Nykaa's Falguni Nayar On BPC Consumption Trends In India | NDTV Profit
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00:00 We're at the sidelines of the startup Mahakump here and I'm joined by Ms. Falguni Nair of
00:05 Naica. Thank you so much, ma'am, for taking the time out. I was at your keynote presentation and
00:09 what I found really interesting was the fact that you brought up how India's per capita
00:14 expenditure is going up and with that growth will also be going up. What will also be going up is
00:20 Naica's basket category consumption, right? Could you elaborate a bit on that? Because
00:26 I found that trend very, very interesting. I think, you know, we've been studying this
00:31 for a while and we do believe that beauty consumption, beauty and personal care
00:35 consumption in the country is lower than where it should be given our per capita income. And
00:42 I think in my opinion, it was due to lack of education. And Naica has been doing education
00:47 at scale. And we talked about a few examples there about Naica land, which was attended by
00:52 10,000 people who could experience this is a mini Naica land, but they could experience 80 brands
00:57 like this in that space. And it was a three or two day event where we did that. We increasingly
01:03 also do a lot of experiential, both online and offline. We are talking about the skincare
01:09 routines. We are talking about the hair care routines. We are talking about the makeup
01:13 routines that the consumer needs to follow. So we do believe that education is key to success
01:19 in beauty and personal care consumption. And we are trying to bridge the gap between where the
01:23 beauty consumption should be and it is today and whether it is our stores, whether it is our online
01:28 presence and amount we are investing online on education. I talked about Naica stream. It's a
01:34 whole, if you ever go and see that there are hundreds of videos teaching consumers how to use
01:39 beauty and personal care. I think there is a similar challenge even in fashion where the
01:43 consumer is far behind, especially what we call is on trend on style kind of fashion consumption
01:49 is far behind where it should be. And are these, why are these important? In my opinion,
01:54 these are lifestyle categories, beauty and personal care, as well as fashion.
01:59 They are, they are enablers for empowerment, be it man or a woman, a well-dressed man or a
02:06 well-dressed woman will have more empowerment to pursue their dreams. So I do believe that these
02:11 are very serious categories and they need to be given attention to, and we need to, our consumers
02:17 deserve to have the best of beauty and fashion. That's very, very interesting. I also, I was also
02:23 sort of thinking about the consumption demand scenario, right? Is education the bridge between
02:28 that because the market is as crowded as it can be. How do you sort of peg the demand scenario
02:34 currently at? Yeah, I think the market on in certain category, people believe it is crowded,
02:42 but I have studied the consumption patterns and the consumption patterns. If you look at any,
02:47 forget the developed economies of the West or even East, like Japan and South Korea. But even if you
02:53 take economies like Vietnam or Indonesia, the consumption is far more on the uptick compared
02:59 to this. And obviously there is usefulness also. I mean, there are skincare products that are
03:04 useful to give confidence to the user of those products. So I do feel that it's an important
03:10 industry and it needs to have the rightful place. Interesting. We're at the DTC pavilion here.
03:17 What's your take on the larger DTC brand scenario currently? There was a funding boom. It's sort of
03:25 dying down a little now. There is deep discounting as we speak across DTC brands.
03:30 Do you see, what are the trends that you're seeing emerging from that sector?
03:34 I think earlier consumer brands used to take years to be built and grow. They used to be patient.
03:40 They used to work on solving consumer problems. They used to work on innovation. They used to
03:46 work on going through multiple channels over a period of time and keep building on it. I think
03:51 all that changed when large platforms emerged. And many of the brands who would list on the
03:56 platforms would get certain size and scale very quickly. And then everybody thought that was a
04:00 game. And I think a little bit of slowdown and growth, everybody's starting to doubt that this
04:04 is the right thing to do. I think it's not a time to self-doubt, but to believe in their vision for
04:11 their brand and do a lot of research, do a lot of innovation to solve real consumer problems.
04:19 And if you can do that and you build a brand in a more measured manner, I'm a big proponent of
04:25 slow but sustainable growth. Not necessarily slow, but sustainable growth that can be sustained over
04:29 a long period of time. And I think the brand should be built like that.
04:32 Interesting. Thank you. Thank you so much.
04:35 Thank you.