MARKET_TRENDS

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1. E-commerce and the establishment of Direct-to-Consumer (DTC) brands:

The online BPC market in India has grown dramatically in recent years, owing to rapid growth in e-commerce penetration. E-commerce, according to industry analysts, is a profitable prospect for both companies and customers. E-commerce has profit margins of up to 70%.D2C businesses have been establishing new standards not just in terms of smooth and personalized shopping experiences, but also in growing and optimizing existing business

models, thanks to advanced innovation and cutting-edge technology.

It has taken decades for seasoned multinational retail businesses to reach the astonishing sales records that the new internet beauty brands have achieved just because of D2C.

 

2. Clean beauty is preferred:

What began as a craze has now become a standard. Vegan, cruelty-free, toxin-free,paraben-free, sulfate-free, and safe labels are increasing in popularity, as is a preference

for natural ingredients with ayurvedic advantages, such as onion in shampoos or aloe vera in skin care products.

According to a Nielsen analysis, natural beauty and personal care make up around 40% of the BPC industry overall, and they are expanding at a rate 1.5 times faster than the

general market.

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3. Using cutting-edge technology to bring consumers closer to brands:

Tech deployment is undoubtedly assisting the industry in boosting product quality and enhancing the process of product suggestion, hence increasing consumers' overall

experiences with brands.

To fulfill the rising and diverse expectations of customers and to provide digital experiences, the industry is now depending on cutting-edge technologies such as Artificial

Intelligence (AI), Augmented Reality (AR), Virtual Reality (VR), and others.

A few use cases of technology are: Customers desire personalized product recommendations based on skin types and tones. As a solution, deep learning algorithms with the capabilities of AR and AI come to the rescue. There has also been a lot of interest in virtual try-on. People may use technology to learn what colors will look best on their faces without having to go out and buy them.

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4. Fierce competition in men's grooming:

Rather than attracting females, India's men's grooming sector is thriving for reasons such as confidence and gaining a competitive edge over other males in job advancement. Men in urban India are spending a lot of money on grooming goods, thanks to their growing disposable income, acquaintance with the latest trends, and concerns about their looks. According to the research "India Men's Grooming Industry Outlook, 2027-28," the market is predicted to grow at a CAGR of more than 11% during the forecast period, with a market value of more than 31000 INR Crore.

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5. Influence of social media:

90% of all posts relating to beauty will be published on Instagram in 2020, making it the most lucrative social media channel for beauty firms. It is a fantastic area to introduce

beauty items to younger target audiences because there are alternatives to connect links to brand websites or e-commerce stores.

Additionally, Instagram is the most popular medium for influencers to share their content and interact with their fans through freebies, tutorial videos, and beauty looks.

Because of the popularity of its how-to videos and product instructions, YouTube, which has more than 2 billion monthly users, continues to be a crucial medium for beauty firms.

However, as seen by the emergence of TikTok, the epidemic accelerated the tendency toward short-form videos. TikTok has become a significant platform for beauty companies

because of its more than 100 million daily users, the majority of whom are members of Generation Z, and its innovative algorithm that promotes virality

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6. India's adoption of K-beauty:

Since skincare is such an important aspect of Korean culture, it is only natural that it would appear in well-known television programs like Sky Castle, Squid Game, etc., or on the

social media pages of well-known musicians like BTS, seventeen, or iKon. Younger generations, especially those under 25 adhere to the behaviors and routines of such

well-known societal personalities.

As a result, they develop into a key market for the Korean skincare sector. Due to the same factor, elaborate skincare regimes, sheet masks, and face serums have gained

popularity.

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