The Story of Nykaa – How they have become a successful brand
Who don’t know about Nykaa? Not only women but even men are aware of this beauty brand. Do you now Nykaa is first ever online cosmetic selling store! It offers a wide range of products which includes a range of makeup and skin care products. But how did Nykaa race its way to the top so soon? For it you need to know about the woman behind the brand- Falguni Nayar.
Nayar, 55, the former managing director and chief executive of Kotak Investment Banking, who spent 19 years as an investment banker and a broker who created her own beauty brandNykaa. Nykaa founded by Falguni Nayar was launched in April 2012, whereas the website was launched in December same year. It is a Mumbai-based multi-brand beauty retailer selling cosmetic and wellness products. Adwaita Nayar, Falguni Nayar’s daughter, is the Chief Operating Officer of the offline retail chain. According to Falguni the center of universe for a women lies in her body and the most spending’s are done on enhancing outer beauty.
“I realized that there aren’t any reliable market for online cosmetics and following that need Nykaa was created.” Says Falguni.
Nykaa is derived from the Hindi word Nayika – an actress – a person of beauty. The symbol signifies the transformation of the pupa to the butterfly. A young girl too goes through similar transformation. The butterfly represents freedom, movement, energy and grace. This is the reason behind the name Nykaa.
Nykaa has created a sweet spot for itself. It has seen three-fold growth in its customer base. It raised INR 20 crore in funding from private investors and raised around INR 60 crore in Series B funding in October 2015 led by TVS Capital. Today, it has raised Rs.100 crore from TPG Growth at a valuation of $724 million. Nykaa has always been in news for two things- online cosmetic store and staying away from foreign funds. As per Falguni, with a bare minimum of Google marketing done by the team, they were dealing with 10 orders a day. This number went up to 60 orders a day in August 2013. Today it has revolutionized the whole online beauty industry by having 10 thousand orders per day! The multi- beauty brand claims to have more than 80,000 products across 700 brands. The products include everything from beauty to skincare. All its product are trusted and genuine, they sell the right product to their customers.
“In beauty you need to be inventory-led. You need to make sure you have genuine products sourced directly from the brands, fresh products from your warehouse, and when customers buy you should be able to sell them.” Added Nayar.
The brand recently signed Janhvi Kapoor for brand endorsement. Janhvi Kapoor will appear in digital, television and print advertising campaigns and play an active role in creating social media content for Nykaa.
“I consider myself a third generation e-commerce entrepreneur,” says Nayar.
Now, CEO Falguni Nayar has said that the company is looking to push its new initiatives like Nykaa Man and fashion and apparel categories. Once you buy a product from Nykaa you will keep coming back to the store and as a return the store will keep fascinating you by its new products. Though it wasn’t an easy ride in the beginning, the store turned out to be the largest online makeup stop available in India. And it is expected to grow faster than the online apparel industry, which accounts for a large chunk of the e-commerce business. One best thing about it is the commitment of customers which proves that the brand offers quality products which is very necessary in today’s world of duplicates.