lacks a strong Indian origin brand in the premium product segment.
This leads to gap for introducing a product range that is made by an Indian cosmetics brand that
speaks directly to the Indian consumer. The Indian consumer is willing to purchase the premium
products and so it is the right time to introduce the premium product category by blending the
existing brand DNA and current market trends. E-commerce emphasizes online shopping whereby
consumers directly buy goods, services, etc. from a seller interactively in real-time without an
intermediary service over the internet. Online shopping is the process of buying goods and services
from merchants who sell on the Internet. Since the emergence of the World Wide Web, merchants

have sought to sell their products to people who surf the Internet. Shoppers can visit web stores
from the comfort of their homes and shop as they sit in front of the computer. Consumers buy a
variety of items from online stores. Consumer's cosmetic consumption depends on different
attributes like Price, Quality, Brand name, Brand loyalty, and Labelling, etc. All these attributes
now become a new trend in the market. Currently, people are falling for quality, branded, and cheap
priced products. Early day's price was the only factor in the mindset of people. But now, all these
factors have a major role in dominating the market. The main purpose of this research is to have a
better knowledge and understanding of consumer buying behaviour towards cosmetic purchasing
and what all are the factors influencing the consumers in purchasing cosmetics.
[3.4] DEFINITION:
A “cosmetic product” shall mean any substance or preparation intended to be placed in contact
with the various external parts of the human body (epidermis, hair system, nails, lips and external
genital organs) or with the teeth and the mucous membranes of the oral cavity with a view
exclusively or mainly to cleaning them, perfuming them, changing their appearance and/or
correcting body odors and/or protecting them or keeping them in good condition.
In the U.S., the Food and Drug Administration (FDA), which regulates cosmetics, defines
cosmetics as “intended to be applied to the human body for cleansing, beautifying, promoting
attractiveness, or altering the appearance without affecting the body’s structure or functions. “ This
broad definition includes any material intended for use as a component of a cosmetic product. The
FDA specifically excludes soap from this category.
[3.5] PURPOSE:
Is the purpose of the product wholly or mainly cosmetic i.e. is it intended to :
• Clean
• Perfume
• Change appearance

• Correct body odour

• Protect
• Keep in good conditioning.
If the main purpose of the product is not to perform one of these functions it is unlikely to be a
cosmetic.
[3.6] THERE ARE TWO TYPES OF COSMETICS NAMELY:
1)Makeup products.
2)Skincare products.
[3.7] ABSTRACT:
The Indian beauty industry is growing, and it is projected to become one of the top 5 global markets
according to revenue. The Indian consumer is exposed to international brands more than ever
before and is backed by much technological advancements. Increasing disposable income and
image consciousness are the favorable factors for the people to invest in this industry. A few years
ago, industries like beauty and personal care flourish more on the store experience of touch, feel
and smell. The changing trends have proved that the beauty and personal care industries are no
expectations to the digital mode. The study is aimed at understanding the effect of pricing,
discounts and advertising on purchase of cosmetics online. A survey of 80 respondents was
analyzed using google forms. The results show that pricing, advertisements and discounts
influence the purchase behavior of consumers while purchasing cosmetics online. The research
also explains how the e-commerce platforms have changed the way consumers buying behavior
and satisfaction of the cosmetics and beauty products regarding an online platform. Nykaa. An
effort has also been made to study the buying and consumption pattern of the potential Nykaa`s
consumers. Though Nykaa has witnessed exceptional growth in the Indian cosmetics industry, the
attractiveness of the industry tempts many competitors which make it important for Nykaa to
strategize market domination by analyzing consumer buying behavior and satisfying it.

[3.8] CUSTOMER PURCHASING DECISION TOWARDS

COSMETICS:
Before buying a product, Consumers walk or move through a series of steps. They emphasize the
product in a way that it should satisfy their needs and have good quality with low or more
affordable price, and should deliver them with value added features.
Consumer buying patterns differ when comes to the product quality, price, status, features,
packaging. They mostly follow the rhythm of fashion and this changing preference affects their
buying pattern. To identify and predict this changing behaviour, marketers spend millions of rupees
every year for market research. Currently, the marketers are facing difficulties to understand and
target the consumer's behaviour because they are flourished by the different varieties, affordable
price and changing trend in the market of cosmetics. Consumer preference is changing along with
time.
[3.9] CONSUMER BUYING DECISION PROCESS:
The buying decision process consists of several steps, which are undertaken by the consumer with
regard to a potential market transaction before, during, and after the purchase of a product or
service. There are usually five stages:
A) PROBLEM RECOGNITION:
The purchasing decision-making process begins when a buyer becomes aware of an unsatisfied
need or problem. This is a vital stage because without recognizing the need or want, an individual
would not seek to buy goods or services. Various internal and external stimuli affect the recognition
of the needs (problems) for cosmetics products. Internal stimuli include fashion consciousness,
wishing to emulate others, and the need for greater self-esteem. There are also various external
stimuli, which include the actions and opinions of friends, doctors, beauticians, advertisements,
and others.

B) INFORMATION RESEARCH:
After the consumer has recognized the need, he or she will try to find the means to solve that need.
First, she will recall how she has solved such a problem in the past, if relevant, which is called
nominal decision making. Secondly, the consumer will try to solve the problem by asking a friend
or going to the market to seek advice concerning which product will best serve the need, and this
is called limited decision making. Here, consumers actively or passively involve themselves in
locating appropriate information as per their needs for cosmetics products. Consumers search for
information such as product range availability, price, product suitability. and use, and the nature of
the products. Opinions of family, friends, doctors, and beauticians, as well as a reference to
company websites and advertisements, are major information sources as regards cosmetics.
C) EVALUATION OF ALTERNATIVES:
Consumers evaluate alternatives according to various criteria such as features, characteristics, and
benefits that a consumer desires in solving the specified problem. The consumer will decide which
product to buy from a set of alternative products depending on the unique features if any. that the
product offers. Here consumers evaluate the different alternatives in cosmetics products as per
their needs on the basis of price, quality, brand image, ingredients, suitability, availability and other
relevant features.
D) PURCHASE ACTION:
This stage involves the selection of a brand and the retail outlet at which to purchase the desired
product. After selecting where to buy and what to buy, the consumer completes the final step of
the transaction with either cash or credit. After evaluation among the different cosmetics brands
available in the market now, consumers finally buy the products desired as per needs. Here

consumers evaluate the purchase decision considering various risks like functional risks, physical
risks, financial risks, and psychological risks.
E) POST PURCHASE ACTIONS:

In the event of a favorable post-purchase evaluation, the customer will be satisfied with the process.
However, if the product's perceived performance level is below expectation, then this will in due
course lead to dissatisfaction. Consumers, if satisfied, are then likely to use the same cosmetics
brand in the future, which is what gives rise eventually to brand loyalty. If particular products do
not perform as per their expectations, then consumers are likely to switch to another brand if one
is available and it is perceived to exceed the performance of the current product.
[3.10] FACTORS INFLUENCING CONSUMER BUYING BEHAVIOUR:

Several factors that influence the consumer buying behaviour are:
a) Internal or psychological factors
b) Social factors
c) Cultural factors
d) Economic factors
e) Personal factors
The above are the factors that measure the consumer's motivation, perceptions, beliefs, attitude,
role, status, culture, sub-culture, social class, income, lifestyle, occupation and personality etc. The
five questions that support any understanding of consumer buying behaviour are who, what, why,
how, when and where do they buy.
Consumers decide whether, what, when, from whom to buy. They can avail various mediums to
buy the products. The attitude towards online shopping is not only affected by ease of use,
usefulness and enjoyment but also there are factors such as consumer individuality, situational

factors, product distinctiveness, previous shopping experience and most importantly the faith in
online shopping.
Online shopping behaviour is a crucial part of e-commerce which is often given less importance
when compared to the other factors like technology, digital marketing etc. Online shopping
behaviour explains to us about a consumer's overall perception and evaluation for product during
they are buying the product which could result in a bad or good way. There are several variables
to measure the behaviour, they are, the preferred time of purchase, intention of the buyer,
demographic and cultural backgrounds of a consumer and also these could be the factors that
influence a consumer.
[3.11] STRATEGIES IMPLEMENTED BY NYKAA FOR EXPANSION IN

THEIR ONLINE BUSINESS AND BRAND IMAGE IN THE POINT
VIEWPOINT OF CONSUMERS:
1) The first strategy is the OPEX loop. OPEX means Operating Expenditure and loop means
making it rotate. In the beauty business, and fashion retail business margin is quite high but
profitability is not high. Margin means how much you are earning per sale. So in beauty products,
the margin is high but the profitability is low because of high operating expenditure. This means
if you are running a shop then you have to bear many expenses such as expenses of your
employees, electricity, racks & shelves expenses, the interior maintenance expenses rent and so
many expenses are there and Nykaa has reduced all these expenses by entering into an e-commerce
platform. Nykaa has formed its own loop which is High Margin, High Profits, and Low OPEX.
This is a big difference between a shop and an e-commerce store. The operating expenditure of a
shop is very high and when you shift to e-commerce then your operating expenditure is
comparative very low. And that is why when Nykaa started off they started with e commerce. They
did not have any physical stores initially.
2) Nykaa did an amazing thing with e-commerce which is called Data Leverage. When they
shifted to e-commerce then they had customer data. And with this data they leveraged. The

customer data reveals buying behaviour quite comfortably. The company is aware of the products
that the customer wants to buy and the product that he does not want to buy. which product he is
more interested in and which product is in his cart, which product does he shares with his friend,
all these details are available when you shift to e commerce when you become digital and Nykaa
used all this data. With this, the COCA - Cost of Customer Acquisition for Nykaa reduced from
Rs. 1000 to Rs. 200. Earlier Nykaa used to acquire a single customer for Rs. 1000 whereas today
it is just Rs. 200. Because Nykaa has captured a huge space in the ecommerce business. This space
is known as Digital Real Estate and with this Nykaa has so much data today that they know
everything about the customers. And they have taken advantage of this in many ways.
3) The next strategy is the PM approach which means, problem in the market. They first
identified the high demand which is increasing day by day but the problem in the market is
duplicacy which is very high in beauty products that people are fed up with it. And it is also a big
risk factor. When you apply beauty products on your face and on your body, so what happens is
when you apply and if any content is faulty then it can damage your skin permanently. So, the
long-term customer value is very important here. Once the faulty product is delivered then the
customer will leave forever.
To take care of all these things they, first of all, collaborated with brands like Mac, Lakme, etc.
They told these brands that we will sell their products on their platform. Now, they also had to
maintain the quality that no poor-quality product is delivered. To maintain this, they followed
Inventory Model. By this quality is controlled. Because now Nykaa knows that the products are
directly from brands and not from third-party sellers. So, Nykaa has an assurance that no
poorquality product is delivered to their customers. And even if it does then the brand is responsible
for it and not Nykaa.
Now, second factor on which they focused in is "Marketing". They saw that it is very important to
bring customers but to retain them is even more important. So, they used a 360-degree approach.
First of all, they did content marketing. For content marketing, they wrote blogs and then they
shifted to influencer marketing. They collaborated with many influencers on YouTube. They also

had their own YouTube channel where they provide beauty tips to people and also inform them
about how to use new products. So that they can maintain long-term relationships with customers
and also people who don't know how the products are they learn to use the products. Apart from
this, they have done good marketing on their social media handles. They also have given
sponsorship to many celebrities. Apart from that, they provide huge discounts. If you visit the
Nykaa website then you will come to know that they annually run thousands of discounts offers.
And daily you will get some offer.
4) The next strategy is Netted fishing. Understand this, if you are fishing with a fishing rod
then you can catch 5-10 fish at the most but if you fish with fishing net then how many fishes can
you catch? Many of them and the same are done by Nykaa. Nykaa has understood that if they run
only an e-commerce store then it will not grow big, so they have to do so many other things. Today
Nykaa runs its e-commerce store and they also have more than 70 offline stores and also it includes
Nykaa Luxe. Nykaa Luxe deals in high-end brands. There is an expensive brand called Huda
beauty they don't have an outlet in India. So, all their products are available at Nykaa Luxe.
Through Nykaa Luxe they acquire premium customers who prefer expensive brands.
Their second strategy is Nykaa On-trend where you will find all the trending products in beauty
and fashion.
Their third strategy is Nykaa fashion. They knew that beauty alone won't work, the fashion
industry also has huge scope and we can expand here as well. So, they started Nykaa Fashion. All
those women who are interested in fashion can come to Nykaa fashion and can buy clothing there.
Their fourth strategy is Nykaa Man where all the men grooming products are available. Now
along with this, they had identified one thing in the fashion and beauty industry which was that
people now need chemical-free products. So, they opened Nykaa Naturals. Nykaa Naturals is their
fifth net. With their fifth net, they were able to capture all those customers who like to use chemical-
free products, who need beauty products but not chemicals. With this netted fishing technique
Nykaa has acquired different varieties of customers.

5) Their fifth strategy is Omni Channel. Omni Channel means you surround customers from
all sides so that he does not escape from you and you can in a way easily acquire them. To do this
they, first of all, made a strong presence in online platforms & then offline. But they faced the
problem that they could not integrate these two platforms together. So, they invested in ERP
systems (Enterprise resource planning refers to a type of software that organizations use to manage
day-to-day business activities such as accounting, procurement, project management, risk
management, and compliance, and supply chain operations.) to integrate them. With ERP they
were able to do real-time management.
They knew what was the cost of inventory, what is the expense on salaries, how much is the cost
of raw material and they were able to track the performance of offline stores. Which store needs to
be closed and where to open a new one? How is the behavior of the customers? How many are
repeat customers and how many are leaving? What are the different things in business? All these
things they were able to track with ERP. And thus, they were easily able to execute the Omni
Channel. And this Omni Channel was used by them to make the start-up profitable. Because with
the use of Omni Channel they knew that which products do customer needs and at what price.
Which customer likes to buy offline? Which products are sold more offline and in online mode?
6) Nykaa started their Nykaa range which is a very high profit-generating. For their own
range, they didn't have to operate on commission. The margin is their net profit after deducting all
the expenses. Apart from this, their own range can be sold at a low price easily and in bulk quantity.
Because they have customers' data. The same thing is done by Amazon, which operated for many
years in India and they observed which hot selling products are and then all those products were
produced by Amazon itself which we know as Amazon basics. A similar thing was done by Nykaa
they used the data and launched their own products to generate profit.
[3.12] MISSION AND VISION:
NYKAA- “YOUR BEAUTY, OUR PASSION”

Nykaa rests on 3 paragons:
• Curation

• Information
• Personalization “Nykaa brings together the best offering, to help our customers make the right
choice for their holistic beauty needs every step of the way”. The founder believes that Nykaa
should stand for “Women empowerment”. Nykaa wants to periodically support for various CSR
initiatives and be a socially responsible brand.in the longrun, just like fashion and styles, Nykaa
aims to incorporate beauty into current latest trends.
[3.13] ABOUT NYKAA:
Although beauty lies in the eyes of the beholder, the global beauty industry has never happened to
lose its charm. Alongside its steady growth the industry has also garnered a stream of loyal
customers over generations. Which girl doesn’t love using cosmetics? From practicing makeup
tutorials, experimenting with different shades on idle days, beautifying ourselves prior to a
wedding or a function or just putting on a quick light layer before work, cosmetics play an integral
role in all our lives.
But we’re long past the days when people were required to physically visit cosmetic stores. Why
should brick and mortar stores be the only option when we now have online stores for cosmetics
which allow customers to order items at anytime and anyplace.
Despite the Indian economy having plunged to list new lows in the recent months owing to the
lockdown induced by the COVID19 pandemic, there are still a number of platforms which have
continued to stay steady amidst this lockdown.
One of these e-commerce platforms for beauty and wellness items is Nykaa, a platform which has
become the foremost option for all cosmetic lovers in the Indian nation. Anyone out there who has
the slightest interest in making use of beauty and wellness items would have heard of Nykaa at
some point in their lives. This is an e-commerce company which specializes in beauty and cosmetic
items. Established in 2012, this platform has played an intrinsic role in overcoming the myth that
e-commerce and beauty retail fails to perform in India.

Nykaa has recently become the buzzword uttered across the nation after the launch of its IPO and
the massive response it received which in turn has boosted its founder Falguni Nayar to emerge as
a part of India's exclusive group of self-made billionaire women as her net worth rose to $6.5 Bn
following the record listing of Nykaa, according to Bloomberg Billionaires Index.
Through this blog, we will provide you a gist about the platform of Nykaa, about its founders, its
business model, its funding, its success story, its origin, as well as its growth.
Nykaa is an India based brand that specializes in multi-beauty and personal care products. It had
been originally established as a sole e-commerce medium until it later began setting up various
retail outlets in many metropolitan cities across the nation.
The brand specializes in facilitating an extensive collection of cosmetics, skincare, haircare,

fragrances, bath and body, luxury as well as wellness products for both women and men. The
platform facilitates suitably prepared and priced branded products, claiming to receive more than
1.5 million per month across India.
Presently Nykaa has its stores in three formats namely Luxe, On Trend, and Kiosks. With the Nykaa
On Trend items being confined to trending and fashionable brands, Nykaa’s Luxe stores feature
more premium and luxury brands such as Estee Lauder, Dior, Huda Beauty, and M.A.C Cosmetics
as well as a range of others.
Aside from women beauty, the platform also holds a range of grooming items for men listed on the
Nykaa Man website and app and also on Nykaa Network, which is an online community for beauty
enthusiasts. As of now the company is a firm believer in sticking to the vertical marketplace.
A graduate in MBA from IIM Ahmedabad, Falguni Nayar started to work at Kotak Mahindra in
investment banking, shortly following her graduation. In 2005, she became the Managing Director
at the same division of the bank.
She worked for Kotak Mahindra for about 18 years, amidst which she took the decision to venture
beyond the banking sector and experiment in other areas.

She perceived the unexplored promise held by the online beauty sector. Since back in those times,
there was a dearth of accessible online brands and items which could be trusted and purchased
confidently by the consumers, this is where she saw the scope for Nykaa.
Being passionate about makeup and beauty items she wished to alter the opinion of Indian women
on personal grooming. With the desire of developing something exclusive to her, she established
Nykaa in 2012.
Nykaa is an Indian e-commerce company, founded by Falguni Nayar in 2012 and headquartered
in Mumbai. It sells beauty, wellness and fashion products across websites, mobile apps and 84
offline 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.
Falguni Nayar, a former managing director at Kotak Mahindra Capital Company, founded Nykaa
in April 2012. It was launched as an ecommerce portal curating a range of beauty and wellness
products. The brand name Nykaa is derived from the Sanskrit word nayaka, meaning actress or
"one in the spotlight". The website was first launched around Diwali 2012, and was available
commercially in 2013.
In 2015, the company expanded from online-only to an omnichannel model and began selling
fashion products.
In October 2020, the company launched Nykaa Man, India's first multi-brand ecommerce store for
men's grooming. The company expanded into fashion by launching Nykaa Design Studio, which
was renamed to Nykaa Fashion.
In 2020, Nykaa launched Nykaa PRO. It is a premium membership program that provides users
special access to professional beauty products and offers via the Nykaa App. In Dec 2020, Nykaa
Fashion launched its first store in Delhi, making the fashion business omnichannel.

Nykaa follows an inventory-based model with warehouses in Mumbai, New Delhi, Pune, Haryana,
Kolkata and Bangalore. In 2020, in addition to its primary ecommerce business, it has an offline
presence via 76 brick-and-mortar stores across the country. It claims to have over 200,000 products
across 2,000 brands.
It has three offline store formats called Nykaa Luxe, Nykaa On Trend and Nykaa beauty Kiosks.
The Luxe format features international luxury beauty brands such as Huda Beauty, MAC, Dior,
and Givenchy along with Nykaa Beauty, the in-house collection of beauty products. The Nykaa
On Trend format has products curated by category basis their popularity. In India, Nykaa is the
only retailer that sells international brands like e.l.f, Charlotte Tilbury, Tonymoly, Becca, Sigma,
Limecrime, Dermalogica, and Murad.
In 2015, Nykaa launched its collection of in-house beauty products via Nykaa Cosmetics and later
expanded it across categories of Eyes, Nails, Face, Lips. The Nykaa Naturals portfolio is a
collection of skincare and personal care products. In early 2019, the brand launched its Wanderlust
Bath & Body collection, and later in the year introduced a beauty line with the iconic designer
Masaba Gupta, Masaba by Nykaa.
In May 2019, Nykaa acquired 20Dresses.com, a private women's styling platform. The same year,
it launched its first celebrity partnership brand, Kay Beauty, with actress Katrina Kaif.
In 2021, Nykaa Fashion acquired the India fashion jewellery brand, Pipa Bella.
On 18 November 2019, an API flaw was detected in Nykaa Fashion's internal systems that allowed
a potential attacker to log in to any user account if the attacker had access to the user's email ID.
This could potentially have put users' data at risk of being hijacked. Consequently, the company
fixed the security vulnerability.
Nykaa also hosts beauty and fashion content via Nykaa TV, its YouTube channel. It contains
informational videos about beauty, cosmetics, and styling. Some of its notable campaigns include
#BreakTheHashtag (with Tapsee Pannu), #WhatMakesYourBeautiful (with acid attack survivor
and activist Laxmi Agarwal), Beauty in Her Story (in collaboration with Netflix), web series
Tinderella, Khoj (a Mother's Day film), and Rakshak (a Raksha Bandhan special film).

Since 2018, it has been hosting an online community of beauty and fashion enthusiasts via its
Nykaa Network. In 2020, it launched a web miniseries called The Beauty Bar. Nykaa also hosts
Beauty Book, a beauty and fashion magazine.
Nykaa extends social and financial help to causes such as education, health, women's rights and
empowerment, rural development, and disaster management. Some of its notable CSR partnerships
are with SPARSH India, CARE International Confederation, PRIDE, Milaap, Nanhi Kali, make a
Wish Foundation, Benefactory, Sneha, GiveIndia, and PM CARES Fund.Since 2015, Nykaa has
hosted the ‘Nykaa Femina Beauty Awards’ in partnership with women's lifestyle magazine Femina
(India). In 2019, Nykaa Fashion launched ‘The Power List’ in partnership with Vogue India.
[3.14] OVERVIEW OF THE STUDY:

Cosmetics include skin-care creams, lotions, powders, perfumes, lipstick, fingernail and to nail
polish, eye and facial make up, colored contact lenses, hair sprays and gels, deodorants, hand
sanitizer, baby products, bath oils and many other types of products. Most cosmetics are
distinguished by the area of the body intended for application.
Primer come: in formulas to suit individual skin conditions. Most are meant to reduce the
appearance of pore size, prolong the wear of makeup, and allow for a smoother application of
makeup, and are applied before foundation.
Lipstick, lip gloss, lip liner, lip plumper, lip balm, lip conditioner, lip primer, and lip boosters:
Lipsticks are intended to add color and texture to the lips and often come in a wide range of colors,
as well as finishes such as matte, satin and lustre. Lip stains have a water or gel base and may
contain alcohol to help the product stay on. They temporarily saturate the lips with a dye. Usually
designed to be waterproof, the product may come with an applicator brush, rollerball, or be applied
with a finger. Lip glosses are intended to add shine to the lips and may add a tint of color, as well
as being scented or flavored. Lip balms are most often used to moisturize and protect the lips. They
often contain SPF protection. Concealer makeup covers imperfections of the skin. Concealer is
often used for any extra coverage needed to cover blemishes, under eye circles, and other
imperfections. Concealer is often thicker and more solid than foundation, and provides longer

lasting, more detailed coverage. Some formulations are meant only for the eye or only for the face.
This product can also be used for contouring the face like one’s nose, cheekbones, and jaw line.
Foundation is used to smooth out the face and cover spots or uneven skin coloration. Usually a
liquid, cream, or powder, as well as most recently a light and fluffy mousse. Foundation provides
coverage from sheer to full. Foundation primer can be applied before or after foundation to obtain
a smoother finish. Some primers come in powder or liquid form to be applied before foundation
as a base, while other primers come as a spray to be applied after the foundation to help the makeup
last longer. Face powder sets the foundation, giving it a matte finish, and to conceal small flaws or
blemishes. Tinted face powders may be worn alone as a light foundation.
Rouge, blush or blusher is cheek coloring to bring out the color in the cheeks and make the
cheekbones appear more defined. Rouge comes in powder, cream, and liquid forms. Contour
powder/creams are used to define the face. They can give the illusion of a slimmer face or to
modify a face shape in other desired ways. Usually a few shades darker than one's own skin tone
and matte in finish, contour products create the illusion of depth. A darker toned
foundation/concealer can be used instead of contour products fora more natural look. Highlight,
used to draw attention to the high points of the face as well as to add glow, comes in liquid, cream,
and powder forms. It often contains a substance to provide shimmer. A lighter toned
foundation/concealer can be used instead of highlight to create a more natural look.
Bronzer gives skin a bit of color by adding a golden or bronze glow, as well as being used for
contouring. It comes in either matte, semi matte/satin, or shimmer finishes.
Mascara is used to darken, lengthen, thicken, or draw attention to the eyelashes. It is available in
natural colors such as brown and black, but also comes in bolder colors such as blue, pink, or
purple. Some mascara includes glitter flecks. There are many formulas, including waterproof
versions for those prone to allergies or sudden tears. It is often used after an eyelash curler and
mascara primer Many mascaras have components to help lashes appear longer and thicker.
Eyeliner is used to enhance and elongate the size of the eye. Eyebrow pencils, creams, waxes, gels
and powders are color and define the brows.

Nail polish is used to color the fingernails and toenails. Transparent, colorless versions may
strengthen nails or as a top or base coat to protect the nail or polish. Setting spray is keeps applied
makeup intact for long periods. An alternative to setting spray is setting powder, which may be
either pigmented or translucent. False eyelashes are frequently used when extravagant and
exaggerated eyelashes are desired. Their basic design usually consists of human hair or synthetic
materials a thin cloth-like band, which is applied with eyelash glue to the lash line. Designs vary
from short, natural-looking lashes to extremely long, wispy, rainbow-colored lashes. Rhinestones,
gems, and even feathers and lace occur on some false eyelash designs.
[3.15] Consumers perception on Indian Brand Cosmetics:
• The booming Indian cosmetics market is stormed by home-grown brands that promise to pamper
Indian skin with the goodness of local, natural and organic products.
• Availability of products.
• Consumer knowledge about foreign products.
• Satisfaction in price level.
[3.15.1] SKIN CARE PRODUCTS:
Skin care products can fall under the general category of cosmetics. These are products used to
improve the appearance and health of skin, formulated for different types of skin and associated
characteristics. Skin care products include cleansers, facial masks, toners, moisturizers, sunscreen,
tanning oils and lotions, skin lighteners, serums and exfoliants.
[3.15.2] SKIN TYPES:
There are four basic skin types and two skin conditions. Different skin types and skin conditions
may benefit from different cosmetic care.
[3.15.3] NORMAL SKIN:

This type of skin has a fine, even and smooth surface due to its ideal balance between oil and
moisture content. Normal skin is therefore neither greasy nor dry. People who have normal skin
have small, barely-visible pores. Their skin usually appears clear and does not frequently develop
spots and blemishes. Normal skin needs minimal and gentle treatment. Even though the skin is
considered normal and problem free, it still require maintenance.
[3.15.4] DRY SKIN:
Dry skin tends to have a parched appearance and tends to flake easily. Dry skin is proneto wrinkles
and lines due to its inability to retain moisture, as well as an inadequate production of sebum by
sebaceous glands. Dry skin often has problems in cold weather, which dries it out further. Constant
cosmetic protection in the form of a moisturizer by day and a moisture-rich cream by night is
essential. It is important not to over-exfoliate, even in cases of extreme flaking. Over-exfoliating
dries the skin further and may harm or damage the skin. The skin should be exfoliated gently by
using sugar, rice bran or mild acids, although they should not be used more frequently than once
per week to avoid causing irritation and excessive dry skin.
[3.15.5] OILY SKIN:
As its names implies, this type of skin surface is slightly to moderately greasy, which is caused by
the over secretion of sebum. The excess oil on the surface of the skin causes dirt and dust from the
environment to adhere to it. Oily skin is usually prone to blackheads, whiteheads, spots and
pimples. It needs to be cleansed thoroughly everyday, especially in hot or humid weather.
Moisturizing with an oil-free, water-based and non- comedogenic moisturizer is required in
addition. Exfoliation is necessary, but over- exfoliation can cause irritation and increase in oil
production; exfoliants that contain fruit acids are particularly helpful, and finegrained exfoliants
may help to clear blocked pores, discouraging breakouts and improving the skin's appearance.
[3.15.6] SENSITIVE SKIN:
Sensitive skin is a common skin condition that has a tendency to react to many potential triggers
with irritation, redness, stinging or burning, flaking, lumpiness, and rashes. A skin condition
changing into sensitive normally causes from our immune system disorders or the changes of

health conditions. The most common causes of irritation are chemical dyes and fragrances, soaps,
some flower and spice oils, shaving creams, tanning lotions or spray tans, changes in temperature,
excessive cleansing or exfoliating, waxing, threading, shaving, and bleaching. People with
sensitive skin should try to avoid products with unnecessary fragrances or dyes, and generally
avoid using products that cause irritation. Sensitive skin is typically dry, but can be oily, normal,
or combination as well.
[3.15.7] COMBINATIOM SKIN:
This is the common type of skin. As the name suggests, it is a combination of oily and dry or
normal skin, where certain areas of the face are oily and the others dry. The oily parts are usually
found on a central panel, called the TZone, consisting of the forehead, nose and chin. The dry areas
usually consist of the cheeks and the areas around the eyes and mouth. Each part of the face should
be treated according to its skin type.
[3.15.8] ACNE-PRONE SKIN:
Acne is a common skin condition that occurs when skin pores become clogged and bacteria settles
in, causing the pores to become infected. Several factors can contribute to developing acne such
as oily skin, hormones, diet, skin care products, and even your skincare routine. Acne is treatable
and even prevented by changing the lifestyle and diet in our everyday routine, and applying the
right skin care products.
[3.16] GENERAL SKIN CARE ROUTINES:
• CLEANSING:
Cleansing is the first essential step to any daily skin care routine. Cleansers are generally applied
to wet skin over the face and sometimes the neck, avoiding the eyes and lips. Cleansing the face
once per day is typically adequate for normal or dry skins. However, a mild cleanser should be
used at night if makeup has been worn to remove any excess dirt or oil. Oily skins should be

cleansed more frequently, at least twice per day. Water-based, gentle cleansers are ideal for all skin
types, though particularly acne-prone skin may require medicated cleansers containing benzoyl
peroxide or salicylic acid to discourage acne. While soap can be used as a cleanser, it should be
avoided in cases of dry and sensitive skins; many alternatives are available. Oil-based cleansers
have become particularly popular with oily skin, as they are very gentle and do not overdry the
skin, but still effectively remove dirt and makeup. It is important to cleanse before applying
makeup, regardless of skin type, as this helps to create a clean surface for makeup application.
Many cleansers are suitable for use as a makeup remover.
• MASKS:
Face masks are treatments applied to the skin for a period, then removed. Typically, they are
applied to a dry, cleansed face, avoiding the eyes and lips.
There are many kinds of face masks available, which typically fall into one or more of the
following categories:
1. Clay-based masks use kaolin clay or fuller's earth to transport essential oils and chemicals
to the skin, and are typically left on until completely dry. As the clay dries, it absorbs excess oil
and dirt from the surface of the skin and may help to clear blocked pores or draw come dones to
the surface. Because of its drying actions, clay-based masks should only be used on oily skins.
2. Peel masks are typically gel-like in consistency, and contain acids or exfoliating agents to
help exfoliate the skin, along with other ingredients to hydrate, discourage wrinkles, or treat
uneven skin tone. They are left on to dry and then gently peeled off. They should be avoided by
people with dry skin, as they tend to be very drying.
3. Sheet masks are a relatively new product that are becoming extremely popular in Asia.
Sheet masks consist of a thin cotton or fiber sheet with holes cut out for the eyes and lips and cut
to fit the contours of the face, onto which serums and skin treatments are brushed in a thin layer;
the sheets may be soaked in the treatment. Masks are available to suit almost all skin types and

skin complaints. Sheet masks are quicker, less messy, and require no specialized knowledge or
equipment for their use compared to other types of face masks, but they may be difficult to find
and purchase outside Asia.
• EXFOLIANTS:
Exfoliants are products that help slough off dry, dead skin cells to improve the skin's appearance.
This is achieved either by using acids or other chemicals to loosen old skin cells, or abrasive
substances to physically scrub them off. Exfoliation can even out patches of rough skin, improve
circulation to the skin, clear blocked pores to discourage acne and improve the appearance and
healing of scars. Exfoliants should be applied to wet, cleansed skin, avoiding the eye area; abrasive
exfoliants or scrubs should then be rubbed into the skin in a circular motion for at least 30 seconds.
Dry skin should only be exfoliated in spots with severe flaking, and no more than once per week;
oily skins maybe able to tolerate twice weekly exfoliation. Signs of over-exfoliation include sore.
Chemical exfoliants may include citric acid (from citrus fruits), acetic acid (from vinegar), malic
acid (from fruit), glycolic acid, lactic acid or salicylic acid. They may be liquids or gels, and may
or may not contain an abrasive to remove old skin cells afterwards. Abrasive exfoliants include
gels, creams or lotions, as well as physical objects. Loofahs, micro fibre cloths, natural sponges or
brushes may be used to exfoliate skin, simply by rubbing them over the face in a circular motion.
Gels, creams or lotions may contain an acid to encourage dead skin cells to loosen, and an abrasive
such as beads, sea salt, sugar, ground nut shells, rice bran or ground apricot kernels to scrub the
dead cells off the skin. Salt and sugar scrubs tend to be the harshest, while scrubs containing beads
or rice bran are typically very gentle.
• TONING:
Toners are used after cleansing the skin to freshen it up and remove any traces of cleanser, mask
or makeup, as well to help restore the skin's natural ph. They are usually applied to a cotton pad
and wiped over the skin, but can be sprayed onto the skin from a spray bottle. Toners typically
contain alcohol, water, and herbal extracts or other chemicals depending on skin type. Toners
containing alcohol are quite astringent, and usually targeted at oily skins. Dry or normal skin

should be treated with alcohol-free toners. Witch hazel solution is a popular toner for all skin types,
but many other products are available. Many toners contain salicylic acid and/or benzoyl peroxide.
These types of toners are targeted at oily skin types, as well as acne-prone skin.
• MOUISTURIZING:
Moisturizers are creams or lotions that hydrate the skin and help it to retain moisture; they may
contain essential oils, herbal extracts or chemicals to assist with oil control or reducing irritation.
Night creams are typically more hydrating than day creams, but maybe too thick or heavy to wear
during the day, hence their name. Tinted moisturizers contain a small amount of foundation, which
can provide light coverage for minor blemishes or to even out skin tones. They are usually applied
with the fingertips or a cotton pad to the entire face, avoiding the lips and area around the eyes.
All skin types need moisturizing. Moisturizer helps prevent flaking and dryness, and may help to
delay the formation of wrinkles. People with dry skin should choose oil-based moisturizers with
ingredients to help the skin retain moisture and protect it from dryness, heat or cold in the
environment. People with normal skin can choose from a wide variety of moisturizers, but light
lotions or gels are typically all that is required. Water-based, low-oil and non-comedogenic
moisturizers should be used on oily skin; medicated moisturizers containing tea tree extracts or
fruit enzymes can help to control oil production or treat acne. Eyes require a different kind of
moisturizer compared with the rest of the face. The skin around the eyes is extremely thin and
sensitive, and is often the first area to show signs of ageing. Eye creams are typically very light
lotions or gels, and are usually very gentle; some may contain ingredients such as caffeine or
Vitamin K to reduce puffiness and dark circles under the eyes. Eye creams or gels should be applied
over the entire eye area with a finger, using a patting motion.
• PROTECTING:
Sun protection is an important aspect of skin care. The sun can cause extreme damage to the skin,
and not just only in the form of sunburns and skin cancer. Exposure to UVA and UVB radiation
can cause patches of uneven skin tone and dry out the skin. This can reduce the skin's elasticity
and encourage sagging and wrinkle formation. It is important to make use of sunscreen to protect

the skin from sun damage; sunscreen should be applied at least 20 minutes before exposure, and
should be re-applied every four hours. Sunscreen should be applied to all areas of the skin that will
be exposed to sunlight, and at least a tablespoon (25 ml) should be applied to each limb, the face,
chest, and back, to ensure thorough coverage. Many tinted moisturizers, foundations and primers
now contain some form of SPF. Sunscreens may come in the form of creams, gels or lotions; their
SPF number indicates their effectiveness in protecting the skin from the sun's radiation. There are
sunscreens available to suit every skin type; in particular, those with oily skin should choose non-
comedogenic sunscreens; those with dry skins should choose sunscreens with moisturizers to help
keep skin hydrated, and those with sensitive skin should choose unscented, hypoallergenic
sunscreen and spot-test in an inconspicuous place (such as the inside of the elbow or behind the
ear) to ensure that it does not irritate the skin.
• INDUSTRY OVERVIEW:
The beauty industry known to be resistant to economic downturns even faring well during the
Great Recession of 2008. Though consumers tend to be more price conscious during those times,
they do not stop spending. So, in today's environment of rising per capita incomes the beauty
business is booming.
The global beauty market is predicted to grow from USD 50.4 billion in 2018 to USD 57.1 billion
by 2021. In the U.S. Retail Dives notes that beauty specialty stores grew their market share from
12 percent to 14.3 percent in 2016. NPD Group found that online growth has been massive in the
sector, and Forbes estimates that there are at least 40 beauty startups founded by women, making
the USD 455 billion in sales. The online revenue is forecasted to increase from 16% to 17.1% of
the total Cosmetics and Personal care market but brick and mortar will still dominate with 82.9%
revenue generation.
Gone are the days when celebrity looks and endorsements set trends in beauty industry, 82%
women believe social media drives the trends now. The ad budgets are redefined by shifting focus
from traditional television and print ads to Instagram and YouTube. The most important aspect in
beauty industry is knowledge and social media provides constant flow of information by
trendsetters, celebrities, and friends. Beauty brands create product experience through media and

they are becoming more diverse and inclusive. In the past year, global views of beauty videos on
YouTube surged 60 per cent, to 219 billion, according to Pixability, a Boston based company that
tracks influencers and provides data to brands. Pixability estimated that millennials make up 60
per cent of the beauty audience Facebook.
Premiumization is driving standards across all levels in the beauty industry. As standards improve,
luxury is becoming more accessible to ordinary consumers, notably millennials, who tend to be at
the forefront of lifestyle changes. For wealthier consumers, this is more pronounced through
personalized services, such as smart diagnostics. Going forward, the use of digital technology will
become more sophisticated as augmented reality and artificial intelligence become mainstream.
The beauty Industry is moving beyond the standard options and is adopting customized beauty
products. The millennial era is equipped with apps and technology which makes it easier to adapt
customized beauty products. Web-based questionnaires and remote expert recommendations helps
gather data to give individuals the best possible beauty products that are tailored to their individual
needs. When looking for personal goals, generic off-the-shelt products are just not enough as they
lack versatility and serves just one purpose. Micro customization on the other hand allows the
consumer to personalize their products based on their needs.
Instagram Influencer marketing has proved to be successful for many brands and more and more
brands are incorporating influencer marketing in their budgets. With the increasing competition
influencers are exposed to thousands of products and when faced with relatively similar quality
products. they tend to pick the more eye catching one that will look amazing on Instagram, it is
important for brands focus on giving consideration to the power of social sharing for targeting
millennials and Gen Z by crafting 'gram-friendly packaging. Merging product and brand marketing
is necessary in today's retail environment.
There has been a new shift from range of shades to fil every skin tone to availability of
broadshadespectrum foundations and concealer included in mainstream brands. Popularly known
as the Fenty affect this trand is being reflected on the runway and in media with representation of
more diversity. The name Fanty affect comes from the most talked about Fenty Beauty by Rihanna
that launched the Pro Fill'r Foundation that offered 40 shades options.

The trend of tracting body face has led to increase in serums, cleaners to fight pollution, acid
oxfoliators for body and moisturizers with SPF, Simplification of products with the new
technological advances is seen in 3-in-1 products. With evolving consumer demands and climatic
changes around the world, the beauty and personal care industry's approach to natural and
sustainable Ingredients must adapt. A move to become more loco in terms of ingredient sources
will create opportunities for consumers to protect and preserve resources within their surrounding
environment.
[3.17] MARKET OVERVIEW:
The categories of Indian cosmetics industry are skin care, hair care, oral care, fragrances, and color
cosmetics segments Il currently has an overall market standing of USD 6.5 billion and is expected
to grow to USD 20 billion by 2026 with a CAGR of 25% in comparison, the global cosmetics
market is growing steadily at 4.3% CAGR and will reach USD 450 billion by 2025. This means
that by 2025, India will constitute 5% of the total global cosmetic market and become one of the
top 5 global markets by revenues. GDP la forecasted to grow 7.5% in 2018 haiping boost the
middle class and increase consumer spending beyond essentials.
Key growth rivers in this sector are
1) improving purchasing power.

2) 21 demand for enhanced products,
3) 31 increasing image consciousness
4) 41 social media to spread awareness, and
5) favorable demographician metro as well as 1 and 2 ter clas.
These factors will be beneficial for Nykaa's new production a as the brand can severage on
the consumers beyond the metro cities and who are willing to spend the extra amount for
enhancing their look.
Ete and affluent households are the fastest growing classes. This is changing consumer
behavior and spending patterns on the income is rising and society is avoiding. It is

forecasted to be the largest combines segment by 2026 According to BCGCC consumption

survey 2016, Indian consumers are trading up with greater enthusiasm shifting towards
higher quality, higher price subsequent with the category. They also said that 30%, of
consumers are willing to spend extra on products perceived as better than products found
in developed markets.
Shopping has become more social and frequent involving family members and friends.
Immediate gratification is becoming more important than asset creation. Rising internet
penetration is leasing consumers using internet to make purchase decisions. Convenience
is the biggest force driving online shopping growth. Discounts are another feature popular
in online shopping. But trust in stores is still a barrier along with difficulty in navigating
website, and fear of fake products makes it important to have offline format as well. The
Indian market is going bolder, more consumer brands are expected to come up in the beauty
space in the next five years. According to a report by Google and Boin & Company, beauty
and hygiene-related searches Google are the third highest after apparel and mobile phones
in shopping-related searches. India's average spending on beauty is increasing as social
media has high impact on the rising indian middle-class and millennials increasing
purchasing power.
India's beauty and personal care consumer appears to be laying special emphasis on both
looking and feeling good. The domestic beauty and personal care market, worth USD 8
billion currently, is slated to grow at an annual rate of 5-6 per cent over the next few years
to touch USD10.5 billion by 2021. A recently released report by the Indian Beauty and
Hygiene Association, an apex body of beauty and personal care majors, and AT Kearney
says that not only women, but men too are becoming significant users of beauty products.
The report says that the men's grooming market will touch USD1,5 billion by 2021, a
nearly twofold growth in five years.

The colour cosmetics industry in India grew at a compounded annual growth rate (CAGR)
of 21.3% between 2011 and 2010 in terms of value, Euromonitor International said in a
report. In contrast, the skincare market grew at a 14.7% during the same period. Color
cosmetics will grow at a CAGR of 8,8% between 2016 and 2021, Euromonitor predicts,
faster than skincare that will likely grow at a 4.8%. The beauty and personal care sector is
showing promise in India.
With makeup moving from occasional to everyday wear, it is expected to be the fastest
growing segment. Herbal cosmetics are expected to grow at 15% with customers realizing
the adverse effects of chemical-based products. Online retail is projected to grow 20%
annually and reach USD 48 billion by 2020 driven by high promotional activities and cash
on delivery option as much of the population is still not comfortable with electronic
payments.
Rising disposable income is fueling the growth of premium market and globalization that
impacts lifestyle by exposing the consumer to global trends through travel and social
media. There is an evident shift towards premiumization with premium segment growing
at 6.3%, as compared to 1.1% for mass market. Indian brands (both regional and national)
have a sizeable presence in the moss category, while premium markets are largely
dominated by the international brands. This gives an opportunity to Nykaa to introduce
premium products.
[3.18] CONSUMER OVERVIEW:
Indian makeup kit has gone through a transition over the years. Earlier It used to consists
of kajal (eyeliner), lipstick and a compact. But with the changed times it now consists of
foundation, blush, selling powder, highlighter, ip gloss and eye shadow, Today, the beauty
segment is baing redefined, and concepts and notions that were stearing business strategies.
yesterday may not be on large anymore. From occasion use for special events such as
weddings and parties along with travelling, consumers are increasingly using color

cosmetics on regular day to day basis. Both men and women young and oid are part of the
era of selfies, video calls and photo-based social media and this shift in social behavior is
expect ed to help drive sales of color cosmetics over the forecast period, with children
reaching puberty at 10-12 years, the desire to look attractive results in beauty consciousness
at an earlier age. Brands targeting younger consumers need to engage with a much wider
market with responsible marketing. The age no bar trend is also sean in upper age of the
market, with the thinking that 30 is the new 20 and 40 is the new '30, grooming is not
restricted to 18-35-year-old consumers. Mole grooming a growing, and data confirms that
the sales of man's face creams have more than doubled, while the use of face cleansing
products among man in India has jumped massive 60 times between 2009 and 2016. The
conversation in beauty is evolving due to key drivers: confidence and to achieve a
competitive edge over other males in career growth rather than to attract formals. Two main
aspects of imported goods used to be quality and luxury appeal. Consumers either shopped
on their trips to abroad or were gifted by relatives living abroad. With the changing times
today 60% Indians are willing to pay extra for products that match these aspects and are
made in India.
Indians long believed in overwhelming supremacy of all things foreign. Indians' confidence
foreign companies have remained essentially static, their faith in domestic companies has
grown. They have become discerning consumers who want products that are made in India
and for Indians (Harvard Business Review). There is high influence of cultural traditions
and Bollywood on Indian consumers. The consumer is growing more and more brand
conscious especially with cosmetics.
Availability of cosmetics products at different price range attract consumers from all social
classes. The targeted consumer belongs to working class, college student and housewives.
Working class women are often keen on purchasing face. eye and lip products that are
priced higher, and they look out for products that are easy to use and have longer-lasting
effects so that they can last through the day. At the same time, college students prefer

medium-priced products with more color variants for the nails, face, eyes and lips. In
contrast to these two groups of consumers, housewives prefer to buy face or nail products
over eye and lip make-up, as they use the latter two only during special occasions or when
going out.
The wide gap between the affluent and middle class is decreasing. The usage patterns also
varied between the two groups. The affluent families preferred premium products with
wide range of color variants and options to meet the need of portraying a certain social
status. On the other hand, the middle-income group purchased mass products but this trend
is changing and consumers are becoming more experimental leading to premium product
purchases. The usage of color cosmetics is limited to occasional purchases for weddings
and festivals for the lower income group. Nail products are the most purchased color
cosmetics purchased by this group.
Increasing stress and pollution in India has led to an increase in the demand for products
that target these issues. Increasing emphasis well-being demands safe and non-toxic
products. All-natural market is growing at 2.5x non-natural market. There is significant
increase in consumers discovering new products digitally, increasing spend and the number
of male customers, and each member of a family choosing their own product and brand
rather than sharing just one. Online reviews are playing an important role in buying
decisions. Personalized recommendation by beauty experts play an equally significant role
specially for premium products.
Women in India have become more progressive in terms of adopting Western styles and
trends. They are now experimenting with new types of color cosmetics. Eyeliner is being
replaced with mascara and eye shadow, while facial powder is being replaced with
blusher/bronzer/highlighter. BB/CC creams are gaining popularity over other facial
makeup products. Opportunities in such categories are tremendous, as these changes are
expected accelerate in the coming years.

CHAPTER – 4
OVERVIER OF THE STUDY
DATA ANALYSIS AND INTERPRETATION

CHAPTER – 4
4.DATA ANALYSIS AND INTERPRETATION
PERCENTAGE ANALYSIS:
Percentage analysis is one of the basic statistical tools which is widely used in analysis and
interpretation of primary data. It deals with the number of respondent’s response to a particular
question is percentage arrived from the total population selected for the study.
FORMULA:
NO OF RESPONSE
PERCENTAGE ANALYSIS =
TOTAL NO OF RESPONSE
RANKING ANALYSIS:
Ranking is one of the simple and efficient data collection techniques to understand individuals'
perception and preferences for some items such as products, people, and species. Ranking data are
frequently collected when individuals are asked to rank a set of items according to a certain
preference criterion.

ANALYSIS AND INTERPRETATION
PERCENTAGE ANALYSIS METHOD
TABLE 4.1.1 GENDER OF THE

RESPONDENTS
S.NO GENDER NO OF PERCENTAGE
RESPONDENTS
1 MALE 41 41%
2 FEMALE 59 59%
TOTAL 100 100%
INTERPRETATION:
From the above table it is interpreted that 41% of the respondents are male and 59%
are female.
EXHIBIT – 4.1.A
TABLE 4.1.2

TABLE SHOWING THE AGE GROUP OF THE RESPONDENTS

S.NO AGE GROUP NO OF PERCENTAGE
RESPONDENTS
1 Below 18 Years 18 18%
2 19 Years to 25 Years 51 51%
3 26 Years to 40 Years 15 15%
4 Above 40 Years 16 16%
TOTAL 100 100%
INTERPRETATION:
Therefore, the above table clearly shows that 18% of the respondents were below 18 years of
age,51% of the respondents were 19 years to 25 years of age,15% of the respondents were 26 to
40 years of age,16% of the respondents were above 40 years of age.
EXHIBIT – 4.1.B
TABLE 4.1.3

TABLE SHOWING THE EDUCATIONAL QUALIFICATION OF THE

RESPONDENTS
S NO EDUCATIONAL NO OF PERCENTAGE
QUALIFICATION RESPONDENTS
1 School level 22 22%
2 Diploma 7 7%
3 Under Graduate 55 55%
4 Post Graduate 16 16%
TOTAL 100 100%
INTERPRETATION:
In this table this is shown that 22% of the respondent’s educational qualification is school level,
7% of the respondents were Diploma,55% of the respondents were UG and 16% of the respondents
were PG.
EXHIBIT – 4.1.C
TABLE 4.1.4

TABLE SHOWING THE OCCUPATION OF THE RESPONDENTS

S NO OCCUPATION NO OF PERCENTAGE
RESPONDENTS
1 Employee 12 12%
2 Business/ Profession 17 17%
3 Home Maker 9 9%
4 Student 62 62%
TOTAL 100 100%
INTERPRETATION:
The table shows that 12% of the respondents were Employee,17% of the respondents were
Business/ Profession, 9% of the respondents were Home Maker and 62% of the respondents were
Students.
EXHIBIT – 4.1.D
TABLE 4.1.5
TABLE SHOWING THE MONTHLY INCOME OF THE RESPONDENTS

S NO MONTHLY NO OF PERCENTAGE
INCOME RESPONDENTS
1 Below Rs 10,000 44 44%
2 Rs 10,001 - Rs 20,000 16 16%
3 Rs 20,001 - Rs 30,000 15 15%
4 Above Rs 30,000 25 25%
TOTAL 100 100
INTERPRETATION:
The above table shows that 44% of the respondent’s monthly income is below Rs 10,000, 16% of
the respondents monthly income is between 10,001 to 20,000 ,15% of the respondents monthly
income is 20,001 to 30,000 and 25% of the respondents monthly income is above Rs 30,000.
EXHIBIT – 4.1.E

TABLE
4.1.6
TABLE SHOWING THE MARITAL STATUS OF THE RESPONDENTS

S NO MARITAL NO OF PERCENTAGE
STATUS RESPONDENTS
1 Married 31 31%
2 Unmarried 69 69%
TOTAL 100 100
INTERPRETATION:
From the above table it is interpreted that 31% of the respondents were married and 69% of the
respondents were unmarried.
EXHIBIT – 4.1.F

TABLE 4.1.7
TABLE SHOWING THE TYPE OF FAMILY OF THE RESPONDENTS

S NO TYPE OF FAMILY NO OF PERCENTAGE
RESPONDENTS
1 Joint Family 20 20%
2 Nuclear Family 80 80%
TOTAL 100 100%
INTERPRETATION:
The above table shows that 20% of the respondents were from Joint family and 80% of the
respondents were from Nuclear family.
EXHIBIT – 4.1.G
4.1.8

TABLE
TABLE SHOWING THE NO OF FAMILY MEMBERS OF THE
RESPONDENTS
S NO FAMILY NO OF PERCENTAGE
MEMBERS RESPONDENTS
1 2-4 63 63%
2 4-5 23 23%
3 5-7 13 13%
4 Above 7 1 1%
TOTAL 100 100%
INTERPRETATION:
From the above table 63% of the respondents are family members 2 - 4, 23% of the respondents
are family members 4 - 5, 13% of the respondents are family members 5 - 7, 1% of the respondents
are family members above 7.
EXHIBIT – 4.1.H

TABLE
4.1.9
TABLE SHOWING KNOW ABOUT A COSMETIC PRODUCT OF THE

RESPONDENTS
S NO FACTORS NO OF PERCENTAGE
RESPONDENTS
1 FAMILY/FRIENDS 34 34%
2 WORK PLACE 8 8%
3 ADVERTISEMENTS 46 46%
4 OTHERS 12 12%
TOTAL 100 100%
INTERPRETATION: From the above table 34% of the respondents are influenced by
family/friends, 8% of the respondents are influenced by work place, 46% of the respondents are
influenced by advertisements and 12% of the respondents are influenced by any other factor.
EXHIBIT – 4.1.I

TABLE
4.1.10
A TABLE SHOWING DO THE RESPONDENTS THINK THAT

EXPENSIVE PRODUCTS ARE BETTER THAN CHEAPER PRODUCTS
S NO THINKING OF THE THINKING OF THE PERCENTAGE
RESPONDENTS RESPONDENTS
1 YES 36 36%
2 NO 22 22%
3 MAY BE 42 42%
TOTAL 100 100%
INTERPRETATION:
The above table shows that 36% of respondents think that expensive cosmetic products are better
than cheaper products,22% of the respondents do not think that expensive cosmetic products are
better than cheaper products and 42% pof the respondents may or may not think that expensive
cosmetic products are better than cheaper products.

TABLE
EXHIBIT – 4.1.J
4.1.11
TABLE SHOWING FACTORS THAT INFLUENCE THE RESPONDENTS

WHILE CHOOSING A COSMETIC BRAND
S NO ATTRACTIVITY NO OF PERCENTAGE
RESPONDENTS
1 Features 41 41%
2 Packing 14 14%
3 Brand 32 32%
4 Price 17 17%
TOTAL 100 100%
INTERPRETATION: From the above table 41% of the respondents are attracted by the
features of the product, 14% of the respondents are attracted by the packing of the product, 32%
of the respondents are attracted by the brand of the product, 17% of the respondents are attracted
by the price of the product. EXHIBIT – 4.1.K

TABLE
4.1.12
TABLE SHOWING THE FREQUENCY OF THE RESPONDENTS WHILE

BUYING A COSMETIC PRODUCT
S NO FREQUENCY NO OF PERCENTAGE
RESPONDENTS
1 ONCE IN A WEEK 8 8%
2 TWICE IN A WEEK 14 14%
3 THEICE IN A WEEK 7 7%
4 ONCE IN A MONTH 71 71%
TOTAL 100 100%
INTERPRETATION:
From the above table it shows that 8% of the respondents buy products once in a week, 14% of the
respondents buy products twice in a week, 7% of the respondents buy products thrice in a week
and 71% of the respondents buy products one in a month.

TABLE
EXHIBIT – 4.1.L
4.1.13
TABLE SHOWING HOW MUCH SPEND ON COSMETIC PRODUCT

S NO RESPONDENT’S NO OF PERCENTAGE
SPENDING RESPOMDENTS
1 Below Rs 500 46 46%
2 Rs 500 to Rs 1,000 33 33%
3 Rs 1,000 to Rs 1,500 11 11%
4 Rs 1,500 to Rs 2,000 10 10%
TOTAL 100 100%
INTERPRETATION:
From the above table 46% of the respondents spend below 500, 33% of the respondents spend
between 500 to 1000, 11% of the respondents spend between 1000 to 1500 and 10% of the
respondents spend between 1500 to 2000.

TABLE
EXHIBIT – 4.1.M
4.1.14
TABLE SHOWING HOW LONG BEEN USING A COSMETIC PRODUCT

S NO USAGE OF NO OF PERCENTAGE
PRODUCT RESPONDENTS
1 Less than 1 year 36 36%
2 1 - 3 years 28 28%
3 3 - 5 years 12 12%
4 Above 5 years 24 24%
TOTAL 100 100%
INTERPRETATION:
From the above table 36% of the respondents have been using the product less than 1 year, 28%
of the respondents have been using the product from 1-3 years, 12% of the respondents have been
using the product above 3-5 years and 24% of the respondents have been using the product above
5 years using the product.

TABLE
EXHIBIT – 4.1.N
4.1.15
TABLE SHOWING THE RESPONDENT’S IMPORTANCE WHILE

PURCHASING A PRODUCT RANKING

TABLE
RANK 1 2 3 4 5 6 TOTAL RANK RANK
SCORE
SCORE 6 5 4 3 2 1
Quality No. of respondents 46 9 13 5 10 17 100
Score 276 45 52 15 20 17 425 4.25 1
Discount No. of respondents 2 47 10 15 4 22 100
Score 12 235 40 45 8 22 362 3.62 3
Flash sale No. of respondents 10 12 47 5 5 21 100
Score 60 60 188 15 10 21 354 3.54 4
Latest trends No. of respondents 20 8 6 41 8 17 100
Score 120 40 24 123 16 17 340 3.40 5
Need for the No. of respondents 8 6 7 8 48 23 100

product
Score 48 30 28 24 96 23 249 2.49 6
Advertisements No. of respondents 14 18 17 26 25 0 100
Score 84 90 68 78 50 0 370 3.70 2

INTERPRETATION:
The table 4. Depicts that the rank given by the respondents, average score of 4.25 have given 1 st
rank for Quality, 3.70 have given 2nd rank for Advertisements, 3.62 have given 3rd rank for
Discount, 3.54 have given 4th rank for Flash sale, 3.40 have given 5th rank for Latest trends, 2.49
have given 6th rank for Need for the product.
It is concluded that the respondents with an average score of 4.25 have been given for 1st rank for
Quality.
EXHIBIT – 4.1.O
60
50
40
30
20
10
0
1 2 3 4 5 6
Quality Discount Flash sale Latest trends Need for the product Advertisements

TABLE
TABLE 4.1.16
TABLE SHOWING THAT PEOPLE FACE ANY PROBLEM WHILE

USING COSMETIC PRODUCTS
RESPONDENTS
1 YES 33 33%
2 NO 67 67%
TOTAL 100 100%
INTERPRETATION:
From the above table 33% of the respondents were yes and 67% of the respondents were from no.
EXHIBIT – 4.1.P

4.1.17
TABLE SHOWING THAT IF YES, WHICH TYPE OF PROBLEM DO

YOU FACE USING COSMETIC PRODUCT
RESPONDENTS
1 Quality 25 37.3%
2 Any allergy 15 22.4%
3 Price 19 28.4%
4 Quantity 8 11.9%
TOTAL 67 100%
INTERPRETATION: From the above table 37.3% of the respondents have been saying as
quality, 22.4% of the respondents have been saying as any allergy, 28.4% of the respondents have
been saying as price and 11.9% of the respondents have been saying as quantity.
EXHIBIT – 4.1.Q

TABLE
4.1.18
TABLE SHOWING THAT RECOMMENDED NYKAA TO YOUR

FRIENDS AND RELATIVES
S NO FACTOR NO OF PERCENTAGE
RESPONDENTS
1 YES 73 73%
2 NO 27 27%
TOTAL 100 100%
INTERPRETATION:
From the above table 73% of the respondents were yes and 27% of the respondents were from no.
EXHIBIT – 4.1.R

4.1.19
TABLE SHOWING THAT IF YES, THE REASON FOR YOUR

RECOMMENDATION
S NO FACTOR NO OF PERCENTAGE1
RESPONDENTS
1 Price 24 27.3%
2 Customer service 16 18.2%
3 Durability 9 10.2%
4 Quality 39 44.3
TOTAL 88 100%
INTERPRETATION:
From the above table 27.3% of the respondents have been saying as price, 18.2% of the respondents
have been saying as Customer service, 10.2% of the respondents have been saying as Durability
and 44.3% of the respondents have been saying as quality.
EXHIBIT – 4.1.S

TABLE
CHAPTER 5
FINDINGS, SUGGESTIONS AND CONCLUSION

5.FINDINGS
[5.1] FINDINGS:
• 5% of the respondents were female.

• 52.5% of the respondents age were between 19 to 25 years.
• 55% of the respondent’s educational qualification is UG.
• 62% of the respondents were a students.
• 44% of the respondent’s income were below 10,000.
• 69% of the respondents were unmarried.
• 80% of the respondent’s family is nuclear family.
• 63% of the respondents were family with 2 – 4 members.
• 34% of the people knows about the product with the help of family/friends.
• 36% of the people says yes as expensive cosmetic products are better than cheaper product.
• Features decided the people to buy the products
• 71% of the respondents used to buy a cosmetic product once in a month.
• 46% of the people purchase the products for below Rs 500 for monthly.
• 36% of the people were using the cosmetic product for less than 1 year.
• 67% of the people responded that no problem is faced by them while using cosmetic
products.
• 73% of the people responded that Nykaa products have been referred by them to their
friends and relatives.
• 44.3% of the people recommended Nykaa products because of the best quality.
SUGGESTIONS:

[5.2] SUGGESTIONS:
On the basis of the study conducted among the consumer the following suggestions has been
given:
There are few people without the acknowledgement of nykaa, so give more importance to
marketing and advertisements to get more consumers.
Most of the respondents buy products once in a month and so to increase sales give more
discounts.
The respondents are not attracted by the packing of the products so its better to concentrate on the
packing quality of products also.
The respondent’s satisfaction level is neutral so as to make them very satisfied all the features of
the products are to be improved.

CONCLUSION:
[5.3] CONCLUSION:
We know, the market for most of the products and services switched from offline market to online
market. There are ample opportunities for many entrepreneurs to reach their customers directly
and offer the products at reasonable prices by eliminating the intermediary expenses. These
opportunities are cashed by the Nykaa and entered into the E-retail business in 2012 by offering
various brands products on one platform. It ensures that customers always prefer a brand that
ensures quality and satisfaction to the maximum level. Due to COVID-19, many businesses ended
up with huge losses but Nykaa showed around 20% -70% growth of the business as usual. The
analysis, therefore, offered in depth data on Nykaa's business strategies and how these strategies
helped them be successful. Presently. not many companies provide multi-brand luxury products
on their websites, which allow being dominant in the market.
The enormous Beauty Industry is exceptionally growing and this attracts many players in the
market Several new startups by female entrepreneurs have proved to be successful in the recent
times. One such player is Nykaa. Nykaa has proven to fill the gap between demand and supply of
cosmetics in India. With 33% market share, Nykaa is leading cosmetics brand. After being
reputedly known for selling best quality products of various brands it’s time to launch in house
products in premium category. The new initiative will help Nykan as a brand to elevate itself from
mass market segment to the grow ing premium segment. The extension will boost Nykaa's sales
thereby enabling it to remain market leader in long run. The Luxe product range would lead to
repurchases and reach to new customers.
The female behavior is complex and dynamic as the aspirations of every female community are to
look beautiful and attractive. The cosmetic is considered as a powerful weapon which the women
feel would transform their normal looks to an attractive and a presentable one. It is believed that
beauty products promote a sense of emotional well-being of the women. The cosmetic products in
the present era have moved from luxury category to most essential category. Hence, the marketers
of cosmetic products have to be vigilant and should be able to realise the needs of the present-day

cosmetic users. They should be thoroughly studied about their behaviour towards the purchase and
use of cosmetics.
• The study was conducted among 80 members in and around Coimbatore city by adopting
sampling technique.
• The researcher has used questionnaire to survey the sample.
• The collected data was analyzed using the statistical tools like percentage analysis and ranking
method.
• The research helped me to know the various brands in cosmetics, cost effectiveness, etc

WEBLIOGRAPHY
[5.4] WEBLIOGRAPHY:
• https://m.economictimes.com/tech/nykaa
• https://www.fortuneindia.com/topic/nykaa
• https://www.cnbc.com/2022/03/18/indian-beauty-company-nykaa-looksto-physical-
retailexpansion.html
• https://indianexpress.com/article/opinion/editorials/nykaa-falguni-
nayarentrepreneurship7624626/
• https://www.business-standard.com/article/companies/pandemicimpacted-business-but-
thingsare-coming-back-says-nykaa-md122021001726_1.html
• https://www.business-standard.com/article/companies/nykaa-ipo-howfalguni-nayar-proved-it-
snever-too-late-to-start-up-121111101674_1.html • https://www.vinculumgroup.com/nykaa-
story/
• https://www.indeed.co.in/cmp/Nykaa.com/reviews
QUESTIONAIRRE

[5.5] QUESTIONAIRRE:
1.Name
2.Gender
a) Male
b) Female
3.Age
a) Below 18 Years
b) 19 Years to 25 Years
c) 26 Years to 40 Years
d) Above 40 Years
4.Educational Qualification
a) School level
b) Diploma
c) Under Graduate
d) Post Graduate
5.Occupation
a) Employee
b) Business/ Profession
c) Home Maker
d) Student
6.Monthly income
a) Below Rs 10,000
b) Rs 10,001 - Rs 20,000
c) Rs 20,001 - Rs 30,000
d) Above Rs 30,000
7.Marital status
a) Married
b) Unmarried
8.Type of Family

a) Joint Family
b) Nuclear Family
9.Family Members
a) 2-4
b) 4-5
c) 5-7
d) Above 7
10.How do you know about cosmetic products?

a) Family/Friends
b) Work Place
c) Advertisements
d) Others
11. Do you think expensive cosmetic products are better than cheaper product?
a) Yes
b) No
c) Maybe
12.What do you look when you first want to buy a product?

a) Features
b) Packing
c) Brand
d) Price
13.How often do you buy a cosmetic product?

a) Once in a week
b) Twice in a week
c) Thrice in a week
d) Once in a month
14.How much do you spend on cosmetic products monthly?

a) Below Rs 500
b) Rs 500 to Rs 1,000
c) Rs 1,000 to Rs 1,500

d) Rs 1,500 to Rs 2,000
15.Since how long you been using cosmetic products?

a) Less than 1 year
b) 1 - 3 years
c) 3 - 5 years
d) Above 5 years
16.For which will you give more importance while purchasing a product?
1. Quality
2. Discount
3. Flash sale
4. Latest trends
5. Need for the product
6. Advertisements
17.Do you face any problem while using cosmetic product?

a) Yes
b) No
18.If yes, which type of problem do you face?

a) Quality
b) Any allergy
c) Price
d) Quantity
19.Do you recommended Nykaa to your friends and relatives?

a) Yes
b) No
20.If yes, what is the reason for your recommendation?

a) Price
b) Customer service
c) Durability
d) Quality


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A STUDY ON CONSUMER BUYING

BEHAVIORAL TOWARDS NYKAA

Project report submitted in partial

Under the Guidance of

Dr Brinda Kalyani P R M Com Ph D

Department of Commerce PA & CS

Sri Krishna Arts and Science College

Coimbatore 641 008

Sri Krishna Arts and Science College, Department of Commerce PA & CS

Affiliated To Bharathiar University

Kuniamuthur, Coimbatore -641008

I hereby declare that the project report entitled “A STUDY ON

Signature of the Candidate

Kuniamuthur, Coimbatore -641008

This is to certify that the project report entitled “ A STUDY ON

First and foremost, I thank the almighty for endowing his

I take this opportunity to express my deep profound gratitude

My deepest thanks to Dr Brinda Kalyani for guiding and

Finally, I express my thanks to my parents who have

Mobile Number +91 9496688521

Placement Details Nil

S.NO. CHAPTER PAGE

4.1.2 Percentage analysis of the age group of the respondents 49

4.1.3 Percentage analysis of the educational qualification of the respondents 50

4.1.4 Percentage analysis of the occupation of the respondents 51

4.1.5 Percentage analysis of the monthly income of the respondents 52

4.1.6 percentage analysis of the marital status of the respondents 53

4.1.7 percentage analysis of the marital status of the respondents 54

4.1.8 percentage analysis of the no of family members of the respondents 55

4.1.9 percentage analysis of a cosmetic product of the respondents 56

4.1.10 percentage analysis of expensive products is better than cheaper products 57

4.1.11 percentage analysis of that influence the respondents while choosing a 58

4.1.13 percentage analysis of that how much respondent spend on cosmetic 60

4.1.A Pie chart represents gender of the respondents 48

4.1.B Pie chart represents the age group of the respondents 49

4.1.C Pie chart represents the educational qualification of the respondents 50

4.1.D Pie chart represents the occupation of the respondents 51

4.1.E Pie chart represents the monthly income of the respondents 52

4.1.F Pie chart represents the marital status of the respondents 53

4.1.G Pie chart represents the marital status of the respondents 54

4.1.H Pie chart represents the no of family members of the respondents 55

4.1.I Pie chart represents a cosmetic product of the respondents 56

4.1.O Bar diagram represents of importance while purchasing a product ranking 63

SRI KRISHNA ARTS AND SCIENCE COLLEGE, DEPARTMENT OF COMMERCE, PA & CS 1

[1.2] Objectives of Marketing

SRI KRISHNA ARTS AND SCIENCE COLLEGE, DEPARTMENT OF COMMERCE, PA & CS 2

[1.3] Benefits of Marketing

[1.4] COSMETIC PRODUCTS:

SRI KRISHNA ARTS AND SCIENCE COLLEGE, DEPARTMENT OF COMMERCE, PA & CS 3

• Correct body odour

• Keep in good conditioning.

[1.5] OVERVIEW OF THE PRODUCT

SRI KRISHNA ARTS AND SCIENCE COLLEGE, DEPARTMENT OF COMMERCE, PA & CS 4

[1.6] STATEMENT OF THE PROBLEM:

[1.7] SCOPE OF THE STUDY

SRI KRISHNA ARTS AND SCIENCE COLLEGE, DEPARTMENT OF COMMERCE, PA & CS 5

• Quality of the product.

[1.8] OBJECTIVE OF THE STUDY

• A study on consumer buying behavioral towards Nykaa

[1.9] LIMITATIONS OF THE STUDY

SRI KRISHNA ARTS AND SCIENCE COLLEGE, DEPARTMENT OF COMMERCE, PA & CS 6

[1.10] RESEARCH METHODOLOGY

[1.10.1] RESEARCH DESIGN:

[1.10.2] AREA OF THE STUDY: