The top five nations for generating the highest revenue in beauty and cosmetics are- USA, China, Japan, India, and Russia. In India alone, the beauty industry is expected to grow at 7.7% per annum. As per reports, the cosmetic, skincare, and men's grooming market is expected to have a 45% share in the overall beauty market in India by 2022.
Campaigns and initiatives like Make in India and Sustainable Living are enlarging the scope of homemade, natural, and small-scale beauty idea products in India. Another important segment, that has been climbing the ladder in the beauty sector of India is personalized or customized beauty products.
In the 21st century when everything from shoes to laptop covers is being customized and personalized, the beauty industry is not lacking behind in the same. Skincare, haircare, and cosmetics are flooding with brands that are personalizing as per customers for their skin type, hair issues, and color preferences.
Customized or bespoke beauty products are formulas that are changed to suit a consumer’s skin or hair. Example- Customized shampoos – Bare Anatomy customizes shampoos as per the hair texture, hair type, hair problem, and also the preferred color of the shampoo and fragrance of the product.
A customized beauty product hence refers to products that are formulated to meet the specific need of the customer’s current beauty situation.
From lipsticks to creams, all the beauty products can be customized and personalized to address the current problem being faced by the client.
The concept of customization is not new for the beauty industry. Many brands have been customizing their services and products as per a specific race or community.
In the 1950s, a line of makeup Carmen Cosmetics was launched in the USA especially for the black skin tone. The purpose was to formulate a makeup line that would not turn ashy on the colored skin tone.
Another example of personalized or customized beauty products is that of Madam C.J Walker, after suffering from a scalp ailment that led to hair loss, Madam C.J Walker created a line of hair care products especially to suit African American hair in the 1900s.
In the Indian sub-continent, customized beauty products date back to the Mahabharata era as mentioned in the mythological books, the natural beauty products were customized as per skin type and seasons in those times.
However, in the modern era of the 2000s, the beauty idea of customization has taken a step further and personalization and bespoke beauty products have taken to the limelight. Personalization here refers to making the overall experience individualistic.
Example- Many skincare and haircare brands along with customizing the formulas of the beauty product also personalize the experience by mentioning the name of the consumer on the packaged bottles and making products like shampoos and soaps in colors and shapes specified by the consumer. They also tweak the formula to address the problems of the individual consumer, hence personalization refers to creating a product that is specific to the consumer's need by giving them an individualistic experience.
As per the Global Next-Generation Personalized Beauty Market Assessment, the customized or personalized beauty market is expected to grow at a CAGR of 7.5% between 2020- 2028.
Further to the study, it revealed that continents that would be most inclined to customized beauty products along with a personalized experience would be Europe, America, and the Asia Pacific.
The major market share of the beauty product market in India is still unorganized. As per a report of 2018, 75% of the market share in beauty comes from the unorganized sector in the Indian sub-continent. Hence, beauty has a huge scope in India. The untapped market and growing beauty needs of the Indian population are on a rise.
The customized beauty or personalized beauty market in India is a game-changer and disruptor in the beauty industry. Many Indian brands offer personalization to their consumers.
These ‘Made in India’ brands are providing a unique experience to their consumers by personalizing products as per the lifestyle, need, and requirement of the customer.
I Knock Fashion, surveyed to know the perspective and preferences of the consumers towards personalized and customized beauty products.
The Indian consumer understands that every skin type is different. As individuals lead different lifestyles and expose their skin and hair to multiple environments, a need for a personalized beauty product is thus rising.
Post the pandemic and lockdown situation, the importance of natural, home-based, organic, and personalized beauty products has escalated.
Indian consumers now prefer products formulated for them over the ones available on the shelves.
The advent of digital media and the increasing use of social media makes it easy for consumers to reach and interact with their preferred brands in beauty.
About 82% of the metropolitan beauty buying consumers prefer personalized beauty products. These include both men and women.The customers look for easy navigation and an individualistic experience in both offline and online stores.
About 70% of the metropolitan and tier 2 city customers are aware of the personalized beauty products and their availability in the market.
As beauty is divided into various categories, consumers desire personalized products in the skincare and hair care segment followed by cosmetics and beard grooming. These products are also seen as a great gifting experience.
Mostly age 18 and above are willing to spend a substantial amount on the products.
It is evident that with the changing environment, the consumer perspective and preferences are also changing. The beauty industry is no more about what is available but about what can be made available. As consumers take to the front row, the personalized beauty industry market is sure to boom and create a loyal clientele in the coming years.