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    Assignment 1 Ravi Chawla N059

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    Ravi Chawla
    Nykaa is an Indian e-commerce company founded in 2012 by Falguni Nayar that sells cosmetic and beauty products. It has a large customer base which gives buyers high bargaining power. There are numerous cosmetic suppliers which gives Nykaa low supplier bargaining power. The cosmetics industry is growing rapidly with rising incomes and changing lifestyles in India, leading to high threats of substitution from stores and other online retailers. Multiple suppliers, an accessible internet, and lower costs also make the threat of new entrants to the market high.

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    Assignment 1 Ravi Chawla N059

    Uploaded by

    Ravi Chawla
    270 views4 pages
    Nykaa is an Indian e-commerce company founded in 2012 by Falguni Nayar that sells cosmetic and beauty products. It has a large customer base which gives buyers high bargaining power. There are numerous cosmetic suppliers which gives Nykaa low supplier bargaining power. The cosmetics industry is growing rapidly with rising incomes and changing lifestyles in India, leading to high threats of substitution from stores and other online retailers. Multiple suppliers, an accessible internet, and lower costs also make the threat of new entrants to the market high.

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    Nykaa is an Indian e-commerce company founded in 2012 by Falguni Nayar that sells cosmetic and beauty products. It has a large customer base which gives buyers high bargaining power. There are numerous cosmetic suppliers which gives Nykaa low supplier bargaining power. The cosmetics industry is growing rapidly with rising incomes and changing lifestyles in India, leading to high threats of substitution from stores and other online retailers. Multiple suppliers, an accessible internet, and lower costs also make the threat of new entrants to the market high.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    270 views4 pages

    Assignment 1 Ravi Chawla N059

    Uploaded by

    Ravi Chawla
    Nykaa is an Indian e-commerce company founded in 2012 by Falguni Nayar that sells cosmetic and beauty products. It has a large customer base which gives buyers high bargaining power. There are numerous cosmetic suppliers which gives Nykaa low supplier bargaining power. The cosmetics industry is growing rapidly with rising incomes and changing lifestyles in India, leading to high threats of substitution from stores and other online retailers. Multiple suppliers, an accessible internet, and lower costs also make the threat of new entrants to the market high.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 4

    Cosmetic E

    Commerce
    Industry
    Giant
    Nykaa’s
    Porter's ▪
    ▪
    Founder: Falguni Nayar
    Founded: 2012

    5 Forces
    ▪ Products: all cosmetics
    ▪ Key people: Sanjay Nayar, Adwaita
    Nayar
    ▪ Products: Mobile App and Website

    Model
    Submitted: by Ravi Chawla
    Roll No.: N059
    Porter's 5 Forces: Nykaa
    Bargaining Power Of Bargaining Power
    Supplier :Low Buyer: High
    Numerous Suppliers in the
    ecommerce personal and beauty
    care. Customer base large which results in
    high bargaining power.

    Various Inhouse suppliers

    Competitive
    Rivalry
    Threat of New Substitutes: High
    Entry:High
    Online retailers adopted omni
    Higher disposable income channel strategy
    Better lifestyle demands
    Switching is easy and low.
    Porter's 5 ForcesNykaa
    Competitive
    Rivalry

    • This Segment rising very


    rapidly with CAGR 9% by
    • Huge pool of suppliers 2023.
    • suppliers are numerous in • Which results in high • rising disposable income and
    cosmetic market • brick and mortar stores main better lifestyle.
    bargaining power.
    • Inhouse Brand are the main substitutes • The value of Ecommerce for
    • Also switching cost is very low
    • HUL holds major share • Threat of substitute is very the beauty and personal care
    • Customer price centric.
    • Standalone beauty and high. market will increase to 33.5 %
    • Peole are very active during
    personal players building their • Customer generally order o the till 2023.
    festive seasons.
    own marketplace basis of trial and use. • Multiple suppliers
    • Customer wants variety,
    • Celebs coming forward • Online retailers uses omni • Internet easily accessible.
    conviencence and variety at
    channel strategy. • Decreased operational and
    one place.
    marketing cost.
    • In turn increases the threat of
    new entrants.

    Bargaining power of Supplier Bargaining power of Buyer Threat of Substitution Threat of New Entry
    Thank you!

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