How Digital Advertising Helps India’s Beauty Industry Grow
It wouldn’t be wrong to say that it’s “Day 1” in the field of beauty and personal care in India. Why? Perhaps because the two-year innovation cycle is reduced to less than four months. More than 50-60% of new customers now come from small towns and rural areas, and an explosion of choice and accessibility has created new habits for beauty consumers in India.
There has never been a better time to be a beauty brand, as India’s large population still has one of the lowest per capita consumption of beauty in the world and is rapidly consuming content for inspiration and education, and eagerly leverages digital platforms to not only learn but also meet their new needs by ordering their brands with just one click!
There is no denying the rapid growth of the beauty industry in India. Over the past decade, digitalization has transformed and influenced almost every industry in the world. The beauty and cosmetics industry in India is one such industry that has been heavily affected. There could be several factors strengthening the bond between brands and customers or lowering entry barriers for new brands to tap into previously inaccessible niche customer cohorts.
Back to the roots
According to Statista, India is ranked fourth globally for generating the highest revenue in the beauty and personal care market in 2021. According to IMARC Group, the Indian beauty and personal care market is expected to grow at a CAGR of 6.5% during the period 2022 -2027.
Until now, the international giants have dominated the Indian market without really knowing whether their products are suitable for Indian skin type with overexposure to heat, humidity and humidity, and have found a market in a certain category of women. But with the advent of mass media and awareness campaigns, the public is more aware of what works for their skin. ‘Gharelu nuske’ made a comeback during COVID and inspired many brands to return to Indian roots and rehash the importance of natural products.
According to ShareChat’s Bharat ki #FestiveFeeling Report, 80% of Bharat women go online to buy beauty products and prefer 80% natural ingredients in their beauty products. This paved the way for local businesses such as MamaEarth, Khadi Essentials, Plum and SoulTree to promote their homemade cosmetics and personal care products.
The MamaEarth beauty brand was started by its founders due to the lack of good quality and organic products, and they started with a direct-to-consumer model. What started with Facebook and Instagram has now found its way to one of India’s biggest online beauty destinations, Nykaa, among others, as the first organic skincare brand. This is the power of digitization in the beauty industry.
The power of technology
At this point, it’s preaching chorus, but the pandemic has empowered the world of online shopping and transformed it for good. According to a report by Unicommerce in collaboration with Wazir Advisors, many digital-focused brands have emerged in the last two years in the beauty and personal care segment, which offers fierce competition to traditional players, but the also encouraged them to build their e-commerce capabilities. .
One such industry success story is that of Nykaa, one of the leading cosmetics companies with the largest share of the online beauty and personal care market.
There was no choice but to rely on the flexibility and security of online shopping and home delivery. Thus, e-commerce has boosted the beauty industry.
There are several apps like B612, Facetune, etc. that really upped the selfie/photos fever game that took over the times. They pretty much resemble their bigger and more popular predecessors like Snapchat and Instagram. But the B612 offers a camera for live editing. Moreover, it offers body editing features, and voila, you have the selfie game on point! Almost ten years old, it was one of the first to introduce augmented reality filters, an innovation that has brought wide recognition to the industry.
Speaking of Augmented Reality (AR) and its ability to penetrate the deepest regions of India, many leading online retail brands including the beauty industry are now harnessing this technology to introduce trial features on their apps. This allows consumers to try a product for themselves without physically visiting stores and helps them make an informed and confident purchase.
According Deloitte and Snap study in US and international markets such as Australia, Canada, France, Germany, India, Japan, Malaysia, Mexico, Netherlands, Norway, Saudi Arabia, Sweden , the United Arab Emirates and the United Kingdom, more than 100 million consumers have made AR purchases online or in-store.
Among them, 94% agree that they will use the same amount of AR or more when shopping next year. He reported that companies with branded AR experiences are 41% more likely to be considered by consumers than those without. Additionally, 56% of respondents said AR gives them more confidence in product quality, and more than half say they want to use AR technology for a risk-free “try before you buy” experience. Clearly, interacting with products that include augmented reality experiences results in a 94% higher conversion rate, according to the survey.
The emphasis on the use of clean and environmentally friendly products has also contributed to the expansion of the beauty and personal care market. It hit loyalists like a wave leading to wider acceptability and in turn inspired a significant shift towards more “local” brands and products.
According to Statista, the Indian cosmetics industry market size is expected to reach $20 billion by 2025. Moreover, according to one story, “Beauty, makeup and personal care have been among the top three topics dominating social media feeds globally”. This, in turn, has boosted India’s $26 billion beauty and personal care market, home to a host of new, often niche, cosmetic and personal care brands targeting lifestyle needs. people rather than gender or age.
What else? Major brands are now investing in regional influencers to penetrate non-urban markets. There has been an undeniable boom in regional communications as brands realize that people connect more with someone who speaks their language. According to ShareChat, many “Bharats” have internet access, many hyper-local language content is gaining prominence, and the next growth story in India must have a regional focus!
In a word
International and local brands compete in the Indian personal care and beauty products market. According to Statista, the online beauty and personal care market was worth Rs 91 billion. The pandemic has forced producers in the online personal care market to adapt by better preparing to meet rising consumer expectations. To thrive in the personal care market, brands must create tactics that appeal to consumers.
Growth in the beauty industry is driven by digital advertising, which allows marketers to reach potential consumers more effectively than traditional advertising. Digital media and apps help consumers understand and accept products and trends faster, also because brands can now assess customer feedback through the two-way communication channel and track their preferences, needs, evolution of demand and the narrative that persists.
Basically, as a marketer, it would be unwise at this point to underestimate the power of influencers, social media, and digital advertising to win over your target audience, the beauty industry, and beyond.
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)