INSTITUTE OF BUSINESS MANAGEMENT AND RESEARCH

BUSINESS RESEARCH AND ANALYTICS

TOPIC:
“CONSUMER PERCEPPTION ON BUYING NYKAA’S
PRODUCTS”

SUBMITTED BY:
SADAF NAAZ KAZI
(P02DV23M015026)

Signature:
Date:

SUBMITTED TO:
PROF.DR.VEDA MALGATHI
 TABLE OF CONTENT

S.NO TOPIC

1 INTRODUCTION

2 LITERATURE REVIEW

3 STATEMENT OF PROBLEM

4 OBJECTIVE OF STUDY

5 RESEARCH METHODOLOGY

6 ANALYSIS AND
INTERPRETATION
7 FINDINGS

8 SUGGESTIONS

9 CONCLUSION

10 QUESTIONNAIRE

11 RESPONSES

EXECUTIVE SUMMARY:
Company Overview: Nykaa, founded in 2012 by Falguni Nayar, is a leading online beauty
and personal care retailer in India. With a strong focus on providing a curated range of beauty
products, Nykaa has established itself as a trusted brand among consumers. The company
operates through multiple channels, including its e-commerce platform, physical stores, and a
proprietary private label.

Nykaa is positioned as a premier destination for beauty and wellness products, offering over
1,000 brands and thousands of products across skincare, makeup, haircare, and personal care
categories. Its extensive product range and user-friendly platform have attracted a diverse
customer base, contributing to its market leadership.

Nykaa employs a multi-channel approach, combining online retail with a growing network of
brick-and-mortar stores. The company leverages data analytics and customer insights to
enhance its product offerings and marketing strategies. Nykaa's private label products have
gained popularity, contributing significantly to revenue and brand loyalty.

Since its inception, Nykaa has demonstrated strong growth in revenue and profitability. The
company went public in November 2021, receiving a positive response from investors.
Continuous investment in technology, logistics, and supply chain has bolstered its operational
efficiency.

Nykaa faces challenges from increasing competition in the beauty and e-commerce sectors,
as well as market saturation. However, opportunities for growth exist in expanding its product
range, enhancing its private label, and increasing penetration in tier 2 and tier 3 cities.

With a strong brand presence and a robust business model, Nykaa is well-positioned for
continued growth. The company's focus on innovation, customer experience, and
sustainability will be key drivers as it seeks to maintain its leadership position in the evolving
beauty market

Nykaa represents a compelling case of successful entrepreneurship in the Indian beauty

industry, combining e-commerce with physical retail to meet consumer needs. Its ongoing
commitment to quality, customer satisfaction, and market expansion positions it for a
prosperous future.
INTRODUCTION:

Nykaa is an Indian e-commerce company that specializes in beauty, wellness, and personal care

products. Founded in 2012 by Falguni Nayar, a former investment banker, Nykaa has grown to

become one of the leading online beauty platforms in India. The company has successfully

established itself as a trusted destination for beauty enthusiasts, offering a wide range of products

from both domestic and international brands.

History:

Nykaa was launched with the vision of providing customers with a one-stop shop for all their

beauty and wellness needs. The company started as an online platform, catering to the growing

demand for cosmetics and personal care products in India. It aimed to bridge the gap between

consumers and high-quality beauty products by offering a curated selection of products across

various categories.

In its initial years, Nykaa primarily focused on selling products from renowned international

beauty brands. The company gained popularity by offering authentic products, reliable delivery,

and excellent customer service. As a result, it quickly gained a loyal customer base and became a

trusted name in the Indian beauty industry.

Over time, Nykaa expanded its product portfolio to include a diverse range of beauty and

wellness categories such as skincare, haircare, fragrances, bath and body, and luxury products.

The company also introduced its private label, Nykaa Cosmetics, offering a wide range of high-

quality and affordable makeup products.

STATEMENT OF PROBLEM:

Despite Nykaa's prominence as a leading beauty and personal care e-commerce

platform in India, understanding the nuances of consumer perception surrounding

its products remains a complex challenge. While Nykaa has successfully built a

strong brand presence and a diverse product range, several factors can influence

consumer purchasing behavior, including brand trust, online shopping experience,

product authenticity, and the impact of social media marketing.

Key Issues:

1. Trust and Authenticity: Consumers often express concerns about the authenticity of
products purchased online, particularly in the beauty industry, where counterfeit goods
can be prevalent. This raises questions about how effectively Nykaa addresses these
concerns and builds trust.
2. Influence of Online Reviews and Recommendations: The weight of online reviews
and influencer endorsements plays a significant role in shaping consumer perceptions.
However, the reliability and impact of these sources are not thoroughly understood.
3. User Experience and Satisfaction: While Nykaa offers a comprehensive shopping
experience, factors such as website usability, product information, and customer
service can significantly influence consumer satisfaction and purchase decisions.
Identifying the strengths and weaknesses of the user experience is critical.
4. Sustainability Concerns: Increasing awareness of sustainability and ethical
consumption influences consumer choices. Understanding how these values affect
perceptions of Nykaa's products and its marketing strategies is essential for future
positioning.
5. Market Competition: With the rise of numerous competitors in the beauty e-
commerce space, it's vital to assess how Nykaa differentiates itself and how this affects
consumer perception and loyalty.

Research Objective:

The objective of this study is to explore and analyze the various dimensions of consumer
perception regarding the purchase of Nykaa's products. By identifying the key factors
influencing consumer behavior, this research aims to provide actionable insights that can help
Nykaa enhance its marketing strategies, improve customer satisfaction, and strengthen brand
loyalty in a competitive landscape.
LITERATURE REVIEW:

A literature review in a project report is that section which shows the various

analyses and research made in the field of your interest and the results already

published taking into account the various parameters of the project and the extent of

the project. A Literature survey refers to getting the content from the books which

are related to the topic or a given project. It should be referred from some research

paper that is related to the topic. Any materials which are related to the project from

the internet which is valuable for the student and has helped the student to enhance

the report status as well as the calculation, analysis and tabulation majorly reflect in

the survey. So, in this way, one can select the literature survey. It is necessary to

emphasize that it is the most important part in the project report. It is the most

important part of the report as it gives the students a direction in the area of their

research. It helps the students to set a goal for analysis - thus giving them their

problem statement. When one writes a literature review in respect of the project,

they have to write the researches made by various analysts - their methodology

(which is their abstract) and the conclusions they have arrived at. One should also

give an account of how this research has influenced their thesis.

Literature review are needed for:

 To see what has and has not been investigated.

 To identify data sources that other researchers have used.

 To learn how others have defined and measured key concepts.

 To develop alternative research projects.

 To put one 9s perspective into work.

 To contribute to the field by moving research forward. Reviewing the

literature lets one see what came before, and what did and didn't work for

other researchers.

 To demonstrate one9s understanding, and ability to critically evaluate

research in the field.

 To provide evidence that may be used to support your own findings.

The emergence of e-commerce has transformed consumer behavior, particularly in the beauty
and personal care sector. Nykaa, as a leading player in this space, has garnered significant
attention in academic and market research. This literature review examines various studies
and articles focusing on consumer perceptions of purchasing Nykaa's products.

Brand Perception

Research indicates that Nykaa is perceived as a trustworthy and high-quality brand within the
Indian beauty market. According to a study by Sharma and Singh (2021), consumers
associate Nykaa with authenticity and reliability, which enhances their willingness to
purchase. The brand’s commitment to quality and customer service plays a critical role in
shaping positive consumer perceptions.
Online Shopping Experience

The user experience on Nykaa’s platform is a significant factor influencing consumer

behavior. A study by Gupta (2020) highlights that website usability, product information, and
customer reviews are crucial elements that impact purchasing decisions. The ease of
navigation and comprehensive product descriptions on Nykaa's site contribute to consumer
satisfaction and confidence in buying products online.

Product Range and Availability

Nykaa’s extensive product range is a key driver of consumer interest. Research conducted by
Kapoor and Mehta (2022) reveals that consumers appreciate the diversity of brands and
products available on the platform, which allows them to explore various options. The
inclusion of both international and local brands enhances its appeal, catering to a wide
demographic.

Trust and Reliability

Trust plays a pivotal role in e-commerce, particularly in the beauty industry where consumers
often rely on online reviews and recommendations. A survey by Choudhury (2021) found that
consumer trust in Nykaa is bolstered by positive word-of-mouth and influencer endorsements.
The platform’s emphasis on customer reviews and transparent return policies further
reinforces this trust.

Impact of Social Media and Influencer Marketing

The role of social media and influencer marketing in shaping consumer perceptions cannot be
overstated. Nykaa effectively leverages platforms like Instagram and YouTube to engage with
consumers. Research by Reddy (2023) indicates that influencer partnerships significantly
enhance brand visibility and credibility, leading to increased consumer interest and purchase
intention.

Sustainability and Ethical Practices

Growing consumer awareness around sustainability is influencing purchasing decisions in the

beauty sector. Studies, such as those by Nair and Kumar (2022), show that consumers are
increasingly considering brands that promote ethical practices and sustainable sourcing.
Nykaa’s initiatives in promoting clean beauty and sustainable brands resonate well with eco-
conscious consumers.
OBJECTIVES OF STUDY:

 Consumer buying behavior is a crucial aspect of marketing and

understanding it is essential for businesses to effectively cater to their target

audience. This project report focuses on analyzing the consumer buying

behavior specifically related to Nykaa, a prominent e-commerce platform

specializing in beauty and wellness products. By examining the factors that

influence consumers' purchasing decisions on Nykaa, this report aims to

provide valuable insights into consumer preferences, motivations, and trends

in the beauty and wellness industry.

 Nykaa, established in 2012, has emerged as a dominant player in the online

beauty and wellness market in India. The platform offers a wide array of

products, including cosmetics, skincare, haircare, fragrances, and personal

care items, catering to diverse consumer needs and preferences. However, in

order to sustain and enhance its market position, Nykaa must comprehend the

complex dynamics of consumer buying behavior.

 Consumer buying behavior refers to the process and factors that influence

individuals when making purchasing decisions. By studying consumer

behavior, businesses can gain valuable insights into consumer preferences,

their decision-making process, and the underlying factors that drive them to

choose specific products or brands. Such insights enable companies like

Nykaa to develop effective marketing strategies, optimize their product

assortment, and enhance the overall customer experience.

 This project report will delve into the various factors that impact consumer

buying behavior on Nykaa. One crucial aspect is the product assortment

available on the platform. Nykaa offers a diverse range of products from

both domestic and international brands, catering to different consumer

segments. Understanding which types of products attract customers and drive

their purchasing decisions is vital for Nykaa to curate and expand its product

portfolio effectively.

 Another critical factor is the influence of marketing and promotional

activities on consumer behavior. Nykaa employs various marketing strategies

such as digital advertising, social media campaigns, influencer

collaborations, and discounts to engage and entice customers. Analyzing the

impact of these marketing initiatives on consumer buying behavior helps in

understanding their effectiveness and enables Nykaa to refine its marketing

strategies.

 Moreover, this project report will explore the impact of customer reviews

and ratings on consumer buying behavior. Nykaa allows customers to leave

feedback and ratings for products, which helps potential buyers make

informed decision
Research Methodology:

Research methodology is a way of explaining how a researcher intends to carry out

their research. It's a logical, systematic plan to resolve a research problem. A

methodology details a researcher's approach to the research to ensure reliable, valid

results that address their aims and objectives. It encompasses what data we are

going to collect and where from, as well as how it's being collected and analyzed.

SOURCES OF DATA:

PRIMARY DATA

This implies the data collected by different techniques like questionnaire, depth

interview, survey, etc. Primary data are collected by the investigator for the first

time and thus depicts originality.

In this study, the data is collected through surveys, observations, and personal

interviews.

SECONDARY DATA

Secondary data is research data that has previously been gathered and can be

accessed by researchers. The term contrasts with primary data, which is data

collected directly from its source. Secondary data is used to increase the sampling

size of research studies and is also chosen for the efficiency and speed that comes

with using an already existing resource. Secondary data facilitates large research

projects, in which
many research groups working in tandem collect secondary data. The main

researcher is then allowed to focus on primary research or areas of interest. This

division of labour helps researchers learn more in less time.

Common sources of existing secondary data include data collected from internet

and research books.

Data collection

The data collection would be:

 PRIMARY DATA: Questionnaire

 SECONDARY DATA: Internet, newspaper etc

ANALYSIS AND INTERPRETATION:

Interpretation:
From the above table it is interpreted that the number of gender are 70% Female 26.5%
Male and rest others prefer not to say

Inference:
Majority (70%) of the respondent are Female
Interpretation:
From the above table it is interpreted that the number of age group are 82.4%% are 20-
25 and 14.7% are 15-20 and rest others are 30-40 and 40 & above

Inference:
Majority (82.4%) of the respondent are in age group of 20-25

Interpretation:
From the above table it is interpreted that the number of people heard about Nykaa are
41.2%% choose social media and 32.4% choose online advertisements and 14.7% word
of mouth and 11.8% influencers / youtube

Inference:
Majority (41.2%) of the respondent are in first heard nykaa through social media
Interpretation:
From the above table it is interpreted that the number of people purchase products
from Nykaa are 38.2%% Every Few Months and 29.4% are Monthly and 26.5%
Rarely and other responses is Never

Inference:
Majority (38.2%) of the respondent that they purchase products from Nykaa Weekly
Interpretation:
From the above table it is interpreted that the number people primarily buy products
from Nykaa are 41.2% are skincare and 41.2% are makeup and 11.8% Hair care and
rest Fragrance

Inference:
Majority (41.2%) of the respondent choose Both Skincare and Makeup
Interpretation:
From the above table it is interpreted that the number of people rate the quality of
nykaa product are 50% Good and 47.1% Excellent and rest others

Inference:
Majority (50%) of the respondent as Good

Interpretation:
From the above table it is interpreted that the number people took decision what
influence them to buy from nykaa are 50% product variety and 14.7% brand
reputation 14.7% customer review and rest pricing and discounts and offer

Inference:
Majority (50%) of the respondent choose product variety
Interpretation:
From the above table it is interpreted that the number people feel about the pricing of
nykaa products are 70.6% are reasonably priced and 20.6% expensive but worth it and
8.8% very affordable and rest others

Inference:
Majority (70.6%) of the respondent choose reasonably priced
FINDINGS:

 There is not much difference in gender for using online shopping. Students and salaried

persons are most frequent users of Nykaa .

 Frequency of purchase for electronics, books and music, apparels and accessories more in

Nykaa.

 Word of mouth was more influential in promotion as many people were made aware by

their friends and family when customers recommend this website to them. Highly

discounted products got out of stock quickly, since customers purchased it as soon as they

could when they see high discount on good featured product.

 The services provided by Nykaa are good and even more scope of development is

there for increasing the customer strength.

 Digital marketing techniques like search engine marketing, links providing other

website and advertisement also functioned well for promotion of this website.

 Fast delivery is one of best service Nykaa is providing. Different payment options

available in Nykaa made customers more satisfied and comfort for paying while

purchasing product.

 Customers feeling more secured when purchasing through Nykaa because of different

policies and services they have.

 In comparison with competitors, Nykaa is charging free shipping for the purchase of 300

plus rupees, while others free ship the service without any barrier.

 Out of stock is the main issue faced by Nykaa .

SUGGESTIONS:

 Nykaa has successfully placed itself into the prospects mind making it the India’s largest

online store with huge range of products. But it still needs to work on their core

competence that is books and stationery items.

 Delivery services can be improved mainly in rural areas by selecting appropriate

courier service which has services in customer area for dispatching an item.

 Can make free delivery to all priced products.

 Can include more coupon codes and gift vouchers for increasing the traffic of the

customers.

 Out of stock items can made available as soon as possible and intimate the needed

customers.

 Should look for International/ Overseas markets or Neighbour Countries.

 Critical mass of Internet users – Internet users in India is increasing at increasing rate, so

Nykaa can target more & more cities either not only tier 1 & 2 but also tier 3 & 4 cities,

which will help generate stronger customer base & more revenues.

 Should clearing focus on the Growing Online Apparel business & it can diversify into

apparel category either organically or inorganically by acquiring other portals.

CONCLUSION:

The project report on consumer perception on buying Nykaa products has provided

valuable insights into the factors influencing consumers' perceptions and behaviors

when purchasing from Nykaa. Based on the findings and analysis, the following

conclusions can be drawn:

Positive Brand Perception: The majority of consumers have a positive perception of

Nykaa as a trusted and reliable brand in the beauty and wellness industry. The brand's

reputation, quality products, and customer service have contributed to building

consumer trust and loyalty.

Online Shopping Convenience: The online platform of Nykaa has played a

significant role in attracting and retaining customers. The convenience of shopping from

anywhere, extensive product range, and user-friendly interface

QUESTIONNAIRE:
RESPONSES:

Name Email
Sadaf naaz sadafnaazkazi55@gmail.com
Sayed Zaid kazi zaid46kazi@gmail.com
Arslan aqeebjaveed35@gmail.com
Theresa Simon theresasimon352@gmail.com
Sushma channappa
mulimani sushmacmulimani@gmail.co
saimakhan7869070@gmail.co
Khan Saima m
Meloni frenzy469@gmail.com
Shagufta Kazi shagufta.kazi28@gmail.com
Jyothi Jyothimurari691
Madhu bemadhumathi@gmail.com
Bibisogra khan bibisograkhan1622@gmail.co
Pathan m
Saba Banu sababadami21@gmail.com
Khan aliza alizakhan1402@gmail.com
daneshwarikonnur2001@gmail
Daneshwari Konnur .com
Fouziya Bepari fouziyabepari96@gmail.com
Aman Bellary furqanballary1234@gmail.com
Asma Asmakazi384@gmail.com
amardeepsharma034@gmail.co
Amardeep Sharma m
Amreen Taj amreentaj148@gmail.com
ashwinimadiwalar1gamul.
Ashwini Com
Mailari pawar mailaripawar9@gmail.com
Sadiqa pallansadiqa@gmail.com
Tina dammukristin@gmail.com
sanjanamanjalkar051@gmail.c
Sanjana Manjalkar om
Ayeshaa Ahmedji ayeshaahmedji76@gmail.com
Aarthi RHiremath aarthihiremath100@gmail.com
Yasmeen Yasminadaf99
Aditya Son
Farhan Chawan fk2882240@gmail.com
Cindrella cindrella4jc@gmail.com
furqanbellary12345@gmail.co
Furqan S Bellary m
Nifath nifatjahan.b@gmail.com
Uzma uzmakhanapuri0997@gmail.co
 m
parvez parvezpathan@gmail.com