How Beauty Brands Pent Up the Demand Amid Inflation
How Beauty Brands Pent Up the Demand Amid Inflation

The key factor driving the Indian beauty and personal care market is the growing focus among individuals on personal hygiene and skin health. This is especially true for the country's large population of young people, who are increasingly becoming more aware of the importance of caring for their skin. In addition, the availability of a wide range of affordable and effective beauty and personal care products is also helping to drive growth in the market. The major players in the market are focusing on product innovation and new product launches to meet the changing needs of consumers. Moreover, players are also investing in advertising and marketing activities to build brand equity and create awareness among consumers about their products.

Rising disposable income has assisted the growth of India's beauty and personal care industry in recent years. With an ever-increasing disposable income, and a growing expectation to look beautiful among Indian customers, India's beauty and personal care business has a beautiful opportunity to expand enormously.

Common categories such as bath and shower, hair care, and oral care already have strong penetration and are well-established, so the development in those segments will be slow. Multinational companies are dominating these areas with products that provide practical benefits while still being affordable. Herbal cosmetic products are witnessing significant growth as people become more aware of the disadvantages of using chemical cosmetics regularly.

There are several reasons for this shift towards herbal cosmetics. Firstly, people are becoming increasingly aware of the long-term effects of using chemical-based products on their skin. Secondly, natural ingredients are seen as being gentler and more effective than harsh chemicals. Finally, herbal cosmetics are often more affordable than their chemical counterparts. This trend is likely to continue in the future as more people become conscious of the impact of their beauty choices on their health and the environment.

The on-click brand websites and promotional social media platforms are making a big contribution to the market. Moreover, some firms are providing personalized items and in-store experiences at home, stimulating the industry. Furthermore, increased consumer knowledge of beauty and personal care products produces a good market outlook. In addition, the growing number and variety of men's care and gender-neutral cosmetic products are fuelling market expansion. Furthermore, the introduction of products focusing on menopausal skincare and perimenopausal problems is boosting the total market.

One intelligent way of marketing being used by brands is retail marketing. Retail marketing in general does not receive the attention it needs. Most people focus solely on e-commerce and its promise, but it only accounts for 14 percent of worldwide retail sales. The remaining 86 percent is generated by customers strolling into stores and purchasing things in person.

The key components of retail marketing are promotions and discounts. By offering promotions and discounts, brands can entice customers into buying their products. This is a great way to increase sales and grow your brand. In addition to promotions and discounts, another important aspect of retail marketing is product placement. Product placement is when you strategically place your product in a store so that it will be seen by customers. This is a great way to increase brand awareness and get people interested in your product.

Another aspect that can be talked about regarding inflation and demand is skimpflation - another type of inflation that the naked eye usually misses. In regards to that, it can be seen that several fast-moving consumer goods (FMCG) companies in India are reducing product packages to save on raw material prices with the price being kept unchanged.

The Indian beauty and personal care industry attained a value of Rs 54,558 crore in 2020, owing to increased spending on personal care products. The market is estimated to increase at a CAGR of 6.5 percent during the forecast period of 2022-2027, aided by the increasing penetration of a diverse range of brands and the growing popularity of herbal products.

The Indian beauty and personal care market is additionally propelled by significant consumption growth prospects. Product demand is being fuelled across the country by an increasing female workforce, rising fashion trends, and the popularity of social media outlets. The major players in the Beauty and Personal Care Market are attempting to discover, test, and develop new beauty brands through the rapid application of new powerful technologies such as virtual reality, augmented reality, and artificial intelligence, which are expected to create numerous future growth opportunities.
 

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