Nykaa Best in Beauty Summit 2024: Showcasing the promise, growth and opportunities in the beauty & personal care segment in India

Nykaa Best in Beauty Summit 2024

The inaugural Best in Beauty Summit 2024, organised by Nykaa in association with CNBC-TV18, was a landmark event that featured the release of the Nykaa Beauty Trends Report in partnership with Redseer. The summit brought together a diverse panel of journalists, industry veterans, investors, and influencers to discuss emerging trends in the beauty industry.

Stimulating Panel Discussions

With AI being the buzzword, the summit featured thought-provoking discussions on the potential of the technology in the sector. The integration of AI in advertising, particularly the potential to enhance ad creatives and ensure more effective and accurate ad placements was deliberated. Additionally, AI’s role in developing conversational bots to assist consumers in making informed decisions was another prominent theme at the summit.

Highlighting the immense growth potential in the sector, Nykaa founder Falguni Nayar pointed out that while per capita spending on BPC in India currently sits around $15, countries with similar income levels see per capita spending between $50 and $60. She emphasised that educating consumers at scale is key to bringing more people into the fold.

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The evolution of beauty categories was also a major theme at the summit. Discussions on make-up products that also offer skincare benefits, the surge in the number of players, and a global community of users who are increasingly vocal about their expectations, spotlighted the trends in the industry.

The summit concluded with the Best in Beauty Awards 2024, recognising excellence across various categories.

Insights from the Nykaa Beauty Trends Report

With growing household incomes and the rise of an aspirational middle class, India’s beauty and personal care (BPC) market, currently the fourth largest globally, is primed for spectacular growth and is estimated to reach USD $34 billion by 2028. The report allows us a window into the rising consumption patterns in this segment fueled by growing disposable incomes, the democratisation of e-commerce, and increased brand awareness in India.

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• Trending towards Aspirational Premiumisation

The report points towards a clear trend - There is a consolidated shift towards the demand for premium beauty products. This phenomenon is driven by rising incomes, increased consumer awareness of quality brands, and the exclusive brand experience. Estimates project the premium beauty segment to cross the $3 billion mark by 2028.

Nykaa has been at the forefront of driving this change. The Nykaa platform has made global luxury brands available to the average Indian customer. With a diverse palette of more than 3600 brands, Nykaa has truly democratised access to the best of beauty from around the world. The in-house innovation of “stepification” (multi-step skincare routines) has allowed Nykaa to establish itself as a values-driven business.

• The E-Commerce Route to Market Expansion

One of the biggest factors driving the growth in the BPC segment is the e-commerce channel with a projected CAGR of 25%. Nykaa, which started as a digital-first beauty retailer, has led this change from the get-go.

The impact of social media is also crucial in this transformational change. With an active user base of 520-560 million users in 2023, platforms like Instagram and YouTube have eased access to beauty expertise, empowering customers to make informed choices based on community reviews, tutorials, and influencer picks.

• Reaching Every Nook & Cranny with Omnichannel Access

The demand for beauty has well gone beyond the metros and is now gaining tremendous among tier-2 and tier-3 cities. The rise of homegrown brands is another key driver of growth, with offerings leaning on traditional ingredients like neem and turmeric further diversifying the product basket. With ease of access and seemingly endless choice, consumers across the country are leveraging e-commerce and physical stores to meet their demand. The omnichannel route perfected by Nykaa - a careful mix of online and offline presence of 200+ brick-and-mortar stores - has been a game-changer in tapping hitherto untapped markets.

Integrating Next-Gen Tech in Personal Care

The role of next-gen tech is equally relevant in the personal care space. Innovations like AI-driven personalisation, advanced logistics, and a glitch-free shopping experience will significantly impact product discovery and sales. The Nykaa Beauty Trends Report highlights that brands that will be in sync with these trends will stay ahead of the curve. In this context, Nykaa’s ability to respond in real time to evolving trends in the technology domain, customer experience, and micro-trends underscores the importance of a hands-on approach.

Nykaa has been at the forefront of driving this shift towards premiumisation by democratizing access to over 3600+ beauty brands. Over the past decade, Nykaa has successfully launched and grown global prestige and luxury brands in the country. It caters to the largest base of premium beauty buyers in the country, as well as hosts the largest assortment of premium and luxury brands. The study has identified GenZ and young millennials along with customers in non-metro cities as the audiences spearheading beauty consumption and growth. Nykaa’s content and education ecosystems along with its robust campaigns have been instrumental in augmenting and shaping demand for this cohort.