Abstract

The case discusses the entrepreneurial journey of Falguni Nayar (Nayar), the brain behind one of the largest online beauty retailers in India, Nykaa E-Retail Pvt. Ltd. (Nykaa). Nayar founded Nykaa in 2012 with a vision to build a multi-brand omnichannel beauty-focused e-commerce business. The case highlights how Nykaa revolutionized the online beauty industry in India through an omni-channel presence, curated product line, innovative content marketing, and brand partnerships. With 1300+ brands, including its own private label, Nykaa offered a comprehensive selection of makeup, skincare, hair care, fragrances, personal care, luxury, and wellness products for women and men. Nayar, an investment banker-turned-businesswoman, broke the glass ceiling in the Indian Beauty industry with her commitment, determination, and attention to detail in the online beauty retail segment in India. In fiscal 2019 Nykaa’s revenue exceeded Rs.12.29 billion (US$177 million). Nykaa also diversified into new verticals such as Nykaa Fashion – a trend-led fashion e-commerce platform and Nykaa Man – a grooming e-commerce portal. Nayar planned to expand Nykaa’s offline presence to 180 stores by 2024. However, Nayar’s success came with its own challenges. These included intense competition, inventory problems, capacity building, and having to ensure that only original products were offered in a business where duplicates were easily available. It remains to be seen if the company’s diversification into fashion apparel will pay off, given the COVID-19 crisis. Going forward, what can Nayar do to step up her game and retain her company’s hard-earned lead in the online beauty space in India?

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the factors that motivate a person to become an entrepreneur.
• Understand the qualities of a successful entrepreneur.
• Study the personal characteristics and traits of Nayar that contributed to her success.
• Identify the critical success factors (CSF) that contribute to the success of women entrepreneurs.
• Understand the challenges faced by women entrepreneurs.

Keywords

Entrepreneurship; Leadership style; Women in Business; Women Empowerment; Inventory-based model; Management; Omni-channel strategy; Content Marketing; Online beauty industry