We stand at the precipice of a new era in the Indian economy, one driven by innovation, resilience, and the indomitable spirit of entrepreneurship

Bengaluru, March 19 2024, India: Today, at the Start-up 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, India’s most-preferred beauty and lifestyle destination delivered an insightful keynote address. Under Falguni’s leadership, Nykaa has become a leading and a trusted omni-channel retailer in beauty and lifestyle over the last decade. Befittingly, during her keynote, she provided incredibly valuable insights on the topic ‘Omnichannel Strategy for D2C Brands’, highlighting the tremendous opportunity our economy presents and the next chapter in India’s consumption story.

Below are the excerpts from her keynote address:

Entrepreneurship in the Indian Economy

“We stand at the precipice of a new era in the Indian economy, one driven by innovation, resilience, and the indomitable spirit of entrepreneurship. As the world’s 5th largest economy, set to become the 3rd largest by 2030, the Indian economy is a canvas of boundless opportunities, and the startup world is its vibrant palette, painting the landscape with bold strokes of creativity and ingenuity. We are 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.”

India’s consumption story on beauty

“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.”

India’s consumption story on fashion

“Currently, India’s per capita fashion spend is approximately $54. As the GDP per capita increases to $5500 by 2030, we are expecting this 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.”

D2C brands and the evolving consumer behavior

“In today’s phygital 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 ecommerce marketplaces & quick commerce vs offline stores- their motivations become clear.”

“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% have emerged in fashion & beauty. Having seen dozens of these brands grow on our platform over the last decade, Nykaa takes immense pride in being a multi-brand platform that creates a conducive environment for brands to grow.”

Message for Entrepreneurs

“To the startups and students in our audience- 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. 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.”