FUNCTIONS OF

MANAGEMENT
NYKAA
)
INTRODUCTION

NY
KAA is an Indian e-commerce company and the largest beauty shopping destination in India. It
was founded by Falguni Nayar, former MD of KOTAK Mahindra Capital co., in the year 2012.
Nykaa is headquartered at Mumbai (formerly known as Bombay), the capital city of the state of
Maharashtra, India. The word ―Nykaa‖ is derived from the Bengali word -―Neyka‖, which
means one in the spotlight. It is the only biggest multi-brand beauty retailer in India that sells
nearly 60,000 beauty and wellness products of various national and international brands. Nykaa
ships to over 1000 cities across India. It currently has 650+ brands among which 25 are luxury
brands which include big names like MAC, Clinique, Estée Lauder, NYX, Bobbi Brown, Calvin
Klein, L‘Occitane, and Yves Saint Laurentetc. Approximately, around 15,000 orders fly out
every day.Nykaa has 33 physical stores/outlets categorized under 2formats namely Nykaa on
Trend and Nykaa Luxe, and also has popular in-house collection under its privatelabel called the
Nykaa collection. Nykaa can be accessed through its 33 outlets running successfully across the
nation, mobile app and also its webpage.

PLANNING

“Planning refers to deciding in advance that which will be done in the near future.”

The company saw that there was a huge opportunity in the online space and considering all the
different areas they could invest in or start a company, they focused on beauty.

The beauty website aims to open 200 offline stores by 2020. Inspired by Sephora, Nykaa will
cater to the need for a multi-brand retail format that gives unbiased advice to consumers, being
able to guide them on the right products for their beauty and health concerns. A large part of
their focus is on brand assortment and getting brands and maintaining those brand relationships.
It has been one of their core strengths.

ORGANISING
“Organizing consists of conscious co-ordination of people towards a desired goal.”

Unlike other e-commerce players opting market place model, Nykaa chose the inventory model.
Nykaa‘s organizing structure is characterised with simple structure. Nykaa encourages
collaborations with luxury brands directly to sell their products straight to the customers rather
than franchising the brand. The founder personally convinces the global brands to make them
available on Nykaa and creates an amazing consumer experience for all its consumers who once
used to struggle to get their hands on the luxury brands. Nykaa‘s business structure made the
entire process of purchasing simple and hassle free. All the products sold on Nykaa are directly
sourced from the original brand. Nykaa also has its own private label and recently it also went
brick & mortar by launching its offline stores across the nation to create a better customer
experience.

STAFFING

“Staffing refers to placement of right persons in the right jobs.”

1. Firm Infrastructure
2. HRM –Human Resource Management
3. Tech-development
4. Procurement activity

Firm Infrastructure: This includes general management, quality management, finance &
accounting, planning and legal services. The scope of all these activities differ as Nykaa is a
diversified organization within the industry. Nykaa‘s planning and financing strategies are made
at the corporate level where as legal services, accounting and quality management are dealt with
at the business unit level.
HRM: In any organization, Human Resource Management is the key to its success as it supports
various activities like –recruitment, selecting & hiring employees, training, people planning, skill
assessment, development, compensation at various business levels like unit level and corporate
level. In a firm, this particular support activity either affects the competitive advantage or defines
it.
Technology development: Today technology is considered to be the most prominent factor as it
supports almost everything in an organization. Tech-development at Nykaa consists of activities
like field-testing, tech-selection, component & feature design, and process engineering.
Procurement: Nykaa uses its procurement activities to make input purchases like raw materials,
machinery needs, lab equipment, supplies & office essentials, buildings etc. Procurement support
activities also use technology to evaluate a company‘s on-going performance.

DIRECTING

“Directing concerns the total manner in which a manager influences the action of his
subordinates.”
Nykaa management directing workers to learn techniques in order to perform the job and
keeping the users engaged through interesting contents on its blog and social media has driven
many customers on their web portal.
CONTROLLING
“Control is the process of checking to determine whether or not proper progress is
being made towards the objectives and goals and acting, if necessary to correct any
deviation.”

Nykaa already said that they will have 30 Luxe stores by 2020.but the catchment area is
limited. Now they’re coming up with a new format which will sell a product mix very similar to
that of their online store. If it is successful, they may set up a hundred stores. They say they are
like Sephora, but Sephora never sells Neutrogena, or Nivea, but they don’t want to give up on
that; they want to sell that because in India those things are important. This is how nykaa
control their goals.

INNOVATION

“Innovation includes developing new material, new products, new package, and new design
of the product and cost reduction.”
Nykaa offers many coupons and offers to its customers so that they keep on purchasing items
from the portal. During the festive time, the brand promotes themselves on various platforms and
using various tools. They make use of coupons and discount deals to attract more and more
customers. This year, the brand has been launching one new product every week. Currently, it
has launched Ultra Matte Lipstick range and it has already started getting great response from
consumers.

Nykaa Ultra Matte Lipstick range is a tribute to the most iconic beautiful women that inspired
the world with their original blend of grit, grace, glamour, and gravitas that echo far beyond the
ages. Dedicated to all the women who changed the world with their enchanting beauty, sparkling
wit and appeal, this collection speaks for women who are their own version of perfection.

In the words of Chhabra, “The colors we wear on our lips tells a lot about our personality and are
a great way to express our own style. This collection is inspired by the iconic women of the
golden era. Each lipstick shade name is inspired by one of these women, and reflects an inherent
quality in her. Each shade has a different color and a personality of its own.”

DECISION MAKING

“Decision making helps in the smooth functioning of an organization.”

Nykaa has sought to tie up with popular Korean skincare brands Dear Packer and The Face Shop
over the past few months. Face-packs loaded with rose, honey, and charcoal extracts—all a
Korean specialties—are flying off the shelves.

Then there is Huda Beauty, the beauty line sold by popular Iraqi-American beauty blogger Huda
Kattan, which will soon be available on Nykaa. “It’s taken us two to three years to get here as
they (tie-ups) need multiple clearances,” the founder explained.

Nykaa decided to bring more international brands to their website, and this decisions is going to
play a major role in their business.

COMMUNICATION

“Communication helps the regulation of job and coordinates the activities”

Nykaa has established a good team for its content strategy. Keeping the users engaged through
interesting contents on its blog and social media has driven many customers on their web portal.

Nykaa runs a YouTube channel “Nykaa TV” to provide the people best video guidance for using
cosmetics and fashion products and remain up to date in the society. They have many “how-to
videos” to help their users and customers.
Along with contents and videos over the company’s product page and social media platform,
they also have more than 25 Nykaa experts who give solutions for all your fashion queries
online.nykaa interact with their customers through various kind of social platforms, which will
help the organization to identify the customer needs.

CONCLUSION

The major strategies of Nykaa are all customer-centric. They all start with the needs of the
customers and work backwards. This makes the company more supple and pliable. Nykaa today,
stands at the top in the market it is operating in because it chose to lead the market by reshaping
its norms, rather than just adapting to the market trends.
Nykaa has been extremely successful with its business model and its on-going strategies. It is
already doing great in India, both digitally and physically. It already has 33 shops set-upped
across the nations and is planning to open more with a rapid speed (3 in a month strategy).
Nykaa has collaborated with multiple global brands from different corners of the world to give
its customers the ease to buy their preferred brands from their comfort zones. Nykaa now should
look forward to expand globally as a lot of its reviews have had questions raised from across the
world about its international expansion. Currently, not many companies provide multi-brand
luxury products on their websites or in stores. This creates a room for Nykaa to become
dominant in its market of operation. The vision would be that Nykaa.com would blossom across
the globe with its international online presence and shipments. There won‘t be any halting in
Nykkaa‘s progress if they took the above strategies into consideration.

REFERENCE

 "Story of How Nykaa". Next Big Brand.