Nykaa, which started as an online platform for buying beauty products, has received the award for The Disruptors category at the CNCB-TV18's corporate awards ceremony, India Business Leader Awards.
Banishing myths, pre-conceived notions, and innovation come naturally to one of the biggest successes to emerge out of India’s burgeoning startup space – Nykaa. No surprise then that the company was named the ‘Disruptor of the Year’ at the 17th edition of the India Business Leaders Awards 2022.
Established in 2012 as a purely e-commerce platform for beauty products in India, Nykaa has gone on to define new standards in beauty and personal care and how to cater to a value-driven Indian customer base.
The company, a brainchild of its energetic founder Falguni Nayyar, became a household name across India after the launch of its successful initial public offering in October last year. The blockbuster listing that followed, catapulted its founder Nayyar to an exclusive club of India’s self-made billionaires.
Nayyar, a former investment banker of 18 years, saw an opportunity in the fragmented Indian beauty and personal care market and set out to bridge the gap between demand for affordable yet quality cosmetic products and a largely unorganized supply side.
“As an investment banker, I have seen companies go up and down. Only companies that create long-term sustainable value for shareholders, customers, and everyone in the ecosystem survive and thrive,” Nayyar told Forbes India in November.
Nykaa has graduated today to become an omnichannel company with a presence both online and offline. It is widely acknowledged that Nykaa’s inventory model has what has helped it distinguish itself from other marketplace-oriented e-commerce platforms. Under this model, Nykaa acquires products directly from brands and then sells them to customers through its website and stores. In an industry where trust and quality are critical, the inventory model has helped the company avoid pitfalls of the third-party seller model such as fraud and defective products.
Nykaa has now set its sight on disrupting the Indian fashion industry with its curated and managed marketplace model. Launched in 2018, Nykaa Fashion has already amassed more than 1,300 brands and over 1.8 million SKUs. Interestingly, instead of relying on celebrities, Nykaa Fashion has utilized fashion influencers and its own consumers as brand ambassadors for its product, which has helped it create a unique bond with the customer.
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