Nykaa SWOT analysis | business model | marketing strategy

Nykaa swot analysis

With the rise of the e-commerce sector in India, Nykaa also step into the world of e-commerce by showcasing its range of beauty and wellness products.

Though it was not easy for a new entrant to spot a good place in the online world because of the massive competition in the e-commerce sector. But, Nykaa manages to capture a lot of people as its potential customers with its significant business model.


And today, we will study- Nykaa SWOT analysis, Nykaa business model, and Nykaa marketing strategy to derive a valuable knowledge and insight into its effective working strategies that turned into a big success. But, before that, we must grasp some knowledge about the company.


Nykaa started as an e-commerce player in the year 2012. With a specialization in beauty and wellness products targeting Indian women as its online shoppers. Now, it is continuously expanding its product range and categories to gain more online visitors. It is partnering with 1500 plus brands which are reliable in terms of quality.


Also, to strengthen its offline position Nykaa is in a process of building more and more offline stores in various parts of India. It has built more than 40 stores until now and to maximize its gain Nykaa has introduced products under its brand range with different category lines.


Nykaa SWOT analysis

The SWOT analysis of a company comprises its strengths, weakness, opportunities, and threats. And in this reading of Nykaa SWOT analysis, we will study this beauty and wellness player in terms of its internal and external factors.

Nykaa SWOT analysis is listed below-


Strengths

  • It keeps on adding innovations to its product range and offerings to build the customer's attention and fight the dynamic business environment.

  • Showcasing a wide product range on both its online and offline stores to avoid customers shift from their brand due to lack of stock.

  • Working on an inventory model, they are leaders at maintaining an adequate inventory for order fulfillment. Also, buying an adequate inventory at a bulk avails them a big profit margin.

  • Able to shift many social media users as their potential customers with regular online campaigns.

  • Now, Nykaa is constantly increasing its offering from beauty items to clothing, health & safety, baby care, and accessories.

Weakness

  • It offers free delivery for the order above Rs. 700 which eliminates some of the aspiring buyers.

  • They are still not serving well at handling customer complaints that can affect the growth of their business.

  • Nykaa is charging a flat rate of Rs. 100 for all its orders below Rs. 1000 which is quite high and prevents online buyers to buy a low-cost product.

  • They are spending low on their research and development that is weakening their ability to perform well.

Opportunities

  • With the rise in e-commerce opportunities, people are attracted to buy the best in quality beauty products from this online provider and it is also building more loyal customers as offline buyers.

  • Nykaa business model is climbing a new ladder of elevating its international reach and increasing its profits.

  • With the advancement of new technology, the company is constantly adding innovations to its business operations.

  • With the upgraded lifestyles, people are moving more towards e-commerce services for fulfillment of their needs that brings in an opportunity for Nykaa.

Threats

  • With the rise in a large number of competitors both online and offline. It reduces long-term customer relationships and loyalty.

  • The government imposes various restrictions for promoting a greener environment that leads to heavy logistics costs, paying environment taxes, and usage of eco-friendly packaging material.

  • Due to the reduction in the expenditure level of the customers, Nykaa is affected in terms of profitability level.

Nykaa business model

Nykaa's business model is based on certain strategic business operations that ultimately deliver the final order as a product to the consumer. Its business model majorly involves three main aspects starting from the inventory model, showcasing inventory as selling products and order fulfillment.

Nykaa business model

Inventory model- Nykaa runs its business on both online and offline platforms and to run it effectively they maintain adequate stock in form of inventory in their warehouse. 

The inventory model is very productive at delivering a faster delivery of goods to the customers as it eliminates the dependence on other sellers for fulfilling the order and it also maintains reliability in terms of quality as the product is directly received from a specified brand without involving middlemen.


Displaying goods online and offline stores- Nykaa showcase its beauty and wellness products on its online portals and it has established various offline stores for serving the customers locally. And for the local stores, the products are directly bought by the customers. 

While in the case of an online store it depicts the goods range as per the inventory available. So, it becomes crucial for the business to keep a regular check on stock availability and required.


Order fulfillment- In the case of online shopping Nykaa promises to deliver within 1 to 4 days of tenure after the order placement.

Eventually, Nykaa manages to generate revenue from the discounts provided to them for procuring goods from direct brands. They get a great product margin as they buy goods in bulk and at last the final consumer is also benefited in terms of reliability, quality, and the genuine price charged by Nykaa.


Nykaa marketing strategy

Marketing is very crucial for promoting one's business and Nykaa is spending on regular marketing campaigns and advertising for elevating its brand value among the targeted audience.

Initially, it begins its marketing by showing various online ads that land one into its online website, and recently it has come up with various tv advertisements to promote its brand name in the offline market as well.


Take away

From this reading, we develop a strong insight into Nykaa's journey from a beauty and wellness website to a successful business model that has expanded its reach in the international markets. Nykaa SWOT analysis clearly depicts its internal and external factors affecting its operations. We also covered the Nykaa business model and Nykaa marketing strategy.

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