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Nykaa has seen a 29% YoY growth. Beauty and personal care (BPC) has touched 25%, Fashion 40% and Superstore (B2B) about 39%. That translates to a ₹36,000 Mn GMV YoY and and approximate profit of ₹7607 cr YoY. Their PAT was ₹175 Mn, with a hefty 106% YoY growth as of Q3 2024. They also have a "mens" section on the Nykaa app.
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Problem statement:
There is no marketplace that assigns trust to buying Men's products. It's unorganised, has availability issues, lack of choices, no open chatter or premiumness attached to it.
Problems out of these that matter to our consumer: Availability, lack of choices, premiumness.
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​Some context:
Launched in 2019, Nykaa Man currently has a GMV of ₹237 crore (39% of vertical growth), net sales of ₹130 crore and contribute 7% to Nykaa's overarching business.
To understand the market opportunity, the market size for just men's grooming and upkeep was ₹12,500 cr in 2021, and is projected to increase to ₹19,500 cr by 2026.
Our shoppers are 25-34 y/o.
App downloads: 5M+ (android)
Amazon, quick commerce and/or offline stores are our major competitors.
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Nykaa Man delivers all points highlighted in green, so it has obtained PMF and witnesses repeat purchases once a trial is done.
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The AOV on Nykaa is ₹6400 - ₹9000. Numbers on Nykaa Man specifically were not available. However, top purchases were on premium brands like adidas, Nike, Marks and Spencers. Our TA too picks luxury purchases in that bracket, so willingness to pay is present.
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​ | skin+hair care male shoppers | Online male health+luxury shoppers | Females who gift | Female shoppers |
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% of users | 20% | 40% | 30% | 10% |
Intent to use Nykaa Man | Low | Low | Low | Medium |
Purchase behaviour |
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Age | 25-35 | 25-35 | 21-27 | 21-35 |
Gender | Male | Male | Female | Female |
City | Tier I & II | Tier I & II | Tier I & II | Tier I & II |
Marital status | Unmarried | Unmarried | Unmarried/Married | Unmarried/Married |
Job | Mid level managers | Mid to senior level managers | Mid to senior level managers | Mid level manager |
Salary/month | ₹80K - ₹2L | ₹2L - ₹5L | ₹2L-₹5L | ₹80K - ₹2L |
Options against Nykaa | Amazon, Blinkit, Swiggy Instamart | Amazon, Blinkit, Swiggy Instamart | Myntra, Ajio, Urbanic, offline retail, malls, Tiraa, Purplle, Tata Cliq | Tiraa, Purplle, Tata Cliq, retail, beauty stores, malls |
App preferences | YouTube, Spotify, Twitter, LinkedIn, Gmail | YouTube, Spotify, Twitter, LinkedIn, Gmail | Nykaa, Spotify, Whatsapp, Instagram, Myntra, YouTube | YouTube, Spotify, WhatsApp, Instagram, Myntra, Nykaa, Amazon Music |
Where do they spend money? | Electronics, health products, perfumes, shoes, daily grooming essentials | Premium subscriptions, gym memberships, Utility based apps | Beauty & personal care, Fashion, subscriptions, gym memberships, hair care | Beauty & personal care, fashion, hair care, food, gym memberships, home accessories, gifting |
Where do they spend time? | Workplace, gyms, turfs, YouTube, Twitter | Gyms, Sports, Upskilling, Workplace, Luxe restaurants | workplaces, social media, restaurants & cafes, online shopping,live experiences, commuting | workplace, social media, cafes, commuting, online shopping, commuting, outings |
AOV/ year | ₹3500-₹4000 | ₹9000-₹15000 | ₹9000-₹25000 | ₹9000-₹15000 |
Trust on Nykaa | Low | Low | High | High |
Frequency of purchase | once in two months | Once a month | Once a quarter | once a month |
Decision making parameters | Convinience, value for money, trust | best option within budget, up and coming health products, excellent experiences, thoughtful curations | best value for money, ongoing trends of the season, newness to product, premiumness | hunt for best finds, premiumness, discounts and sales, experimentation with new brands |
Pain points | Products unavailable, reviews unavailable, no nudge but willingness to experiment, no info on luxe options | Low trust, low options, less reviews available, no recommendations or inner circle info, confusion on gifting | Unclear on best gift options, Unclear on usage, Low trust on niche/unknown brands | high prices, bad customer service, sizing issue in clothes, poor return policy |
Solutions | Transparency, Extensive review system, trial packs, starter kits, education on luxury items | Build trust via outside inference, extensive review system, trial packs, curated gift options | a guide to gifting, a playbook on men's upkeep, testers for homegrown/luxe brands | discounts and sales, better TAT for customer complaints, more product info, transparency in returns |
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The app banners correlate to our user insights, i.e., luxury, health and nutrition are more popular purchases causing maximum stickiness. It also corroborates with Nykaa's growth pillars:
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​ | Consumer Pool | Calculation | Overall Size |
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TAM | Male Online shopper Market size of health supplements in males Market size of luxury purchases in males | AOV/year * Frequency of purchase * No. of online shoppers in India who are male (50% of population) | ₹10000 * 1 * (50% of 230 million) = 115 billion rupees = ₹11500 crores |
SAM | Male online shoppers willing to shop on Nykaa, or have already | AOV/year * frequency of purchase * No. of male shoppers on Nykaa | ₹10000 * 1 * (5.2% of 18mn Nykaa shoppers is men) = 9360 million = ₹936 crores |
SOM | Male online shoppers that will use Nykaa Man as per their core value prop | % of SAM aged < 35 * Nykaa Man's market share** | (40% * 936) * 5% = ₹18.7 cr |
*indicative numbers
**based on Nykaa Man's position on SERP, app store and top of mind awareness.
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The right hand to every gentleman in their path to being the best they can be. With convinience as the backbone, a comprehensive list of homegrown and international brands, curated options and premium gifting, Nykaa Man aims to be every sophisticated man's go-to health, grooming and luxury one-stop-shop solution.
Eliminating grooming, the core decision maker for fitness, health, perfumes, shoes and accessories are not just the men, but also their female counterparts. They rely heavily on their recommendations and only speak to them, not their male peers.
The best part?
These are all Nykaa loyalists.
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Channel | Cost | Flexibility | Effort | Lead time | Scale |
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Referral | Medium | High | Low | Medium | High |
Partner program | Low | Medium | High | Low | Medium |
Organic search (SEO) | Low | High | Medium | Medium | High |
Content loop | High | Low | High | High | High |
Paid marketing | High | High | High | Medium | Medium |
Product Hunt | Low | Low | Low | Low | Low |
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Channels in green will be selected for acquisition. Reasoning given below.
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Core Insight: The decision making for men's purchases is very straightforward, with trust put on other buyers and not their inner circle, family, friends or partner.
The decision framework for most users interviewed involved the following steps (for health, fitness, gifting perfumes particularly):
1. Google their product/ Already know the product (not brand)
2. Has a brand affinity = googles the brand or looks at e-commerce
3. Looks at Amazon, which comes first in SERP.
4. Gets redirected to app (if they have it)
5. Searches the product in the search bar
6. Looks for reviews to evaluate
7. Purchase occurs
8. Repeats purchase when product is about to finish from Amazon directly (irrespective of discounts, sales, special bundling, offers, etc).
9. If product's unavailable, checks back again the next day on the same site or e-commerce apps.
10. If unavailable both places, waits for a day to check again (loyalty erupts here).
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Pillars for purchasing:
• Convienience
• Availability
• Ease of check out
If Nykaa Man captures the most sought after keywords on Google search, they can capture the same market via convinience (availability and ease of check out is a product USP), since loyalty is present for the product or brand, not marketplace.
Some searches that have stood out:
Sample headlines, meta descriptions and meta tags for Organic searches:
Headlines:
Nykaa Man: Buy health products and supplements online
Nykaa Man: Buy gym supplements online
Nykaa Man: Best options on protein powders
Nykaa Man: Buy protein powder at best prices
Nykaa Man: Buy luxury perfumes for men
Nykaa Man: Get long lasting perfumes on sale
Nykaa Man: Buy best selling perfumes online
Nykaa Man: Buy our top selling Eau De Parfums
Meta tags:
protein powder men, protein powder, whey isolate, muscle blaze, ON whey protein, gym supplements, gym products, Nykaa Man coupons, Nykaa Man whey powder, gym products, Protein shakes, luxury perfumes, long lasting perfume, perfume for men, gifts for men, best selling perfumes
Meta description:
1. Get gym ready with the best whey protein options and other health supplements on Nykaa Man.
2. Satisfy all your protein needs on Nykaa Man. Stock up now.
3. Stock up on your health essentials in one go at Nykaa Man. Shop now.
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Core insight: Men have extreme loyalty to a brand after a positive experience, which lasts for years. They also purchase as and when they finish for health products and experiment with trends.
How can we enable our users to do this seamlessly on Nykaa Man?
By automating the purchase process for them. ​
Consider you finish your whey protein in 30 days, which you bought from Nykaa Man.
​• Post your first purchase and successful delivery, it gives you an option to set a reminder for re-purchasing, where the time frame is set by you.
• After your set time frame, Nykaa communicates a reminder to re-purchase on WhatsApp, push notification, and an email (like a bill due date).
• It takes you to the product you last ordered and also gives suggestions below in a carousel including competitors and most bought along with the primary product.
• Once you re-purchase, it confirms your delivery, as well as timer set.
• The timer comes with the upper hand: a surprise trial product added from skin or face care from Nykaa Naturals, Nykaa SKINRX or Nykaa Perfumery (AOV for trial products gifted by Nykaa is ₹1600-₹2500, whereas AOV here is ₹2500-₹10000). This free gift would expire once the timer ends.
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Where do partners come in?
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Nykaa prides itself on its partner network, with 3400+ brands onboarded with an aim to address a larger TAM across the value chain as part of their growth strategy.
These partners in health include: Optimum Nutrition, Muscle Blaze, HK Vitals, Cosmix, Man Matters, The Whole Truth, Bombay Shaving Co., InLife, MuscleTech, Nutrabay, Oziva, Plix, Setu, Wellbeing Nutrition and many more.
By championing bestsellers through regularly confirmed purchases, partner programs with these brands can be created by giving advertising spaces within Nykaa Man to push for the ones not organically searched for.​
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Core Insight: Most product adoption for men-only products happens via observing male seniors or personal learning. Unisex products such as skincare, lifestyle, personal care and luxury purchases are recommendations pouring in from female counterparts. These include sisters, mothers, female friends, colleagues, partners etc. While grooming is a private affair, the rest is dependent on women in a man's life.
Tons of women (18mn users as of Q2 2024, 50x visits per customer per year) prefer Nykaa over others because of:
• New product discovery
• Heavy discounts
• Membership that reaps long term rewards, which include free gifts from Nykaa (Prive, Luxe, etc)
• They feel that a package is equivalent to a gift (thanks to packaging and experience)
Nykaa's edge is making these purchases double up as a gift to yourself, even if you've paid for it. The best part of the experience is waiting for them to arrive and then unboxing. Dopamine is Nykaa's platform currency, obtained after a successfull delivery felt after unboxing their "gift".
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Opportunity gap: Utilising this behaviour during a gifting purchase.
Presenting: You got a gift!
For a girl/woman, we know what out brother wants, but a return gift is basic expectation.
Enter: Nykaa's gifting programme
A referral programme where you, a Nykaa user,
Refer someone to Nykaa Man → Nykaa's referral will be a gift kit → Referred person redeems the kit and your referrer gets cashback of the same amount gifted to her Nykaa account
Customer Journey Flow: ​
Nykaa's repeat user does a purchase
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Order gets deliveried on time in the desired condition
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User gives a 4/5 rating
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User gets an in-app pop up to join the "Gift and Earn"
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User clicks pop up
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Lands on the referral progamme page in-app
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Copy: Refer your friends and family to Nykaa Man and earn double the amount they shop on their first purchase!
CTA: Pick a gift now.
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User clicks CTA, gets redirected to three starter kits to pick from, Small, Medium and Large, priced ₹499, ₹799, ₹1299
CTA on each: Refer this
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User picks one, gets a link that can be shared on WhatsApp to most messaged users, followed by Messages (SMS), Mail and Copy Link
Copy on message generated:
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Referred person clicks the CTA, lands on the Nykaa Man website+ gets the 3 kit options to buy from (at a 50% discount from the original prices).
Copy:
Headline:
Welcome to the Nykaa Fam!
Anushka gifted you a 50% discount to start with your self-care journey.
Byline:
Nykaa Man aims to make every man the best they can be, whether thats through grooming, being fitter, caring about yourself or pampering yourself luxuriously.
CTA to claim: Claim your gift now.
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User purchases, referrer gets double the amount credited to their Nykaa account as a coupon (for eg, If I picked the ₹499 option, the referred user pays ₹249.5 and I get ₹499 as a coupon).
Tracking Referrals: ​
All referrals sent would be tracked inside the app of the referrer, in the referral section.
A milestones tracker would be created to show their path to being a power referrer.
Member → 1st Referral ----→ Gold Referrer ----------→ Platinum Referrer
<₹XX coupons collected> | View History
Each referral history would have:
• Days since it was sent
• Used/Unused by referred mentioned
• If Used,
• Coupon generated for referrer with the name of the reffered. For eg, "NykaaManRahul", with the validity present for a month.
• If unused,
• Coupon generated for referrer with the name of the reffered. For eg, "NykaaManRahul", but blocked for usage.
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Identifying and championing power referrers: ​
Power referrer: Any Nykaa user who has referred and obtained 10 or more coupons via referrals in a period of 3 months, or 15 or more coupons in a period of 6 months.
Perks once you're a power referrer (given in the layout of the referral program section)
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A jump to becoming a Nykaa Gold/Platinum user and the same benefits, depending on where they stand.
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Free shipping, Exclusive sales, birthday gifts, access to masterclasses, 1.5x rewards.
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