One of the most common allegations made against new age startups is that they don’t make profits. Though it’s somewhat justified for other startups, the story is different with Nykaa. Behind the rise of the brand Nykaa, some genius ‘Nykaa marketing strategy’ have played a vital role. But, the most vital role was probably Nykaa Digital Marketing Strategy.
In today’s blog of Nykaa digital marketing strategy, we’ll walk you through a Nykaa case study and you’ll eventually find out how this brand went to beat ecommerce giants like Amazon, Flipkart etc.
Understanding Nykaa: An Overview of the Company
Nykaa, the company is the brainchild of Indian businesswoman Mrs.Falguni Nayar. Prior to building her own company, she had worked with a couple of corporate companies like Kotak Mahindra group, A. F. Ferguson & Co.
Her brand Nykaa was not an overnight success. It was started in 2012 and after 9 years the company went on to get listed on the stock exchange in 2021.
In Q1 2020, Nykaa became an unicorn by getting valued at $1.2 billion dollars after a successful fundrise of INR 10 million. In fact, it is the first woman-led Indian company that got the status.
Nykaa performance in IPO transcended all predictions as the stock price rose by more than 80% just on the opening day. It became one of the best IPOs of the year and made its investors smile.
Nykaa’s market cap and valuation:
As of latest data, the current market cap of Nykaa (which operates under the name of FSN E-Commerce Ventures), is 50151 Cr. But, Nykaa market cap keeps changing as the stock price changes in the stock exchange on every trading day.
Understanding Nykaa’s business:
Nykaa’s core business is in the beauty and personal care segment. But after operating in this segment for about 7 years, they have expanded their business to fashion in 2018.
Nykaa digital marketing strategy:
Nykaa started their business by starting selling their products exclusively on online mode. Nykaa’s website was commercially released in the year 2013. From that year onward they started focusing on digital marketing. This resulted in user growth in their site.
Proper use of digital marketing was one of the major causes of Nykaa’s success in the online market. Another way digital marketing helped Nykaa to grow was through an increased conversion rate.
In an interview Mrs. Falguni Nayaar had spoken how she personally took the charge of running the whole website smoothie, be it frontend or the backend.
Nykaa social media marketing:
Nykaa has captured social media through Nykaa content marketing. It is almost an exemplar position of how a brand should use the power of social media to attract and build an audience base.
Apart from their primary brand account, Nykaa is present on two social media giants, namely Facebook and Instagram with over 10 different accounts for different kinds of audience.
A simple search on Instagram with the brand name & you’ll be greeted with accounts all belonging to the brand. One thing to notice there is that most of their accounts have got followers in millions.
This approach of creating different accounts for different categories ensured that they target the specific audience with the specific product.
The wide presence of Nykaa social media is the reason people from different age groups got to know about their product.
Nykaa website:
Nykaa’s official website has always been the main identity of the brand. In fact, most of their online sales come from their website.
Nykaa’s website offers a beautiful user experience. Users can find products according to category or filter out the products by brand.
It also presents a wide range of options for those looking for products such as Makeup or skin care or healthcare etc. In simpler words, their website has made it easy for users to find what they are looking for.
Influencer marketing:
People trust social media influencers – Nykaa understood it. And, they went to approach big names on different social media like FB, YT, Insta to promote their product.
Nykaa collaborated with social media influences and bollywood celebrities from fields such as beauty, fitness, fashion etc.
And when some influencers started promoting their products, other influencers too started using Nykaa products to test them and give reviews about the products. Nykaa growth strategy resulted in extensive sales for Nykaa.
SEO & Organic Traffic:
Behind the rise of organic traffic for Nykaa’s official website, the biggest contribution was of SEO’s.
Latest data suggests that Nyakaa’s website ranks over 1.8 million organic keywords. It has got over 2.2 million backlinks, most of which are do-follow backlinks.
Their website receives over 16 million organic traffic per month, which is itself an achievement.
Nykaa marketing campaigns:
Nykaa is exceptional at launching social media campaigns that directly touch the audience. Every year they launch social media campaigns that give a strong message to the traditional thought process of our society.
Last year they has launched a social media campaign called “Kya Khoob Lagti Ho With Nykaa” that focuses on ‘embracement of authentic beauty”
In 2021, they has launched another social media campaign called “Tum Hi Ho Nykaa” on the occasion of Women’s day.
This social media campaign has won the heart of the internet as it gained over 7.3 Million views with lots of positive comments about the brand in the comments.
Deals and discounts:
Be it the official website or other e-commerce stores, Nykaa always keeps offering attractive deals on its own products across the internet. It also offers deals and discounts of products of other brands on its own website.
The deals on products attract people to buy more products from them. More discounts also helps them retain customers and get repeat orders from customers.
Nykaa Advertisement cost:
Nykaa on average spends about 150 Cr. every quarter on marketing and advertising expenses. The number was as low as Rs. 31.5 cores in July-September 2020 and Rs. 121 cores in the 2nd quarter of the financial year 2021-22.
The steady increase in the advertising spends suggests Nykaa’s aggressive marketing.
Conclusion:
Though Nykaa operates on an omnichannel basis, from the day it was commercially launched, it was primarily an ‘online brand’. Expert digital marketers using Nykaa marketing mix proved how digital marketing alone can result in excellent sales.
And we hope that this blog post on marketing strategy of nykaa has helped you to understand how the brand has leveraged digital marketing to be a premier name in India’s online beauty and fashion industry.
