The share of the premium segment of beauty and personal care (BPC) products will grow to an estimated 55% of the total BPC market in the country by 2026 from 45% at present, with a corresponding decrease in the share of the mass segment to 45% from 55% now, omnichannel beauty and fashion retailer Nykaa said in its annual investor day presentation to analysts on Friday.
The Mumbai-based company said consumer preference in the BPC category is shifting from personal care to beauty products, as a result of growth in per capita gross domestic product (GDP).
Nykaa also said that it has recorded $80 (about Rs 6,500) per customer spend in the BPC category in the past 12 months, which is significantly higher than the $15 per capita (about Rs 1,200) spend on BPC in India. It is estimated that the national per capita spend on BPC would grow to $50 (Rs 4,100 at current exchange rates) by 2030.
During the company’s March quarter earnings call last month, Nykaa’s chief executive of e-retail Anchit Nayar had said that one of the key focus areas for the company was “acquiring new customers and equally importantly retaining the existing loyal, premium repeat customers”. While Nykaa’s BPC category saw the gross merchandise value grow 32% year-on-year during 2022-23 to Rs 6,649 crore, the average order value (at maximum retail price) for the category stagnated at Rs 1,857.
It said in the presentation that per capita spending on BPC category also varied according to income groups.