What will make a beauty brand work in 2022?

The pandemic has been a time of soul-searching. The $ 500 billion global beauty industry, comprising skin care, cosmetics, hair care, perfumes and personal care, has not been immune to the virus outbreak, brands being forced to close their physical stores, forced to reinvent and rethink their business strategies.

India’s $ 11 billion market, for example, continues to transform, with brands finding ways to tap into the young Indian consumer. Expected to reach $ 30 billion by 2025, India’s beauty industry is betting big on multi-brand online stores, driven by key trends including increasing number of smartphone users, internet penetration and globalization. rise of the ambitious young Indian workforce. After the lockdown, consumers are spending money on small indulgences and turning to revenge spending, helping to grow the market size of the beauty and skin care industry.

Read also : Why influencers guide your beauty routine

Beauty brands will increasingly capitalize on their global learnings, but adjust them to suit the uniqueness of developing markets. The brands that will be successful and resonate deeply in the years to come will be those that emphasize personalization, big data analytics, and research to connect with customers.

The global beauty industry is expected to reach over $ 800 billion by 2023 and will be shaped by some specific trends, especially those expected from developing markets such as India.

The beauty business goes online

A recent research report from Accenture suggests that consumers are now four times more likely to purchase their makeup and personal care products online than before the pandemic. In India, more than 500 million people now use smartphones, an increase of 15% from 2018. With the Indian smartphone market soon to reach 180 million units, more people will have purchasing power, which will stimulate the activity of multi-brand online stores in the category. , in particular level II and level III cities. Interestingly, the top digital brands are expected to hold $ 10-15 billion of the overall Indian beauty and skin care market category in the coming years.

Celebrate technology

The real trendsetters in the beauty industry will be brands offering hyper-personalized experiences to consumers. It is the focus on AI and AR technology, as well as skin and makeup diagnostic tools that will determine the growth of the beauty industry. Personalized packaging, a name engraved on a lipstick for example, will be a trend to watch. Additionally, over the coming year, brands will become increasingly phygital, ensuring both online and offline experiences.

Keep it clean

Globally, the clean beauty market is expected to reach $ 22 billion by 2024. The new age consumer cares about the environment and demands cleaner, PETA certified and environmentally friendly products . These own brands will contribute 5-10% to the overall category of beauty and skin care industry in India. Given the emerging trend of “skinmalism” to use fewer but more quality-conscious products, consumers will continue to invest in ethically created organic products based on sustainable practices.

Beauty becomes neutral

Beauty and skin care product marketing is becoming more fluid and gender inclusive, shifting to social and live selling through social media influencers. Global brands are signing more diverse models and actors, K-pop stars, social media influencers, promoting non-gender or genderless products. Expect more communication over the coming year from beauty brands that will be tailor-made, personalized but not gender specific.

Ritika Sharma is the Founder and CEO of House of Beauty and Boddess.com.

Read also : Is clean beauty really clean?

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