Today in the e-commerce market amazon and Flipkart perhaps compete with any other company You will get shocked That the BPC sector Means beauty and personal sector They both are struggling today Indian e-commerce company but the Nykaa donating this sector very well In fact in 2021.
By earning Rs.62 crore of profit Nykaa become the company one of them Who earn profit in 2021 In today’s blog post we will discuss Which business strategy Nykaa used By which it won from huge companies like Amazon and Flipkart.
In India, the retail distribution of beauty products happens In 3 ways first Unorganized retails Second organized retail, And third online retail In unorganized retail small shops and drugs store In Organized, The brand outlets And beauty saloons are available If in this countable and big brand.
Outlets are leave So in the three customer face so many problem The first problem is accessibility In India most of the consumers Who wants to buy the beauty products But they can’t access the reputed brands of the market and this problem is seen in the cities and in the small towns and this is why in the previous years.
In the only BPC market, A big bump is seen Because in the small cities when the people can’t find any product offline instead of purchasing that product online They don’t have any way But after purchasing the product online The second problem is of the duplicate product You will get shocked that.
On the Amazon, Flipkart, Mytra In the BPC sector the duplicate products are very much Which affects the online shopping experience of the customer And the third and important problem the lack of transparency and information about the product Before purchasing any beauty product it is needed to know about its ingredients.
Because some the brands are allergic because if its ingredients But unfortunately on the amazon and Flipkart There is a lack of information of BPC products And sometimes it happened Sellers sells expired products to the customers If the customer use that product Then they have to face serious skin problems and after this bad shopping experience.
Perhaps they purchase beauty products online And this is the place Where the Nykaa is prove a game changer So let we discuss what are The business strategies Who make Nykaa best in BPC sector than Amazon and Flipkart The first thing is the inventory model of Nykaa E-commerce market is work on two models.
Which are known as Market place model and Inventory Model In the market place model there are individuals sellers Who sells their product on amazon and Flipkart In this model the work of e-commerce company is to combine buyers and sellers If we talk about inventory model So the e-commerce company buy the products direct from manufacturers in bulk.
And all the products Sells directly by their ads This means in this the combination of buyers and sellers is not happened And for an e-commerce company The inventory model is very perfect Because in the marketplace model they have to share their profit with sellers But in the inventory models all the profit is taken by company This is why Nykaa earn the profit.
And repels from the redundancy of the product And this is the reason Nykaa, is more successful than Amazon and Flipkart in the BPC sector Now the question is that a company like Nykaa can get the success with this strategy So why Amazon and Flipkart don’t use these strategies They are billion-dollar companies Actually to establish inventory model, investment is needed Flipkart and Amazon are foreign companies.
In this the investment made by them Foreign Direct Investment They came in the category of FDI And for FDI, Indian government make other rules and regulations And according to the new rules of 2018 In the marketplace model of e-commerce 100% FDI is allowed But if we talk about inventory model.
Then in this any e-commerce company can’t take 100% FDI During which companies like Amazon and Flipkart Can’t compete Nykaa’s inventory model Nykaa has no any restriction for an Indian company this thing make Nykaa a powerful player of BPC market Instead of this, the building of strong relationship with their customer Makes Nykaa different from the other companies Companies like myntra and amazon.
Are focus only to sell their products When a customer shop from Nykaa Then they make a relationship with them And become an integral part of shopping the first and main thing in this is a book named Beauty book magazine This does not only give information to the people But it educates people about beauty products For example if any customer wants to by moisturizer.
So on the amazon and Flipkart You see the listing of moisturizers of different type But the beauty book of Nykaa tells what is a face moisturizer what are its uses of it And which is the best face moisturizer And instead of this A community name Nykaa network is very useful for the users In this community anyone.
Can ask questions related to skin and beauty In this network the people give answers Who faced those problems Or they know the solution of that problem Instead of this they do miracles in content marketing You will get shocked after knowing this That there are 1.2 million subscribers are on the YouTube channel of Nykaa And they have more than 3000 people team In which social media influencers.
Trendsetters and models Bloggers and Makeup artist and famous Bollywood artist are available who create content for Nykaa and publish on different social media platforms It does not only boost the sales of Nykaa but It enhance brand awareness in the public Instead of these things Nykaa have In 40 different cities.
They have their own offline stores Which generate trust with customers These things are very small by listening But in the success of Nykaa they play important role And because of these things In the Indian e-commerce market It dominates the BPC sector completely I hope you learn most of things from these business strategies.