Sneak Peak:
Read this case study to know how an e-retailing brand leverages digital marketing for getting about 50,000 visitors every months. Company: Nykaa Industry: Retailing Tool Used: Digital Marketing Result: 50,000 visitors to the website every month Business Type: B2CThe Brand: Making a Difference!
An Indian e-commerce website, Nykaa was founded in 2012 by Falguni Nayar. The e-commerce platform offering beauty and wellness products is headquartered at Mumbai, Maharashtra. The e-commerce company sells fashion products from various brands and ships to over 900 cities across the country. With over 35,000 products from more than 400 brands, Nykaa has achieved its active presence in over 1,000 cities that includes more than 10,000 zip codes. with the help of an inventory-based model, the company has gained its name in the fashion & cosmetics industry and has a growing e-commerce reach even in the remote areas. The most remarkable point about this beauty and wellness based e-retailing brand is that they own an active blog providing make-up tips as well as has an expert panel of makeup stylists, and skin, hair, personal care experts who answer questions related to beauty, health, nutrition and personal care.The sparking of the idea!
While hunting for business opportunity in India, Falguni Nayar, the ex-MD of Kotak Mahindra, found that there existed a huge gap in the beauty products markets in India that time and that the country around 2012 was lagging far behind of various other countries like Japan, France and European countries in the race. At the same time, she found that the demands for such service however were unexpectedly high in the country with respect to the number of places or platforms offering genuine beauty products. The idea and the right demand led her to jump onto the bandwagon of entrepreneurship and she launched Nykaa in collaboration with her husband Sanjay Nayar, who was again from the banking background.Nykaa’s Marketing Approach
Like all most of the marketers, Nykaa’s marketing strategy includes a number of relevant discount coupons & offers apart from the usual campaigning of the marketing ventures. They have a team of experts for beauty and wellness who educate and help consumers around the world in the given area. with over 25 experts, Nykaa provide beauty & wellness solutions online for all the queries that consumers have.
They however get this accomplished through contents and videos over the company’s product page and social media platforms. They have a dedicated team to conduct various digital marketing campaigns that mainly include:
Communicating through the Content
As discussed earlier, the e-retailing brand makes use of high-end content forms for making the people aware of the global trends that have made a brand a winning name. They have active blog on beauty & wellness providing make-up tips and expert advices.
Making it more engaging through the YouTube Channel
Realizing the importance of video advertising, Nykaa owns a dedicated YouTube channel “Nykaa TV” that provides the consumers with up to date & best video guidance for using beauty & wellness products. with the help of a number of “how-to videos” they help the users and customers in choosing the right products as well as in using them in the right way.
YouTube Channel of Nykaa has garnered around 50K subscribers.
Encouraging interactions through the Social Media platforms
Like every smart marketer would do, the marketing team at Nykaa leverages various social media platforms for not just connecting to the consumers, engaging them and generating leads but also converting them into sales by offering them with the various discounts.
The company makes use of its Facebook fan page for sharing various offers & deal posts for Facebook has yielded them with a massive 1.4 million fan following on this platform. In fact, the e-retailing brand based on the Facebook fan page success has now integrated a “Shop now” option on it that redirects consumers to their e-commerce website for purchasing the beauty products if they wish to.
The company has garnered over 11.1K followers on Twitter by posting attractive & lucrative pieces of content over the platform.
Instagram profile for Nykaa has grown large with more than 133K followers.
The Stunning Success!
Taking a look at the latest data, with 95% the number of repeat customers accounts for the major part of revenue generated by Nykaa. The company has generated INR 220 crores as its revenue in the year 2015-16 itself. Within a short span of just 4 years the company has grown vastly since its inception in 2012. We already have seen in its marketing strategy section about the stunning success the company has achieved on various social media platforms. With over 50,000 unique visitors frequenting the e-commerce website every month of which 80% on an average are women, the company is extending its business in other ways as well. They have launched their first offline retail store at IGI airport terminal 3, which is also exhibiting the similar success.FYI: For Your Information!
Funding The company has raised 20 crore in funding from private investors that include HNIs (high net-worth individuals) and non-resident Indians (NRIs) in June 2014 and last year that was in 2015, it raised $9.5 million from a group of Indian investors. Collaborations In collaboration with Femina, Nykaa hosted the ‘Nykaa.com Femina Beauty Awards’ in 2015 and 2016, which were the award functions created for highlighting the best products & brands in beauty & wellness. Company’s Contribution towards Social Causes In 2015, on the occasion of International Women’s Day, Nykaa raised funds for Project “Nanhi Kali”, which is an Indian NGO for girl child education providing primary education to underprivileged girl children in India.
