E-commerce majors Flipkart and Amazon are deepening their product selection in the beauty and personal care segment to reach new customers in smaller cities and towns as the category witnesses rapid growth driven by rising disposable incomes.
Walmart-owned Flipkart is ramping up the beauty and personal care category to deepen its presence in tier 2 plus markets.
“At Flipkart, we’ve witnessed significant expansion in the beauty and personal care category, with a substantial 1.2-2X growth driven by evolving consumer demands. There is a noticeable trend towards self-care, particularly in skincare and haircare routines. Flipkart is focused on expanding its presence in tier 2+ markets, where we continue to observe increased accessibility and adoption of skincare and lifestyle products,” said Manjari Singhal, head of business, FMCG and general merchandise, Flipkart.
BPC is among the top-ten selling categories (by volume) for Flipkart. The consumer demand in the category is being fuelled by innovation across categories such as coloured cosmetics, especially led by new-age brands proliferating online.
Digital channels
“Brands utilise digital channels to expand their reach and tailor their offerings to evolving consumer preferences. Innovations such as Flipkart’s Virtual Try-On (VTO), video commerce, and skin analysers are reshaping the shopping experience, tailored to meet the dynamic needs of beauty and lifestyle consumers. These advancements empower informed decision-making, thereby enhancing the contemporary beauty and lifestyle landscape in India,” added Singhal.
India’s beauty and personal care market will grow five times in the next 15 years, reaching GMV (gross merchandise value) of $90 billion, up from $19 billion in 2022, according to a 12-June report by HSBC global research. Currently, e-commerce sales represent just 17 per cent of the overall BPC market, but will rise to 45 per cent by 2037, it said.
‘Last pin code’
Amazon India said it plans to bring access to quality beauty products to the last pin code in India.
“We have seen a noticeable surge in demand for beauty products among Indian consumers, especially from tier two and beyond cities, with 80 per cent of new beauty customers coming from these areas. With skincare as our largest category, we recently launched the Derma Store to better serve the growing demand for specialised skincare solutions. We also have a Global Beauty Store, that hosts a curated selection of 60+ international beauty brands with over 5,000 products including cult skin and haircare favourites, K-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 seeing intensified competition as more beauty brands as well as retailers enter the market.