Lessons to Learn from Nykaa’s Success

Nykaa is undoubtedly one of the most dependable brands that come to mind when considering the beauty and cosmetic industry. The brand has established a strong reputation in the market, and when it comes to purchasing beauty-related products, Nykaa is the first name that springs to mind. Under the leadership of its founder, Falguni Nayar, Nykaa has become the go-to platform for shoppers and one of the best marketplaces in India.

According to a survey by Statista, the Indian online marketplace Nykaa has experienced exponential growth since 2018. Starting with a revenue of only a little more than five billion Indian rupees, the yearly revenue amounted to 32 billion rupees in the fiscal year 2022.

Nykaa’s impact on the beauty industry in India is undeniable. Their rapid growth and success over the past decade have left many wondering how they achieved such remarkable results. After delving into their business model, we have identified key lessons from which other D2C brands can learn to grow their business. These lessons can be applied to any business looking to make its mark in the competitive beauty industry.

1. Influencer Marketing Strategy

Nykaa has been implementing this strategy for a long time and has definitely worked in its favor. Collaborating with influencers greatly impacts the audience in this digital era. It has been using influencer marketing for more than decades now. Began with just a few influencers and a small budget, but over time, the company grew into one of India’s largest e-commerce platforms. It employs influencers from across the country to promote its brand. They don’t shy away from using regional languages to their advantage during promotions. This shows their thorough understanding of the demographics.

2. Spot the trend

Nykaa is not an overnight success. It was established back in 2012. It has taken a decade for this widely loved brand to stand in the position where it is now. You can surprise yourself if you can spot future trends and build a business around the crystal gaze. Falguni Nayar spotted two trends that worked for her -one, that the beauty business is an exploding market, and secondly, E-Commerce would be the future of business.

3. Age is Just a Number

Falguni Nayar started this company when she was 50 years old. She left behind a lucrative,18-year-long career in investment banking to satisfy an entrepreneurial itch. What resulted was a burgeoning business that changed the way women buy beauty in the country forever. Nayar believed that nothing should stop a woman from daring to dream high and shining the spotlight on themselves, in her words. And the result was the first unicorn start-up headed by a woman called Nykaa. This sets an inspiring example that it is never too late to begin and build a castle.

4. Engaging Content

Nykaa’s content strategy is widely appreciated for its ability to captivate the audience. From their website and social media pages to their blogs, Nykaa consistently delivers engaging and distinctive content that grabs the attention of their followers. When you visit Nykaa’s social media accounts, you’ll notice the kind of quality content it posts. This brand consistently creates popular blog posts that resonate with its audience, covering a variety of topics such as beauty tips, new products, makeup looks, celebrity looks, and listicles. They prioritize writing about what matters to their readers and strive to keep their content relevant and up-to-date. Additionally, they expand their content reach through cross-channel promotions, embedding their YouTube videos on their website and blog. Its content strategy definitely inspires us to create audience-friendly content to grab the eyeballs.

5. Amazing Customer Experience

Nykaa distinguishes itself from its competitors through a range of features. For instance, customers can use its AI capabilities to try on different products online. Additionally, its AI-led routine creator automatically suggests products for routines that customers can customize. The platform also offers a diverse range of video content from numerous influencers. Overall, Nykaa offers a unique and compelling experience for its customers. It has a deep understanding of its customer’s preferences. Leveraging this knowledge, Nykaa has automated parts of its customer support to align with the customers’ preference for self-service rather than having to wait for an agent. This strategic decision has allowed Nykaa to free up time to concentrate on enhancing other critical aspects of the customer experience.

6. Take the risk or lose the chance

Just when you thought that was all for this brand, it came out with Nykaa Fashion. With the market already flooded with fashion and apparel apps, it was challenging to break the clutter. However, Nykaa did that in style too. They place a strong emphasis on curation and identifying fashion-forward brands, vetting for style and quality, and further selecting styles within these brands to offer. We also place importance on selling full-price products, reducing reliance on discounting, and selling the latest season’s designs. In addition, we use digital content, personalized mobile application experiences, and proprietary recommendation algorithms to build differentiated style-driven, discovery-led experiences for consumers.

Nykaa’s recent launch of its app and brand lineup highlights its commitment to success. The brand’s innovative and daring approach is evident in the way it is consistently expanding its offerings. Under the guidance of its determined founder, Falguni Nayar, Nykaa has cemented its position as a sustainable and enduring online marketplace. With a focus on growth and a willingness to take risks, Nykaa has become a dominant player in the beauty and cosmetic industry.

Written By Gurleen Kaur Saini 

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