REPORT ON E-COMMERCE PLATFORM NEWMEW
Submitted By
Mahima Sintan (Exam roll no.:- 31977)
Ankita Singh (Exam roll no.:- 31941)
Karishma Adhikari (Exam roll no.:- 31968)
Prabha Dahal (Exam roll no.:- 31984)
Bachelor of Business Administrative (BBA)
Sixth Semester
E-Commerce
Submitted To
Faculty of Management
Public Youth Campus
Tribhuvan University
May, 2025
Approval Sheet
The seminar paper entitled REPORT ON NYKAA submitted by Mahima Sintan, Anikta Singh,
Karishma Adhikari and Prabha Dahal, student of Public Youth Campus, Dobhichaur,
Kathmandu, is prepared under my supervision as per the procedure and format requirement laid
by the Faculty of Management Tribhuvan University, as partial fulfillment of the requirement for
the degree of Bachelor of Business Studies (BBA). I, therefore recommend the seminar paper for
evaluation.
Signature:
Uttam Karki
Date:
ii
Acknowledgement
We want to sincerely thank everyone who helped us with the preparation of this report. We
would like to start off by expressing our gratitude to our supervisor Mr. Uttam Karki for all of his
help and encouragement during this process. A special thanks goes out to our friends who offered
insightful criticism and suggestions that helped us improve our thoughts and arguments.
Last but not least, we'd like to express our gratitude to all the authors and organizations whose
works we've used as references and citations in this paper. The ideas and arguments provided in
this work have been substantially influenced by your contributions and insights.
Once again, we want to thank you all for your wonderful cooperation and support.
Let me know if you need any more changes!
Thank You
Mahima Sintan
Ankita Singh
Karishma Adhikari
Prabha Dahal
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Abstract
This seminar report provides a close and simple analysis of Nykaa, the very popular Indian
company that has changed the manner of beauty and fashion purchases by consumers. Founded
in 2012 by one-time investment banker Falguni Nayar who gambled big to live her dream,
Nykaa was originally a humble online portal. It developed over the years into a strong brand that
millions repose trust in. What differentiates Nykaa is how it addresses its customers, not just by
selling products, but by offering advice, tutorials, and belongingness through its app, site, and
social media.
Nykaa did not stay in cyberspace; it opened outlets across the country to give people a chance to
try the products personally. It also accommodates both global and Indian brands, leaving space
for domestic entrepreneurs as well as smaller companies. Nykaa trended in 2021 when it became
among the few Indian women-led companies to list on the stock market. of course, like any
business, it has challenges to overcome, tough competition, changing consumer trends, and the
fast-paced e-commerce era.
This book tells Nykaa's inspiring tale in simple, relatable language. It shows how belief, good
thoughts, and smart decisions can turn a small start-up into a brand that folks adore and trust.
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Table of Contents
Title Page
Approval Sheet................................................................................................................................ii
Acknowledgement..........................................................................................................................iii
Abstract...........................................................................................................................................iv
Table of Contents...............................................................................................................................
Chapter I Introduction......................................................................................................................7
1.1 Background of the study...................................................................................................7
1.2 Objectives..........................................................................................................................8
1.3 Methodology.....................................................................................................................9
1.4 Limitations of the study....................................................................................................9
Chapter II Description and Analysis.............................................................................................10
2.1 Description of Existing Case: Nykaa...................................................................................10
2.2 E-Commerce Business Model: Nykaa.................................................................................10
2.3 E-Commerce Infrastructure.................................................................................................11
2.4 E-Commerce Security and Payment System.......................................................................13
2.5 E-Commerce Marketing and Supply Chain Management...................................................14
Chapter III Summary and Conclusion...........................................................................................16
3.1 Summary..............................................................................................................................16
3.2 Conclusion...........................................................................................................................17
References......................................................................................................................................18
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Chapter I
Introduction
1.1 Background of the study
Nykaa is a name that has become quite well-known to a lot of people in India, particularly to
those who are fond of beauty, skincare, and fashion. But few know where it all began. In 2012,
one woman, Falguni Nayar, quit her long and illustrious banking career to do something entirely
different, an online beauty shop. Purchasing makeup or skincare online was not very popular in
India at that time. Most people still enjoyed going to shops and trying out products before they
bought them. But Falguni believed that Indian consumers were ready for change, ready for
something better.
She noticed that people would mostly struggle to find original beauty products, especially in
smaller cities and towns. Most shops did not have a lot of variety, and one always worried about
duplicate or lapsed products. On top of all that, there was no guidance or help in choosing what
best suited your hair or skin. So, Falguni began Nykaa, a gateway where people could not only
buy the real beauty and wellness products but learn and read about them too through helpful tips,
videos, and blog articles.
Nykaa's motto was simple: to make beauty shopping easy, trustworthy, and enjoyable. It started
as a simple website but slowly evolved to be a full digital experience as an app and even finally
physical stores. Unlike the majority of other online platforms, Nykaa started by focusing only on
beauty. This enabled it to create a strong and clear identity. Consumers were thrilled to be able to
shop through a collection of local as well as international brands, read authentic reviews, and see
how goods performed live, thanks to Nykaa's influencer videos and content.
Over time, Nykaa added their own products, which not only fit within the budget but also were
developed based on what Indian consumers truly wanted. Skincare to lipsticks, Nykaa's own
products became bestsellers. Nykaa Fashion was also launched by the company, adding apparel,
accessories, and more to their growing fan base.
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One of the key differentiators for Nykaa was the way it interacted with individuals. It wasn't just
about selling products, but about making individuals confident, allowing them to be themselves,
and taking care of their personal style. Nykaa used social media, YouTube, and even a blog of
their own to speak to customers the way a friend would who understands what they require. This
approachable and informative style led individuals to believe in Nykaa and come back again and
again.
In 2021, Nykaa did something monstrous, it floated. Its stock market launch (IPO) was a massive
hit and fetched national eyeballs. Falguni Nayar turned into India's first self-made richest woman
and encouraged millions of others with her rags-to-riches tale. Nykaa had now formally shifted
from a tiny startup to becoming a retail behemoth of India.
Naturally, the journey has not been easy. Nykaa is facing tough competition from large
companies like Amazon, Flipkart, and other cosmetics companies. The preference of customers
is also shifting. Nowadays, customers have a penchant for green, cruelty-free, and personalized
products. But Nykaa continues to expand by listening to what the customers desire, augmenting
its services, and sticking to its fundamental promise, quality, trust, and care.
It is a story of Nykaa's story, both its success and the steps it took with caution in between. It tells
us how a small idea, added to by passion and shrewd planning, grew into one of India's most
loved brands. To understand Nykaa's journey is to understand what goes into building something
good in this fast-changing world of business and technology today.
1.2 Objectives
1 To share how Nykaa started and became successful
This report looks at Nykaa’s journey, from a small online store started by Falguni Nayar to a
big brand that millions of people now trust and love.
2 To understand how Nykaa connects with its customers
It explores how Nykaa uses things like social media, beauty tips, and honest product reviews
to make shopping easier and more personal for everyone.
3 To learn how Nykaa is changing the beauty and fashion industry in India
The report highlights how Nykaa made beauty and fashion more accessible, built trust in
online shopping, and inspired a new way of doing business in India.
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1.3 Methodology
While preparing this report, different strategies were used to gather relevant information about
the beauty brand, Nykaa. As a leading Indian brand, their website, news articles, interviews with
Nykaa’s founder Falguni Nayar, and their financial reports served as relevant sources. Nykaa’s
history, business model, and growth patterns were mapped out using this foundational data.
Additional data provided by reviews and customer feedback helped comprehend Nykaa's place in
the beauty market and how they market themselves to the users.
The same secondary data, combined with some of the primary data, helped evaluate the case
studies and industry analyses which discussed the issues Nykaa was confronted with and their
strategic responses. All steps and methodologies provided an understanding of the company's
journey. Analysis and organization of the information collected was done to highlight primary
elements such as key trends, major strategies, important outcomes, and overall ensure a
simplistic yet comprehensive report of Nykaa’s beauty brand success story.
1.4 Limitations of the study
1 This report uses only information that is available to the public, so it might miss some details
about what happens inside Nykaa.
2 The beauty and online shopping world changes fast, so some things in this report might
change soon.
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Chapter II
Description and Analysis
2.1 Description of Existing Case: Nykaa
Nykaa, founded in 2012 by Falguni Nayar, has grown into a leading Indian e-commerce platform
specializing in beauty, wellness, and fashion products. It emerged by addressing the limited
availability of genuine beauty products in India’s tier-2 and tier-3 cities, leveraging the
expanding internet penetration and smartphone use across the country. The company’s success is
closely tied to its robust digital infrastructure, including a highly interactive website and mobile
app featuring user-friendly interfaces, secure payment options, virtual try-on tools, and
personalized recommendations (Tatkar et al., 2024).
Beyond its online presence, Nykaa has effectively used social media channels such as Instagram,
YouTube, and Facebook to build a strong community around its brand. These platforms are
utilized to share beauty tutorials, product demos, customer reviews, and influencer
collaborations, which not only drive sales but also foster brand loyalty and engagement (Kishor
& Pai, 2021)
Furthermore, Nykaa’s content marketing initiatives like Nykaa TV and its beauty blog provide
expert advice and trend insights, establishing the brand as a trusted lifestyle guide rather than a
mere retailer (Sahay & Vijayata, 2025)
Nykaa’s omnichannel strategy includes physical retail stores such as Nykaa Luxe and Nykaa On
Trend, blending online convenience with offline experiential shopping. This approach increases
customer confidence by allowing product trials and consultations in person, enhancing overall
consumer satisfaction (Tatkar et al., 2024) the brand’s ability to adapt to evolving consumer
behaviors and integrate technology for an engaging and accessible retail experience highlights its
leadership in India’s beauty e-commerce space.
2.2 E-Commerce Business Model: Nykaa
Nykaa operates primarily on a business-to-consumer (B2C) e-commerce model, selling directly
to consumers through its digital platforms, which allows for greater control over pricing,
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customer experience, and brand consistency. A distinctive part of its strategy is the direct-to-
consumer (D2C) model for its own product lines such as Nykaa Cosmetics, Nykaa Naturals, and
Kay Beauty. This enables the company to manage product development and marketing internally,
strengthening customer loyalty and increasing profit margins (Tatkar et al., 2024).
The platform’s integration of advanced digital features such as AI-driven personalized product
suggestions and virtual try-on tools makes the shopping experience more interactive and
convenient, thereby improving customer satisfaction and retention rates (Tatkar et al., 2024;
Sahay & Vijayata, 2025). Social commerce also plays a vital role; Nykaa leverages social media
not only for promotional activities and influencer partnerships but also as direct sales channels
through embedded links and interactive content (Kishor & Pai, 2021)
Content marketing is central to Nykaa’s business model, providing detailed product information,
tutorials, and expert insights that educate and empower consumers, fostering long-term trust and
engagement (Sahay & Vijayata, 2025). Additionally, Nykaa has built a strong logistics network
capable of delivering products reliably across urban and semi-urban areas, critical to maintaining
service standards and meeting customer expectations in India’s diverse markets (Tatkar et al.,
2024).
Looking ahead, Nykaa is exploring international expansion strategies, leveraging its domestic
success to enter global markets with customized approaches that consider regional preferences
and market challenges (Sinha, 2024)). This strategic vision underlines Nykaa’s potential to
become a significant player not only in India but also on the global beauty e-commerce stage.
2.3 E-Commerce Infrastructure
Nykaa's success as a leading beauty and fashion online shopping website would not be possible
without its strong and well-set-up e-commerce infrastructure. Simple words, really, for this is the
backstage activity that makes the whole online shopping experience smooth, fast, and reliable for
customers all over India. From the moment a buyer opens up the Nykaa website or app to the
moment their package arrives at their doorstep, this infrastructure goes quietly but persistently
about making it all happen.
Second, the web site and mobile app are front and center in Nykaa's e-commerce platform. They
are designed to be user-friendly and simple to use, even for those who have never been online
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shoppers before. It has a clean interface with clear-to-read menus, search options, and filters that
allow shoppers to find just what they are searching for. Nykaa's app also includes super cool
features like virtual try-ons, wherein the customer can discover what makeup products might
appear like on their face using the camera of their phone. Such technology makes the experience
fun and interactive, and hence the customers become more confident when making purchases.
Behind the scenes, Nykaa uses strong tech and data science to customize every shopper's
experience. As you shop or browse, Nykaa's algorithm learns about you and suggests products
according to your preference. It turns shopping into a delight and more similar to having a friend
recommend something you will like. AI is also used by the site to manage product
recommendations, pricing, and even forecast demand, so trending products are never out of stock
and ready for dispatch.
Speaking of logistics and supply chain, Nykaa's inventory-based model logistics and supply
chain system is yet another integral part of its infrastructure. As opposed to the majority of online
stores that use only third-party vendors or drop-shipping, Nykaa has an inventory-based model.
What this essentially implies is that Nykaa buys and stores product inventory in its own
warehouses strategically located across India, say in cities like Mumbai, Delhi, and Bangalore.
This facilitates the company to track quality of product and product availability closely. It also
speeds up the delivery times, with products not having to travel long distances from their sellers
but being shipped out directly from Nykaa warehouses.
To be able to handle the enormous volume of orders and keep things efficient, Nykaa uses
automated warehouse management systems. These systems track every item in real time, know
exactly when they run low, and order on their own. This prevents mistakes like shipping the
wrong products or running out of stock. Nykaa's teams also work hard to pack and ship orders
with care so that products arrive safely and promptly even during festivals when sales are high.
Nykaa also invests in secure and diverse payment options to make checkout seamless. Customers
can pay by credit/debit cards, net banking, mobile wallets, cash on delivery, and even buy-now-
pay-later. This allows more users with diverse payment modes to shop.
The second equally crucial part of the e-commerce platform of Nykaa is customer support and
returns processing. Buying things online appears to be risky at times, so Nykaa has easy returns,
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refunds, and friendly customer support through chat, phone, or mail. This provides a sense of
security with the promise that in case something goes wrong, help is just at a message's distance.
Last but not least, Nykaa has started adopting cloud computing and scalable technology that
allows it to handle sudden website traffic boosts, like during major sales or festival seasons,
without slowing down or crashing. In that manner, customers can have a smooth shopping
experience even when thousands of individuals shop simultaneously.
In short, Nykaa's web infrastructure is an oiled machine of smart technology, strong warehouses,
easy payment options, and courteous customer support. It's this prudent mix that keeps customers
happy and loyal, and allows Nykaa to continue to grow steadily in India's competitive beauty and
fashion market.
2.4 E-Commerce Security and Payment System
In this age of the digital economy, where transactions online are done at a click of the screen, one
of the biggest fears of consumers is security, especially payment security while shopping online.
Nykaa is well informed about this and has put in place a strong e-commerce payment and
security system that protects customer data and makes it easy to pay.
Security of customer data is on top of Nykaa's agenda. Every time a customer inputs personal
details, like name, address, or credit card information, information gets encrypted. What this
does is that it transforms the information into a secure code which can't be interpreted by anyone
who tries to access it without permission. Nykaa utilizes SSL (Secure Socket Layer) encryption
technology, the same technology used by banks and other secure websites to secure confidential
information. This guarantees that shoppers can make their purchases without fear of leakage of
data or cyber robbery.
When it comes to payment, Nykaa offers a wide range of secure and friendly options to
accommodate the needs of all kinds of shoppers. The shopper has options like debit card, credit
card, net banking, UPI, mobile wallet (like Paytm, PhonePe, and Google Pay), and even cash on
delivery (COD) as an option. The range is so diverse that it causes Nykaa to span across different
geographies, generations, and comfort levels of online transactions.
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To make transactions even more secure, Nykaa has partnerships with trustworthy payment
gateways such as Razorpay and PayU. These gateways are safe passages between the bank and
the consumer, verifying each transaction in real time. They use methods such as OTP (one-time
password) and two-factor authentication to ascertain that the payment is being made by the
actual card owner. These extra steps reduce fraud and increase customer confidence.
Nykaa also offers Buy Now, Pay Later (BNPL) facilities through third-party players like Simpl
and ZestMoney. They enable payment in installments or on delivery without an extra charge in
most cases. BNPL is picking up, especially among young consumers who want flexibility but do
not care about due prudence.
Apart from payment safety, Nykaa also has strong return and refund mechanisms in place, a
massive part of e-commerce trust. If the customer receives a faulty product, incorrect product, or
just doesn't like it, Nykaa's return facility is simple and trackable. After clearing the return
request, money is credited back safely to the original payment option without unnecessary delay.
At the backend, Nykaa's technology group is using constant scanning and updating of its
systems. Firewalls, anti-virus software, and anti-fraud mechanisms are used to protect against
hacking, fake orders, and robots. Regular system audits and updates are done to ensure weak
links are corrected in time.
Plainly, Nykaa's payment and security platform is designed to make online shopping not just
convenient, but secure and hassle-free as well. Through combining state-of-the-art encryption,
reputable payment partners, non-traditional payment modes, and strong fraud protection, Nykaa
wins the trust of its customers and provides assurance that their shopping experience is
continuous from start to finish.
2.5 E-Commerce Marketing and Supply Chain Management
Nykaa started life in the year 2012 because of Falguni Nayar's vision of bringing beauty products
within easy reach and buying online in India. It grew to be a big name over the years by blending
smart advertising with good behind-the-scenes work that sees products reaching consumers in
good time and in perfect condition. Nykaa did not stop being just online, but also opened shop so
people can shop in whichever manner they like, thereby growing into a name people trust.
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One of the main reasons Nykaa became so well-liked is how it connects to people. It collaborates
with famous celebrities and many social media influencers to upload stylish campaigns that grab
attention. Nykaa also helps consumers by uploading makeup tips, genuine reviews, and tutorial
videos, so that shopping becomes easy and a fun process. Further, by using data, it knows what
each person would like and suggests products especially for them, making every consumer feel
special.
Nykaa's merge of physical stores and e-tailing is yet another smart move. Over 80 stores enable
customers to personally see and try out products, providing confidence in purchase. Besides,
Nykaa conducts big sales during festive seasons and also has a rewards program that provides
points to repeat buyers, which makes them return for more.
Behind the scenes, Nykaa has its own warehouses in key cities to keep inventory and deliveries
at high-speed levels. It even owns its own brands, like Nykaa Cosmetics, to keep prices low and
ensure quality. Technology helps Nykaa with product tracking and warehouse management.
Then, of course, there are the tie-ups with over 1,200 brands to keep Nykaa well-stocked for
every kind of consumer.
In short, Nykaa's success is in marrying smart marketing to sound supply chain work. It is not
just about retailing products, but about creating a great customer experience. With global
expansion in the offing, Nykaa is set to continue changing the way beauty and fashion are
shopped, both in India and overseas.
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Chapter III
Summary and Conclusion
3.1 Summary
Nykaa launched in 2012 with a bold dream. Investment banker Falguni Nayar left behind her
high-profile job to create something that simply didn't exist in India at the time, a trust-worthy
online beauty product store. Most Indians used local retailers, who stocked few, often
untrustworthy, products. Falguni saw the gap and went about creating a brand where quality,
trust, and beauty tips merged.
Nykaa started as a web-based beauty store, but to sell lipstick or face wash wasn't it. It turned
into a hub for beauty. Along with selling, it offered expert counsel, video instruction, blogs, and
virtual trials. The people at Nykaa informed them about what they were buying, and wanted to
choose what actually did fit their personality, style, and skin.
It grew at a fast pace. From makeup and skincare to personal care and then fashion, Nykaa just
kept expanding. It started selling international brands as well as its own set of products,
establishing a huge customer base all across India, even in smaller towns where nobody ever had
access to luxury brands before.
Behind the scenes, Nykaa had smart technology at its disposal. It offered personalized
recommendations to people through its app and website. It partnered with influencers, employed
AI software, and created a modern logistics system with warehouses and delivery channels in
order to get people their orders safely and on time.
Transactions were convenient and secure, be it from cards and UPI to "pay later" and "cash on
delivery." If something didn't work out, convenient returns and refunds ensured that the
customers smiled.
Physical stores were also established by Nykaa in big cities. But even there, the plan was to give
the customer an integrated experience,what you saw online, you could feel offline.
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In 2021, Nykaa listed and made history. Falguni Nayar became India's first self-made woman
billionaire, proving that strong ideas, when powered by faith and technology, can build empires.
Nykaa is not just an online website. It's a brand that understood beauty, leveraged data smartly,
and built deep trust between consumers. That's how it differentiated itself, and that's the story of
how one woman's dream transformed India's fashion and beauty shopping landscape.
3.2 Conclusion
Nykaa's story is one of visionary ambition, considered innovation, and close understanding of the
Indian consumer. From its humble beginnings in 2012 as an online beauty portal created by
Falguni Nayar, the brand has grown into a leading name in India's e-commerce market,
transforming the way beauty and fashion are accessed, trusted, and consumed. By identifying a
gap in the market, limited access to genuine beauty products, Nykaa built its brand on the pillars
of trust, education, and bespoke experiences, leveraging both online and offline channels.
Its strength lay in wedding tech with emotional intelligence, using AI for product suggestions,
social media for real connections, and secure infrastructure for seamless shopping. The
introduction of its own brands, optimized supply chain, secure payment methods, and
omnichannel strategy further entrenched its market dominance. Through influencer
collaborations, expert-driven content, and a customer-centric approach, Nykaa didn't merely sell
products, it built a community.
As competitive and fast-moving as the e-commerce landscape is, Nykaa's refusal to stop
innovating, to learn from consumer behavior, and to develop brand loyalty makes it not only a
business success story but also a case study in how digital platforms can revolutionize traditional
industries. It demonstrates that with vision, customer focus, and tech-led strategy, a startup can
become a cultural and commercial phenomenon.
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Choudhary, S. (2020). Nykaa: Transforming the beauty retail landscape in India. IIM
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