Nykaa Franchise Store: The Ultimate Guide To Everything
There is only one homegrown name that comes to mind when we think about an online cosmetics platform -Nykaa! The brand Nykaa has changed from a simple online retailer for cosmetics and self care products to an international distributor, retailer and even manufacturer of everything related to ‘Beauty’. Nykaa even has its own underwear (Nykd) and clothing (Nykaa Fashion) labels along with several lines of deodorants, perfumes, body shampoos etc.
Nykaa has started encouraging franchise stores all across India that will be selling products made or approved by Nykaa. Considering that this is a primary name for most Indian customers, the Nykaa Franchise Store is surprisingly affordable to set up!
Are you interested to grab this opportunity as soon as possible and become the leading franchise store in your region? To answer all your queries, keep reading our Ultimate Guide to Everything – Nykaa Franchise Store edition!
The History of Nykaa: It’s Origin and Success
Nykaa was officially established in April of 2012 by Falguni Nayar. It became available commercially in early 2013. In its initial years Nykaa was an online retail store. The word ‘Nykaa’ was derived from the Sanskrit word ‘Nayaka’, a word used to define the actress, or the main character. Falguni wanted to create a company that could sell beauty products in an organised and successful manner – like the many online retailers that existed in France and Japan but not in India in spite of high demand.
Its major success has resulted from the constant diversification and upgradation of its goals. Within 2 years, the brand went from being an online retailer to an in house designer of fashion and self care products. In another 3 years, Nykaa had launched the premium membership program Nykaa PRO. October 2020 saw the creation of Nykaa man, which received small but niche success. Nykaa’s business model has always been relatability and simplicity. The brand has amazingly LimeLight even during the covid-19 years and subsequent economic crash.
By definition, Nykaa is not a franchise organisation, but rather just a private company! Nykaa has today become the parent brand under which a number of in house products, services and even food retailing brands operate.
While Nykaa is not an official franchise organisation, it still has the capacity to give store rights to any individual who meets the current franchise requirements. Nykaa has developed a recent aim to open around 300 stores across India. These stores are supposed to give the Nykaa products a sense of legitimacy among customers who dislike shopping online. If this strategy continues to be successful, Nykaa will increase the number of offline stores around the country.
Why to Choose Nykaa Franchise ?
There are several reasons why potential investors are looking at Nykaa for future endeavours. Some benefits to owning a Nykaa Store include:
- Entry into the growing beauty market
Nykaa is a minimum-risk entry into the growing beauty market and the potential owner has a high chance of succeeding as the market continues to diversify. Very few markets in India have such a potential for growth as does semi-luxury beauty for men and women.
- Owning the Nykaa Name
An unknown store will surely have a hard time attracting the attention of customers in today’s competitive atmosphere. But Nykaa itself is a huge brand. Operating under this brand will help the owner enjoy an automatic sense of trust and commitment from the existing customers of Nykaa.
- Receiving proper training, support and guidance
Nykaa provides proper training to the owner as well as listed employees before the store starts operating. Even during daily operations, franchise support is available 24/7 and routine guidance is provided to owners across the country. These owners also enjoy the benefits of high quality data analysis used by Nykaa itself.
- An affordable franchise option
When it comes to big names in the beauty market, no other brand of this scale has come up with a franchise option that is this affordable. Nykaa Franchise Store can be opened by new and young enthusiasts who have the capacity to invest a lot of effort and time but only little capital.
Starting a Nykaa Franchise- Eligibility Criteria
The eligibility criteria for the Nykaa Franchise Store are as follows:
- Personal Details: Personal details include name, professional and educational qualifications, address proof, ID proof, passport size photograph, email and mobile number.
- Bank details: General bank details like account number, PAN card etc are required. It is also advisable to keep an account of your credit score and available funds handy for inspection.
- Proof of meeting requirements: Franchise requirements are listed below. Make sure you meet all the requirements before applying.
- Store ownership/tenancy documents including lease agreement. (A picture of the shop is also required.)
- Applicant’s GST number
- NOC Document
Requirements To Open Nykaa Franchise Store:
Nykaa is going for a brand image that prioritises simplicity and casual comfort. Some basic requirements set by this brand include:
- Investment requirements
The minimum investment criteria set by Nykaa is 20 lacs. The expected cost of investment between setup and product purchase is between 20 to 30 lacs. The company has a set of guidelines that it expects any franchise to maintain as these guidelines reflect through the company really is.
- Space requirements
The company has put a lot of focus on the floor area requirements. It is expected that the store should have 1000 to 2000 square feet floor area. The minimum requirement set by Nykaa is 500 square feet.
For potential owners who don’t have the perfect space ready for a franchise store, the cost of floor area will depend on where the store is located.
Mostly, a good location with readily available customers is preferred by the company.
- Payback period
Nykaa has a standard franchise agreement of 3 years. The payback period of each unit franchise is 1 to 2 years and will be stated clearly in the franchise agreement.
- Employee Requirements
Nykaa requires each store to have at least three employees. For franchisees, the company encourages having multiple employees, as long as the recruitment is in favour of better management practices. Nykaa is very cautious about employee costs and prefers to hire individuals with versatile skills and job profiles.
- Basic location requirement
Alllocation requirements for Nykaa are flexible, but the company has been giving precedence to one or two tier cities. Within a city, a locality that has affluent customers willing to pay extra for a good product are beneficial for both the company as well as the individual owner.
All resources that will fulfil the above mentioned requirements must be already available or guaranteed to be available to the owner when they apply for a franchise with Nykaa.
Nykaa Franchise Store – How To Invest ?
In order to succeed as a Nykaa Store, every franchise will need a solid investment, management and growth plan. Nykaa franchise representatives help new owners develop a solid business plan that can withstand the highs and lows of business.
Building and maintaining a solid investment plan requires experience, knowledge and expertise. The total investment is expected to be around 20 to 30 lakes.
- Product investment plan
Nykaa as an organisation is heavily involved with the initial and routine update of product catalogue for every store. The franchise has to meet the product requirements set by Nykaa specialists on a regular basis. The owner needs a solid plan to tackle the rising initial costs of these routine changes.
- Employee costs
Nykaa has had the issue of rising employee costs recently. This organisation values the quality of life among its employees but at the same time needs to cut down on the exceeding cost of labour. Work benefits and additional employee benefits can sometimes act as a substitute against monetary solutions.
- Fund allocation
Just like every other business, in order to succeed the owner needs a proper plan of fund allocation. Even if business funds are loaned for the running of this franchise, a proper financial management technique can swiftly lead to regional growth.
Nykaa Franchise Profits & Margin:
Nykaa has promised an initial commission of 40% to the franchise owner. Since this is a popular brand in India today, owners can expect to earn 30% to 50% profit margin on every product in their store. Nykaa also has the capacity to buy wholesale products at a much cheaper price than normal retailers. As a franchise, the owner will also be receiving products at incredibly low costs.
Currently, Nykaa is earning up to 70% profit margins on its online store. Nykaa has a profit of around 1 to 3 billion INR a year. However, online sale profits have been falling recently for which Nykaa needs effective, regional management techniques to which it has given priority.
It is expected that India will soon become the fifth largest beauty market in the world and among the top manufacturers of high quality beauty products around the globe. Nykaa has decided to tap into this amazing opportunity with its fascinating revenue model. The company has maintained that every franchise owner will receive territorial rights to the unit franchise and will also be able to take all managerial and operational decisions.
Step-by-step Guide To Start Nyka Franchise:
It is now time to look into the step by step process using which an interested potential owner can reach out to the official Nykaa company and start with the franchise process.
- It is always advisable to start your journey towards any new investment through thorough research. You can even contact the official Nykaa support to get any query resolved.
- Follow the latest details on franchise expectations so that you can stay on top of the competition.
- Review all the requirements. Liquidate assets to get ready funds and obtain the lease agreement.
- Prepare a business plan. A solid business plan includes factual arguments in favour of your chosen location, management technique, financial decisions and a detailed future plan.
- Complete the application process with the help of Nykaa representatives. Finalise all queries at this stage and only move forward if you are satisfied. Go through the terms of contract properly and consult a lawyer whenever required.
- Enrol for the training and do well!
- Start your Nykaa Store and focus on the initial growth plan. Make sure you are following the agreements on your franchise contract and at the same time are being treated fairly by the organisation.
Contact Details – Get Started Today:
- Let us briefly discuss the Nykaa contact details and support system that exists for both customers as well as potential franchise owners.
- Interested applicants can email Nykaa at: firstname.lastname@example.org
- Applicants can also directly contact the franchise team at: email@example.com
- Another way to approach Nykaa with your queries is to:
- Go to the official Nykaa website at www.nykaa.com
- Locate the Help Center tab
- Go through the existing FAQ and their solutions
- Post a public FAQ/reach out to a customer service professional to get your queries resolved.
The Nykaa Franchise Store is a great option to build a successful beauty store from which the owner can develop a valuable understanding of this industry and expand their expertise further. In the end, Nykaa Franchise should be taken up by those who are willing to make medium to large scale investments on their store and can employ highly trained employees.
FAQ(Frequently Asked Question):
Q. What is Nykaa ?
Ans: Nykaa is a leading Indian e-commerce platform that specializes in beauty and wellness products. It offers a wide range of cosmetics, skincare, haircare, fragrances, and personal care products from both Indian and international brands.
Q. Can I open a Nykaa franchise in India ?
Ans: Yes, Nykaa offers franchise opportunities to individuals who are interested in opening their own beauty retail stores under the Nykaa brand.
Q. Which states in India are given a preference for expansion by Nykaa ?
Ans: In terms of region, Nykaa has a focus on New Delhi, Kolkata, Hyderabad etc. The company wants to expand stores in Delhi, Haryana, Karnataka, Telangana, Gujarat and Maharashtra.
Q. How much space do I need for a Nykaa Store ?
Ans: Potential owners require a minimum space of 500 square feet in a good location to open a Nykaa store.
Q. What is the minimum investment for a Nykaa Store ?
Ans: The minimum investment for a Nykaa Store is 20 lacs.
Q. What are the requirements to open a Nykaa franchise ?
Ans: To open a Nykaa franchise, you would typically need to meet certain requirements, such as having a minimum available space of around 500 to 1,000 square feet in a prime location, a willingness to invest a certain amount of capital, and a passion for the beauty and wellness industry.
Q. How much investment is required to open a Nykaa franchise ?
Ans: The exact investment required to open a Nykaa franchise can vary depending on various factors, including the size of the store and its location. It is recommended to contact Nykaa directly for detailed investment information.
Q. Are there any royalty fees or ongoing costs associated with a Nykaa franchise ?
Ans: Yes, as a Nykaa franchisee, you may be required to pay royalty fees or ongoing costs as per the franchise agreement. These fees contribute to the ongoing support and services provided by Nykaa.
Q. Can I choose the products to sell in my Nykaa franchise store ?
Ans: Nykaa offers a curated selection of products across various beauty and wellness categories. As a franchisee, you will have access to a range of products approved by Nykaa. However, the final selection of products may be influenced by the market demand and Nykaa’s product portfolio.
Q. How can I apply for a Nykaa franchise ?
Ans: To apply for a Nykaa franchise, you can visit Nykaa’s official website and look for franchise-related information. There, you will find the necessary details and contact information to initiate the application process.
Q. Does Nykaa provide any training or support to franchisees ?
Ans: Yes, Nykaa provides training and support to its franchisees. They offer guidance on store setup, visual merchandising, inventory management, and marketing strategies. Franchisees also receive ongoing assistance from the Nykaa team to ensure the success of their stores.
Q. How long does it take to open a Nykaa franchise ?
Ans: The time required to open a Nykaa franchise can vary depending on factors such as store location, paperwork processing, and store setup. It is advisable to contact Nykaa for an estimated timeline.
We hope that you would have liked reading this blog post on How to open Nykaa Franchise in India ? For more such informative articles, keep visiting YMW Solution.
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