The beauty industry in India is still to reach its full potential. India is way behind most mature markets across the world like Japan, Korea, and the USA in terms of the consumption of beauty products. Therefore, the industry, when compared with the scope of its population, is highly premature.
However, the demand for products that are better suited for the Indian skin types and the Indian climate is high. As a result, the beauty industry is growing at a good rate year-on-year, making cosmetics and beauty the next sector to see a boom in India.
One such brand that is contributing to the growth of the beauty and cosmetics industry is Insight Cosmetics.
Dinesh Jain, Founder, and Chairman, Insight Cosmetics, said, “In the year 2012, we started Insight Cosmetics, a brand that focuses on delivering high-quality products. Our target audience wanted to experiment with more than just basic makeup. They were open to trying new, fresher makeup products as long as they were confident the quality was maintained and the cost was affordable. The USP of our brand is that we ensure our products are of the highest quality while being available to consumers at affordable rates.”
“Our best selling categories would be the range of primers we have. We are listed amongst the top 5 primers in the country. Our range of nail polishes, lipsticks, and concealers also has a fair market share in the Indian market. The average selling point of our products is Rs 150 to 170,” he added.
Shift from Offline to Online
There is a significant shift from offline to online, which resulted in faster changes in makeup trends and looks.
“We already had an online presence across multiple platforms and sites and our own brand website. During the pandemic, we just focused more on being more visible online. Our online sales took sudden growth during the pandemic,” Jain stated.
Online trends tend to change every quarter instead of a seasonal or yearly change compared to the offline market.
“The pandemic and compulsion to wear a mask has increased the demand for non-transfer lipstick shades. We have also seen an increase in demand for eye makeup since the start of the pandemic. For a couple of months after the restrictions were raised, the retailers ordered only the essential makeup products, like kajal and eyeliners. So, our inventory saw a quick sale in the fast-moving essential makeup products,” he stated.
Focusing on Customer Retention
Customer retention is essential to grow sales and build the brand name of any business.
“We are focused on updating our software to analyze the data collected at the stores in greater depth. We believe that retaining a customer takes more effort than getting that first sale, and hence we focus a lot on client retention and brand loyal clients. Our new software will help us achieve better insight into the shopping habits of our customer database,” he remarked.
“Our own website sees a repeat client base, with a good growth rate month on month. In addition, we have seen good growth in our direct customer base. As a result, our cost of acquiring new customers has been reduced drastically since we get many referrals and repeat clients. As a result, our focus has been more on customer retention, and we are actively working towards ensuring our customers stay loyal to our brand,” Jain noted.
Embedding Digital Innovations
Insight Cosmetics’ website and partner dashboard give it live updates regarding sales, trending products, and products performing below expectations.
“Our customized ERP gives us direct reports, allowing us to focus on the problem areas. In addition, our offline partners give us instant updates on inventory and issues, if any, as and when they arise. We have sales automation software that gives us well on ground reports,” he asserted.
“Going ahead, we are working on different ways to track and study the sales reports across all our sales channels. We are also researching to integrate artificial intelligence into our website to understand customer needs in a better way. With all these systems in place, we know the problem areas as soon as they arise and actively improve our productivity,” Jain further informed.
Insight Cosmetics is available offline in 20 Indian states. The brand has a presence in over 12,000 stores across the country. It targets to have 16,000 stores by the end of the year.
Currently, the brand is not available in Jammu & Kashmir, the Seven North East Indian States, and around 2 states in South India. It looks to expand its reach across India so that its products are available in retail stores and kiosks in these states.
“We are expanding our distribution channels to more states and cities in the country. Shortly, we hope to have an offline presence in more states and cities, especially in Eastern India which is a good market for makeup products. In addition, we also want to venture into the international market soon,” Jain said.
He added, “Online, we are visible on more portals and websites, reaching a much wider audience now and delivering to more than 18,000 plus pin codes in India. We are in talks with many more e-commerce portals to sell our products and have seen a positive response from many of the new portals we are negotiating with.”
Insight Cosmetics would like to improve its technology and upgrade it on the frontend as well as a backend to study the customer data it collects through its sales channel. The brand is also actively working on providing a more comprehensive product range and will soon be including new products in every category that cater to every Indian skin tone and all skin types.
“There has been an increase in demand for our products, so the next big step would be to expand, optimize, and maximize our production capacity to meet the rise in demand,” he concluded.