#WowWednesday: How online retailer Nykaa is dominating the fashion space in India

Nykaa.com, the online beauty retailer, is one of the leading organizations in India.

Started in 2012 by Indian entrepreneur Falguni Nayar, Nykaa today offers over 1000-plus brands and 1,00,000-plus products on its website, app, and stores.

On May 14, the Mumbai-headquartered company said it has raised Rs 165 crore in series D funding led by Hero Corporate Service chairman Sunil Kant Munjal and consumer goods veteran Harsh Mariwala.

Nykaa last raised Rs 75 crore (above $11 million) in April 2018 that valued the 6-year-old company at Rs 3,000 crore.

Going the ‘Tech’ way:

Nykaa launched NykaaNetwork, an interactive beauty forum where subscribers can chat with each other, ask and answer beauty related questions, give and seek advice, discover trends and join beauty-centric conversations on topics of their interest.

The platform that launched a few months ago gets 1.5 lakh monthly visits and has close to 2,50,000 subscribers with about 13,000 new members signing up every week.

Customers can also get video advice from India’s leading makeup, skin, hair, and wellness experts.

The content generated on the Network is completely authentic and brand agnostic.

Exclusive Men’s Portal:

Nykaa sets another milestone with the launch of NykaaMan.com, India’s first multi-brand e-commerce store dedicated to men’s grooming.

NykaaMan.com will bring together the best of brands and products for men, along with expert advice and opinions on choosing the best regime. Male customers currently account for 20% of the Nykaa database and 15% of the social media following.

The new portal offer 150-200 products across categories such as shaving, hair care, grooming kits, bath and body, beard care, sexual wellness and sports nutrition with brands such as The Shave Doctor that is exclusively available in India only with Nykaa Man as well as brands such as Kiehl’s, Clinique for Men and Beardo.

The company expects its new section to contribute about 2% to the company’s overall revenues. It further expects the revenues from the men’s section to grow to about 10% of the company’s overall revenues in a couple of years.

Foraying into the apparel sector:

Nykaa also launched the ‘NykaaDesignStudio’ for apparel in designer and premium brands such as Ritu Kumar and Masaba. In 2015, Nykaa launched its own private label, an essential tool to attain profitability in e-commerce.

Dominating the fashion space:

Nykaa essentially competes with horizontal marketplaces such as Flipkart and Amazon too, in addition to offline retailers and chains like Health&Glow.

Over the past three years, Nykaa has followed the omnichannel model by opening brick and mortar stores – with curated, best-selling products and luxury brands under ‘Nykaa On Trend.’

Nykaa is now working on signing up new foreign brands such as HUDA Beauty among others.

The company has sought to tie-up with popular Korean skincare brands Dear Packer and The Face Shop over the past few months. Huda Beauty, the beauty line sold by popular Iraqi-American beauty blogger Huda Kattan, was available on Nykaa.

Recently, Television actress Aashka Goradia launches her own cosmetic line on Nykaa and on her own website. The ‘KKusum’ actress unveiled the skillfully handcrafted, reusable 3D double stitched lashes through her new venture — ‘Renee by Aashka Goradia’.

Expanding the ‘Naturals’ portfolio:

Nykaa, expands its ‘Naturals’ portfolio with the launch of a curated line of pure cold pressed carrier oils, offering numerous benefits for hair, skin, and nails. This range of ten luxurious oils has been created with rare ingredients sourced from all around the world such as Pomegranate, Rosehip, Sea Buckthorn, Avocado among many others.

Celebrating Vibrant India:

Nykaa launched Matte to Last lipsticks to celebrate Indian cities.

Ten shades representing 10 Indian cities will evoke a sense of belongingness to a part of India.

It includes Madras Kapi, Bombae, Khoob-Surat, Dilli, Kudi, Mishti, Begum, Maharani, IT Girl, and Guwa-hottie; inspired by Chennai, Mumbai, Surat, New Delhi, Amritsar, Kolkata, Hyderabad, Jaipur, Bengaluru, and Guwahati, respectively.

This edition is a range of reds, pinks, and nudes, varying in intensity and colour. Priced at Rs 550 each, the lipsticks come in a compact packaging.

From online to offline:

Expanding its foothold, Nykaa had opened its store in Chennai at Palladium and the first partnership store with Lifestyle at VR Mall, Jawaharlal Nehru Road.

Currently, Nykaa has 17 stores in major cities such as Mumbai, Delhi and are moving towards 55 stores by 2019. The company is expanding their reach in other markets such as Bhubaneswar, Guwahati, and Coimbatore. The firm also plans to open up to 120-150 offline stores in five years.

The Power Content Team:

Nykaa has always believed in the power of content.  According to Madhavi Irani, Chief Officer—Content, the content of Nykaa is both transactional—via mailers, Editor’s Picks and Buying Guides and informative by way of the online magazine, Beauty Book, Nykaa TV (company’s YouTube channel) and Facebook/Instagram Lives.

The content strategy is targeted at the key audience in the 18-40-year-old age bracket. While the content on social media platforms is largely targeted at millennials, the larger content piece focuses on newbies, enthusiast, experienced, mature and evolved customers among others.

The beauty firm has also created constant engagement and forge education on ‘beauty know-how’ through tutorials, product reviews, guides, videos, and blogs.

Without adopting any marketing strategies, Nykaa Network has more than 250,000 subscribers in just a few months of its launch.

The Number Game:

Currently, Nykaa offers over 1000 brands and 1,00,000 products, dominating a large share of the online beauty market at 33%. The firm has clocked Rs 570 crore in net revenue in FY18 from Rs 214 crore a year earlier, setting India’s $6.5 billion cosmetics market abuzz. However, the FY18 revenue is unaudited and may be revised after the audited report is submitted.

The company receives about 15,000 orders a day. Offering 400 brands and over 35,000 products online, the company now plans to launch more offline stores.

In the growing online as well as offline space of e-commerce beauty products, Nykaa has been standing strong in the fashion space.

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