Nykaa Founder and CEO Falguni Nayar remains confident about the long-term growth potential of India's beauty and fashion market, even as competition intensifies across retail and e-commerce. Speaking after receiving the NDTV Profit Trailblazer of the Year Award, Nayar highlighted rising consumer aspirations, premiumisation trends and faster deliveries as key drivers of Nykaa's future growth.
Nayar noted that India's beauty market is still significantly underpenetrated compared to other countries. She pointed out that beauty consumption in India stands at around $16 per capita, compared with $40-$50 in comparable markets, leaving ample room for expansion over the coming years.
"The consumption journey is far from over," she said, adding that growing incomes and changing lifestyles are encouraging consumers to spend more on beauty, personal care and fashion products. She also expressed confidence in India's long-term economic prospects despite concerns around artificial intelligence and job creation, saying she believes the country will secure its rightful place in an AI-driven world.
After receiving the NDTV Profit Trailblazer of the Year Award, Falguni Nayar, Founder & CEO, Nykaa, speaks with @PoddarNisha about India's consumption story, growth opportunities in beauty and fashion, AI's transformative potential, and Nykaa's consumer-first approach pic.twitter.com/4BjYuGIj6h
— NDTV Profit News (@NDTVProfit) July 27, 2026
On competition, Nayar said Nykaa continues to benefit from its leadership position in vertical commerce. While new players have entered the market, she believes category-focused businesses enjoy strong advantages once they establish scale and customer trust. She added that several leading international brands entering India have chosen Nykaa as their partner, reinforcing the company's position in the beauty ecosystem.
Discussing Nykaa Fashion, Nayar said the business is beginning to gain momentum after six to seven years of investment. The company added around 1,250 brands over the past year and has seen growth accelerate. Rather than competing solely on volume, Nykaa is focusing on premium and trend-led offerings.
"In a crowded market, we stand for premiumisation and bringing aspirational products to consumers," she said.
Nayar also dismissed concerns that the rise of homegrown beauty brands poses a threat to the company. She said Nykaa works closely with global beauty giants such as L'Oréal and Estée Lauder and remains their preferred retail partner. As more brands emerge and get acquired, Nykaa stands to benefit from a broader product ecosystem.
On the impact of quick commerce, Nayar said the company does not view it as a direct competitive threat, as consumer use cases differ. However, Nykaa has responded to growing demand for speed through "Nykaa Now", which offers deliveries within 30 minutes to two hours in select locations. She said the additional cost is manageable and aligns with the company's consumer-first approach.
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