According to Falguni Nayar, founder, executive chairman and chief executive officer of beauty and fashion brand Nykaa, fashion, grocery and miscellaneous goods will account for two-thirds of overall e-commerce demand by 2030. It is predicted that
Speaking at Startup Mahakumbh in New Delhi on Monday, Nayar said India is currently at a similar stage to what China was 15 years ago.
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“We are at a critical juncture where we are seeing a shift in consumer behavior. Similar to the trend in China, an S-curve in which per capita income is expected to increase from $2,500 today to $5,500 by 2030. , per capita BPC (beauty and personal care) spending is expected to increase from $15 today to $50 by 2030,” she said.
He said Nykaa's current BPC spend is $80, compared to the country's average BPC spend of $15.
India's per capita fashion spending, currently around $54, is expected to rise to $160 by 2030, Nayyar said.
“We are seeing consumer behavior gradually shift towards this expectation. Fashion is the second largest category purchased online after electronics. By 2027, fashion, groceries , miscellaneous goods are expected to account for two-thirds of the e-commerce market, indicating huge potential and room for growth,” said Nayar.
Nykaa Fashion's current per capita spend is $130, while the average per capita spend for fashion is $54.
Nayar emphasized that direct-to-consumer (D2C) brands have the advantage of being able to get to market quickly and adapt to changing trends with agility while addressing real consumer problems.
“Of the new D2C brands launched in the past few years, 44% were in the fashion and beauty space,” said Nayar.
Addressing the Startup Mahakumbh audience, she emphasized that future entrepreneurs should remember the following as they embark on this journey: It is measured by the lives you touch, the communities you uplift, and the legacy you leave behind. ”
Nykaa's parent company FSN E-Commerce Ventures reported a 106% year-on-year increase in net profit for the third quarter (Q3) to Rs 17.5 billion from Rs 8.5 billion in the year-ago period. – Previous era.
The company had posted a profit of 7.8 billion rupees a quarter earlier, according to a regulatory filing.
The company's consolidated operating revenue rose 22% year-on-year to Rs 1,789 crore, up from Rs 1,462 crore in the same period last year and Rs 1,570 crore in the second quarter of 2023-24.
The company is also seeing an increase in demand from offline stores.
Nykaa's brick-and-mortar retail store count expanded in the third quarter, with 39 new stores opening over the past four quarters, for a total of 174 stores as of December 31, 2023. Currently, the retail business accounts for more than 9% of his total BPC gross merchandise value.
