India's cosmetic industry is growing at a terrific rate and is expected to touch the $20 billion mark by 2025, with a CAGR growth of 6.35% between 2022-2027. As online channels for shopping are developing at a rapid rate, the beauty and cosmetics segment is one of the clear leaders in this space.
Today, buying off the shelf has become passe as online shopping opens new realms of consumer experiences like virtual try-on, live video consultations, and beauty masterclasses.
What are the consumer trends in the cosmetics industry? How are e-commerce enablers helping brands utilize the full potential of technology in providing unique customer experiences while keeping return losses at a minimal level?
Forbes India and GoKwik have organized a series of roundtable conversations involving industry executives to delve deeper into this topic and others like it.
When it comes to the beauty market, the landscape has been dominated by cosmetics for decades. In a discussion moderated by Manu Balachandran, speakers like Kaushik Mukherjee, Co-Founder and COO at SUGAR, and Chirag Taneja, Co-Founder and CEO of GoKwik discuss the rise of cosmetics in the D2C sector.
SUGAR Cosmetics is one of the leading makeup brands in India. What led it to unlock this level? What did it take to build a trust element; amongst an audience still warming up to purchasing on social media platforms? Sharing his journey Mr. Kaushik said, "We were fortunate to be present when the focus shifted from being heavily dependent on television, billboards, advertisements, to digital mediums like social media. For a new brand like ours, which did not start its journey from television, being present on digital platforms helped create a presence for an audience learning about beauty products. What helped us get in the consideration set was people realizing the availability of other products with good quality, higher color payoff, and credibility."
The growth of cosmetics in the D2C segment has been significant. Sharing his assessment of this growth and the experiences that customers expect and desire today, Mr. Chirag said, "If you look at basic human emotion, looking good is one of the elements humans want to invest in. India has moved from being a brand-starved nation to reaching a threshold where everyone wants a brand to their liking and passions leading to increased brand proliferation. From a consumer point-of-view, everyone looks at buying a seamless, reliable, consistent experience, whether offline or online. As technology goes deeper, consumer expectations for AI/VR experiences have also seen a surge. Augmented reality and artificial intelligence are shaping the beauty industry."
With tech advancements also come challenges that every brand faces. Talking about the challenges that SUGAR Cosmetics faced, Mr. Kaushik, said, "E-commerce has always suffered from the wider trust issue. Looking at the product on the screen customers, often question will I get the same product. Will I get the original product? One thing that worked in our favor is highly established platforms where beauty has been normalized. The first 18-24 months was about building trust, reputation, and customer ratings on public marketplaces to grow the brand."
The D2C segment in the cosmetics industry is booming, and offering customer experiences is key to success.
To hear the entire conversation, you can check this link: https://youtu.be/BpCtHaWaVoAThe pages slugged ‘Brand Connect’ are equivalent to advertisements and are not written and produced by Forbes India journalists.