In Short:
Flipkart and Amazon are expanding their beauty and personal care product selection to cater to customers in smaller cities and towns. Flipkart has witnessed significant growth in this category, driven by consumer demand for self-care products. Digital channels like Flipkart’s Virtual Try-On are changing the shopping experience. The beauty and personal care market in India is expected to grow exponentially, with e-commerce sales projected to reach 45% by 2037.
Flipkart and Amazon Expand Beauty and Personal Care Selection
Exciting news for all you beauty and personal care enthusiasts out there! The e-commerce giants Flipkart and Amazon are stepping up their game by broadening their product offerings in the beauty and personal care segment. This move is aimed at capturing the attention of customers in smaller cities and towns, as this category experiences a surge in growth due to increased disposable incomes.
Flipkart’s Strategy
Flipkart, which is owned by Walmart, is focusing on expanding its beauty and personal care category to establish a stronger presence in tier 2 plus markets. According to Manjari Singhal, head of business, FMCG and general merchandise at Flipkart, there has been a remarkable 1.2-2X growth in this category driven by changing consumer preferences. The shift towards self-care, especially in skincare and haircare routines, has been quite prominent. Flipkart is keen on reaching out to tier 2+ markets where the demand for skincare and lifestyle products is on the rise.
Embracing Digital Channels
In today’s digital age, brands are leveraging online platforms to expand their reach and cater to the ever-evolving consumer preferences. Flipkart has introduced innovative tools such as Virtual Try-On (VTO), video commerce, and skin analysers to enhance the shopping experience for beauty and lifestyle consumers. These advancements facilitate informed decision-making and contribute to the modern beauty and lifestyle landscape in India.
The Growth Outlook
According to a recent report by HSBC global research, India’s beauty and personal care market is projected to grow fivefold in the next 15 years, reaching a GMV of $90 billion by 2037. E-commerce sales currently represent only 17% of the overall BPC market, but this share is expected to increase to 45% over the same period, indicating a significant shift towards online shopping.
Amazon’s Inclusivity Mission
Amazon India has a goal of making quality beauty products accessible to every nook and corner of the country. With a sharp increase in demand for beauty products from tier two and beyond cities, Amazon is making strides to cater to this segment. The launch of the Derma Store, which focuses on specialized skincare solutions, and the Global Beauty Store, featuring over 60 international beauty brands, are some of the initiatives taken by Amazon to meet the growing demand for premium beauty products.
This growth in the beauty and personal care sector has intensified competition, with more brands and retailers entering the market to capture a piece of the pie.
