Nykaa is India's biggest beauty influencer with an extensive range of products at affordable prices and quick delivery to ensure that customers are content and satisfied with their purchases. Sellers profit from the pan-Indian product distribution channel that lets them access all parts of the country with established networks in all the tier-1 cities. Nykaa is currently receiving more than 10 million views per month.
This is greater than PaytmMall, Limeroad and Shopclues combined. All these facts make Nykaa a solid and attractive platform for sellers. However, it's better to know some intricacies before directly getting into it.
Did You Know?
Nykaa, the huge Indian online marketplace, experienced a stunning increase in profits in the last year. Beginning with just a bit more than ₹500 crores, its annual revenues amounted to ₹2200 crores for the fiscal year 2022.
What is Nykaa?
Nykaa is one of India's most popular online beauty and cosmetics products retailers. It offers a broad selection of products, such as skin care, makeup, haircare and scents for women and men. Nykaa is renowned for its reasonable prices and top-quality products. It's a great spot to discover the latest cosmetics from the leading brands.
They offer more than 15,000 products from more than 500 brands, including NYX, L'oreal and Lakme. You can also discover products from international brands such as Benefit, Maybelline and Revlon. Nykaa is an excellent place to locate Indian beauty brands such as Godrej, Lakme and Patanjali.
Best Beauty & Wellness Platform in India: The Story of Nykaa
Before you know how to sell on Nykaa fashion, looking out at the story can be helpful to know how this platform has developed and if the future of Nykaa is bright if you start selling on it.
The Story of Nykaa is a company that has revolutionised the way people shop for beauty products online in India. Founded in 2011, the company now carries over 2 lakh products from over 2,500 brands.
Its inventory-led business model stores every single product in its warehouses and fulfils every order on the website, unlike other e-commerce platforms, which only fulfil a small percentage of the items sold.
When Falguni Nayar started Nykaa in 2011, the Indian market was very underserved for cosmetics. While in New York, she had seen companies selling cosmetics; she had no idea if Indian women would even be interested in them.
Her hunch was correct, and Nykaa launched in April 2012, a few months after starting the company. Despite many difficulties, Falguni continued to work long hours and managed to fulfil more than 10 orders per day.
Falguni Nayar saw an untapped market for beauty products in India. She wanted to make online beauty brands more accessible to Indian women. She was passionate about makeup and wanted to change the way Indian women viewed personal grooming.
Falguni Nayar's vision inspired her to create an online retail platform that would empower women to access luxury beauty products. She partnered with Sanjay Nayar and a group of young entrepreneurs. Today, Nykaa is one of the fastest-growing e-commerce companies in the world.
Also Read: How to Do Myntra Seller Registration? Explained
Founder's Concept Behind Nykaa
The Founder's Concept behind Nykaa is amazing: a female entrepreneur from Mumbai is building a platform for beauty products that simplify shopping. In 2009, she was managing director at Kotak Mahindra Capital and had several beauty and fashion e-commerce platform ideas.
After retiring from Kotak Investment Banking, she launched Nykaa to bring these ideas to life. Now, Nykaa houses thousands of brands that manufacture and sell beauty and apparel products.
The founder's concept empowers women to make fashion choices and be the centre of their lives. As a result, Nykaa's philosophy strongly resonates with millennials and Gen-Z. To succeed, the company needs to continue to provide a top-notch shopping experience to its customers and remain a compelling brand.
The company has taken a unique approach to the market, leveraging events such as Femina Miss India, the biggest beauty event in India. In addition, the company sponsors dozens of college fests, including Red Brick Summit, 2019 IIM Ahmedabad and Mood Indigo.
The founder wanted to create a brand that would allow women access to quality beauty products. Nykaa is a young online beauty company with a target audience of 22-35 years old. The company launched private-labelled beauty products in March 2016, based on an inventory-based model. The founder is passionate about makeup and wanted to change the way Indian women view personal grooming.
Nykaa Investors
If you're looking for new stock to invest in, look no further than Nykaa. Run by FSN E-Commerce Ventures, the company's stock nearly doubled on its listing day. Investors should consider supporting Nykaa because of its market share leadership in the beauty sector, its sticky customer base, and strong financials. Additionally, its management team includes banker-turned-entrepreneur Falguni Nayar, a compelling story in her own right.
In April 2018, Nykaa raised ₹165 crores in its IPO, triggering the exit of some of its early investors. The company's Series C funding round, which included investments from the Hero Group's Sunil Munjal, led by Analjit Singh and Harsh Mariwala, was also directed by TPG and JM Financial. After the IPO, the company will raise a further ₹15 crores in a secondary financing round.
While Nykaa has established itself as a leading beauty and cosmetics marketplace in India, it will need the money to continue on its path toward achieving its ambitious ₹740 crores valuation.
Investors will have to assess the company's future performance and whether it can sustain this growth. In 2019, the company hoped to generate ₹25 crores in revenue in its fiscal 2020. After a ₹22crores funding round led by Fidelity Investments, Nykaa raised an undisclosed amount from Bollywood stars Alia Bhatt and Katrina Kaif.
Benefits of Selling on Nykaa
The following reasons tell us why to sell on Nykaa over other beauty platforms:
- Nykaa is highly concentrated on women's products.
- It has millions of customers targeted towards beauty products and a strong customer base from India.
- Nykaa has genuine and branded products.
- Nykaa's customer service is far better than its competitors.
- PAN India delivery
Nykaa Fashion Seller Registration Process
It is the most important step of how to sell products on nykaa. Here are the steps you have to follow to register yourself as a seller on the Nykaa Website.
- To establish an account for sellers on Nykaa, the seller must first sign up with Nykaa. They must register on the Nykaa site by providing the basic data like the name of the business, the business's nature communications address, and a few vital documents.
- If there is an issue, sellers can reach customer service, sign up with the company and set up a seller's account by entering the username and password.
- Choose the product category under which you would like to sell. Keep in mind that vendors can only be allowed to be admitted at a single time. They're selling their products in new categories, and there are other options to include more onboarding options in the main category.
- Input the brand's name; it's easy to approve if it's already used. If it's a new brand, background checks may take time, but they will eventually be complete.
- The trademark registration certificate (only for brand owners) must be uploaded. Others are free to make this requirement.
- Lastly, you should include the contact information for the point person who can be reached if there's a concern or inquiry or a need to seek assistance.
- Sellers will receive an email confirmation via Nykaa within 2-5 business days of submitting their completed form to be reviewed.
Also Read: How to Become a Seller at Flipkart?
How Has Nykaa Taken on Challenges?
The competition is fierce among e-commerce websites, but the company had to find a way to make more users sell in nykaa fashion. Nykaa has an established customer base, but its affordability and lack of R&D could risk losing customers. Furthermore, the company faces a growing number of direct and indirect competitors, which may cause increased costs and risks.
Online businesses are notoriously hard to compete against offline retailers, and Nykaa has been no exception. In October 2013, Nykaa received 100 orders a day, and it is now claiming to receive more than 10,000 orders per day. The company has grown quickly by using multiple channels to attract customers, including social media. In addition to its website, Nykaa operates two warehouses in India: one in Delhi and one in Bengaluru.
Another way Nykaa is fighting back is through event marketing. The unicorn cosmetics brand uses event marketing to reach its target audience at the right place and time. It sponsors Femina Miss India, one of the biggest beauty events in the country, and several college fests, including the Red Brick Summit and the IIM Ahmedabad and Mood Indigo. The company has a great marketing strategy.
Conclusion
Among many new eCommerce websites coming up every day, Nykaa has paved its way and reached the hearts of millions of customers. Genuinity, dependence, strong concept and perfect marketing are the main reasons behind Nykaa's success.
Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.
