Omni Channel
FMS Jury Assignment
Presented By:
Diptashree Pal Saumya Gulshan Kumar
Anurag Kumar Sumit Bhatt
2
Omni-Channel - Nykaa
As one of Nykaa's six pillars, the content they provide has always been the
key differentiator between there brand and many others in the e-commerce
space. And that's because they have made a concerted, 360-degree effort to
integrate advice in a way that it forms the very DNA of their website.
Their Content strategy has always rested on education, curation and
personalization, seeking to transform the traditional buying experience
through new-age technology and narratives. They curate and customize
content in the form of Beauty Book articles, Editor’s Choice widgets, IT Lists,
Buying Guides, Stores Product reviews, and the Routine Finder. Some of
these then lead to finely curated listing pages which help narrow down the
customer’s search, helping us make more informed product choices.
And therefore these features provide customers a great Omni-Channel
experience in Nykaa.
India’s #1 Beauty
Focussed Platform
Our Mission
Nykaa rests on three ideals - curation,
information and personalisation
We bring together the best offering, to help our
customers make the right choice for their holistic
beauty needs every step of the way
Who Are We
Brand Custodians
Authentic Products Customer
Centric
Inventory Led Trend Setters
What Defines Us?
Rich Content
An informative and engaging online platform
for beauty enthusiasts
Buying Experience
A guided buying experience for the beauty
shopper
Strong Community
A coveted community of beauty experts and
influencers in India
Omni Channel
Customers need various touch points before
they make a purchase. We provide a seamless
shopping experience across all channels
The
E-commerce
Market In India
E-commerce: Ever Growing
INDIAN E-COMMERCE E-COMMERCE USERS INDIAN BEAUTY AND
MARKET (IN MN) HYGIENE MARKET
(USD BN) (USD BN)
Industry
119 Femal 17
expected to
e Male grow at
11% CAGR
Industry 200 2015-2025
expected to
grow at 3.8X
38% 450 10
CAGR 2015-
53
2025 1.5x
298
23
2015 2020 2015 2015 2020
2020
Beauty and hygiene is one
E-commerce market will be of the fastest growing
Growth will be driven by
driven by increasing internet sectors in India- 5 year
women consumers- share
penetration and affordability CAGR is expected to
of women in contribution
of smart phones exceed GDP growth
to revenues will rise from
5% to 48%
Source: 2015 estimate based on Assocham data and projections based on Morgan Stanley report ), Bain Google study(IBHA)
Scope For Niche Play In Beauty
ONLINE BEAUTY MARKET ONLINE PENETRATION
(PROJECTIONS FOR 2020) 6%
Retail market 20% Beauty and
USD 17 BN BEAUTY AND in India hygiene
projected at market will
HYGIENE MARKET IN INDA USD 1200 bn be US 17
bn
USD 11 BN WILL BE DIGITALLY
INFLUENCED
Beauty and
Retail
Hygiene
The retail market online will be USD 72
USD 3.4 BN ONLINE SALES bn in 2020. Beauty and hygiene market
will be 5% of total online market
Beauty and Hygiene is expected to be one Source: Bain Google study(IBHA)
of the major segments that will witness
higher penetration online With 30 stores across India we’re now an
omni channel brand. By March 2021 we’ll
Source: Bain Google study(IBHA) have 36 stores across India
The Nykaa Story
Aug 2018 Aug 2019 Aug 2020
(Estimate) Nykaa Growth
Monthly 120,000 400,000 700,000 Nykaa stores growth
Orders
Catalog 40,000 75,000 95,000
SKUs SKUs SKUs
Catalog 500 850 950
Brands Brands Brands
2018 2021 2022
Luxury 18% 22% 26% 2019 2020
Marke Nykaa E-commerce growth
t
Share
3 x increase in monthly orders
Strong g rowth in luxur y
Nykaa
Dashboard
16 Million+ 8 Mins 10 Million
Monthly Visitors Avg Time Spent App Downloads
On Nykaa.com Per User
7.9 Million 60% 120 K
Customer Monthly New
Database Consumers
Monthly Repeat
Consumers
45 Million+ 850+ 500 +
Monthly Social Brands Strong Team
Reach
Order Status
400,000 6 4
Orders Per Orders Per Products Per
Month Min Basket
24 1500
Products Per Avg Order
Min Value
8 Orders A Year
From Repeat Customers
Business Construct
69%
0%
1%
2% 5%
2% 47%
13% Make Up
Skin
Hair
Appliances
50% Personal Care
Fragrance
Mom & Baby 23%
Wellness
18%
29%
8%
Make up Skin Personal Other
Hair Care
Sales by Category Category share by total orders
Cart reach
Pan India Reach
20%
NCR
Mumbai
Bangalore
46%
Kolkata
11% Hyderabad
Pune
Chennai
Others
8%
5%
3% 3% 4%
Sales by Geography
Nykaa currently serves out of 4 warehouses
Nykaa dispatches close to 15,000 packets a
day
Multi Platform Strength
Android 46%
iOS 20%
Desktop 17%
Mobile 17%
Our Luxe Business
14 2300
Avg Order
% Revenue
Value
45+ 30
Contribution
Brands
%
From Non
Metro Cities
We Sell Beauty To All
ADVICE SEEKERS MULTI TASKERS
19-25 years olds 27-45 years old
Needs all the advice she can get Too much to do, too little time
Reads blogs, comfortable with technology and Confident working woman, knows what she
shops online wants
Values Nykaa social community and advice Values Nykaa for ease of shopping
BEAUTY AFICIANDOS BRAND SEEKER
25-45 years old 25-45 years old
Extremely style and beauty conscious Incredibly stylish and brand conscious
Spends time on site browsing new Travels frequently and exposed to international
brands/products. brands
Values Nykaa for premium brands and Values Nykaa for wide range of premium and
product offering prestige brands
Nykaa-
A 360 Degree
Beauty Experience
Omnichannel retail is a business model in which all existing
channels become completely integrated to offer customers a
seamless shopping experience.
Omni- This omnichannel retail strategy is empowered by centralized
data management, which means that the distinctions among
channels, both physical and online ones, are blurred. As a
result, customers can simultaneously use different channels in
Channel
their shopping process, starting their search at a channel and
finish the purchase in another one. They are given chances to
create their own preferable shopping routines, which seems to
be more attractive to a new generation of consumers in the 21st
century.
Intro.
It’s noteworthy that omnichannel retail approach can be
adopted simultaneously in sales channels, inventory
management, and marketing strategy
Omni-channel Retail is when a customer can use more than
one sales channel such as brick & mortar stores, e-
Commerce/Internet, mobile (m-Commerce), social commerce
and more to research, buy, collect and return or exchange
products from a retailer, irrespective of the channel of purchase.
Uniformity of Catalogue
Characteristics of Synchronization of Inventory
Single Customer Database
Omni-channel Retail Unified view of back-end operations
Improvement in consumers perception &
satisfaction
Single customer loyalty program across
Advantages of Omni- channels
Channel Retail: Collecting customer information for targeted
marketing strategy
Transparent pricing and promotions across
channels
Increase inventory turns at stores (GMROI)
Increase revenue per consumer through
Drivers of Omni- upselling and cross selling
Channel Retail: Increase store throughput (sales/square feet –
GMROF)
Increase revenue per employee (GMROL)
Omni Website &
App
Social
Using signature content and
branding to deliver real time
Channel
content for the beauty
Combining the latest trends
consumer
from the beauty world with
new business ideas
Footprin Video
Inspiring original visual
On-ground
In store activations with Nykaa
t
narratives best suited for Luxe properties & other
storytelling engagement events
Website &
App Buying Assistance Tools
We’re constantly optimising our website to provide a customized
consumer experience
Try it On
A beauty tool which lets customers try on different shades in our makeup range.
Options for different skin types are also available in this tool
Personalized widget
A personal tool for every shopper to save recently viewed products
Video on product pages
Informative videos on product pages to help customers better understand the
product
Get the look widget
A tool which lets shoppers buy products based on a look they like
Routine finder
A tool which recommends personalised products as per your daily routine
Website &
App Recommendations
Educate the customers about their products to help them make informed decisions
WEB ENGAGE SUBSCRIPTION/
Reach a highly relevant customer REPLENISHMENT
base with an on-site communication Encourage repeat customers through
tool which is done using real time replenishment emails or our
targeting subscribe and save feature
Helps upsell/ cross sell Helps increase customer loyalty
and
cross sell/ upsell products
APP NOTIFICATIONS SAMPLING
An effective tool for targeting certain Acquire new customers through
customers based on past behavior different sampling initiatives such as
and preferences. Can be used to pick and mix. Our beauty box also
acquire new customers helps brands reach a relevant
audience
Helps cross sell and test discount
strategies Helps customers discover new
products and test them before
making a big purchase
Social
3M+
Beauty Shoppers
Talking Beauty
3.3M+ 1.13M+
25K+ 1.8M+
Social Highly Engaged
45Million+ Monthly Reach
10Million+ Monthly Engagement
200K+ Daily Conversations
Most engaged beauty brand on
Instagram in India
Video An Inspiring Video Channel
An extensive video database
We produce
45+
Monthly Videos
Our videos reach out to a wide audience
14Million+
Monthly Video Views
Influencers
Think,
Learn,
Collaborat
e makeup
Network of
artists, fashion and beauty
bloggers and mini
celebrities
60+ influencers
10Million+ reach
On-ground
Nykaa Store Experience
2 store
formats
Luxe On Trend
• Best of luxury and • Deliver 1000 ‘on trend’
prestige brands products across 100
brands, curated based on
• Large stores in affluent online bestsellers.
neighbourhoods
• Smaller stores with metro,
tier -1,2&3 presence
• Brand-wise displays
• Try and buy format
With 30 stores across India we’re now an omni channel brand
By March 2021 we’ll have 36 stores across India
On-ground
Find Us Across India
Luxe Stores On Trend Stores 2018-2020
Nykaa Luxe Nykaa Luxe Nykaa On Trend DLF Chanakyapuri,
Mumbai T2 Airport Khan Market Mall of Amritsar Delhi
Launch : June ‘16 Launch : May ‘17 Launch : Sept ‘17
L&T Hyderabad,
Nykaa Luxe Nykaa Luxe Nykaa On Trend Panjagutta
Infiniti, Andheri T3 Airport Delhi Logix Mall, Noida
Launch : May ‘14 Launch : Aug ‘17 TI Mall, Indore
Launch : July ‘16
Nykaa Luxe Nykaa On Trend High Street Phoenix,
Nykaa Luxe
Phoenix Mall, Kurla Lower Parel
Westend Mall, Pune VR Mall, Bengaluru
Launch : Sept ‘17 Launch : July ‘16 Launch : Oct ‘17
Seawoods, Navi Mumbai
Phoenix Market City
2016-17 Chennai
Mantri Square Mall,
2018-2020 Bengaluru
14 more
On-ground
Nykaa Beauty Bar
A collaborative event every quarter
Invite only event in different cities hosted
at a top notch venue
Hair, Nails, Make up & skincare
Live makeovers and consultations
Pre designed makeovers and consultations
engage brands with users & lead to
awareness, likeability, recall & loyalty
Collaboration of
Vinculum and NYKAA
Why to choose Vinculum
Key differentiator: A true Omni-channel experience
• Building a true omni-channel experience is a key thing and differentiator for them going
forward and which is where Vinculum is supporting them in building the order lifecycle
management as well as customer lifecycle management and giving that true omni-
channel experience.
More control on inventory as well as processes
• So, the story of Nykaa goes such They started of having a 3PL so they did not have a
cloud-based system, ERP system, they were using the 3PL's ERP system for warehouse
and inventory management syncing with their website. As and when they achieved
scale they realized they are going to get more orders, they'll need multiple warehouses
they'll need to have control on Inventory as well as the processes, the approached
Vinculum and making sure they get their systems for their backend order flow
management as well as Inventory Management.
Why to choose Vinculum (Con.)
Order processing and Lifecycle management
• Vinculum was the key vendor that time to make sure their whole order process flow, life
cycle was managed in multiple warehouses from that point onwards.
So just to add, the Nykaa business is complicated and as their Core and their Philosophy they
wanted to do most of it in-house. So the key was to also have a partner who can traverse the
entire breadth of the offering that Nykaa has. But even through the customers' experience
think of how they are managing the RTO's across the board because they do the warehousing
to the customer experience all had to be managed internally.
Cloud-based software all modes of business
• As mentioned above, their business is complicated they have inventory layered, they
have marketplace, marketplace consignment, marketplace dropship, they have multiple
modes of business which is where they needed a cloud based system and Vinculum
actually fit their need to make sure they can get support for all these businesses.
Why to choose Vinculum (Con.)
Integration of Offline & Online Strategies
• In addition, they are in offline space also, Vinculum's Point of sale was also an
integration partner, integrating their whole online and offline strategy by which they
have been building in the omnichannel space as well.
A single dashboard to manage everything
• One thing about Vinculum that they really liked is their single dashboard which is very
important to make sure employee strain and training time was actually reduced for the
single dashboard for data as well as source of information for them.
We Reward Loyalty
Everyone gets rewards on purchasing on Nykaa.
Customers who spend more than Rs.5000 in the calendar year become part
of the Nykaa Privé programme
Nykaa Femina Beauty Awards
Celebrity led event with product awards for excellence in beauty
Pre event buzz created by celebrities who received Nykaa Hamper
34 categories and 60k consumer votes at NFBA 2017
500 distinguished guests including movie stars, socialites, industry honchos at
NFBA 2017
Pre Event Promotions During Event Promotions
Post Event Promotions
Billboards Contests Print coverage Digital coverage
Live Event – Event Day on FB
#NFBA2017
Radio coverage across trended in India at Live Event Engagement on
Mumbai, Delhi and No.4 for 4 hours FB by Femina
Improvised Print Ads Bangalore Post Event – Celeb looks Decoded
on 5th Feb,2017
Nykaa
As
A
Brand
Partne
r
Advertising Services
We deliver awareness with reach and engagement. For brands that are looking for pure
business metrics, we can deliver specific targeting and tools to drive revenue.
Website Placement Data Packages
Measure the right metrics
The largest beauty platform to run targeted
ads to increase online sales
Customer Surveys
Social Marketing Brand equity study, concept testing,
know your customer
Build your brand presence with Nykaa and Increase visibility
our influencer network by targeting the and drive more
relevant audience and reaching potential sales with our Sampling
new customers advertising Reach a new, interested audience
packages with our sampling packages
Email Marketing
Fully integrated email strategies to attract
more customers
Awards
The Most Innovative E-Commerce Company at eTales Awards
2015
2016 Elle Beauty Awards – Nykaa Pastel Nail Enamels
2017 40th rank in Yourstory’s ranking of 100 startups with gravity defying momentum
2017 Vogue Beauty Awards - Beauty Trailblazer Award to Falguni
Nayar
2017 ET Start Up Awards for Women Ahead – Falguni
Nayar
2018 Vogue Beauty Awards – Best of Makeup in Eyeliner
201 Vogue Beauty Awards – Best of Makeup in Nail Paint
9
In The News
Business Line Economic Times LiveMint
We Look Forward To
Partnering With You
THANK
YOU
