With Janhvi Kapoor, will tap into mainstream media: Falguni Nayar, Nykaa
Founder Falguni Nayar, Nykaa shared marketing plans and how she intends to expand its presence and retail footprint
Mumbai-based e-commerce portal Nykaa has become synonymous to online beauty shopping. Growing at 25 per cent month-on-month, it is the fastest growing colour cosmetics brand in India's $6.5 billion cosmetics.
It is reported to close the year ending March 2018 with Rs 570 crore, up from Rs 214 crore in the year-ago period according to media reports. Now it's on its way to go public in two years. According to media reports the company looks to double its revenue to around Rs 11 billion by 2018-19 end as it is bringing in new brands.
Now with roping in actress Janhvi Kapoor as its brand ambassador (both for its private label and e-commerce) it's looking to be aggressive in its positioning.
Before Kapoor it worked with social media influencers and make up bloggers on digital for its social media campaigns. Falguni Nayar, Founder, Nykaa, shared that they will tap mainstream media, “In the past we have been fully digital. But now we will be go non-digital at theatres, TV and print.” The actress will play an active role in the brand's social media campaigns. A TVC is also in the plans.
Customer pull and engagement has been the key to Nykaa's success which in the past saw a lot of content on its social media pages. The brand plans to build on that. Nayar pointed out, “We should not push the customer to check out fast. We should educate them on new ingredients and brands and facilitate learning through experiential marketing. We have taken that approach. So the customer spends 7-8 minutes on our website, goes through multiple visits before they buy, which doesn't bother us. We think of it is as a path to their journey, not a constraint.
On the marketing budget Nayar shared, “Like any consumer brand a certain percentage of the turnover will go into marketing (tends to be double digit). We will play around with the mix depending on the phase which we are and objective.”
Nayar further shared growth plans on e-commerce side, “We are planning to grow at a similar pace 100 per cent year-on-year. We will continue to bring a lot of international brands into India, huge range of imported brands from Korea and the US. We are expanding men-centric site called Nykaa Man. We also introduced fashion site called Fashion Design Studio. We are growing our private label brands. We are expanding into bath and body range.”
Reena Chhabra, CEO, FSN Brands Marketing, pointed out that with the company growing 25 per cent month-on-month it's already ahead of the industry. She credited it to e-commerce, retail expansion and branding. She said, “Right now we are ramping up our distribution channel. We have gone into beauty counters including modern trade and lifestyle.”
After tasting success online the e-commerce major took the offline strategy and in two years it has opened 22 stores across country reportedly in two formats Nykaa Luxe and Nykaa On Trend. The offline route contributes to 10 per cent of its revenue but it also brings in engagement. Nayar is looking at 45 stores by end of March 2019. “It's already underway as the locations are selected and construction is going on. We will have big footprint for physical retail as we are aiming for 100 stores in next few years,” Nayar explained.
In luxury category it recently opened its flagship Nykaa Luxe store in Delhi offering luxe brands across makeup, skincare, fragrances, such as Estée Lauder, Bobbi Brown, Clinique, Christian Dior, Givenchy and Kama Ayurveda among others. The e-commerce first introduced luxury beauty products to online Indian consumer in 2016 from brands like Bobbi Brown and Estee Lauder. In a short span of time it expanded its portfolio to 50 brands. Now this segment reportedly accounts for over 15 per cent of the total sales.
It is reported to close the year ending March 2018 with Rs 570 crore, up from Rs 214 crore in the year-ago period according to media reports. Now it's on its way to go public in two years. According to media reports the company looks to double its revenue to around Rs 11 billion by 2018-19 end as it is bringing in new brands.
Now with roping in actress Janhvi Kapoor as its brand ambassador (both for its private label and e-commerce) it's looking to be aggressive in its positioning.
Before Kapoor it worked with social media influencers and make up bloggers on digital for its social media campaigns. Falguni Nayar, Founder, Nykaa, shared that they will tap mainstream media, “In the past we have been fully digital. But now we will be go non-digital at theatres, TV and print.” The actress will play an active role in the brand's social media campaigns. A TVC is also in the plans.
Customer pull and engagement has been the key to Nykaa's success which in the past saw a lot of content on its social media pages. The brand plans to build on that. Nayar pointed out, “We should not push the customer to check out fast. We should educate them on new ingredients and brands and facilitate learning through experiential marketing. We have taken that approach. So the customer spends 7-8 minutes on our website, goes through multiple visits before they buy, which doesn't bother us. We think of it is as a path to their journey, not a constraint.
On the marketing budget Nayar shared, “Like any consumer brand a certain percentage of the turnover will go into marketing (tends to be double digit). We will play around with the mix depending on the phase which we are and objective.”
Nayar further shared growth plans on e-commerce side, “We are planning to grow at a similar pace 100 per cent year-on-year. We will continue to bring a lot of international brands into India, huge range of imported brands from Korea and the US. We are expanding men-centric site called Nykaa Man. We also introduced fashion site called Fashion Design Studio. We are growing our private label brands. We are expanding into bath and body range.”
Reena Chhabra, CEO, FSN Brands Marketing, pointed out that with the company growing 25 per cent month-on-month it's already ahead of the industry. She credited it to e-commerce, retail expansion and branding. She said, “Right now we are ramping up our distribution channel. We have gone into beauty counters including modern trade and lifestyle.”
After tasting success online the e-commerce major took the offline strategy and in two years it has opened 22 stores across country reportedly in two formats Nykaa Luxe and Nykaa On Trend. The offline route contributes to 10 per cent of its revenue but it also brings in engagement. Nayar is looking at 45 stores by end of March 2019. “It's already underway as the locations are selected and construction is going on. We will have big footprint for physical retail as we are aiming for 100 stores in next few years,” Nayar explained.
In luxury category it recently opened its flagship Nykaa Luxe store in Delhi offering luxe brands across makeup, skincare, fragrances, such as Estée Lauder, Bobbi Brown, Clinique, Christian Dior, Givenchy and Kama Ayurveda among others. The e-commerce first introduced luxury beauty products to online Indian consumer in 2016 from brands like Bobbi Brown and Estee Lauder. In a short span of time it expanded its portfolio to 50 brands. Now this segment reportedly accounts for over 15 per cent of the total sales.
