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Case Study · Beauty

Nykaa + Amazon revenue 5x — without cannibalizing D2C margin.

Beauty Brand (color cosmetics) · 7 months

Business Overview

A prestige beauty brand with strong D2C was avoiding marketplaces fearing brand dilution. Meanwhile competitors owned shelf.

Problem

No marketplace strategy meant no share of voice in category search. D2C was topping out.

Diagnosis

Category-level demand was moving to Nykaa/Amazon. D2C could stay a premium channel. We needed a marketplace playbook with margin discipline.

Strategy

  • 01Marketplace-specific SKU strategy
  • 02A+ content + brand store
  • 03PLA + sponsored ads with TACoS discipline
  • 04D2C repositioned as premium / exclusive
  • 05Cross-channel retention

Execution

  • M1–2: Marketplace onboarding, catalog rebuild
  • M3–4: A+ modules, ads launch
  • M5–6: BBD + Pink Sale event playbooks
  • M7: Cross-channel optimization

Metrics

Marketplace Revenue
₹0₹1.9Crnew channel
Blended MER
2.1x3.1x+48%
D2C Margin
18%24%+6pp
Category SOV (Nykaa)
2%11%+9pp
Total Monthly Rev
₹1.4Cr₹4.2Cr+200%

Key learnings

Ignoring marketplaces to 'protect the brand' just gifts share to competitors.

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