The Beautiful Story Of The Most Successful Beauty Products Company- Success Story Of Nykaa

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How did it all start, Nykaa?

The company's founder, Falguni Nayar, was inspired by the inconsistencies she noticed in the cosmetic product market. Despite strong market demand, India's beauty and cosmetics market lagged behind other nations such as France and Japan in terms of product scope. The products were also found to be unavailable in a number of areas around the country, leading the creation of Nykaa.

Nykaa was founded by Falguni Nayar in 2012. It started off as an internet business before expanding into an omnichannel strategy.

Nykaa is a Mumbai-based company that sells a wide range of beauty and cosmetics products, as well as fashion and intimate wear, through its website, app, and online stores. One of the brand's main objectives is to make ordinary women extraordinary in every aspect.

Falguni Nayar, founder of Nykaa, shares her success story.

Falguni Nayar launched Nykaa, which has grown to become one of India's top lifestyle and fashion portals. Nayar earned a master's degree in finance from IIM Ahmedabad. She joined India's premier investment bank, Kotak Mahindra Capital Company, shortly after graduation. Nayar was designated Managing Director of the same division of the bank in 2005. She worked for the bank for 18 years before retiring to devote her whole attention to Nykaa.com.

Nayar is well-known in India for being a founding member of the Asia Society. She serves as an Independent Member on several boards, including the Aviva Insurance Board, Dabur India, and the Tata Motors Board. Falguni is an inspiration to everyone in Nykaa and beyond because she is a successful entrepreneur as well as a caring mother. Falguni's commitment to her company, meticulous attention to detail, and involvement in all facets of the business have all led to her leadership success. She has also provided a tremendous example for the entire world in terms of entrepreneurship, demonstrating that "age is just a number."

Falguni has garnered various honours throughout her career, including the FICCI Ladies Organization (FLO) award for the finest female achiever in banking and the Business Today award for being one of the top 25 women in business.

One of Falguni Nayar's most well-known mantras is "Retail is all about detail," which she constantly preaches.

Obstacles to Overcome By Nykaa

As a latecomer to the cosmetics industry, Nykaa is up against a number of professional competitors. Ajio and Myntra are two of Nykaa's most famous competitors. In the fashion sector, it must also have a unique selling proposition.

One of Nykaa's main issues, according to Kannan Sitaram, a Venture Partner at Fireside Venture, is keeping shoppers interested because if it fails to provide an exceptional experience, they would be unsatisfied.

In November 2019, L'Oréal, a French cosmetics conglomerate, filed a civil case against Nykaa in the Delhi District Court, alleging copyright infringement. The case against Nykaa came from a similarity detected by the French cosmetics behemoth in some Nykaa packaging that looked like Maybelline. Because the legal battle appeared to be dragging on, both parties resolved to settle and negotiate an arrangement that was approved by the Delhi District and High CourtsAs part of the new settlement terms, L'Oréal has consented to the new, altered artwork created by Nykaa.

Nykaa's Expansion

Nykaa currently has over 17 million monthly active users and processes over 1.5 million monthly orders. The following are some other brand growth highlights as of October 2021:

Nykaa claims to have a user base of over 15 million people.

It has over 70 locations across India.

The company offers around 4000 different brands.

On its website, in its app, and in its stores, Nykaa has approximately 3.1 million SKUs.

Nykaa's sales dropped by 70% in April 2020 due to the lockdown imposed as a result of the coronavirus outbreak. The company, on the other hand, acted promptly, quickly listing all key items in order to keep them in stock and quickly deleting all non-deliverable inventories. Following that, the company began to use its hyperlocal delivery capability to expand its physical storefronts.

Nykaa quickly recovered from the COVD-19 pandemic's effects, and by the end of 2020, it had already recovered by more than 90% of its pre-pandemic levels.

Following the coronavirus outbreak, the unicorn cosmetics and beauty goods company has seen a substantial shift in consumer preferences into important categories including personal skin and hair care, which has helped it grow faster than its competitors. In addition, the company's shift from an online to an omnichannel retail model contributed significantly to this. All of this not only improved customers' opinions of the brand, but it also allowed Nykaa to reach audiences it couldn't previously reach.

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