The Founder
Falguni Nair, Founder and CEO of Nayak, she was born on 19 February 1963 in a Gujarati family in the city of Mumbai. Her father had a bearing company and she did her early education from The New Era School and after intermediate she completed her graduation in commerce and she completed her masters degree from IIM Ahmedabad. And she married Sachin Nair, studying in IIM Ahmedabad, and after completing her studies, she worked in Kotak Mahindra Bank for 18 years from the position of investment banker to capital investor managing director.
And then the Nykaa started, at the age of 50, she left her job and then she was determined to start her own business.
Today no one can compete with Amazon and Flipkart in the Indian e-commerce market, but you will be surprised to know that in the BPC sector ie. (Beauty and Personal Care Sector), both Amazon and Flipkart have been struggling but e-commerce Indian company Nykaa has completely dominated this sector. And by earning a profit of 62 crores in 2021, the Nykaa has come in the few e-commerce companies that really made profit in 2021.
So today we will discuss about those strategies inside this block that by using which strategy the Nykaa earned profit.
There are 3 ways of retail distribution of beauty products in India.
1. Unorganized Retail
2. Organized Retail
3. Online Retail
Unorganized retail includes small shops and some tree shops.
Organized retail includes beauty outlets and beauty salon.
If few brands and salons are left out in these three retail, then the biggest problem for the customer is accessibility, this problem comes in these three retails. There are many customers who want to buy beauty products but they are not able to access the product of beauty outlet even if they want. This problem is most common in tier 2 and tier 3 cities. And this is the reason why there has been a lot of boom in the BPC sector within online retail in the last few years. In smaller cities, when the consumer is unable to get the product offline, then there is left with no option but to buy this product online.
The problem that the consumer faces after making an online purchase is that even big marketplaces like Amazon, Flipkart and Myntra get dumped products of duplicate products, this has a bad effect on the online shopping experience of the consumer.
The third and biggest problem is the lack of transparency and information about the product, in fact, when buying a beauty product, it is very important to know about its ingredients. Some Friend's products are allergenic to a consumer because of their special ingredients. But on big marketplaces like Amazon and Flipkart, there is not complete information about the product ingredient and sometimes sellers sell the expired product to the customer and due to this the customer has to face a lot of problems like skin disease then customer's Online shopping experience gets spoiled.
So Nayak is the game changer there which has given a different experience to the customer in the DPC sector. First of all, the inventory model of the Nykaa runs on the e-commerce platform 2 model. Which are called Marketplace Model and Inventory Model.
There are different sellers in the Marketplace model, which sell their goods on the platform of e-commerce such as amazon flipkart myntra etc.
In the Inventory model, the company buys goods in bulk from the manufacturer and sets up its inventory and sends it to its e-commerce website, out of which all the property goes to the e-commerce company.
Inventory model is the most profitable in any e-commerce company because in marketplace model e-commerce company has to share its profit share with seller. In the inventory model, the entire profit belongs to the e-commerce company and in this way the Nykaa also avoids selling duplicate products and in the same way the Nykaa is today ahead of Amazon and Flipkart in the BPC sector.
Now the question is that if amazon and flipkart adopts the same state which Nykaa has adopted, then she can go even further than Nykaa. amazon and flipkart is a billion dollar company then why these companies don't think like Nykaa.
Investment is required to set up the inventory model and both filipCard and Amazon are foreign companies and their investments come under FDI, which means foreign direct investment.
The rules and regulations of FDI are different for these companies and no foreign company can't do the Hundred Percent Inventory Model and they can do the Hundred Percent Marketplace model within the rule and regulation of 2018. Due to which even big companies like Amazon and Flipkart cannot match the inventory model of Nykaa.
Apart from this, building a relationship with each of her customers makes Nykaa different from other companies, where Amazon and Flipkart only send products on their website, on the same Nykaa, when a customer does shopping, it becomes an integral part of the customer's shopping.
Her first important book there is Beauty Magazine which not only tells about the product and this magazine tells all the things about how to use the product and which product will be better for you.
Apart from this, a powerful committee named Nykaa Network has proved to be very useful for the people, here you can ask any question related to the beauty product and here the people who have faced that problem or they have to answer about that problem.
Apart from all this, Nykaa has also done wonders in content marketing. Nykaa has 1.2 million subscribers on his YouTube channel. And who have a team of 3000 people in which there are makeup artists, youtube creators, fashion bloggers and big celebrities too. All these create content for the Nykaa and publish them on different social media. whose sales are boosted and the brand awareness among the people also increases. And apart from this, the Nykaa has own offline stores inside 40 different cities, which builds brand awareness among the people.
great
ReplyDelete