Business Challenge:

Established in 2012, Nykaa is India’s largest multi-brand beauty retailer for cosmetic and wellness products. It has over 33% market share in India’s online beauty market with net revenue of Rs. 570 crore in FY18. 

With the increasing competition, it was becoming important for Nykaa to upsell their products and to build strong customer engagement. Thus, they were looking out for a technology partner that could help them to increase their customer engagement and conversion rate. 

The specific challenges that Nykaa was facing prior to its engagement with Daffodil were:

  • Nykaa’s BeautyBook blog was built on an outdated version of Wordpress, had unnecessary plugins installed and malware files, which were limiting its features, performance, organic traffic and thus the conversion rate.
  • Nykaa wanted to introduce the concept of shoppable videos into their mobile app, for boosting their online sales and to encourage consumers to make impulse purchases.
  • To improve user engagement on their platform, a Q/A user community was required for their mobile and web app.

Engagement with Daffodil:

On realizing the project requirement to improve Nykaa's customer engagement and conversion rate, Daffodil recommended the introduction of Nykaa TV and Nykaa Network, and up-gradation of Nykaa Beauty Blog technology stack. The engagement started with a code auditing process to understand the factors affecting the performance. Keeping in view all the factors and the project outcome, Daffodil helped Nykaa with the following: 

  • To fix the performance issues of Nykaa BeautyBook blog, Daffodil upgraded WordPress from V3 to V4.5. This also included database cleanup, deleting unnecessary tables and adding new tables to the database in order to support new functionalities.
  • Using Java as core technology, Daffodil developed the Nykaa Network community, which is an interactive user community to engage users with beauty buffs, ask and answer beauty-related questions, seek advice and much more.
  • Nykaa TV was launched that fetches content from Nykaa's YouTube channel into the mobile app and allows customers to add products to bag directly from the video, thereby eliminating the need to search for the products separately. 

The Impact

  • Within three months of its launch, Nykaa Network had 150K monthly visits, 250K subscribers, with 13K new members joining the network every week.
  • With an improvement in UI/UX and performance of the blog, Nykaa experienced, 42% reduction in bounce rate.
  • Nykaa achieved a 40% add-to-bag conversion rate with introduction of ‘Watch and Buy’ feature in Nykaa TV.
  • Nykaa Network was awarded best launch of the year in Content Marketing Summit & Award 2018.

“I am very impressed the way the team has been taking up the ownership of the multiple projects. The work executed by Daffodil team has received praises from internal teams across functions"

Anil Kumar, 
VP - Technology, Nykaa