Nykaa: From Startup to Sensation -

How the Brand transformed the

cosmetic industry

ENTREPRENEURSHIP DEVELOPMENT
PRESENTATION
PRESENTATION BY:-
ARUNDHATI CHATTERJEE BBA LLB (H) SAI SANJEEV REDDY
20221BBL0022 SECTION 03 20221BBL0057
SEMESTER 02
 WHAT IS NYKAA?
Nykaa is an Indian e-commerce company that specializes in selling
beauty and wellness products online. The company was founded in
2012 by Falguni Nayar, a former managing director of Kotak Mahindra
Capital Company. Nykaa offers a wide range of beauty and personal
care products, including makeup, skincare, haircare, fragrances, and
wellness products from various national and international brands. In
addition to its online presence, Nykaa has also established offline
stores across India, offering customers a seamless shopping
experience both online and offline.
FOUNDER OF NYKAA
Falguni Nayar is an Indian entrepreneur and founder of
Nykaa, a leading e-commerce platform for beauty and
wellness products. She has been featured in Forbes
India's list of "Self-Made Women Billionaires" in 2020,
with a net worth of $1.2 billion. Nayar's successful
career in finance and investment banking, including her
role as the Managing Director of Kotak Mahindra
Capital Company, has equipped her with the skills and
expertise to build and scale Nykaa into a well-
recognized and respected brand. Under her leadership,
Nykaa has raised multiple rounds of funding and
expanded its product offerings and reach through
offline stores and partnerships with leading beauty and
wellness brands. Nayar's entrepreneurial journey and
success have made her a role model for aspiring
women entrepreneurs in India and beyond.
FALGUNI NAYAR : AN INSPIRATION
1. Falguni Nayar founded Nykaa in 2012 and has since then grown it. The company went
public in November 2021 and was valued at over $4 billion.
2. In 2017 and 2019, Falguni Nayar was named in Forbes India's list of "The Most Powerful
Women in Business”. In 2018, she was also named to Fortune India's list of "The Most Powerful
Women".
3.Entrepreneur of the Year: Falguni Nayar was named "Entrepreneur of the Year" at the
Economic Times Awards for Corporate Excellence in 2017.
4.Breakthrough Brand Award: In 2021, Nykaa was awarded the "Breakthrough Brand Award"
at the Economic Times Awards for Corporate Excellence.
5.Board positions: Falguni Nayar serves on the board of several companies, including Tata
Technologies, and serves as an independent director on the board of Tata Communications.
6.Philanthropy: Falguni Nayar is also actively involved in philanthropy and serves on the board
of several non-profit organizations, including the Pratham Education Foundation and the Save
the Children India Foundation.
7.Nykaa has received numerous awards and accolades for its innovative business model and
outstanding growth.
 HISTORY AND GROWTH OF NYKAA
 Nykaa is a popular Indian e-commerce company that specializes in selling beauty and wellness
products online. It was founded in 2012 by Falguni Nayar, a former investment banker, who
noticed a gap in the Indian beauty market for a multi-brand online retailer.

 The company started with a simple vision of making beauty and wellness products accessible to
women across India, regardless of their location or income. Nykaa's first online store was
launched in April 2012 with a range of 250 beauty products from 17 Indian and international
brands.

 Over the years, Nykaa has expanded its range of products to include over 2,500 brands and
more than 200,000 products, covering makeup, skincare, haircare, fragrances, and wellness
products. The company also operates a chain of physical stores across India, with over 70 stores
in more than 35 cities.

 In 2020, the company was valued at $1.2 billion after raising $13.6 million in funding, making it
one of India's most successful e-commerce startups. Today, Nykaa is considered a trailblazer in
the Indian beauty industry and is known for its focus on customer experience, quality products,
and innovative marketing strategies.
 GROWTH OF NYKAA

FALGUNI
APRIL
NAYAR NYKAA PRO
FOUNDE WAS
LAUNCHED
2018
D NYKAA
2012
NYKAA NYKAA
BECAME RAISED RS.
OMNI 2015 100 CR MARCH
CHANNE FROM
STEWDIVE
2020
L CAPITAL
 GROWTH OF NYKAA
NYKAA
LAUNCHED OCTOBER FASHION
NYKAA LAUNCHED DECEMBER
MAN. FIRST 2020
2020 STORE IN
DELHI

NYKAA
NYKAA
RECEIVED NOVEMBER LISTED IN OCTOBER
INVESTMEN 2020 IPO AND 2021
T FROM
RAISED USD
FIDELITY
7.4 BILLION
 HOW DID NYKAA BECOME POPULAR
1.Niche focus: By focusing on a specific niche, it was able to cater to the specific needs
of its target audience, which helped to differentiate it from other e-commerce players in
the market.

2.Product range: Nykaa offers a wide range of products from both Indian and
international brands, providing customers with a large selection to choose from.

3.Customer experience: Nykaa has always focused on providing a great customer

experience. The company has a user-friendly website and mobile app, offers fast and
reliable delivery, and has a customer-friendly return policy

4.Marketing and brand building: Nykaa has invested heavily in marketing and brand
building, which has helped to create a strong brand identity and customer loyalty.

5.Innovative initiatives: Nykaa has also launched several innovative initiatives, such as
Nykaa TV, and Nykaa Network.
 WHAT MAKES NYKAA SPECIAL
1.Beauty and wellness focus: Nykaa is a specialized platform for beauty
and wellness products, catering specifically to the needs of its target
audience.

2.Omni-channel approach: Nykaa has an omnichannel approach, which

means, it has both online and offline channels for customers to shop from.

3.Customer-centric focus: Nykaa has always focused on providing a

great customer experience, both online and offline.

4.User-friendly interface: Nykaa has a user-friendly website and mobile

app, making it easy for customers to navigate and find the products they
need.
 PURPOSE BEHIND NYKAA
•  The purpose behind establishing Nykaa was to address the gap in the
Indian market with a comprehensive beauty and wellness platform that
catered to the needs of Indian women. Before Nykaa, Indian women had
limited options when it came to purchasing beauty products and had to
rely on international brands or local beauty stores with limited inventory.

• Nykaa aimed to provide Indian women with a platform that offered a wide
range of high-quality beauty products from both local and international
brands. They also provided detailed product information, reviews, and
tutorials to help customers make informed decisions about their
purchases.
 BUSINESSES INSPIRED BY NYKAA
 Purplle: Purplle is a beauty and personal care e-commerce platform based in India. Like Nykaa, it offers a
wide range of products across multiple categories, including makeup, skincare, hair care, and fragrances.
Purplle also offers virtual try-ons and personalized recommendations to its customers.
 Myntra Beauty: Myntra Beauty is an online beauty and personal care marketplace based in India. It offers
products from a variety of brands across multiple categories, including makeup, skincare, hair care, and
fragrances. Myntra Beauty also offers a loyalty program and a virtual try-on feature.
 Sugar Cosmetics: Sugar Cosmetics is an Indian beauty brand that offers a range of makeup products,
including lipsticks, eyeliners, and mascaras. Like Nykaa, Sugar Cosmetics has a strong online presence and
sells its products through its e-commerce platform as well as on other marketplaces.
 Plum Goodness: Plum Goodness is an Indian beauty brand that offers a range of skincare and hair care
products. It emphasizes the use of natural and vegan ingredients and has a strong social media presence.
Plum Goodness also sells its products on various e-commerce platforms, including Nykaa.
 Health & Glow: Health & Glow is an Indian beauty and personal care retail chain with over 150 stores
across India. It offers a wide range of products across multiple categories, including makeup, skincare, hair
care, and fragrances. Health & Glow also has an e-commerce platform and a loyalty program for its
customers.
 NYKAA’S POLICIES
• Wide range of products: Nykaa offers a wide range of beauty and wellness products from both
local and international brands.
• Product information and reviews: Nykaa provides detailed product information and customer
reviews for each product, helping customers make informed decisions about their purchases.
• Fast and reliable delivery: Nykaa offers fast and reliable delivery services,
• Flexible payment options: Nykaa accepts a variety of payment options, including cash on delivery,
credit/debit cards, net banking, and digital wallets, making it easy for customers to complete their
purchases.
• Loyalty program: Nykaa has a loyalty program called Nykaa Rewards, which offers customers
points for every purchase made on the platform. These points can then be redeemed for discounts
on future purchases.
• Exclusive launches and collaborations: Nykaa frequently collaborates with beauty brands to
launch exclusive products on their platform, creating a sense of exclusivity and excitement among
customers.
 REASONS BEHIND GROWTH
1.Strong brand image: Nykaa has built a strong brand image through its marketing and advertising
campaigns, collaborations with celebrities and influencers, and its focus on providing high-quality beauty
and wellness products.
2.Wide product range: Nykaa offers a wide range of beauty and wellness products, including makeup,
skincare, haircare, fragrances, and personal care products. This has helped it to attract a diverse
customer base.
3.Online presence: Nykaa started as an online-only retailer and has established a strong online
presence through its e-commerce platform. This has enabled it to reach customers across India and
expand its customer base.
4.Offline presence: In addition to its online presence, Nykaa has also established a strong offline
presence with its chain of physical stores across India. This has helped it to offer a more personalized
shopping experience to customers and attract customers who prefer to shop offline.
5.Customer-centric approach: Nykaa has a strong focus on providing excellent customer service and
offers features like easy returns, multiple payment options, and fast delivery. This has helped it to build a
loyal customer base and attract new customers through word-of-mouth recommendations.
 ROLE OF EXTERNAL FACTORS IN
THE GROWTH OF NYKAA
• Growing demand for beauty and wellness products: One of the significant external factors that have
contributed to Nykaa's success is the growing demand for beauty and wellness products in India. With the rise
of the middle class and increasing disposable incomes, more and more people are willing to spend money on
beauty and wellness products.
• Expansion of e-commerce in India: The growth of e-commerce in India has also played a significant role in
Nykaa's success. The rise of smartphones and cheap internet connectivity has made it easier for people to
shop online. E-commerce has also made it possible for companies like Nykaa to reach customers in remote
areas of the country. 
• Favorable government policies: The Indian government has introduced several policies and initiatives to
promote e-commerce and entrepreneurship in the country. These policies have created a favorable business
environment for companies like Nykaa to thrive.
• Impact of COVID-19 pandemic: The COVID-19 pandemic has had a significant impact on the global economy,
including the e-commerce sector. However, for Nykaa, the pandemic has presented an opportunity for growth.
 RISKS FACED BY NYKAA AND
HOW IT OVERCOME THEM
• Intense Competition: One of the most significant challenges faced by Nykaa is
intense competition from established and new players in the beauty and wellness
e-commerce market. Competitors such as Amazon, Flipkart, and Myntra have
also entered the space, and many smaller e-commerce platforms have emerged.
• Nykaa has dealt with this challenge by focusing on providing a unique customer
experience. The company has created a strong brand identity by offering an
extensive range of products, excellent customer service, and innovative
marketing campaigns. Nykaa also launched its private label range of beauty
products in 2015, which has become a significant source of revenue and a point
of differentiation.
 RISKS FACED BY NYKAA AND
HOW IT OVERCOME THEM
• Supply Chain Challenges: Another challenge that Nykaa has faced is the
complex and often fragmented supply chain in India. The company sources
products from both international and domestic suppliers, and it can be
challenging to ensure timely delivery, quality control, and inventory management.

• To address these challenges, Nykaa has invested heavily in its supply chain
management systems. The company has created a robust network of suppliers
and warehouses to ensure that products are delivered to customers as quickly
and efficiently as possible. Nykaa also uses advanced data analytics to manage
its inventory, forecast demand, and optimize its supply chain operations
 RISKS FACED BY NYKAA AND
HOW IT OVERCOME THEM
• Digital Infrastructure: The growth of e-commerce in India has been
hindered by challenges such as poor internet connectivity, inadequate
digital infrastructure, and a lack of awareness about online shopping
among some consumers.

• Nykaa has addressed these challenges by investing in its digital

infrastructure and offering a seamless online shopping experience.
The company has a user-friendly website and mobile app that is easy
to navigate and allows customers to browse and purchase products
quickly. Nykaa has also introduced features such as augmented
reality and virtual try-on to help customers choose the right products.
 RISKS FACED BY NYKAA AND
HOW IT OVERCOME THEM
• Regulatory Compliance: Nykaa operates in a heavily regulated
industry that is subject to various laws and regulations, including
those related to product safety, labeling, and advertising.

• To comply with these regulations, Nykaa has implemented rigorous

quality control and safety standards for its products. The company
works closely with its suppliers to ensure that products meet all
regulatory requirements, and it regularly reviews its marketing and
advertising practices to ensure compliance.
 SWOT ANALYSIS OF NYKAA

• SWOT (strengths, weaknesses, opportunities, and threats)

analysis is a method for identifying and analyzing internal
strengths and weaknesses and external opportunities and
threats that shape current and future operations and help
develop strategic goals.

• Next few slides will deal with SWOT analysis of Nykaa

Strengths:
•  Wide range of products from local and international brands.
• Strong brand reputation and customer loyalty.
• High-quality customer service and fast delivery.
• Own brand product line and exclusive collaborations with other brands.
• Innovative marketing strategies and use of social media.

Weaknesses:
•  Limited physical presence with only a few stores across India.
• Heavy dependence on online sales, which can be impacted by technological glitches
or internet connectivity issues.
• High competition from other e-commerce platforms in India.
 Opportunities:
• Expansion into more cities and towns in India.
• Introduction of new product lines or services to cater to different customer segments.
• Leveraging technology to improve customer experience and streamline operations.
• Expansion into the global market.
• Diversification of revenue streams beyond e-commerce, such as beauty and wellness
services.

 Threats:
• Intense competition from other e-commerce platforms and beauty retailers.
• Economic downturns or disruptions in supply chains could impact product availability
or increase prices.
• Changes in government regulations or policies that could impact the business.
• Negative publicity or customer reviews could impact brand reputation.
• Fluctuations in foreign currency exchange rates could impact import costs and prices.
 WHAT COULD BE DONE TO
IMPROVE CHANCES OF SUCCESS
 
• Expand Product Range: Nykaa can expand its product range to include a wider variety of
beauty and cosmetic products, including niche products and international brands.
• Improve User Experience: Nykaa can focus on improving its user experience by
enhancing the website and mobile app interface, simplifying the checkout process, and providing
better customer support.
• Personalized Recommendations: Implementing personalized recommendations based
on a customer's purchase history, search behavior, and preferences can help increase customer
satisfaction and loyalty.
• Social Media Marketing: Nykaa can leverage social media platforms to engage with its
customers, showcase new products, and offer promotions and discounts.
• Offline Presence: Establishing more offline stores and pop-ups can help Nykaa reach new
customers and provide an opportunity for customers to experience products in person.
 SIMILARITIES BETWEEN NYKAA
AND OTHER GLOBAL BRANDS
 Sephora: Nykaa and Sephora are both leading beauty and wellness retailers that offer a
wide range of products from both local and international brands. They both provide detailed
product information and customer reviews, and they both have loyalty programs that reward
customers for their purchases.
 Amazon: Like Amazon, Nykaa offers a wide range of products across multiple categories.
They both have fast and reliable delivery services, flexible payment options, and a loyalty
program to retain customers.
 Ulta Beauty: Nykaa and Ulta Beauty are both beauty retailers that offer a range of products
from different brands. They both have their line of beauty products under their brand name and
often collaborate with other brands for exclusive launches.
 Glossier: Both Nykaa and Glossier focus on providing a seamless shopping experience to
customers. They both offer a curated selection of products and create a strong community
through social media and customer engagement.
 INSPIRATION FROM NYKAA’S JOURNEY
 Creating Opportunities: Nykaa's journey demonstrates that there are immense opportunities in the beauty and
cosmetics industry, particularly in the online space. This can inspire future entrepreneurs to identify untapped markets
and create businesses that cater to the changing needs of consumers.

 Innovation and Technology: Nykaa's success is also a testament to the power of innovation and technology. The
company leveraged technology to streamline operations, optimize inventory management, and provide personalized
recommendations to customers. This can inspire future entrepreneurs to embrace technology and develop innovative
solutions to improve efficiency and enhance the customer experience.
 
 Brand Building: Nykaa's strong brand identity and marketing campaigns have helped it establish a loyal customer base.
This can inspire future entrepreneurs to focus on building a strong brand and creating engaging content to differentiate
themselves from competitors.
 
 Adapting to Changing Markets: Nykaa's journey also demonstrates the importance of being adaptable and resilient in
the face of changing market conditions. The company was able to pivot quickly during the COVID-19 pandemic and
continue to grow. This can inspire future entrepreneurs to be prepared to pivot their business strategies and adapt to
changing market conditions.
 
 Social Responsibility: Nykaa has also demonstrated a commitment to social responsibility by supporting various causes
such as education and women's empowerment. This can inspire future entrepreneurs to focus on building businesses that
have a positive impact on society and contribute to sustainable development.
 LESSONS LEARNT FROM NYKAA
• Identify an Untapped Market: Nykaa identified a gap in the Indian beauty and cosmetics industry, which was
dominated by offline retailers, and launched an online platform to cater to the growing demand for beauty and personal
care products. Entrepreneurs should look for untapped markets and identify unmet needs to create a successful business.
• Focus on Customer Experience: Nykaa prioritized customer experience and developed a user-friendly platform with a
wide range of products, competitive pricing, and fast delivery. Entrepreneurs should focus on providing an exceptional
customer experience to build loyalty and drive growth.
• Embrace Technology: Nykaa leveraged technology to streamline operations, optimize inventory management, and
provide personalized recommendations to customers. Entrepreneurs should embrace technology to enhance the efficiency
of their business operations and deliver innovative products or services.
• Build a Strong Brand: Nykaa invested in building a strong brand by collaborating with celebrities, influencers, and
beauty experts, and creating engaging social media content. Entrepreneurs should focus on building a strong brand to
differentiate their business from competitors and establish a loyal customer base.
• Expand Strategically: Nykaa expanded its product range and introduced offline stores strategically to reach a wider
customer base. Entrepreneurs should plan their expansion strategy carefully, considering factors such as market demand,
competition, and customer preferences.
• Be Resilient: Nykaa faced several challenges during its journey, including intense competition and the impact of the
COVID-19 pandemic. However, the company adapted quickly, leveraged its strengths, and continued to grow.
Entrepreneurs should be resilient and prepared to pivot their business strategy in response to changing market conditions.