E-commerce giants Flipkart and Amazon are expanding their product ranges in beauty and personal care, a sector that is experiencing rapid growth driven by rising disposable income, to attract new customers in smaller cities and towns.
Walmart-owned Flipkart is beefing up its beauty and personal care division to boost its presence in tier 2 and above markets.
“Flipkart has seen significant expansion in the beauty and personal care segment, which has grown by 1.2-2x due to changing consumer demands. There is a noticeable trend towards self-care, especially around skincare and haircare routines. Flipkart is focused on expanding its presence in tier 2 and above markets, where availability and adoption of skincare and lifestyle products continues to increase,” Manjari Singhal, head, FMCG and general merchandise business, Flipkart said.
BPC is one of Flipkart's top 10 grossing categories (by volume) and consumer demand in the category is growing due to innovation across categories such as color cosmetics, led by new age brands, particularly those proliferating online.
Digital Channels
“Brands are leveraging digital channels to expand their reach and align their products and services to changing consumer preferences. Innovations like Flipkart's Virtual Try-On (VTO), video commerce and Skin Analyzer are reinventing the shopping experience to meet the dynamic needs of beauty and lifestyle consumers. These advancements enable more informed decision-making and elevate the modern beauty and lifestyle landscape in India,” Singhal added.
According to a June 12 report by HSBC Global Research, India's beauty and personal care market is expected to grow fivefold over the next 15 years, reaching $90 billion in GMV (gross merchandise volume) from $19 billion in 2022. Currently, e-commerce sales account for just 17% of the total BPC market, but this will increase to 45% by 2037, the report said.
“Last PIN code”
Amazon India has announced that it plans to provide access to quality beauty products to every last postcode in the country.
“We have seen a surge in demand for beauty products among Indian consumers, especially in tier-2 and above cities, with 80% of our new beauty customers coming from these regions. Skin care is our largest category, and we recently launched Dermastores to further cater to the growing demand for specialised skin care solutions. We also operate Global Beauty Stores, which stock a curated selection of over 60 international beauty brands and stock over 5,000 products, including cult skin care and hair care favourites, Korean beauty gems and exquisite fragrances from around the world,” said Zeba Khan, Director, Beauty, Personal Care and Luxury Beauty.
The beauty and personal care sector is becoming more competitive as more beauty brands and retailers enter the market.
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