Despite the impact of the pandemic on people, businesses and spending, the beauty industry has been among the fastest to analyse the situation and adopt to new business techniques. As per market reports, the India cosmetic industry is projected to reach US$ 20 million by 2025 with a growth rate of 25 per cent per year.
With the advent of digitalisation and e-commerce, many start-ups have been functional in this space as compared to the earlier times. Today’s consumer is always online, and they no longer depend on local beauty stores for research, but in fact look at social media, online marketplaces and websites. There is a surge in e-commerce sales which will continue to accelerate in the post-pandemic world. And to top it all, technology has given a headway to personalisation and thorough research, giving consumers an experience like never before.
Constant dialogue towards sustainability and rising awareness of beauty products has resulted in a conscious consumer. With the growth of organic products, synthetic compounds such as propylparaben and butylparaben are not considered to be safe for use. India is a country where beauty is steeped in the roots through Ayurveda. With growing awareness and accessibility, consumers are opting for products that are natural and organic and most of all, suit the Indian skin types. Beyond the usual requirement of everyday makeup products, there is an increasing demand for skincare products.
Along with creating products that attract your audience, there are aspects of trust and transparency that are paramount. Thus, one of the most important things for any brand to do is to win the faith of their audience. As a result, today’s start-ups have to step away from the conventional norms of launching a beauty brand and understand the evolving nature of the industry.
However, along with this, start-up brands will also have to strive for:
Creating a Niche Brand: Launching a product which is unique, reliable and stands out from the competitors and attract attention towards the brand.
Digital Presence: Brand content on digital platforms can help in building connection with the audience. Instagram and Facebook are the most powerful players that can be used to build a marketing strategy to boost sales.
Use of innovative technology: The world of beauty is constantly changing and requires to be upgraded with latest innovations by persistently offering the market something new and experimental that will attract the consumer’s attention. For example, AR/VR enables users to try on various products through images and live videos, before making a purchase.
Target Audience: Start-ups have to continuously identify and approach new target audience as beauty is no longer confined by the limitations of gender. There is also a growing market for men’s beauty products, moving beyond just basic grooming and styling. Investing in men’s beauty now can give you a head-start in the industry.
An innovative way to approach the consumers along with a great marketing strategy will ensure success to start-ups in the beauty world and India is set to become one of the top five global beauty markets by 2025.