Nykaa’s executive chairperson, founder and CEO, Falguni Nayar, highlighted the road ahead for entrepreneurship in the Indian economy at the Startup Mahakumbh on Monday, March 18.
Nayar said that India—the world’s fifth-largest economy—is witnessing an unprecedented surge in entrepreneurial activity. She highlighted that India is the third-largest ecosystem for startups globally, with more than 1 lakh startups that are finding creative solutions to real-time problems.
Nayar said, “The Indian economy is a canvas of boundless opportunities, and the startup world is its vibrant palette, painting the landscape with bold strokes of creativity and ingenuity. We are witnessing an unprecedented surge in entrepreneurial activity, fueled by a generation of dreamers and doers who dare to challenge the status quo.”
With evolving consumer patterns, behaviours and preferences, D2C brands hold the advantage of being quick-to-market and adaptive to changing trends, Nayar mentioned.
“Of the new D2C brands over the last few years, 44% have emerged in fashion and beauty. Having seen dozens of these brands grow on our platform over the last decade, Nykaa takes immense pride in being a multi-brand platform that creates a conducive environment for brands to grow,” Nayar highlighted. In India, the beauty and personal care (BPC) per capita expenditure is expected to reach $50 by 2030 from $15 currently, attributing it to the S curve of the expected increase in per capita income from $2,500 today to $5,500 by 2030, Nayar mentioned.
Moreover, if India’s GDP per capita climbs to $5,500 by 2030, then the per capita fashion spend is expected to grow to $160 per capita from nearly $54 now, she predicted. “Nykaa Fashion’s current per capita spend is $130 vs the average fashion per capita spend of $54. We are slowly seeing consumer behaviour shift toward this expectation. After electronics, fashion is the second largest category purchased online,” she added.
She suggested that by 2027, fashion, groceries, and general merchandise will comprise two-thirds of the e-commerce market.
