Fashion is the second-largest category online after electronics at present, Falguni Nayar said.
Beauty and lifestyle e-commerce platform Nykaa's CEO and founder Falguni Nayar on Monday said fashion, general merchandise, and groceries will account for two-thirds of the Indian e-commerce scenario by 2027. Fashion is the second-largest category online after electronics at present, Nayar said.
"By 2027, it is expected that fashion, grocery, and general merchandise will capture two-thirds of the e-commerce market- showing large potential and room to grow." Nayar said that in today’s phygital (physical plus digital) world- understanding consumer patterns, behaviours and preferences is paramount in order to solve consumer concerns.
“When you peel back the onion on why consumers shop across e-commerce marketplaces & quick commerce vs offline stores- their motivations become clear,” she said at Startup Mahakumbh 2024. D2C (direct-to-customer) brands have the advantage of being quick-to-market and agile to adapt to changing trends – all while solving real consumer problems, she said.
“Of the new D2C brands over the last few years - 44 per cent have emerged in fashion & beauty,” she said.
As the world's 5th largest economy, set to become the 3rd largest by 2030, she said the Indian economy is a canvas of boundless opportunities, and "the start-up world is its vibrant palette, painting the landscape with bold strokes of creativity and ingenuity".
The seasoned entrepreneur said that the country is witnessing an unprecedented surge in entrepreneurial activity, fueled by a generation of dreamers and doers who dare to challenge the status quo.
Nayar said, "We stand at the precipice of a new era in the Indian economy, one driven by innovation, resilience, and the indomitable spirit of entrepreneurship”.
“When you compare India to our counterparts, India is where China was 15 years ago. It is at this critical juncture where we notice a shift in consumption behavior. Given the S curve of the expected increase in per capita income from $2500 today to $5500 by 2030 - similar to China’s trends, we anticipate the BPC (beauty and personal care) per capita spend to go from $15 today to $50 by 2030. As a reference, Nykaa’s BPC spend is currently $80 vs the country’s average BPC spend of $15.”
Advising young start-ups and aspiring entrepreneurs, she said that one should remember that success is not measured solely by profit margins or market share. “It is measured by the lives you touch, the communities you uplift, and the legacy you leave behind. Let us embrace the spirit of innovation, collaboration, and inclusivity that defines our nation's entrepreneurial landscape”.
Nykaa began with a dream to enable consumers to step into the spotlights of their lives, she added.