Nykaa is one of the popular e-commerce platforms in India. It is known for beauty, wellness, and fashion products. Like every successful business today, Data Science is one of the reasons behind the success of Nykaa. So, if you want to know how Nykaa uses Data Science, this article is for you. In this article, I will introduce how Nykaa uses Data Science for its business as an e-commerce platform.
Here’s How Nykaa Uses Data Science
Here are some ways Nykaa uses Data Science for its business as an e-commerce platform.
Demand and Supply Analysis for Inventory Management
What makes Nykaa different from other e-commerce platforms where people buy beauty and wellness products is how Nykaa realized that there are many fake beauty products in the market. So, instead of performing as a marketplace like Amazon, Nykaa directly offers brands to sell on their platform to ensure the quality and authenticity of products.
To sell products directly on a platform with such a high user base, brands need to properly manage their inventory to make the demanded products available in the right place and at the right time.
So, for Nykaa, demand is the products ordered by the customers, and supply is proper inventory management by the brands who sell on Nykaa. To solve the inventory management problem, Nykaa analyzes demand and supply and offers its warehouses to brands to properly manage the inventory according to the products demanded at a particular time.
It helps Nykaa to quickly deliver the products while ensuring the quality and authenticity of the products.
Understanding Buying Behaviour
Nykaa saves data about every transaction. Whenever you buy products on Nykaa, you generate data that helps Nykaa understand your buying behaviour.
Understanding your buying behaviour helps Nykaa:
- Analyzing new, repeat, and lost customers
- Getting an overview of customer engagement that helps in building marketing strategies
- Building personalized marketing strategies by understanding customer’s demand and most viewed products
- Identifying customer segments to get a higher conversion rate from every marketing campaign
Product Recommendations
Nykaa also uses Data Science to recommend products to its customers. If a user is new, Nykaa recommends the most popular and highly rated products that customers buy from their platform.
And if the user is a frequent buyer, then Nykaa recommend products based on the features of the products. It helps recommend products based on skin types, brands, price ranges, and many other beauty and wellness attributes as preferred by the customer.
Also Read: Use Cases of Data Science in Companies from various domains.
Summary
So here are some ways how Nykaa uses Data Science for its business as an e-commerce platform:
- Nykaa analyzes demand and supply and offers its warehouses to brands to properly manage the inventory according to the products demanded at a particular time.
- Nykaa saves data about every transaction. Whenever you buy products on Nykaa, you generate data that helps Nykaa understand your buying behaviour.
- Nykaa also uses Data Science to recommend products based on skin types, brands, price ranges, and many other beauty and wellness attributes as preferred by the customer.
I hope you liked this article on how Nykaa is using Data Science as an e-commerce platform. Feel free to ask valuable questions in the comments section below.
