Founder and CEO of Nykaa, Falguni Nayar, recently discussed beauty consumption in India and how Gen Z is driving the market. She provided insight into how young people with disposable income are buying from premium categories and have different buying habits than previous generations.
In a CEO discussion panel at ET Now, Falguni Nayar, the Founder and CEO of Nykaa, talked about how Gen Z spending habits and trends are different from the previous generations. When asked about the consumption of beauty in India, Falguni discussed how the consumption is still lower than expected however, an increase has been noticed in the premium products and lifestyle categories.
Talking about the buying habits of Gen Z she said, "Yes the age consumption age is getting younger Gen Z, I think even Nykaa stores you'll see a lot of Gen Z and I think beauty as a category, fashion as a category has a huge appeal to Young population. And today's consumption is being driven by them. I think they spend differently, and they're there to enjoy travel, enjoy lifestyle, and maybe eating out so you can really see the impact of their consumption on certain industries."
There has been a surge in the beauty market in India over the past few years, with many young people having more disposable income and customers shopping online. This has led to India becoming the 4th biggest beauty market globally, and experts believe it will grow 40% by 2026.
Founded in 2012, Nykaa changed the beauty and fashion market in India forever. Its main growth comes from serving underserved customers in India in the beauty and personal care space. Even though online retailers like Flipkart and Amazon sell beauty products, Nykaa Identified the lack of a specific platform for such products and catered towards the target audience.
Gen Z's buying habits influence the beauty and wellness market heavily as they represent the rising customer demographic. Most of the consumption of beauty among the new generation is influenced by social media and online trends. Brands are trying to capture their attention and trying to appeal to their preferences.
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