Anchit Nayar, Chief Executive Officer, Nykaa Retail
Nykaa has been leveraging social media platforms to promote its products which is evident from the marketing strategy that they have adopted aggressively in the last few years. However, the company believes in 360-degree marketing, influencers play a vital role.
Even so, as they expand, the company is using more influencers to promote Nykaa Fashion as the whole fashion industry has turned online due to the COVID-19 pandemic.
In a candid chat with Moneycontrol, Anchit Nayar, Chief Executive Officer, Nykaa Retail, said, “We believe a 360-degree marketing and content strategy is the right way to connect with our customers."
He was quick to add that influencers are a vital element in the company's marketing strategy as they aid our goal to educate and help customers make the best choices for themselves.
Influencer marketing is a strategy that businesses use to promote their products and services by partnering with popular social media users or bloggers and vloggers.
Nykaa operates in two verticals—Nykaa Beauty and Nykaa Fashion.
Nykaa Beauty sells products right from drug stores to premium products within cosmetics, personal care, and haircare space, while Nykaa Fashion sells apparel and accessories for men and women.
In 2019 when Katrina Kaif launched her beauty brand Kay Beauty, in partnership with Nykaa, the beauty retailer had invited Instagram vloggers and bloggers for the launch and collaboration.
Not only that, the recently concluded Nykaa’s Pink Friday sale was also extensively promoted by content creators from YouTube and Instagram influencers.
One of the most important aspects of promoting products through influencers is that the cost of marketing goes down. According to experts, prominent influencers charge anything from 5-10 lakh for a video promotion, while small ones charge as low as Rs 5,000 for promoting a product.
Nykaa Beauty has around 1.3 million followers on Instagram, while Nykaa Fashion has 7.95 lakh followers.
Apart from influencer marketing, Nayar said their marketing strategy also involves digital marketing, offline marketing as well as their content platforms, including social media channels, Nykaa network, Nykaa TV, and a new platform called Explore.
In 2018, Nykaa launched Nykaa Network, an interactive beauty platform where subscribers can chat with other beauty buffs, talk about any query on beauty related products, or give and seek advice. Just a year later, Nykaa also launched its YouTube channel called Nykaa TV which has gained immense popularity among the millennials.
The company recently launched a new subscription-based platform called Explore, an app-only feature that allows customers to browse through all the content and education properties seamlessly in one place.
A watch and shop format where the app provides the users with beauty tutorials and ideas and an opportunity to discover and shop for the products showcased at the same time.
Nykaa fashion is also largely marketed online. Nykaa Fashion, which was initially launched as a womenswear retailer, recently stepped into men’s apparel and accessories. It launched a dedicated segment for men on both its e-commerce platform and its shopping app.
Nykaa competes with e-commerce platforms such as Flipkart Fashion, Amazon Fashion, and Myntra.
Initially, during the lockdown through March and early April, the business was impacted by the complete shutdown and overall uncertainty, but it has gradually picked up as the lockdown was lifted, Nayar said.
While he did not reveal specific numbers, Nayar hinted that over the last few months the online business has been a clear winner compared to physical stores.
“Given the relative safety of online shopping and its convenience, the business has grown to new highs,” he said.
The company is also gearing up to launch the in-house intimate wear brand NYKD soon.
Nykaa was launched as an online venture in 2012 by Anchit’s mother Falguni Nayar, an investment banker-turned-entrepreneur. The company later transitioned into brick-and-mortar retail.
Prior to starting her own venture, Nayar, an IIM alumni, worked with Kotak Securities and Kotak Investment Banking for almost 17 years.
The business now has over 73 stores across India and stocks over 1,500 brands and 130,000 SKUs. The company aims to open more stores in Tier II and Tier III cities in FY21.
In the current financial year, Nykaa intends to cross over 80 stores. The new stores will be a mix of Luxe stores, On Trend stores, and Nykaa Kiosks. The company projects to cross the 100-store mark by the end of next year.