At the Startup Mahakumbh. which is a first-of-its-kind event bringing together the entire startup ecosystem of India including startups, investors, incubators and accelerators, and industry leaders from several sectors, Falguni Nayar, Executive Chairperson, Founder and CEO of Nykaa, delivered a keynote address. Nayar said India is witnessing “an unprecedented surge in entrepreneurial activity, fueled by a generation of dreamers and doers who dare to challenge the status quo. India is the 3rd largest ecosystem for startups globally, home to over 1 lakh startups that are finding creative solutions around real-time problems.”
Shedding light on India’s consumption story in the beauty sector, Nayar said, “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 expected increase in per capita income from $2500 today to $5500 by 2030 – similar to China’s trends, we anticipate the BPC per capita spend to go from $15 today to $50 by 2030. As reference, Nykaa’s BPC spend is currently $80 vs the country’s average BPC spend of $15.”
Moving to fashion, also a space Nykaa operates in, Nayar highlighted India’s per capita fashion spend is approximately $54. As the GDP per capita increases to $5500 by 2030, it is expected to grow to $160 per capita. For reference, Nykaa Fashion’s current per capita spend is $130 vs average fashion per capita spend of $54.
“We are slowly seeing consumer behavior shift towards this expectation. After electronics, fashion is the second largest category purchased online. By 2027, it is expected that fashion, grocery and general merchandise will capture two-thirds of the ecommerce market- showing large potential and room to grow,” Nayar added.
Nayar also spoke about D2C brands and the evolving consumer behavior, stating that “D2C brands have the advantage of being quick-to-market and agile to adapt to changing trends – all while solving real consumer problems.” Of the new D2C brands over the last few years – 44 percent have emerged in fashion & beauty.
Nayar, whose own journey as an Indian entrepreneur is much celebrated, had a message for emerging entrepreneurs.
“As you embark on your entrepreneurial journey, 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,” said the founder and CEO.
Nayar added, “Nykaa began with a dream to enable consumers to step into the spotlights of their lives. Let us dare to dream, dare to disrupt, and dare to make a difference. For it is in the daring that we find our truest selves and unlock the limitless potential of our collective imagination.”