You can expect the transitions with technology and makeup! Yes, well technology, on one hand, makes you know your heartbeat rate with a smartwatch, the beauty product like mascara on other hand makes your lashes go longer by 2 times! And what happens when these two things combine together? Well obviously, the magic happens.
A living example of this is the Nykaa app that has been a successful revenue-generating cosmetic app that is now expanding its business physically and virtually due to worldwide acceptance. In this blog, we will learn about the backstory of the Nykaa app and why considering cosmetic ap development is profitable.
Nykaa App has a story like a fairytale that started from nowhere and today has a big networth of 1.2 Billion US dollars! The image below is the descriptive overlay of the total Nykaa App functionality and business Spread to date.
Let us throw light on each aspect of the Nykaa’s journey as follows
The app was found by Ex-chairman of Kotak Mahindra Mrs.Falguni Nayar back in 2012. She along with some investors started the app and launched this cosmetic app for the public. In this, she used to sell beauty products of different brands under one platform just like it happens in Myntra.
After the successful launch and increasing userbase, the company took one step forward by building their own cosmetic products under the Nykaa app brand and launching them for users. This was a huge step that made Nykaa the big brand in the cosmetic industry. And after that company never looked back. It launched its retail stores, paired up with big brands, and did heavy advertisements. Recently in 2020, the company has launched its soft lingerie brand Nykd.
2. Business Model
The Nykaa App was not built as a brand overnight. It took many small steps and collaborations to reach this step. The app started expanding its business activities through mediums as follows-
To work as a mediator between the users and different beauty cosmetic brands under one platform.
Launching own products under name of the Cosmetic App ad sell directly over the app.
Being the first medium to bring High-End beauty products like Huda Beauty, Charlotte Tilbury, MAC, etc. This attracted the beauty product users and made the impression of the app as a premium On demand Cosmetic App.
Going into the retail sector the Cosmetic App launched its products under Nykaa in small booths or shops to reach customers who shop physically. This helped the app to gain both virtual and physical shoppers for Nykaa
3. Revenue Model
Nykaa app today is one of the highest-earning Cosmetic apps worldwide. The revenue model of the company is very simple yet strategic. Here are the two main channels of earning from the app.
The app charges some part as a commission of the total sales done for a particular brand as their fee of listing the product on the platform. This is a prominent part of earnings for the app.
The revenue comes from the products that are made by Nykaa App only. There is no commission but wholesome sales profit that goes into the bag.
Instagram and social media platforms have influenced everyone so majorly that people are more conscious about their lifestyle and living. And that also covers grooming. Cosmetic App like Nykaa provides a wide range of cosmetic products at every price that helps users to achieve looks and showcase the lifestyle with their makeup and grooming routines.
These apps are accessible to everyone and in the era where people like to even gift flowers online, there is no wonder why people won’t like to have multiple options for beauty products that are in their budget range and they still do not have to step out.
Now we have learned about the success and functional model of the Nykaa app. Let us talk about the features that it provides so that you can include alike features in your cosmetic app. Here is the list of the features.
1. Easy Login
The app should be able to onboard the people over the app. Be it the user or the vendor. Both of them should be able to log in to the app and use it easily.
For the vendor panel, the app should have proper listing and pricing options with commission models so that using the app becomes easy.
2. Search and Filter
The user should have the option to apply filters like price range, brand preference, colors, or the category of beauty product to use. Also, they should have a search tab on the above of the app so that users can directly jump to the product which they are particularly looking for. This saves time for users and provides them convenience.
3. Similar Result Appearance
The logistics and the AI of your app should be smart enough that it is able to pop the related results below the searched product. This increases more chances of buying and user gets more options to compare.
4. Easy Payments
The online cosmetic app will only be successful if it is able to accept payments online and offline. Your app should integrate standard payment gateways so that users are able to proceed with checkouts without much of a hassle. Because impulsive buying in beauty products happens a lot. And your slow payment procedure may impact your sales.
People become skeptical about online shopping because they have not seen and used the product physically. So try to win trust of your user by providing real images and providing them the option to submit feedback and ratings. As genuine ratings will gain you genuine buyers.
6. Order Tracking
Your app should have a timeline display that shows the user the expected time of arrival of the product. It should display when the product was dispatched, the days in transit, and which day the product will be delivered to the user. This keeps the user updated with their order and they do not feel outcasted.
7. Easy Returns
Just like the Nykaa app has the option for users to return their unused product and get a refund or exchange in return you should do the same. Keep your inventory management of the app strong to record all the returns and provide refunds. This also helps you gain more customers and their trust.
The cost for making Nykaa App like clone depends on what scale and with what functionalities you are expecting to launch your app. On average you can think of the budget estimates from 8000 US dollars to 35000 US dollars. The on demand cosmetic apps are very much in demand and still have low competition. This is the best time to invest in this industry as with coming times the competition will get tough and tougher.