Success Story Of Nykaa- Most Successful Beauty Products Company

All About Naykka In Brief

Nykaa- How did it all begin?

Falguni Nayar, the company's founder, was inspired by the anomalies she saw in the beauty product market. Despite significant market demand, India's beauty and cosmetics market did not match the extent of the products as it did in other countries such as France and Japan. Furthermore, the products were determined to be unavailable in numerous locations around the country, prompting the development of Nykaa.

Falguni Nayar founded Nykaa in the year 2012. It began as an internet company before evolving into an omnichannel strategy.

Nykaa, based in Mumbai, is known for its extensive range of beauty and cosmetics products, as well as fashion and intimate wear, which it sells through its website, app, and online storefronts. One of the brand's key goals is to make ordinary ladies remarkable in every way.

Nykaa Founder- Falguni Nayar Success Story

Nykaa was founded by Falguni Nayar, and it is now one of India's largest lifestyle and fashion portals. Nayar graduated from IIM Ahmedabad with a master's degree in finance. Soon after graduation, she joined Kotak Mahindra Capital Company, India's leading investment bank. In 2005, Nayar was named Managing Director of the bank's same division. She worked for the bank for 18 years before resigning to pursue her business goal of Nykaa.com full-time.

In India, Nayar is well known as a founding member of the Asia Society. She is a member of a number of boards, including the Aviva Insurance Board, Dabur India, and the Tata Motors Board as an Independent Member. Falguni is an example to everyone in Nykaa and beyond because she is both a successful entrepreneur and a responsible homemaker. Falguni's dedication to her company, attention to detail, and involvement in all aspects of the company have all contributed to her success as a leader. When it comes to entrepreneurship, she has also set a great example for the entire globe, proving that "age is just a number."

Throughout her career, Falguni has received numerous awards, including the FICCI Ladies Organization (FLO) award for the best female achiever in banking and the Business Today award, which named her one of the top 25 women in business.

"Retail is all about detail," is one of Falguni Nayar's most recognized mantras, and she is frequently heard preaching it.

Challenges Faced By Nykaa

Nykaa faces multiple professional players as a latecomer to the cosmetics business. Ajio and Myntra are two of the most prominent players in Nykaa's sector. It also needs to have a unique selling proposition in the fashion industry.

Kannan Sitaram, a Venture Partner at Fireside Venture, has claimed that one of Nykaa's biggest problems is to keep shoppers interested since if it fails to give an excellent experience, they will be unhappy.

L'Oréal, a French cosmetics giant, launched a civil complaint against Nykaa in the Delhi District Court in November 2019, alleging copyright infringement. The complaint against Nykaa stemmed from a likeness discovered by the French cosmetics giant in some Nykaa packaging that resembled the Maybelline brand. The court battle appeared to be dragging on, so both companies agreed to end it and reach an agreement, which has been authorized by the Delhi District and High Courts. L'Oréal has agreed to the new, amended artwork Nykaa has prepared as part of the new settlement terms.

Nykaa Growth Story

Nykaa presently has over 17 million monthly active users and processes over 1.5 million orders every month. As of October 2021, the following are some other brand growth highlights:

Nykaa claims to have more than 15 million users.

It has around 70 locations throughout India.

Over 4000 brands are available through the company.

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

During the lockdown as a result of the advent of the coronavirus pandemic, Nykaa had a 70 percent drop in sales in April 2020. However, the corporation reacted quickly, efficiently listing all critical items in order to retain them in stock and removing all non-deliverable inventories. Following that, the company began extending its physical stores by utilizing its hyperlocal delivery capability.

Nykaa recovered quickly from the COVD-19 pandemic's effects, and by the end of 2020, it had already recovered by more than 90% of what it had been during the outbreak.

The unicorn cosmetics and beauty goods firm has seen a significant shift in consumer preferences toward key categories like personal skin and hair care, which has helped it grow faster than its competitors following the coronavirus outbreak. Furthermore, the company's transition from an online to an omnichannel retail model had a significant role in this. All of this not only improve customers' perceptions of the brand but also enabled Nykaa to reach audiences it had previously been unable to reach.

When the corporation began to recover from the pandemic's impacts in October 2020, it also created Nykd, an intimate apparel brand.

Nykaa's CEO, Falguni Nayar, recently reported that the platform's sales and profitability have increased. This is why it will successfully make its initial public offering (IPO) on October 28, 2021, with a price range of INR 1,085-1,125 per share. For its upcoming IPO round, the company had requested a valuation of $7.4 billion. Nykaa had previously submitted its Draft Red Herring Prospectus (DRHP) in August 2021, after becoming a public company limited by shares on July 16, 2021.

Nykaa's IPO was a success, with the company's market valuation exceeding Rs 1 lakh billion. At the end of the IPO round on November 1, 2021, the company's shares were 81.78 times oversubscribed. Nykaa's market capitalization nearly tripled on its first day on the Indian stock exchange.

On November 10, 2021, Nykaa's parent company, FSN E-Commerce, had a record rise in its share values on the stock market, resulting in 96 percent returns on the company's investors' capital. FSN E-Commerce's shares finished at INR 2,206.70 per share on the BSE, up 96.15 percent from its issue price of INR 1,125. They did, however, close at INR 2,018 each, 96.26 percent higher than the listed price. According to the Bloomberg Billionaires Index, Nykaa CEO Falguni Nayar's net worth increased to $6.5 billion following the brand's record listing.

Nykaa's parent company, FSN E-Commerce Ventures Ltd., reported a 96 percent drop in profits on November 15, 2021, resulting in a drop in share prices. The company's profitability dropped due to a spike in marketing costs in the quarter leading up to its initial public offering. The company's net income for the third-quarter ending in September was Rs 1.2 crore, down from Rs 27 crore the previous year. It was stated that the company's sales increased by roughly 47 percent as a result of the 92 percent increase in expenses. The company's stock fell by 5.2 percent on November 16th, following a drop of nearly 7.3 percent in earlier trading.

Nykaa- Future Plan

The corporation wants to increase its offline operations. It plans to open 180 outlets across India by 2024 to enhance its offline presence.

Frequently Asked Question About Nykaa

Nykaa was founded by who?

Nykaa was founded by Falguni Nayar.

Why is Nykaa so well-known?

Nykaa is India's largest lifestyle and fashion platform, offering a diverse range of cosmetics, skincare, haircare, perfumes, bath & body, personal care, and wellness items for men and women.

Who are Nykaa's main competitors?

Nykaa's main competitors include the following:

• Purplle

• FabAlley

• Fabindia

• LimeRoad

• Craftsvilla

Is Nykaa a brand from India?

Yes, Nykaa is a Mumbai-based lifestyle retail business that sells beauty, wellness, and fashion products.

How do I sell something on Nykaa?

It's simple to sell on Nykaa. Simply go to www.nykaa.com/sellonnykaa and fill out a form with your company's name, website, Pincode, address, product categories, brand name, and other information, and you'll be ready to sell on Nykaa.

Who is the CEO of Nykaa?

Nykaa's Founder and CEO is Falguni Nayar.

What is the location of Nykaa's headquarters?

The headquarters of Nykaa is in Mumbai, Maharashtra.

Conclusion

Nykaa has established itself as one of the most capable companies in the beauty and fashion field because of its solid marketing approach, which is centered on digital marketing. The brand not only markets in Tier 1 cities, but also to potential clients in Tier 2, 3, and 4 cities.

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