Falguni Nayar says that the world’s most prominent beauty brands are betting big on India, making it the beauty market’s brightest opportunity
Highlighting that India today stands at the cusp of a consumption renaissance, Falguni Nayar, Chief Executive Officer (CEO) of Nykaa, has stated that the next decade will be shaped by aspirational consumption, with the growing middle class inching towards better lifestyles.
Lifestyle categories, especially beauty and fashion, are expected to benefit disproportionately from this tailwind, accounting for nearly a quarter of discretionary spending. The world’s most prominent beauty brands are betting big on India, making it the beauty market’s brightest opportunity, Nayar noted in the annual report of FSN Ecommerce Ventures.
“As consumer incomes rise, we see disproportionate increases in spending on beauty and fashion. Data shows that individuals earning over USD 15,000 per year spend five times more on beauty and three times more on fashion than entry-level earners. At Nykaa, this trend is evident in our Average Customer Value (ACV), which increases 4.5 times by the fifth year and 8.5 times by the tenth year of the customer journey,” Nayar highlighted.
This year, the business-to-business (B2B) business scaled sustainably, reaching Rs 941 crore in gross merchandise value (GMV), with 2,76,000 transacting retailers across 1,100 cities. eB2B remains a substantial addressable opportunity, driven by the needs of three key players, she added.
“This year, House of Nykaa crossed a GMV of Rs 2,100 crore, emerging as a clear house of brands business that has amassed immense consumer love across specific, thoughtfully built brands. The beauty-owned brands business is now among India’s top two homegrown beauty brands portfolios, reaching a GMV of Rs 1,695 crore, up 55 per cent YoY,” the Managing Director (MD) emphasised.
Looking forward, the company has a clear growth strategy. Nayar explained that the first pillar is to maintain its dominance in the makeup industry. The second pillar is winning in skincare with Dot & Key. The third pillar involves investing in high-growth categories, she noted.
