Acquisition project | Nykaa ( Nilam Solanki )
📄

Acquisition project | Nykaa ( Nilam Solanki )

Elevator Pitch

💄 What is Nykaa?

Founded in 2012, Nykaa is India’s leading beauty and personal care platform. From skincare to self-care, it offers 100% authentic products across categories like makeup, wellness, grooming, and luxury. With expert-led content, AI-driven personalization, and a vibrant community, Nykaa helps every Indian discover what works just for them effortlessly.

They’re not just selling beauty products they’re building a beauty destination.


Nykaa.png

Elevator Pitch

Ever felt lost while trying to pick the right skincare, makeup, or wellness product online? That’s exactly the problem Nykaa solves. It’s a platform where you’ll find handpicked, 100% genuine beauty, personal care, and wellness essentials matched to your needs and preferences. With thousands of trusted brands, honest reviews, and content that actually helps you choose better, Nykaa makes shopping feel more personal and a lot less confusing. Unlike other marketplaces, it's built around real guidance, not just transactions and at its core, it's built to make every Indian feel confident in their own skin. If you're tired of second-guessing every product, just open the Nykaa app you might finally find what works for you.


​🎤 Elevator Pitch Breakdown

Pitch ComponentWhat We Say

Hook

“Ever felt lost while trying to pick the right skincare, makeup, or wellness product online?”

Value

“That’s exactly the problem Nykaa solves. It’s a platform where you’ll find handpicked, 100% genuine beauty, personal care, and wellness essentials matched to your needs and preferences.”

Evidence

“With thousands of trusted brands, honest reviews, and content that actually helps you choose better, Nykaa makes shopping feel more personal and a lot less confusing.”

Differentiator

“Unlike other marketplaces, it's built around real guidance, not just transactions — and at its core, it's built to make every Indian feel confident in their own skin.”

Call to Action

“If you're tired of second-guessing every product, just open the Nykaa app — you might finally find what works for you.”



















Understand the user


Understanding your ICP

I researched multiple ICPs for Nykaa based on product fit, market opportunity, and growth potential, and also conducted user calls with a few users to validate behaviors and preferences:


✅ ICP Selection Framework for Nykaa

ICPDescriptionTAM PotentialAdoption RatePurchase BehaviorChallengesSelected

Urban Working Women (22–35)

Beauty-savvy professionals who buy frequently and value quality

Moderate–High

High

High LTV, strong repeat behavior

Competitive market

Power User

Tier 1/2 Price-Sensitive Women (18–30)

Budget-conscious but aspirational buyers becoming loyal through good experience

Very High

Moderate–High

Value-focused, growing usage

Needs incentives, careful targeting

Core User

Emerging Male Grooming Buyer

High-potential but niche segment of male users entering beauty/wellness space

Medium

Low

Sporadic, exploratory

Niche market, slow conversion

Tier 2 Regional Language User

Users from Tier 2 cities using regional languages

High

Moderate

Price-sensitive, low LTV

Trust + activation barrier

Teen/College Beginner

Younger audience just starting their beauty journey

High

Medium

Low AOV, irregular purchases

Low LTV, low brand loyalty

Nykaa Fashion-Only Shopper

Users who shop only from Nykaa Fashion

Medium

Low

Not integrated with beauty yet

Beauty PMF not yet validated


  • These two segments are the most aligned with Nykaa’s growth objectives and can drive efficient acquisition at scale.

Let's look at our Power & Core ICPs


Criteria

ICP 1 (Power User)

ICP 2 (Core User)

Name

Rhea Saxena

Pooja Mishra

Age

22 - 35

18 -30

Demographics

Female, Single, Lives in Tier 1 city

Female, lives with parents in Tier 2 city

Where They Work

Startups mid-sized firms or MNCs in marketing/branding etc

Local businesses or traditional companies with limited digital exposure in”HR, Admin, Entry-level roles.

Income

₹70,000–₹1,30,000/month

₹25,000–₹50,000/month,

Education

Mba/Masters Degree, Tier 1 B-school

Graduation degree, Private University

Companies They Interact With

D2C Brands, Nykaa app, Myntra, Sephora, UrbanClap, Cult.fit, Amazon, AJIO

Nykaa, Amazon, Big Bazaar (offline), WhatsApp beauty sellers, Meesho, local parlours

Social Media They Use

Instagram, YouTube, (Primary) ; Reddit, LinkedIn, Pinterest (Secondary)

Instagram, YouTube (Primary); Pinterest, Reddit (Secondary)

Psychographic Traits

Quality-focused, believes in self-care, cruelty-free preference, enjoys gifting.

Seeks good value, avoids risk, wants simple routines. Follows trends but doesn't chase them.

Need

To stay ahead of beauty trends and use high-performance, ethical products.

To look fresh and well-groomed for office and family outings, using budget-friendly, trusted products.

Goals

Stay polished, use ethical skincare, find high-performance products, access launches early.

Find reliable everyday products, save money, feel confident socially, get compliments occasionally.

Pain Point

Overwhelmed by product launches and influencer noise. Hard to know what really works. for her skin

Unsure which products are worth the money; gets overwhelmed by options and fake reviews.

Current Solution

Shops on Nykaa app, follows experts, beauty & skin podcasts, occasionally uses brand websites/Sephora.

Shops during sales or seasonal needs on Nykaa, watches basic YouTube tutorials, relies on influencer recommendations.

Perceived Value of Nykaa

A trustworthy, curated platform - India's best beauty & wellness go to brand

Affordable, safe, and convenient way to buy trusted brands without visiting crowded stores.

What do they value more? Time vs Money

Time - She's busy, values convenience, and is willing to pay more for trusted, quick solutions.

Money - She's price-conscious and seeks maximum value through discounts and known products.

Behavior

To look polished and feel confident in both personal and professional spaces. Beauty is self-expression and empowerment for her.

To look good for social confidence and basic self-care, without spending too much or taking risks.

Value Experience for the Product

Feels seen, understood, and empowered; enjoys the convenience of content + commerce + curation in one seamless journey.

Feels relieved to find trusted brands at affordable prices, avoids store visits, gets what she needs without pressure or confusion.









Understand the product

Nykaa - Core Value Proposition

For beauty and personal care shoppers who want trusted, convenient, and personalized product discovery, our platform is an e-commerce and content-driven beauty destination that offers authentic local and international brands, expert-backed guidance, and a seamless online and offline shopping experience.


Problems Nykaa Solves

  • Search fatigue - Curated discovery, filters, expert content
  • Low trust in online beauty - 100% authentic, brand-authorized products
  • Limited access - Global + local brands on one platform
  • Lack of guidance - Reviews, tutorials, community insights
  • Offline discomfort - Private, seamless digital experience
  • New-to-category users - Regional UX, simplified routines, value combos

Key Features

  • Curated storefronts by concern & routine
  • Verified reviews + Nykaa Army UGC
  • Expert-led content via Nykaa TV
  • Exclusive brand launches and early drops
  • Loyalty program (Nykaa Prive)
  • App-first, clean UI with personalization
  • Omnichannel presence with 100+ stores
  • Regional language support
  • Nykaa Men and Wellness expansion






Understand the market

🧾Competitor Analysis Table (Beauty & Personal Care – India)


Parameter

Nykaa

Purplle

Amazon Beauty

Tira (Reliance)

Sephora India

GTM Strategy

Influencer-led, content + commerce flywheel, offline expansion

Tier 2 expansion with private labels and pricing advantage

Cross-sell from core Amazon user base, Prime bundling

Tech-powered offline + online integration, Reliance ecosystem

Store-led GTM, exclusive luxury brand tie-ups

Pricing Model

Premium to mass range, offers but not discount-led

Aggressive discounting, combo deals, private label bundles

Mixed pricing, from budget to premium, relies on discounts

Premium pricing with cashback strategy (Tira wallet)

Premium to luxury pricing, no major discounting

Brand Positioning

Trusted beauty authority for modern Indian women

Affordable beauty for the mass market

Convenient all-in-one store for beauty & more

Tech-driven, aspirational beauty destination

Luxury beauty expert with global credibility

Social Proof

Strong reviews, high Instagram/YT engagement, Nykaa Army

Rising YouTube reviews, regional influencer presence

UGC reviews, heavy ratings-based credibility

New but rising via creator collabs, in-store buzz

Strong retail recall, brand prestige drives perception

Marketing Channels

Instagram, YouTube, influencer collabs, SEO, app notifications

Influencers, Google Ads, app campaigns, heavy offer-led banners

Search + SEO, Amazon Ads, Prime banners

AR filters, celeb launch events, offline promos, influencer content

In-store campaigns, YouTube, collaborations

App Downloads

50M+ downloads (Play Store)

10M+ downloads (Play Store)

100M+ downloads (Amazon app)

600K+ downloads (Play Store)

App presence limited; focus is retail

User Experience (Web/App)

Polished, beauty-first UI, strong filtering, rich PDPs

Simple UI, value-led CTAs, focus on price filters

Functional but not beauty-optimized; lacks emotional UX

Polished app with try-on tech, product storytelling

Web/app experience average, relies on store-first model

📊 Conclusion from Competitor Analysis

Nykaa holds a strong and defensible position in the beauty e-commerce market due to its:

  • Deep content-commerce integration (unlike Amazon or Purplle)
  • High trust with users via authentic sourcing and brand partnerships
  • Omnichannel footprint with over 100 physical stores, a clear edge over online-only competitors
  • Strong emotional brand positioning as a beauty authority for modern Indian consumers

However, competitors are closing in by focusing on:

  • Affordability and Tier 2 scale (Purplle)
  • Luxury positioning and global tie-ups (Sephora)
  • Tech-enhanced discovery experiences (Tira via AR, app innovation)
  • Delivery speed and bundled convenience (Amazon)

In summary, Nykaa leads in content, trust, and brand love, but must stay agile to defend against pricing (Purplle), tech (Tira), and logistics (Amazon).


🎯TAM, SAM and SOM


TAM (Total Addressable Market)

ComponentValue

Total active beauty shoppers in India

70 million

Average Revenue Per User (ARPU) per year

₹6,500

Formula

70 million × ₹6,500

TAM Value

₹4.55 lakh crore (~$55 billion)

SAM (Serviceable Addressable Market)

ComponentValue

Nykaa’s target segment (urban, digital-savvy women, age 18–35, Tier 1 & 2)

30 million

Average Revenue Per User (ARPU) per year

₹6,500

Formula

30 million × ₹6,500

SAM Value

₹1.95 lakh crore (~$23.5 billion)

SOM (Serviceable Obtainable Market)

ComponentValue

Nykaa’s current active BPC customers (TTM)

10 million

Average Revenue Per User (ARPU) per year

₹6,500

Formula

10 million × ₹6,500

SOM Value

₹6,500 crore (~$800 million)











If your product is in mature scaling stage

😎 Smart Acquisition: Evaluating Growth Levers

ChannelCostFlexibilityEffortSpeedScaleSelected

Organic

🟢 Low

🟢 High

🔴 High

🔴 Slow

🟢 High


Paid Ads

🔴 High

🟡 Medium

🟡 Medium

🟢 Fast

🟢 High

Referral Program

🟡 Medium

🟢 High

🟡 Medium

🟢 Fast

🟡 Medium

Product Integration

🟡 Medium

🟡 Medium

🔴 High

🔴 Slow

🟡 Medium


Content Loops

🟢 Low

🟢 High

🔴 High

🟡 Medium

🟢 High


Why These 3 Channels?

We chose Content Loops, Paid Ads, and Referral Programs as our primary acquisition channels because they balance scale, speed, and cost-efficiency

They align with Nykaa’s strengths in content, performance marketing, and community trust helping us grow fast and efficiently.



Detailing Organic Research


Detailing Content loops

➿Content Loops: Content That Converts - And Comes Back

🔁 Content Loop Strategy Table


Loop NameLegend

Influencer Marketing

🔍 Detailed in Plan

AI-Powered Personalized Beauty Coach

🔍 Detailed in Plan, 🟨 Proposed

Educational Content

🔍 Detailed in Plan

Loop Name

Hook

Content Creators/Generators

Content Distributors

Channel of Distribution

Influencer Marketing 🔍

Aspirational looks, problem-solving, new product unboxings, trends

Beauty Influencers (micro, macro, mega), Celebrities

Influencer's social media followers, Nykaa's audience

Instagram (Reels, Stories, Feed), YouTube, TikTok, Facebook, Nykaa App/Website

AI-Powered Personalized Beauty Coach 🔍 🟨


Instant, tailored routines; addressing overwhelm; solving specific beauty problems

Nykaa's Proprietary AI Model; Nykaa's Experts & Data Scientists (training/curating)

User interacting with the AI; Nykaa's marketing; word-of-mouth from users

Nykaa App, Nykaa Website, Email Marketing, Push Notifications, Nykaa's Social Media Channels

User-Generated Content

Showcasing personal results, product hauls, reviews, challenges

Nykaa customers

User's social network, Nykaa's social media

Instagram, Facebook, TikTok, Nykaa website (product reviews)

Educational Content 🔍

"How-to" guides, product benefits, beauty tips, ingredient deep-dives

Nykaa's in-house experts, Beauty writers

Users seeking information, SEO algorithms

Nykaa Beauty Book (blog), Nykaa TV (YouTube/website videos), SEO, Email Marketing

Personalized Recommendations

Relevant product suggestions based on past behavior/preferences

Nykaa's AI/Data Analytics

Individual Nykaa users

Nykaa App, Website, Email Marketing, Push Notifications

Loyalty Program Content

Exclusive offers, early access, reward points, personalized perks

Nykaa Marketing Team

Nykaa Loyalty Program members

Email Marketing, Nykaa App (in-app notifications), SMS

01: Influencer Marketing Loop (Detailed)

Nykaa's Influencer Marketing Loop is a powerful engine for customer acquisition and purchases, built on the principle of leveraging trusted voices to reach and persuade target audiences.

Understand Your Audience (Influencer Marketing Loop):

  • Primary Audience: Individuals (predominantly young to middle-aged women) who actively follow beauty influencers, seek product recommendations, and are influenced by visual demonstrations and authentic reviews. This includes both existing beauty enthusiasts and those new to specific product categories.
  • Secondary Audience: Broader social media users who might stumble upon trending content or challenges initiated by influencers.
  • Audience Needs/Motivations:
    • Inspiration: Seeing how a product looks or is used to achieve a desired aesthetic.
    • Trust & Authenticity: Believing the recommendations come from a genuine user (even if sponsored).
    • Education: Learning proper application techniques or understanding product benefits.
    • Discovery: Finding new products, brands, or trends they weren't aware of.
    • Problem-Solving: Identifying products that address their specific beauty concerns (e.g., "best foundation for oily skin").
    • Social Proof: Seeing others use and endorse products

Step 1: Nail Down Content Creator, Content Distributor, and Channel of Distribution (for AI-Powered Personalized Beauty Coach Loop):

  • Content Creator:
    • Beauty Influencers: These are the primary creators. Nykaa collaborates with a diverse range:
      • Mega-influencers/Celebrities: For broad reach, brand image building, and major campaign launches (e.g., Katrina Kaif for Kay Beauty).
      • Macro-influencers: For significant reach and established credibility within the beauty niche.
      • Micro-influencers: For higher engagement rates, niche audience targeting, and perceived authenticity/relatability.
      • Regional Influencers: To tap into diverse linguistic and cultural segments across India, especially for Tier 2/3 cities.
    • Nykaa's Brand Team: Often provides briefs, product samples, and creative guidelines to influencers. They may also co-create content or repost influencer content.
  • Content Distributor:
    • Influencer's Social Media Channels: The influencer's primary audience on platforms like Instagram, YouTube, TikTok, Facebook.
    • Influencer's Network: Through shares, mentions, and word-of-mouth within the influencer's community.
    • Nykaa's Official Channels: Nykaa frequently reposts, shares, and highlights influencer content on its own social media profiles, website (e.g., Nykaa TV section), and app.
    • Paid Amplification: Nykaa often uses paid promotions (e.g., Instagram Ads, YouTube Ads) to boost the reach of high-performing influencer content beyond the influencer's organic audience.
  • Channels of Distribution:
    • Instagram: Reels (short, trending videos), Stories (quick updates, swipe-up links), Feed Posts (high-quality images/videos, carousels), IGTV (longer-form content).
    • YouTube: Detailed tutorials, product reviews, hauls, GRWM (Get Ready With Me) videos, unboxing videos.
    • Facebook: Shares of Instagram/YouTube content, community engagement.
    • Nykaa Website/App: Dedicated "Nykaa TV" section, product pages embedding influencer reviews/tutorials, blog posts featuring influencer collaborations.
    • Email Marketing: Featuring influencer-recommended products or content in newsletters.


Step 2: Decide Which Type of Loop to Build Out (Hook, Content Creator, Distribution Channel for Influencer Loop):

Hook: What gets users to engage with the influencer's content?

  • Aspirational Transformation: "Get this glowing skin!" "Achieve this flawless makeup look!"
  • Problem-Solution: "The best foundation for oily skin!" "How to fix dull hair!"
  • Authentic Review/Experience: "My honest review of X product," "What I bought from Nykaa."
  • Trend/Challenge: "Trying the viral XYZ challenge with Nykaa products."
  • Exclusive Access: "First look at the new Nykaa launch!"

Content Creator

  • As detailed above – a mix of mega, macro, and micro beauty influencers, and sometimes celebrities, often guided by Nykaa's marketing team.

Distribution Channels

  • Distribution Channel: As detailed above – primarily social media platforms (Instagram, YouTube, TikTok) and Nykaa's own digital properties (website, app, email).


Step 3: Create a Simple Flow Diagram to Represent the Content Loop

Influencer content loop.png

02: AI-Powered Personalized Beauty Coach & Content Generator Loop.

This loop goes beyond static educational content or simple product recommendations. It creates a dynamic, interactive, and hyper-personalized experience where the AI itself generates tailored beauty routines, tips, and explanations in real-time, making the interaction the core of the content loop.

A. Understand Your Audience (for this specific loop):

  • Primary Audience:
    • Confused Consumers: Those overwhelmed by the vast product selection and unsure how to build an effective routine.
    • Beginners & Intermediate Users: Seeking structured guidance on skincare, makeup application, or hair care.
    • Problem-Specific Users: Individuals with unique skin/hair concerns (acne, aging, frizz) who need tailored solutions.
    • Ingredient-Curious Users: Those wanting to understand what specific ingredients do and how they interact.
    • Time-Strapped Individuals: Who want quick, reliable advice without extensive research.
  • Audience Needs/Motivations:
    • Personalized Solutions: "What works for me?"
    • Clarity & Simplicity: Breaking down complex beauty science into understandable advice.
    • Trust & Reliability: Assurance that the advice is expert-backed and unbiased.
    • Efficiency: Getting answers and routines quickly.
    • Results: Confidence that following the advice will lead to desired outcomes.
  • Online Habits & Platforms Frequented: Primarily within the Nykaa app/website, but also discovering the feature via social media promotions or direct search. They are accustomed to conversational AI (chatbots) and expect instant, relevant responses.

Step 1: Nail Down Content Creator, Content Distributor, and Channel of Distribution (for AI-Powered Personalized Beauty Coach Loop):


Content Creator:

  • Nykaa's Proprietary AI Model: This is the primary content creator. It's trained on vast datasets of beauty product information, dermatological knowledge, makeup artistry techniques, ingredient science, user reviews, and Nykaa's own expert content (Beauty Book, Nykaa TV).
  • Nykaa's Beauty Experts/Data Scientists: These teams are crucial for training, refining, and overseeing the AI's knowledge base and ensuring accuracy and safety. They act as the "trainers" and "curators" of the AI's content generation capabilities.

Content Distributor:

  • Nykaa App Feature (Dedicated "Beauty Coach" or "My AI Routine"): The primary interface where users interact with the AI and receive generated content.
  • Nykaa Website: Integrated chatbot or interactive tool.
  • Email Marketing: Follow-up emails with summarized routines or product recommendations generated by the AI.
  • Push Notifications: Reminders to follow routines, or alerts about new AI-generated tips relevant to previous interactions.
  • Social Media Marketing: Promoting the AI coach feature through short demos, testimonials, and user-shared results.
    • Word-of-Mouth: Users sharing their positive experiences and personalized routines with friends.

Channels of Distribution:

  • Nykaa App: The central hub for the AI coach, offering a seamless, interactive experience.
  • Nykaa Website: A web-based version of the AI coach for desktop users.
  • Integrated Chat Widgets: Potentially on product pages, allowing users to ask the AI questions about specific items.
  • Email/SMS: For delivering generated routines, follow-ups, and reminders.
  • Social Media (Instagram, YouTube, TikTok): Short video ads or influencer collaborations demonstrating the AI coach's capabilities and user benefits.


Step 2: Decide Which Type of Loop to Build Out (Hook, Content Creator, Distribution Channel for AI-Powered Personalized Beauty Coach Loop):


AI-Powered Personalized Beauty Coach Loop):

Hook: What gets users to engage with the AI Beauty Coach?

  • "Get Your Perfect Routine in 2 Minutes!": Emphasizing speed and personalization.
  • "Confused by Skincare? Ask Our AI Coach!": Directly addressing decision fatigue.
  • "Unlock Your Best Skin/Hair Ever!": Aspirational outcome.
  • "Personalized Ingredient Checker": For users concerned about specific ingredients.
  • "Virtual Consultation, Anytime, Anywhere": Convenience and accessibility.

Content Creator:

  • Nykaa's AI Model, continuously learning and refining its generated content based on user interactions and expert input.

Distribution Channel:

  • Nykaa's owned digital platforms (App, Website), supported by targeted marketing on social media and email.

Step 3: Create a Simple Flow Diagram to Represent the Content Loop

AI loop.png

03: Educational Content Loop (Detailed)

Nykaa's Educational Content Loop focuses on informing, guiding, and empowering its users, positioning Nykaa as a trusted beauty expert rather than just a retail platform. This loop directly impacts customer confidence, product satisfaction, and repeat purchases.

A. Understand Your Audience (Educational Content Loop):

  • Primary Audience:
    • Beauty Beginners: Individuals new to skincare or makeup who need fundamental guidance (e.g., "how to start a skincare routine," "basic makeup for beginners").
    • Problem-Solvers: Users with specific concerns (e.g., "how to treat acne scars," "best products for oily skin," "reducing hair fall").
    • Product Explorers: Those looking for in-depth information about product ingredients, benefits, or comparisons before buying.
    • Existing Customers: Seeking best practices for using products they've purchased or exploring complementary items.
    • DIY Enthusiasts: Looking for home remedies, ingredient explanations, or simplified beauty routines.
  • Audience Needs/Motivations:
    • Knowledge & Clarity: Desire to understand beauty concepts, product functions, and application techniques.
    • Problem Resolution: Seeking practical solutions to their beauty challenges.
    • Trust & Credibility: Relying on expert advice and factual information to make informed decisions.
    • Confidence: Gaining assurance that they are choosing and using products correctly.
    • Efficiency: Finding quick tips, hacks, or streamlined routines.
  • Online Habits & Platforms Frequented:
    • Search Engines (Google, YouTube): Heavily used for "how-to" queries, product comparisons, and problem-solution searches.
    • YouTube: For visual tutorials, demonstrations, and detailed reviews.
    • Blogs/Articles: For in-depth written explanations, ingredient lists, and expert opinions.
    • Social Media (Instagram, Facebook): For quick tips, infographics, short video explainers.
    • Nykaa's own platform: Directly searching within the app/website for guides or product-specific information.


Step 1: Nail Down Content Creator, Content Distributor, and Channel of Distribution (for Educational Content Loop):

Content Creator:

  • Nykaa's In-house Beauty Experts: Dermatologists, cosmetologists, makeup artists, and beauty writers employed by Nykaa. These form the core of expert-driven content.
  • Brand Experts (Collaborations): Experts from partner beauty brands (e.g., L'Oreal, MAC, Minimalist) providing insights on their specific product lines.
  • Beauty Bloggers/Writers (Freelance/Contract): Contributing articles to Nykaa's Beauty Book.
  • Video Producers/Editors: Transforming written content into engaging video formats for Nykaa TV and YouTu

Content Distributor:

  • Users seeking information (primarily via search engines): The largest organic distribution channel.
  • Nykaa's own marketing channels: Directly pushing content to existing and potential customers.
  • SEO Algorithms: Google, Youtube ranking algorithms.
  • Social Media Algorithms: Driving visibility for video snippets or infographics.

Channels of Distribution:

  • Nykaa Beauty Book (Blog): The primary hub for written articles, guides, product comparisons, expert advice, and trend analyses. Optimized heavily for SEO.
  • Nykaa TV (Website & YouTube Channel): A dedicated video content platform featuring tutorials, product demonstrations, skincare routines, expert interviews, and "Ask Me Anything" sessions.
  • Product Pages: Embedding relevant educational videos or links to blog posts directly on product pages to help users understand usage or benefits.
  • Guided Selling Tools: Interactive quizzes like "Foundation Finder," "Routine Finder," "Lipstick Finder" that educate users by guiding them to suitable products.
  • Email Marketing: Newsletters featuring educational articles, "how-to" guides, or expert tips.
  • Push Notifications/In-app Messages: Highlighting relevant educational content based on user Browse history or recent purchases.
  • Social Media (Instagram, Facebook, Pinterest): Sharing bite-sized tips, infographics, carousels, and short video snippets linked to longer educational content.
  • Customer Support: Utilizing educational content resources to answer customer queries.


Step 2: Decide Which Type of Loop to Build Out (Hook, Content Creator, Distribution Channel for Educational Loop):

Hook: What gets users to engage with the educational content?

  • Problem-Solution Query: "How to control oily skin," "Best sunscreen for Indian summers."
  • Curiosity/Knowledge Gap: "What is retinol and how to use it?" "Understanding ingredient lists."
  • Product Maximization: "Getting the most out of your Vitamin C serum," "Advanced makeup techniques."
  • Trend Explanation: "What is 'glass skin' and how to achieve it?"
  • Myth Busting: "Common skincare myths debunked."

Content Creator:

  • Nykaa's in-house experts (dermatologists, makeup artists), beauty writers, and collaborations with brand-specific experts.

Distribution Channel:

  • Predominantly organic search (SEO), Nykaa's owned media (Beauty Book, Nykaa TV, product pages), email, and social media.


Step 3 → Create a simple flow diagram to represent the content loop.


ChatGPT Image May 30, 2025, 02_35_20 AM.png


















Detailing Paid Advertising


Define the CAC : LTV Ratio

Before scaling paid advertising, it’s important to evaluate if the cost to acquire a customer (CAC) is justified by the revenue that customer brings in over time (LTV). A strong CAC : LTV ratio ensures long-term sustainability and profitability of paid acquisition.


Estimated Values for Nykaa:

Metric

Value

Notes

Average Order Value (AOV)

₹2,000

as per publicly available benchmarks

Average Orders per Year

4

High frequency category (beauty/skincare)

Customer Lifetime

3 years

Loyal users tend to stay for multiple seasons

Gross Margin

35%

After accounting for product costs, warehousing, logistics, etc.


LTV Calculation:

LTV=₹2,000×4orders/year×3years×35%margin

=₹24,000×35%

=₹8,400


CAC Estimate:

CAC (Paid Ads)=₹600


CAC : LTV Ratio:

CAC : LTV=₹600/₹8,400=1:14

A CAC : LTV ratio of 1:3 or better is considered strong. Nykaa’s estimated ratio of 1:14 indicates an extremely healthy return on investment for paid customer acquisition.


Conclusion:

With a CAC : LTV ratio of 1:14, Nykaa is in a strong position to scale paid advertising. The model supports aggressive experimentation and long-term scaling across channels like Meta Ads, Google Ads, YouTube Shorts, and regional campaigns , especially if targeting is aligned with high-LTV customer cohorts.

Selected ICP: Power User ( Rhea Saxena)


Attribute

Description

Name

Rhea Saxena

Age

22-35

Location

Tier 1 cities (Mumbai, Delhi, Bangalore)

Income Range

₹6L–₹15L annually

Profession

Working professional (corporate, creative, tech, etc.)

Platforms Used

Instagram, YouTube, Google Search

Value to Nykaa

High AOV + High repeat potential = Strong LTV

Behavior

Shops beauty monthly

Watches GRWM/influencer videos

Engages with beauty tips on Instagram & YouTube

Comfortable transacting online

Willing to try new products if well-reviewed

Pain Points

Confused by ingredient-heavy beauty jargon

Wants to look good but lacks time

Overwhelmed by too many product choices

Motivators

Aspiration (wants a glow-up!)

Convenience

Why This ICP is Ideal for Paid Ads:

  • High-intent and active on ad-friendly platforms
  • Responds well to visual content + influencer endorsements
  • Can be reached via precision targeting (Meta/Google ads by age, interest, location)
  • More likely to convert quickly, making ROAS tracking efficient


Selecting Paid Advertising Channels for Nykaa

To build a scalable paid acquisition strategy for Nykaa, I had to identify which advertising platforms would allow me to effectively reach and convert our core ICP - urban millennial beauty shoppers who are digital-savvy, spend time on social platforms, and regularly engage with beauty content.

I evaluated multiple advertising channels across three key criteria:

  • Where the ICP actively spends time online
  • How visually expressive the platform is (since beauty is a visual category)
  • How precisely we can target specific interests and behaviors

Based on this analysis, here are the platforms I shortlisted:


🎯 1. Instagram AdsHigh visual appeal + platform affinity

Instagram is one of the most natural choices for Nykaa because it’s already where our target users consume beauty content whether it’s product reviews, GRWM (get ready with me) reels, or influencer collabs. The visual-first nature of the platform makes it ideal for showcasing product aesthetics, swatches, and quick beauty transformations. It also allows advanced targeting and retargeting based on behavior and engagement.

Format Ideas:

  • Story ads for limited-time offers
  • Reels for influencer UGC
  • Carousel ads to showcase new collections

🎯 2. YouTube AdsLeverages long-form education + haul culture

YouTube is where beauty meets education. Our audience watches detailed reviews, tutorials, hauls, and skincare routines. Paid placements before relevant videos especially those already linked to Nykaa or its categories can deliver high intent visibility. What’s more, YouTube supports shoppable links and product integration in influencer partnerships, creating a direct funnel from awareness to conversion.

Format Ideas:

  • Skippable in-stream ads before GRWM content
  • Mid-roll ads in tutorials
  • Product placement in influencer content

🎯 3. Google Search AdsCaptures bottom-of-funnel, high intent traffic

When someone searches for “best serum for dry skin” or “Nykaa lipstick review,” they’re already showing intent. Google Search ads help us show up exactly when the user is looking for a solution we offer. This channel is important to close the loop and convert demand that has already been generated through other channels or word-of-mouth.

Format Ideas:

  • Product-based keywords targeting skincare, haircare, and makeup terms
  • Brand-specific searches
  • Dynamic ads for top-converting SKUs

🎯 4. Meta Retargeting (Instagram + Facebook)Bringing users back

Retargeting is critical for converting users who’ve dropped off , be it from cart, product pages, or even just homepage visits. By segmenting these audiences and showing them dynamic product ads (with price, discounts, etc.), we can lower CAC and improve ROI. These ads are especially powerful in the festive or sale season.


Conclusion:

This channel mix allows Nykaa to:

  • Tell its story on high-attention visual platforms
  • Capture users at various stages of the purchase journey
  • Build recall and drive conversions through retargeting

By balancing awareness (Instagram, YouTube) and intent (Search, Retargeting), Nykaa can optimise for both scale and ROI.


Paid Channel Strategy Table

🟩 🔍 Scoped in Detail: These two channels have been explored in-depth as part of the paid media strategy.

Objective

Platform

Messaging Strategy

Call to Action

Drive Awareness for New Product Launches 🔍 i

Instagram Reels, YouTube In-Stream Ads

Visually rich product shots, benefits in first 3 seconds, influencer transformation content

Shop Now on Nykaa

Educate & Build Trust in Skincare 🔍 i

YouTube Long-form, Instagram Carousels

Explain AM/PM routines, ingredient breakdowns, dermatologist/influencer-backed insights

Explore Skin Guide

/

Try Your Routine

Retarget Abandoned Carts

Meta (Instagram/Facebook), Google Display Network

Show product left in cart, urgency-based offers, dynamic creatives with similar items

Complete Your Purchase

Promote Flash Sales & Seasonal Campaigns

Instagram Stories, YouTube Bumper Ads, Google Search

Time-limited deals, geo-targeted creatives, festive visual elements

Tap to Unlock Offer

Drive First-Time Purchases

Google Search Ads, Instagram Reels

Starter kits, beginner combos, first-time discounts, shipping offers

Start Your Nykaa Journey

Define Creative Strategy for the two selected paid ad channels:

  1. Meta Ads (Instagram/Facebook)
  2. YouTube Ads (with a FilterCopy collaboration)


We’ll walk through each of the three substeps:

  • Write a compelling Marketing Pitch
  • Tweak the pitch for each ICP
  • Scope ideas for ad creatives

Campaign 1: YouTube Ad - FilterCopy Collaboration

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  • Core Idea: Seamlessly integrate Nykaa makeup into a relatable FilterCopy sketch ("Falling in love at your Best friend's wedding") to show how products build confidence for special occasions.
  • Why FilterCopy: Chosen for its proven ability to create highly relatable content that resonates with Nykaa's ICP, allowing for authentic product integration within a popular entertainment format, making the ad feel natural, not forced.
  • Marketing Pitch: "Feel confident for every wedding moment. Our FilterCopy sketch shows how Nykaa helps you find your perfect look for anything, from sangeet dances to unexpected sparks."
  • Ad Creative:
    • Integration: Protagonist (Priya) naturally uses Nykaa-sourced makeup throughout the sketch for different wedding looks. Subtly highlights ease of finding specific products on Nykaa.
    • CTA: In-video mentions like "My wedding looks, sorted by Nykaa!" + prominent end screen with Nykaa.com/WeddingLooks and product links in description.Description Box: Direct links to curated Nykaa product lists featured in the sketch.
    • Description Box: Direct links to curated Nykaa product lists featured in the sketch.

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🎯 Customized Messaging for Paid Ads – Nykaa Style


Core Message: Nykaa helps you achieve confidence and the perfect look for every wedding moment.


Audience Type

Focus Area

Messaging

Beauty Enthusiast

Trend-aware, achieving specific looks

“Beyond trends, curate your ultimate wedding season glam. Discover the exact shades and formulas that make every look pop, effortlessly.”

#NykaaWeddingEdit

Budget Shopper

Value, affordability

“Master every wedding look without overspending! Find smart, affordable beauty buys on Nykaa that let you glow at every function.”

#NykaaSmartBuys

Trend Follower / Social Butterfly

Latest styles, statement looks

“Spot the hottest wedding guest looks everyone’s talking about! Get inspired by our new sketch & snag all the must-have products to shine.”

#WeddingVibes #GetTheLook

Convenience Seeker

Time-saving, complete solutions

“No time to stress over wedding looks? Find all your perfect outfits & makeup essentials for every function in one click on Nykaa. Done & gorgeous!”

Campaign 2: Instagram Ad - Influencer: #5minsnykaachallenge


influencer.png

  • Core Idea: Launch an interactive challenge with Sunayana Fozdar demonstrating Lakme Sun Expert Compact's quick blendability, driving UGC and product trials.
  • Marketing Pitch: "No more sticky sunscreen! Sunayana Fozdar shows Lakmé Sun Expert Compact blends perfectly in just 5 seconds. Join the #5SecLakmeChallenge & win cash!"
  • Ad Creative:
    • Influencer Demo: Sunayana humorously shows sunscreen struggles, then quickly applies Lakme compact with an on-screen "5-second" timer, highlighting its matte, no-white-cast finish.
    • Challenge CTA: Direct call to action: "Record your #5SecLakmeChallenge, tag @mynykaa & @lakmeindia. Winner gets ₹50,000! Shop on Nykaa!"
    • UGC Amplification: Subsequent ads can feature compilations of user submissions from the challenge, further amplifying reach and social proof.


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🎯 Customized Messaging for Paid Ads – Nykaa Style

Theme: "5 Seconds with the Lakmé Sun Dry Fluid Challenge"
Core Message: Lakmé Sun Expert Compact offers quick, effective, no-fuss sun protection.


Audience Type

Focus Area

Messaging

Beauty Enthusiast

Innovation, flawless finish

“Revolutionize your routine! The Lakmé Sun Expert Compact blends to perfection in just 5 seconds, no fuss, pure finish.”

#5SecLakmeChallenge

Budget Shopper

Practicality, value

“Quick sun protection that won't cost a fortune! See how the Lakmé Sun Expert Compact vanishes in 5 seconds. Take the challenge and win ₹50,000!”

#5SecLakmeChallenge

Trend Follower / Social Butterfly

Viral potential, participation

“This 5-second challenge is blowing up! Join @SunayanaFozdar & show off your flawless Lakmé Sun Expert blend. Hop on the trend and win big!”

#ViralBeauty

Convenience Seeker

Speed, efficiency

“No time for sticky sunscreens? Get instant, invisible protection in just 5 seconds with Lakmé Sun Expert Compact. The ultimate quick-fix for busy days!”

And there you have it! Nykaa's paid marketing transcends mere ads, orchestrating digital experiences from heartfelt YouTube stories to viral Instagram challenges.
We seamlessly charm our audience, turning every scroll into a step towards their next beauty obsession.






































Detailing Product integrations


Detailing Referral / Partner program

Nykaa App: High-Impact Referral Program
Program Name: My Beauty Circle

This referral engine aims to transform satisfied customers into long-term growth partners by creating a system that rewards advocacy, fosters community, and delights both existing and new users. We go beyond simple discounts to design a rewarding and personalized beauty experience.


🌟 1. Identify Customer Touchpoints ("Aha" Moments)

Pinpoint when users are most likely to feel positively toward Nykaa. These moments of delight are ideal for introducing a referral nudge:

ScenarioDescription

Post-Results

After achieving visible benefits like clear skin, improved hair texture, etc. from Nykaa products.

Seamless Delivery

When users experience smooth order delivery, premium packaging, and product authenticity.

Rare Discovery

When users find niche or hard-to-source beauty items, reinforcing Nykaa's wide assortment value.

AI Routine Milestone (Future)

After following an AI-generated routine and seeing results over a few weeks.


💡 2. Define the "Brag-Worthy" Element

Highlight aspects of Nykaa that are genuinely worth showing off. These become reasons to share, not just incentives:

Brag Factor

Sample User Sentiment

Authenticity Guarantee

"I only shop Nykaa because I know it’s 100% genuine."

Unrivaled Selection

"Nykaa literally has everything I need in one place."

Effortless Experience

"Shopping on their app is SO easy. I got my lipstick in one day!"

Personalized Guidance

"The AI recommended a serum that actually worked for me!"

Exclusive Access

"I got to try new international brands before anyone else."


🏦 3. Define Your Platform Currency (Motivation for Referrals)

A multi-layered incentive design helps sustain long-term referral behavior.

Referrer Rewards:

  • Tiered Credits: ₹150 for the 1st referral, ₹250 for the 3rd, ₹400 for the 5th.
  • Badges & Status: Unlock designations like Beauty Enthusiast, Glow Giver, Top Referrer.
  • Early Access: Get early entry to Pink Friday Sales, exclusive launches.
  • Experience Rewards: Free access to virtual workshops, influencer sessions.

Referee Rewards:

  • ₹250 OFF their first purchase (≥ ₹1000)
  • Welcome Kit: Mini sample set of Nykaa top-sellers


🤝 4. Who to Ask for a Referral

Use behavioral data to identify high-probability referrers.

Trigger Moment

Referral Prompt Placement

Post 5-star Review

Show a referral popup: “Share the glow!”

Loyal Users (Nykaa Prive)

Integrate referral banners inside their loyalty dashboard

AI Coach Users

After 14-day or 30-day routine milestone completion

Engaged Browsers

If a user has 10+ wishlisted items or multiple app visits in a week


🌐 5. Referral Discovery (Make it Easy to Find!)

Discovery Method

Example

Menu Placement

“My Beauty Circle” in main menu/account dashboard

Push Notification

“Loved your last haul? Invite your friends to glow too!”

Order Success Page

“Get ₹250 for sharing Nykaa with your friends!”

Post-Review Popup

After positive product feedback

Email + SMS Campaigns

To Prive users and high AOV shoppers


📣 6. Referral Sharing & Communication

Craft a shareable moment:

  • Unique Code/Link auto-generated in-app.
  • Sharing Channels:
    • 1-click WhatsApp sharing with image
    • Instagram Story integration with branded templates
    • Email and SMS copy with emojis, urgency, benefits

Sample Message Template:

“Hey! I just saved ₹250 on Nykaa. Use my link to get ₹250 OFF your first order too – they’ve got all your fav beauty brands! nykaa.com/invite/[code]”


🔹 7. Referral Tracking (In-App Transparency)

Give referrers visibility into their impact.

Element

Functionality

Dashboard

Track invites, conversions, rewards, status per friend

Progress Bar

“You're 1 referral away from unlocking your free mini kit!”

Real-time Alerts

“Your friend Aarti just placed her first order – ₹250 has been added to your wallet!”


🔎 8. Referral Landing Page for Non-Users

Make the invite warm, rewarding, and trust-building.

Element

Detail

Greeting

“Your friend [Name] invited you to Nykaa!”

Offer Highlight

“Claim ₹250 OFF + Free Welcome Kit on your first order”

Visual Credibility

UGC photos, star ratings, trending brands

Quick CTA

“Start Your Beauty Journey” button

Trust Signals

“100% genuine products”, “India’s #1 beauty destination”, app store ratings


🏆 9. Encourage Continuous Referrals

Keep users referring over time:

Feature

Description

Tiered System

Higher rewards and exclusive unlocks with every milestone

Gamification

In-app leaderboards, badges, top referrer of the month recognition

Referral Streaks

Refer 3 in a month? Bonus ₹500 credit!

Personal Nudges

“Only 1 referral away from your next badge” or “You’ve earned ₹1,100 so far – keep glowing!”



referral.png

This marks the end of our customer acquisition project - carefully blended, beautifully bold, and totally Nykaa-worthy.
Because at Nykaa, even strategies have a flawless finish. 💄























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