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How Nykaa Made Rs. 7.8 Crores with Personalized Recommendations

Let's study how Nykaa succeeds with its personalized beauty recommendations!

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How Nykaa Made Rs. 7.8 Crores with Personalized Recommendations

Well, both men and women know how picky women are especially when it comes to beauty and self-grooming! Being a picky woman myself, I know we make lives harder - yours, and ours too 😛!

You see, its not easy, okay? When I am buying shampoo, I want to make sure about a lot of things - no parabens, no sulfates, needs to have keratin protein because I just got it treated, no gluten - GOSH 🤯! How can I find all of that in one product?!

Well, Nykaa nailed it there! And its safe to say now that even if your boyfriend or husband doesn’t get these, Nykaa does 😌💅 ! Let us study how Nykaa learns our needs and provides precise personalized beauty recommendations!

Let’s go!

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Heya!

Aneesha here! Today’s case study is a bit different from the ones you have been reading. Today, I am sharing my analysis, study, and findings of the product with you and how you can look for insights!

If you find this helpful and want me to continue to write case studies this way, let me know in the feedback section at the end!

Or, if this sucks or or if I can change some things, let me know that too 😁

What is Nykaa? Why was it Founded?

Let’s make sure we’re all on the same page, yeah? Let’s understand what Nykaa is and why was founded?

Nykaa is India's leading online beauty and fashion playground, with over 200,000 products from fancy international brands to homegrown favorites.

So, the story of Nykaa starts back in 2012. Falguni Nayar, a former investment banker, felt there weren't enough options for beauty lovers in India. Like, finding good lipstick shades or top-notch skincare could be a real treasure hunt.

So, she took matters into her own hands and launched Nykaa, a one-stop shop for all things fabulous.

And it wasn't just about selling stuff. Nykaa wanted to build a community, a place where beauty enthusiasts could explore, learn, and experiment. They created a platform where you can discover new brands, read reviews, watch tutorials, and even get personalized recommendations.

Fast forward to today, Nykaa's not just a website anymore. It's got over 100 physical stores across India, its own line of products, and a loyal following of millions.

It's basically become the BFF of beauty lovers in India, helping them find their perfect shade, slay their skincare routine, and feel confident in their skin.

How Does Nykaa Slay its Personalization Game?

Let’s analyze Nykaa’s personalization strategy. We will try to reverse-engineer and chalk out the possible data that Nykaa captures by studying the features and recommendations it offers.

Nykaa’s Personalization Features and Recommendations

I will start by listing down the personalization-based features that Nykaa has rolled out possibly after studying consumer behavior data.

Beauty Advice

The Beauty Advice feature has beauty e-books, buying guides, and an option to explore NYKAA TV! These resources are curated for Indian buyers.

Size recommendations

Nykaa understood that women often face challenges when buying lingerie and other innerwear online. Hence, they introduced this size recommendation feature for lingerie for better buying.

Recent Trends + “You may also like” section in blog

The usual for most products. Nykaa stays up to date with ongoing fashion trends and recommends blog posts accordingly. It also understands the kind of blogs you may like to read more of.

Curated Beauty Guides

This section is aimed for beginner beauty and care buyers. It recommends seasonally trending and recommended products. The Winter season is usually significant for 4 trends in India: Weddings, year-end, and new year, and as for Nykaa’s products; Winter skin and hair problems!

You can see all that clubbed together here in this section!

Most searched section

This is self-explanatory. This is the section that shows the most searched items on Nykaa. But here’s a catch! This section is placed in the end. It is not the last section but it is placed after all the important ones. Guess why? Because personalization!

Again Nykaa knows that not everyone has the same needs or wants, even though it may be popular! This is a very smart move by Nykaa, I’d say!

Possible Data Captured by Nykaa to Launch above Features

Now, here’s the interesting part - we are going to trace back and try to understand the kind of data Nykaa captures to make these features successful. This is because we cannot have access to the company’s data ourselves - if you try to, you’ll be kicked in the back! Unless you work there - LOL!

Until you don’t, stick to this broke a** case study!

So, I think these are the possible data that Nykaa captures:

Purchase History:

  • Products bought: This reveals not just favorite brands and categories, but also aspirational desires. Did they splurge on a luxury lipstick or prioritize skincare essentials?

  • Brands preferred: Loyalties to specific brands tell a story of trust and quality expectations. Are they drawn to affordable local heroes or international giants?

  • Categories browsed: Curiosity and exploration paint a picture. Are they dipping their toes into the world of makeup or diving deep into specific categories like haircare or fragrances?

  • Frequency of purchases: Purchasing habits tell us about commitment and engagement. Are they casual browsers or dedicated beauty enthusiasts?

Search Queries:

  • Keywords used: Unveiling hidden desires and knowledge gaps. Are they searching for "best eye shadow for hooded eyes" or "foundations for dusky skin"?

  • Frequency of searches: This indicates urgency and level of interest. Are they casually exploring or actively seeking solutions to specific beauty concerns?

Content Engagement:

  • Articles read: Topics that grab their attention tell us about their priorities and interests. Are they drawn to skincare routines or celebrity makeup trends?

  • Videos watched: Visual learning preferences and desired level of detail. Are they seeking quick tips or comprehensive tutorials?

  • Quizzes completed: A playful way to gather data on specific areas of concern and desired outcomes. Are they quizzing themselves on foundation shades or skincare routines?

App Usage Patterns:

  • Time spent on specific sections: Reveals preferred areas of focus. Are they glued to the makeup section or spending hours browsing influencer recommendations?

  • Browsing behavior: Click patterns and navigation choices paint a picture of the decision-making process. Do they compare products meticulously or make impulsive purchases?

  • Product clicks and comparisons: Indicates level of consideration and desired features. Are they comparing price points or ingredients when choosing a shampoo?

Social Connections:

  • Following other users and influencers: Reveals peer influences and trusted sources of inspiration. Are they learning from beauty bloggers or following friends with similar tastes?

  • Engagement with trends and shared recommendations: Shows how susceptible they are to social validation and peer pressure. Do they jump on trending hashtags or stick to their own preferences?

External Data:

  • Industry reports: Provides insights into broader trends and emerging preferences. Are consumers shifting towards organic skincare or embracing bolder makeup choices?

  • Social media trends: Real-time updates on what's hot and what's not across the beauty landscape. How is Instagram influencing lipstick shades, hair styling techniques, or appliance choices?

  • Fashion shows, celebrity styles: Inspiration and aspirational desires fueled by the world of fashion and celebrity influence. Are runway trends translating into Nykaa's shelves?

To the Numbers

Let us take a brief look at the impact that Nykaa’s personalization strategies have made on its users.

Credits: Economic Times Tech

  • Increased conversion rates: Users exposed to Nykaa’s personalized recommendations are 30% more likely to purchase suggested products.

  • Higher user engagement: Time spent on the Nykaa app increased by 20% with the introduction of personalized trend predictions.

  • Improved customer satisfaction: 85% of users report feeling their unique beauty preferences are better understood.

  • Stronger brand loyalty: Personalized recommendations have led to a 12% increase in repeat purchases.

"If you're not using data to make decisions, you're basically driving blind." - W. Edwards Deming

♨️ Served hot from the industry!

This section includes some relevant articles/videos, people to check out, and links you might find interesting from around Product management.

👉🏻 Product Development Cycle (Link)

👉🏻 What are Product Insights? Types, Challenges, & More (Link).

👉🏻 3 Ways to Read Your Customers' Minds (Link)

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