NYKAA Business Model | How Nykaa Earns?

Hello Friends Today We will discuss about NYKAA Business Model . If you are a girl or if you have a sister, you have a sister, then you must have heard that NYKAA is an e-commerce store that offers cosmetics, shampoo, lipstick and etc . Today We will Discuss about them .

So let's Get Start ..

They provide stuff like if you are a woman, let me know in the comments if you order things from NYKAA or if you are not a male, also comment if you have ever used it you should know That the cosmetic market is a profitable market.

After much research you get 30-70% off on common products. This is too much commission. They are working with high end products. Mike McHodge Foundation Cream costs 3kSo, in which they can get more commissions.

But since childhood I have heard that the margin in cosmetics is very high. And they have brought it online. You do not need to visit the store. You can order online.

When you go to their store you can imagine the money spent on infrastructure. If you want to spend this money. And people get free makeup from there and try this lipstick. This is a part of your spending.

And this was the problem they had met. If it is a good business model. NYKAA was started in 2012 by Falguni. It was an investment bankruptcy investment workand, after which she started NYKAAand after 5 years, she reached break even no profit no loss .

To begin with, it cost 1000 to acquire a customer before she was running into losses. Online Marketing If you have heard about them, this is from their online campaign. Do not advertise too much on TV. They sponsor 1000 women for one client.

Which reduces the cart size of this industry to 200-300. Amount of people between 1250-1500Which which is up to the US standard, you can imagine a high exclusive audience.

They like expensive makeup and are switching towards NYKAA> they don't have time to go to stores. Can buy a lipstick. They can be easily ordered online and delivery is fast. They have a fast delivery system because they have an inventory model. You already have all the products in bulk. They can ship products directly from their warehouse and the delivery process is fast.

NYKAA Business Model | How Nykaa Earns? | Case Study

If you will visit their website. Monthly traffic is around 10Mand, so their CEO50% of customers are repeat. Customer means that they do not need to spend much on acquisition. 50% of the customers will buy things without any advertisement and the other 50% need the customer. To show them advertisements through social media.

Affliate They have to spend those 50% on one more thing. If you want to open an ecommerce store, then you must have an advantage, their advantage is that they are buying directly from Brandand, do not automatically offer discounts. Until you provide it. See discounts on their site. This discount is only for brands.

If you get a gift from them, it's not from the brand NYKAA> So that's an advantage, now they've started their own product line. Every ecommerce department is doing this. You already had a marketplace audience that likes to buy a lot of products. You have shown them your products. And they tried their products. If the quality of your product is good.

You have created a new audience. You want to buy your products in the inventory model. And before that the company was paying you commission. Here the profit is yours. They are opening their own stores. His idea is to open 30 stores by 2020. You can open more than 30 stores because recently received funds and even reached the break. If you ask about him, IPO ,She was an investment banker, which means that he knew about IPO . But according to him, until his profit reached 200 crores.

Whether in salary costs or maintenance costs or marketing. Profitability is the high point about financial figures, even though they are broken. He has received money in 6 rounds. It has received $ 69 million in funds from 9 investors and is the company's company.

So that is for today Friends , I hope You Like it