Nykaa Marketing Strategy - How It Managed to Target Audience in Beauty Market?
🔍Insights
Today, there are tons of startups that have evolved in India in various industries and verticals. One such industry that has seen immense growth in the last decade is the Indian cosmetics industry. 8 years back, when e-commerce platforms were emerging in various sectors, people started to give importance to shopping for skincare and healthcare products online. There was a rise in the awareness of the skincare products and getting them was simple as they could be delivered at the consumers’ doorstep. This gave birth to one of the prominent brands of skincare industries, the online beauty retailer, Nykaa.
Nykaa is a brand that we have all heard of from different media and advertisement. Some of us would have heard it from our friends who have used it. After all, word of mouth is a good marketing method that is proving to be widely successful. Nykaa is one of the best beauty and personal care product brand. Nykaa has now gained an excellent customer base. Nykaa’s marketing strategy has been very successful for them. It has cosmetics, haircare, bath and body, skincare, luxury and other wellness products for men and women.
Nykaa works on an omnichannel model where they have established a strong presence online as well as have opened up more than 68 stores across the city. They work with more than 1500+ brands and have been successful in becoming one of the most prominent brands in India. Their reason for success and growth has been their effective and enthralling marketing strategies. The following are the Top Marketing Strategies used by Nykaa:
Nykaa - The Beginning
Nykaa - Marketing Strategy
- Marketing Through YouTube Channel
- Influencer Marketing
- Nykaa Offers and Discounts
- Content Marketing Strategy
- Social Media Marketing Strategy
- Nykaa Beauty Book
- Nykaa Routine Finder
Nykaa - The Beginning
Nykaa was founded by Falguni Nayar, who was an investment banker. She along with her husband, Sanjay Nayar, invested $2 million in 2012 and controlled about 95% of the stakes. Being amazed by the variety of branded cosmetics that were available in the market, she turned to entrepreneurship at the age of 50.
The initial plan was to sell products directly from warehouses located in Delhi, Mumbai, and Bangalore. Without using the store format, they were able to gain better margins with the products. The initial marketing was done online and through various social media platforms.
Within 5 years, the company was able to break even the initial investment. Major marketing initiatives included hosting the Femina beauty awards in 2015 and 2016. It gained Unicorn status in 2020.
Ashwini
Nykaa - Marketing Strategy
With the situation here, the best way to market a product is to use the digital platforms. Even when you market it digitally, it is important to keep it perfect to be able to attract more audience. Social media interaction is extremely important to keep the customers proper and in a track. They knew the right way to get into the minds of the target audience and also to retain the customers. Their main target audience were the people who were students and professionals who do not have enough time to go to a physical shop and buy the required cosmetic.
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Marketing Through YouTube Channel
Youtube is the media where people go to while away their time by watching videos. They have a segment known as “Nykaa TV” which was made by seeing the emergence and importance of the advertising market by the means of videography. Nykaa has a whopping 1.24 million subscribers on its YouTube channel. This channel on YouTube helps the viewers to know more about beauty and wellness products and their “how-to" videos also provide a lot of information on products related to this sector.
Nykaa’s YouTube channel has videos that help customers understand how each cosmetic is to be used. Also, some people do not know what product to use and which brand will suit them best. These videos help them identify what they need and buy them from Nykaa. They keep posting videos regularly to make sure the subscribers get useful information often.
Moreover they have celebrities and their stylists make short videos on make-up and skincare as well!
Influencer Marketing
This is also quite common with Nykaa’s marketing. Influencer marketing is usually used by Nykaa while launching a new product. Nykaa has the belief that it is easier to maintain customer loyalty when they are able to maintain a proper relationship with the influencer. Also, it can increase customer engagement.
Nykaa has always believed in collaborating with big names because collaborations have proven to be very successful for them. Be it the collaboration with Femina Beauty Awards or the recent collaborations with Katrina Kaif – Kaif with Kay beauty and Masaba – Masaba with Nykaa, all such collaborations help Nykaa to get popularity as well as target a wider audience.
PV Vyshnavi
Nykaa Offers and Discounts
Offers and coupon codes are the best ways to attract customers in a very short time. Nykaa has been offering many discounts and coupons to its customers on purchasing branded beauty and skincare products from their portal. This has been one of their very successful strategies in marketing their e-commerce business. They use various coupon codes and offer various discounts so that they attract a maximum number of customers on various occasions and festivals. This has proved to attract a lot of customers for them and they hence have a good sale during the offer periods.
Content Marketing Strategy
This is yet another awesome marketing strategy of Nykaa that has proved to be successful. Generally, the challenge in content marketing is that most people don’t see or read it unless it is extremely interesting. To make it a point to attract new customers and retain old customers, the content team has to make the content very creative. They have a team of young and enthusiastic professionals for creating the best possible content. They make sure the content in all the platforms like websites, blogs, other articles, tutorials are all made in a very creative and understandable way.
Nykaa believes that by showing high-end content on their website, app and social media handles they can showcase global trends by which they can establish their own brand name. It is often said that content is king and is highly consumed by people; hence they have established a qualified team for its content strategy. Nykaa has very appealing social media portals and websites because that is how they keep their users engaged by providing interesting content. They have active blogs where users can get expert advice from professionals on beauty and wellness as well as can get many tips on makeup.
Nykaa also uses SEO strategy in its contents to rank higher. When people need something, they search for it on the search engine before reaching out to the website or YouTube. It is hence important to make sure that the page, blog, or post from Nykaa’s website contains the perfect keywords. They keep in mind the trend in the industry and update themselves according to them. They are perfect at optimizing their content according to the latest trends and keywords. Their blogs and products show up at the top of the search engine.
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Social Media Marketing Strategy
Today, the world is running on social media. Everyone has an account on almost all the social media pages. Instagram and Facebook are widely used to display advertisement. Nykaa’s social media marketing is also excellent. Instagram page of Nykaa has a lot of new followers each day and the same goes for Twitter and Facebook. They have integrated some social media pages with the ‘shop now’ button, which helps the customers go to the website and order the required product.
It has a very strong social presence and is hence able to have a personal touch with the customers.
Other than the above-mentioned techniques, they also use Email marketing. Wherein, the customers who are registered with them will get updates through Emails. This is sent out only to regular and highly engaged shoppers.
On the whole, the social media marketing strategy of Nykaa is extremely customer-centric. Nykaa has understood who their target customers are and hence they find it very easy to tap that particular segment and work on attracting them. Nykaa is now one of the leading websites with the number of visitors on the website increasing day-by-day.
Nykaa marketing strategy approach towards customers has made it one of the best brands of its kind and helped it become a unicorn startup reaching a valuation of approx $14 billion.
For promoting the social media platforms and also for keeping the audience engaged, Nykaa launches various offers and discounts on social media platforms in the form of contests, giveaways, and many such activities. This helps them in generating customer leads and also connecting huge masses spread across various different geographical locations. People can also shop Nykaa products from their Facebook Page which redirects them to their e-commerce website.
Muskaan Kapoor
Nykaa Beauty Book
The brand has launched its magazine that includes the news related to the field, various articles with advice on the skincare and wellness lines. The formats in this magazine include the FB live, educative brand collaborations, web series, and OTT platforms, etc. Their magazine 7.5 million page views and unique 4 lakh visits per month. Nykaa also releases these magazines in various regional languages.
Nykaa Routine Finder
Nykaa has built a very intriguing tool that is comprehensive of skin, hair, and wellness parameters. The tool allows getting a set skincare routine according to the choices made by the customer and the routine finder helps the customer by showing or suggesting the products that will help them to improve the problem that they face. On average around 15000 people visit this routine finder of which 90% of the people use it from the mobile application and 10% of users use it on the website.
Conclusion
Nykaa has proven itself by establishing a very successful business in the Indian market. With its balanced and slow & steady approach, it has become one of the most liked beauty and wellness giants and will continue to grow in the years to come. Nykaa has proven to be loyal to its customers and has been prosperous enough to get their trust in return. With such excellent marketing strategies, the brand will further continue to proliferate and earn huge profits.
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FAQs
Who is the owner of Nykaa company?
Falguni Nayar founded Nykaa in 2012.
How does Nykaa make money?
They sell beauty products both online and offline. They have also added clothing to their product catalogue and they target both men and women as well as children as their target audience.
What is Nykaa's marketing strategy?
The marketing strategy of Nykaa is mainly dependent on influencers. They market through
- Marketing Through YouTube Channel
- Influencer Marketing
- Nykaa Offers and Discounts
- Content Marketing Strategy
- Social Media Marketing Strategy
- Nykaa Beauty Book
- Nykaa Routine Finder
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