Nykaa has been one of the most successful startups in Indian history. Founded in the year 2012, by Falguni Nayar, this is a unicorn startup which recently went public on the market. Nykaa’s story proves that a good idea is literally worth a billion dollars if you manage to execute it well.
It is a profitable company which has clocked a revenue of $320 million in FY 2021.
How does the Nykaa App Work
On the supply side, Nykaa purchases products directly from the brands and stores in warehouses. This allows Nykaa to control the quality of service, speed of delivery and in creating a more efficient supply chain.
This inventory based model allows the online retailers to earn good margins on every purchase made.
To book an order on the Nykaa App, users have to download the application on their mobile devices, choose from the range of products available and place the order. Various payment modes are available that users can opt for.
What made Nykaa so successful?
Wide range of products
Only a few years ago, Indian women did not have access to the plethora of options that Nykaa offers. Only a few brands like Lakme, Maybelline, Elle 18 etc were in the market. The marketing and advertising was mainly done through traditional channels like TV commercials , Newspaper and Billboard Ads.
Indian women simply did not have enough brands catering to them.
Targeting the young consumer
Most of the cosmetic brands in India were not targeted to the youth. They were mainly focused on the age group of 26-36 (estimated figure), The younger lot of 16 to 25 that was also looking for options and a place in this market, did not have enough options.
Nykaa became a bright and relatable brand because of its positioning.
Understanding of the consumer
Nykaa understood what went into the buying decisions of women when they looked for cosmetics. Such as,
- Swatches of all shades should be exactly as the actual shade. This ensures that the product is exactly what the consumer expected it to be and there is no difference in what is shown and what is received.
- Customers need an education on how to use certain products as makeup is quite technical and people need to be made aware of how they can use it.
- Customers need products that suit their complexion. Especially for Indian women, who are darker than their European counterparts, did not have options of buying makeup that looks good on them. The shade range of products was limited.
The UI of Nykaa is seamless. On-demand apps usually list out products in a grid with the prices mentioned underneath. But with something like Nykaa, which has to list and display color sensitive elements like shades, it is something of a challenge.
Nykaa has made it happen and the UI has really contributed to its growth and success. It has created loyal customers that trust what they are buying online. Plus it is easy and functional to go through so many options on the Nykaa app.
Nykaa could successfully leverage the internet boom in India which started in 2016. Nykaa produced online content which was educational, informative and promotional. Nykaa collaborated with influencers and the main idea was to show how to use various skincare and makeup products and create a beauty community.
This was highly successful for Nykaa as it widened the market and persuaded the existing target market to make informed purchase decisions.
How to develop an on-demand beauty app like Nykaa
Here are a few features you have to add to your on-demand beauty app
Sign in and Onboarding
Users should be able to sign in to the app easily. It should be less than 5 steps so that people do not find it annoying.
Product List Grid
The products should be listed on the applications and categorically displayed for the user.
Order History/Profile Management
Users want to keep track of their orders and manage their profiles.
This allows users to keep aside the products they like and want to purchase later.
Multiple Payment Modes
Add multiple methods like credit card, debit card, UPI and cash on delivery.
Coruscate is the best on-demand beauty app development company. You can check out our work here. If you want to develop the best on-demand beauty app, partner with us to do the job like an expert.
Contact us now to book a consultation and take your business to the next level.