Covid19: Hope Lingers in the Beauty Industry in India
We all know that essential commodities and health safety and wellness saw unprecedented spikes in businesses, while some others had a severe impact.
Beauty Industry has suffered significant losses caused by an unexpected pandemic around the world. Most of us presume the beauty industry to collapse during a pandemic considering the fact that it is not entirely recession-proof. On the contrary, the global beauty industry is surprisingly doing very well thanks to the innovations and adaptations to wellness and well being, by both small and big brands.
The global beauty industry declined by 30% in the first half of the pandemic forcing consumer attitudes to transition into panic buying behaviour towards value-added items. People shifted their focus to ‘necessity’ items in beauty, resulting in increased sales revenue of personal care and skincare products compared to cosmetics.
According to the McKinsey Beauty Report 2020, consumers expected to decrease their cosmetic expenditure by a maximum of 50%, whereas consumers anticipated to drop their skincare and personal care expenditure by a maximum of 25%.
A Transition Towards Safety & Self-care
As a result of panic around the world, the underlying consumer attitude remains common among most nations.
What does this mean for India? The at-home trend is influencing Indian consumers to switch to useful and natural products that promote self-care rather than skincare. The conscious and safe trend is a holistic here-to-stay trend towards physical wellness and herbal products, thus influencing brands to become organic and socially responsible.
Additionally, post Covid19, consumers will estimate their beauty needs while recognizing brands that made unethical decisions towards their customers during the pandemic.
Demand for International Brands Increases
According to Investopedia, India is the 5th highest economy as of 2019. As India makes a radical shift towards online shopping during the pandemic, the demand for international brandsis expected to grow. The Indian beauty community of bloggers and social media influencers are the major growth drivers of the beauty industry.
Moreover, International brands with extensive product lines that suit the Indian complexion are gravitating towards an unexplored market in India. Besides cosmetics, the majority of the millennials and Gen Z audience are implicating natural products in their beauty routine. Thus, women between 18-30 years old are seeking herbal, organic, or vegan brands with a holistic beauty approach in their products as well as ethical missions towards their customers.
The Indian beauty market is as challenging and complex as much as it is evolved. However, if you are looking for market expansions and want to create long term equity, you may want to look at the great opportunities the Indian market has to offer.
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