Economic Indicators

What Is Economic Indicator?

An economic indicator is a piece of economic data, typically on a macroeconomic scale, that analysts use to analyse current and prospective investment opportunities. These metrics can also be used to assess an economy’s overall health.

Economic indicators can be anything an investor wants, but specific data supplied by the government and non-profit groups has grown popular. Some examples of such indicators include, but are not limited to:

  • The Consumer Price Index (CPI)
  • Gross domestic product (GDP)
  • Unemployment figures
  • Price of crude oil

Economic Indicator Explained

Economic indicators are classified into groups or categories. Most of these economic indicators have a set publication schedule, allowing investors to anticipate and plan for certain data at specific times of the month and year.

Leading indicators are used to forecast an economy’s future movements, such as the yield curve, consumer durables, net business formations, and stock prices. These financial guideposts’ figures or data will shift or change before the economy, hence their category name. The information provided by these indicators should be taken with a grain of salt because it is possible that it is erroneous.

Coincident indicators, such as GDP, employment levels, and retail sales, are seen in conjunction with the occurrence of particular economic activities. This type of measure depicts the activity of a certain region or area. This real-time data is closely monitored by many policymakers and economists. Lagging indicators, such as the gross national product (GNP), the consumer price index (CPI), unemployment rates, and interest rates, are only visible after a certain economic activity has taken place. These data sets, as the name implies, show information after an event has occurred. This trailing indication is a technical indicator that appears following significant economic changes.

Economic Indicators and Their Interpretation

An economic indicator can only be beneficial if it is accurately interpreted. Economic growth, as measured by GDP, and corporate profit growth have historically had strong relationships. However, predicting whether a company’s earnings would expand solely on a single metric of GDP is practically impossible.

Interest rates, the gross domestic product, and existing house sales or other indicators are all objectively important. Why is it objectively significant? Because what you’re actually looking at is the cost of money, expenditure, investment, and the degree of activity in a significant part of the economy.

The Stock Market as an Indicator

Leading indicators predict where an economy will go in the future. The stock market is one of the most important leading indicators. Even while it isn’t the most important leading sign, it is the one that most people pay attention to. If earnings predictions are right, the market can reflect the economy’s trajectory because stock prices factor in forward-looking performance.

A strong market could indicate that profit estimates are rising, implying that total economic activity is increasing. A falling market, on the other hand, could imply that corporate earnings are projected to decrease. However, the stock market’s value as an indicator is limited because performance against estimates is not guaranteed, therefore there is a risk.

Ratan Tata

Ratan Naval Tata is the Chairman of Tata Sons and Tata Group, and is one of India’s most well-known and respected industrialists. Tata, who is 73 years old, is the chairman of one of the country’s largest conglomerates, which includes approximately 100 companies with a combined revenue of USD 67 billion. Tata Steel, Tata Motors, Tata Teleservices, Tata Power, Tata Consultancy Services, Tata Tea, Tata Chemicals, and The Indian Hotels Company are among his key Tata firms.

Tata was born on December 28, 1937, into one of Mumbai’s wealthiest families. Jamsedji Tata, the Tata group’s founder, was his great grandpa. Tata had a tumultuous life following his parents’ divorce when he was a child. Lady Navajbai, his grandmother, nurtured him in the lap of luxury at Tata Palace. The Tata scion was captivated by America, and he attended Cornell University to study architecture and structural engineering. Later, he attended Harvard University for a management course.

He joined the Tata Group in 1962, and his first position was with the Tata Steel division in Jamshedpur, where he worked with blue-collar workers shoveling stone and operating furnaces. In 1971, he was named Director-in-Charge of the National Radio and Electronics Company Limited (Nelco), and he was successful in bringing the company around.

Tata rose through the ranks of Tata Industries to become Chairman and was a driving force behind a slew of reforms. Tata Consultancy Services went public under his leadership, and Tata Motors was listed on the New York Stock Exchange, giving it greater international strength and prestige. He is recognised with directing the Tata Group’s successful bid for Corus, an Anglo-Dutch steel and aluminium company, as well as the Ford Company’s Jaguar and Land Rover brands.

During his leadership, the company saw the birth of the ‘Indica,’ India’s first fully Indian car. Tata was the designer of the vehicle. Tata’s food division purchased tea company Tetley for GBP 70 million in 2000. The group’s revenues increased nearly 12-fold in 2009-10, totaling USD 67.4 billion. Tata is also a member of the boards of Fiat SpA and Alcoa, as well as the international advisory boards of Mitsubishi Corporation, American International Group, JP Morgan Chase, Rolls Royce, Temasek Holdings, and the Singapore Monetary Authority.

He was awarded the Padma Bhushan by the Indian government in the year 2000. Ohio State University awarded him an honorary doctorate in business administration, the Asian Institute of Technology in Bangkok awarded him an honorary doctorate in technology, and the University of Warwick awarded him an honorary doctorate in science. Tata’s personal fortune is around GBP 300 million, and he controls less than 1% of the conglomerate. Charitable trusts own about two-thirds of Tata Group, which helps to fund good causes.

During the 26/11 attacks, Tata offered a magnificent example of charity and leadership. He stood alone outside the Taj hotel, unarmed, and oversaw the actions aimed at assisting the victims. He shown his humanity by paying personal visits to the families of all 80 colleagues murdered or injured. He didn’t leave any stone unturned in his efforts to help the victims, even asking the victims’ families and dependents what they wanted him to do.

Tata has begun making arrangements for his post-retirement life, despite the fact that his retirement is still a year away. He intends to establish an international design centre with international standards and size. He has led the development of a number of groundbreaking designs and products, the most well-known of which is Nano. His concern for the safety of nuclear families commuting on two-wheelers inspired him to create Nano. He was the one who suggested that the little car just have one wiper on the windscreen. Its pricing and maintenance costs were decreased as a result.

He also spearheaded a strategy to deliver affordable and safe drinking water, and aided a group of Pune-based designers in developing Swach, a water filter that costs less than Rs 1,000. This 560-mm water purification device was created over the course of more than three years by Design Directions Private Limited.

Tata, who is a bachelor in real life, values privacy and avoids the limelight. Only CDs, books, and pets keep him company. In an unassuming Tata sedan, the business baron drives himself to work.

Ratan Tata, who stands tall among his peers with a tremendous fortune and global fame, has remarkably never made the Forbes billionaires list.

The Success Story of Nykaa

Despite the fact that beauty is in the eyes of the beholder, the global beauty industry has never lost its allure. Along with its steady growth, the industry has amassed a dedicated consumer base that spans decades. What female doesn’t enjoy applying cosmetics? Cosmetics play an important role in all of our lives, from learning makeup tutorials to experimenting with different colours on free days, to adorning ourselves before a wedding or an event, or simply putting on a fast light application before work.

But we’ve come a long way from the days when consumers had to go to a cosmetic store in person. Why should brick-and-mortar stores be the sole option when there are now online cosmetics stores that allow clients to order things at any time and from anywhere.

Despite the fact that the Indian economy has hit unprecedented lows in recent months as a result of the COVID19 pandemic-induced shutdown, a handful of platforms have remained stable.

Nykaa is one of these e-commerce platforms for beauty and wellness products, and it has quickly become the preferred option for all cosmetic aficionados in India. Anyone who has even a passing interest in beauty and wellness products has probably heard of Nykaa at some time in their lives. This is an e-commerce site that specialises in cosmetics and beauty products. This platform, which was founded in 2012, has played a critical part in dispelling the idea that e-commerce and beauty retail do not do well in India.

Nykaa has recently become a household name across the country following the launch of its initial public offering (IPO) and the overwhelming response it received, propelling its founder Falguni Nayar into India’s elite group of self-made billionaire women, with her net worth rising to $6.5 billion following Nykaa’s record listing, according to Bloomberg Billionaires Index.

We will provide you an overview of Nykaa’s platform, its creators, its business model, its funding, its success story, its inception, and its growth through this blog.

Nykaa’s Background

Nykaa is an Indian cosmetics company that specialises in multi-beauty and personal care items. It started off as a solo e-commerce platform before expanding into a variety of retail locations across the country.

For both women and men, the company specialises in providing a broad variety of cosmetics, skincare, haircare, perfumes, bath & body, luxury, and wellness items. The portal, which claims to receive more than 1.5 million visitors per month from across India, permits adequately prepared and priced branded products.Nykaa now has three types of stores: Luxe, On Trend, and Kiosks. Nykaa’s Luxe stores contain more premium and luxury brands such as Estee Lauder, Dior, Huda Beauty, and M.A.C Cosmetics, among others, whereas Nykaa On Trend goods are limited to trending and fashionable names.

Aside from women’s beauty, the Nykaa Man website and app, as well as Nykaa Network, an online community for beauty enthusiasts, offer a variety of grooming products for males. Currently, the organisation is a staunch believer in focusing on the vertical market.

Founders of Nykaa

Falguni Nayar, an MBA graduate from IIM Ahmedabad, began working in investment banking at Kotak Mahindra immediately after graduation. She was promoted to Managing Director of the same bank division in 2005.

She worked for Kotak Mahindra for nearly 18 years, during which time she decided to branch out from banking and try her hand at other fields.

She saw the untapped potential of the online beauty industry. Since there was a scarcity of accessible online brands and things that people could trust and purchase with confidence at the time, she saw an opportunity for Nykaa.

She wanted to change Indian women’s perceptions about personal grooming because she was passionate about makeup and beauty products. Nykaa was founded in 2012 by her with the goal of creating something unique to her.

Nykaa’s Beginnings

Nykaa was founded in 2012, and it all started there. Falguni Nayar was looking for a promising business opportunity in India when she discovered an inconsistency in the beauty items market in India, which wasn’t up to par with the product’s scope in other countries such as France or Japan, despite high demand, owing to a lack of product availability in many places. As a result, she and her husband, Sanjay Nayar, founded Nykaa.

Business Model of Nykaa

Nykaa’s inventory methodology is essentially what distinguishes it from its competitors. The products are obtained through brands and distributors and then sold directly to consumers in this arrangement. This is in contrast to a marketplace model, in which third-party vendors offer the products. Nykaa will be able to keep a tighter grip on its items as a result of this, reducing the chances of forged things making their way onto the platform.

Nykaa’s Recent Growth

As reported by Your Story, recently in the month of July of this year, the platform stated that it’s in-house brand Nykaa Beauty has now penetrated into travel care as well as home necessities.

Nykaa’s platform has come a long way since its inception in 2012, and it currently plays an important part in the advancement of the beauty industry.

Nykaa currently has over 5 million monthly active users, 80 outlets across India, and over 500 brands and 130,000 products available via its website, app, and stores, according to CNBCTV18.

The company’s transformation from an online approach to an omnichannel retail model has been a critical factor in its growth. This transformation has had a significant impact on how the brand is currently perceived by its audience, as well as allowing the brand to reach out to a previously untapped demographic.

According to the Economic Times, the Nykaa Fashion label has recently expanded into the intimate apparel area with its Nykd brand. On October 22, 2021, Nykaa announced the acquisition of Dot & Key Wellness, a domestic skincare platform.

Customers are gravitating toward key categories like personal skin and hair care, according to Nykaa.

Nykaa’s Initial Public Offering

The platform’s initial public offering (IPO) was open for subscription from October 28 to November 1, with a price range of Rs 1,085-1,125 per share. Nykaa’s initial public offering (IPO) was oversubscribed by 81.78 times the 2.64 crore shares available.

Investors reacted positively to Nykaa’s initial public offering (IPO) when it was made available for subscription. The platform was launched on the BSE and NSE on November 10 and entered the 1 lakh crore market capitalization club when its stocks closed at 2,206.70, nearly double the issue price, valuing the beauty firm at about $14 billion.

Nykaa Investments is a company that invests in startups.

Nykaa’s parent firm, FSN E-Commerce Ventures Ltd, said on October 27th 2021 that it had raised roughly Rs 2,396 crore from anchor investors prior to its IPO.

Fidelity Management & Research Company has previously invested an undisclosed amount in the platform in late November 2020.

In early April of 2020, the platform received a new $13 million fundraising round from previous investor Steadview Capital, cementing its status as a unicorn.

Steadview Capital, TPG Growth, and Lighthouse Funds are among the platform’s top investors.

Conclusion

Nykaa has recently launched a number of new items, some of which have celebrity endorsements. In addition, they have included a number of new collections into their personal brand.

The platform has a number of big plans in the works to make a difference in the beauty and fashion business, and it’s been focusing on delivering high-quality items and services to users at reasonable prices. The platform has a lot of promise in terms of developing and gaining a more dominant position in the future.