The beauty and personal care market is one of India’s fastest-growing segments, driven by many market triggers and lifestyle changes. Traditionally controlled by legacy brands, the industry is now witnessing a boom due to changing perceptions, growing awareness about natural ingredients/chemical-free products, and most importantly, the rise of direct-to-consumer (D2C) companies making waves in the online retail space.
Post the pandemic there has been a shift to
online platforms and there are some key selection criteria identified for
choosing an online platform to make a purchase from, as doorstep beauty care
services and products were also made available when stores and malls temporarily
closed. When the logistics supply chain in the retail outlets was severely
affected due to covid lockdown, consumers were compelled to move online, and
this shift in mindset is likely to continue for a long time, experts say.
Customers tend to prefer vertical platforms more
due to specialization of the platform in the particular sector and better
assortment, quality, customer experience and familiarity with the interface of
the platform.
The
main reason for this strong growth is the generational shift with young
consumers entering the market. At the same time, this change is reinforced by
social media and eCommerce, which have a lasting effect on buying behavior when
it comes to beauty products.
Helped
by the availability of affordable smart-phones and the proliferation of the
Internet, consumers are increasingly discovering a slew of new products and
brands online, and are more than willing to experiment, boosting growth
prospects of firms operating in the space. Which is giving opportunities to
brands for ideation of in varied categories new products.
Authored by (at the time of writing):
Abhishek Maiti - Director, PGA Labs