Nykaa: Time to Redefine Customer Experience

Nykaa E-Retail Limited (Nykaa) has come a long way since its founding in 2012 by Falguni Nayar in Mumbai, India, establishing itself as a prominent participant in the e-commerce and retail industry. Not only has Nykaa revolutionized the field of online shopping in India for beauty and personal care products, but it has also played an essential role in the development of an ecosystem within that field. Nykaa has curated an offering of assorted beauty products spanning a variety of categories, including make-up, skincare, haircare, bath and body, fragrance, grooming equipment, personal care, and health and wellness. The company offers an enormous selection of over 2,400 legitimate brands. Nykaa has been able to maintain consistent growth because of its unrelenting concentration on the requirements of its customers and its close working relationships with other companies. However, feedback and reviews from customers have indicated a disconnect between client expectations and Nykaa’s performance. An increase in customer complaints, encompassing technical issues and problems related to customer assistance, exchanges, returns, and refunds—essentially, the entire customer experience—is revealing opportunities for improvement. Nykaa’s leadership has expressed concern over the increasing number of incidents of consumer dissatisfaction, an issue that is coming to light amid an increasingly competitive digital landscape.

This case is suitable for graduate- and postgraduate-level courses on marketing management, customer relationship management, and services marketing as well as for executive education programs in similar areas. It is also suitable for covering the topics of customer engagement and experience management in digital marketing courses and management development programs. By working through the case, students can achieve the following objectives:<br><br><ul><li>Understand the growth drivers in the beauty and personal care industry.</li><li>Understand and apply the customer buying behaviour model from an e-commerce perspective.</li><li>Understand and analyze service quality by applying the gap model of service quality.</li><li>Be able to apply the service recovery paradox.</li><li>Analyze the role of technology in enhancing the customer experience.</li></ul>

• Customer experience
• Consumer behavior
• negative review
• UGC
• Service Quality