Nykaa’s 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 the company.
At the FSN Ecommerce Ventures’ (Nykaa’s parent company) Annual General Meeting (AGM) 2023, she announced that Nykaa, in a joint venture with Gulf Cooperation Council (GCC) retail conglomerate Apparel Group, would open its first international store before the end of 2023.
During the AGM, Nayar highlighted that India’s entrepreneurial spirit, as well as young and aspirational population is its strength and thus makes India the “best place” to build consumer focused businesses and brands, reported PTI.
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 USD 80 per capita, over 5 times the national average.
Nayar added that 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.
It is estimated that the Nykaa customer today spends USD 130 on fashion. 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 percent of the overall BPC GMV and Fashion owned brands contribute 12.9 percent to the overall Fashion GMV, according to the PTI report,
“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.