 "Falguni Nayar")
Fashion, grocery, and general merchandise are projected to constitute two-thirds of the overall e-commerce demand by 2030, according to Falguni Nayar, founder, executive chairperson, and chief executive officer of beauty and fashion brand Nykaa.
Nayar, speaking at the Startup Mahakumbh in New Delhi on Monday, said that India is currently at a stage similar to where China was 15 years ago.
“We are at a critical juncture where we are observing a shift in consumption behaviour. Given the S-curve of the expected increase in per capita income from $2,500 today to $5,500 by 2030 — similar to China’s trends, we expect the BPC (beauty and personal care) per capita spend to rise from $15 today to $50 by 2030,” she said.
Nykaa’s current BPC spend, she noted, is $80 compared to the country’s average BPC spend of $15.
According to Nayar, India’s per capita fashion spend at present is approximately $54, which is expected to rise to $160 by 2030.
“We are gradually seeing consumer behaviour shifting towards this expectation. After electronics, fashion is the second largest category purchased online. By 2027, it is expected that fashion, grocery, and general merchandise will capture two-thirds of the e-commerce market — indicating big potential and room for growth,” Nayar said.
Nykaa Fashion’s current per capita spend stands at $130 compared to the average fashion per capita spend of $54.
Nayar highlighted that direct-to-consumer (D2C) brands have the advantage of being quick-to-market and agile to adapt to changing trends, all while addressing real consumer problems.
“Of the new D2C brands over the past few years, 44 per cent have emerged in fashion and beauty,” Nayar noted.
Addressing the audience at Startup Mahakumbh, she emphasised that future entrepreneurs should remember, as they embark on this journey, that “...success is not solely measured by profit margins or market share. It is measured by the lives you touch, the communities you uplift, and the legacy you leave behind.”
FSN E-Commerce Ventures, the parent company of Nykaa, reported a 106 per cent year-on-year (Y-o-Y) increase in its net profit to Rs 17.5 crore for the third quarter (Q3), compared to Rs 8.5 crore in the year-ago period.
The company had posted a profit of Rs 7.8 crore a quarter ago, according to regulatory filings.
The company’s consolidated revenue from operations grew 22 per cent Y-o-Y to Rs 1,789 crore, up from Rs 1,462 crore a year ago and Rs 1,507 crore in the second quarter of 2023-24.
The company has also been seeing increased demand from its offline stores.
Nykaa’s physical retail footprint expanded in Q3, with 39 new stores launched over the past four quarters, totalling 174 stores as of December 31, 2023. The retail business now contributes over 9 per cent of the overall BPC gross merchandise value.
Falguni Nayar, Executive Chairperson, MD & CEO, @MyNykaa, addressed the evolving landscape of consumer behaviour in India. Also addressing young entrepreneurs, she emphasised the importance of measuring success beyond profits. pic.twitter.com/arWWOCOc0F
— Startup Mahakumbh (@StartupMhakumbh) March 18, 2024
