Falguni Nayar Sees India's Rise As Third Largest Consumer Market Globally By 2030

Updated on: 19 September 2023 5:02 pm

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Nykaa parent FSN E-Commerce Ventures' CEO Falguni Nayar has predicted India's emergence as the third largest consumer market globally by 2030, asserting she is "excited" about what the future holds for Nykaa, according to a release.

Nykaa, in a joint venture with GCC’s retail conglomerate Apparel Group, would open its first international store before the end of 2023, the release said, adding that the Gulf Cooperation Council (GCC) offers a large beauty and personal care (BPC) market size of over $30 billion and as a region is in its early-stage journey of e-commerce adoption.

India’s entrepreneurial spirit, as well as its young and aspirational population, makes it the "best place" to build consumer-focused businesses and brands, Nayar said at the FSN Ecommerce Ventures' Annual General Meeting (AGM) 2023, according to a release.

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Noting that India's per capita Beauty and Personal Care (BPC) consumption is likely to grow, the company said "This presents a significant opportunity for Nykaa", which already enjoys an annual consumption value of $80 per capita, over 5 times the national average.

"India has quickly become the most preferred destination for many global brands to meet their growth ambitions...By taking an unconventional technology-first approach, we were able to disrupt and democratise both demand and supply for the industry while reaching over 98 per cent of the market," Nayar said in her speech.

Nayar said almost one-third of the GMV contribution in FY23 came from the newer businesses, with all of them being built from scratch over the last 4 to 5 years. "Our success here comes from diligently finding product-market fit, executing well with speed, and driving only sustainable growth," she said.

For fashion, India’s per capita consumption stands at $54 and is expected to reach $160 by 2030, based on the trajectory of developed markets. The Nykaa customer today spends $130 on fashion.

Today Nykaa is the largest beauty specialty retailer in the country, online and offline with an unconventional technology-first approach, according to the release.

The Fashion GMV stood at Rs 2,569 crore for FY23 and now constitutes over 26 per cent of Nykaa’s overall consolidated GMV.

The beauty and personal care (BPC) owned brands now contribute to 11.9 per cent of the overall BPC GMV and Fashion brands contribute 12.9 per cent to the overall fashion GMV.

"Nykd (lingerie brand), and 20 dresses (western wear brand) have now become sizable, crossing Rs 85 crore and Rs 150 crore in GMV sales for FY23 respectively," the company said. At the AGM, Nayar underlined Nykaa's commitment to "being ambitious and entrepreneurial yet bold and ethical", striving for long-term profitability and value creation for all stakeholders.