The requirement of skincare, hair care and cosmetic products has created a lot of audiences in the millennials to pursue beauty as a career. Be it beauty influencers who give glowing skin tips or professionals who flaunt their services online and offline, the beauty industry has successfully created numerous employment opportunities, but the outbreak of COVID-19 has brought the industry to a standstill, the blog will brief you about how the industry is impacted and how shopping websites like Nykaa online shopping are dealing with it.
Beauty Industry Of India
Beauty and beauty products have an ever-changing definition, the beauty industry of India is flourishing at a rapid rate, with an exceptionally bright future. The industry comes up with new sustainable skincare, hair care and cosmetic product launches which are further fulfilling the consumers’ growing requirements. According to a speculated report, the beauty industry of India is going to touch 20 billion dollars by 2025 with 15-20% of annual growth. The data gives us a clear view of how the Indian beauty market is growing twice as fast as that of the United States and Europe.
Indians have become more aware of beauty products and treatments today. The Indian consumer’s lookout for the best for their skin, they give much importance to the ingredients in beauty products and make choices based on their skin type and preferences. The country is moving back towards the time when ayurvedic was the only beauty products available to apply, looking at the harmful impact of chemical-based products on the skin, people prefer products based on natural, organic and cruelty free fundamentals. Unlike earlier women of today are more concerned about their skin, and are fine with spending money on suitable up for themselves, in fact they even search for videos on skin care tips and glowing skin DIY’s.
Breaking all the stereotypes, the beauty industry of India is no more limited to females, the conversation around beauty has evolved and with it evolved the male grooming segment. Data stated that the sales of men’s face creams witnessed double hike, and the utilization of face cleansing products has jumped approximately 60 times between the years 2009 and 2016.
The phenomenal growth of e-commerce in India, with online stores becoming popular shopping destinations, for cosmetic products also played an essential role in enhancing the beauty industry market. The shoppers now sitting at home get a plethora of choices and a wide range to choose from along with additional benefits, the internet has immensely changed the beauty business. It was estimated that at this growth India will be the fastest-growing e-commerce market. The Beauty industry in India is also a growing service sector offering huge scope for employment.
Beauty Industry Growth In India Before COVID-19
The beauty products in India are no more restricted to being used on special occasions, but the market gained prominence as a part of women’s daily regimen to obtain naturally glowing skin.
The beauty market in India, before the spread of coronavirus, was blooming with high utility products, consumers were opening up to trying new products, which would help them in maintaining a healthy skincare routine along with an elegant look. Before the pandemic situation occurred plenty of new products were introduced in the beauty market, to help women have a naturally glowing skin. Indian women are no more limited to working indoors, and this is the reason why the use of beauty products increased among working women, who spend most of their time outdoors.
Before the spread of the virus, demand for women’s beauty products in India was growing over the last few years on account of increasing desire among female consumers to look physically appealing, along with the rising number of working women in the country. According to speculated data, the market for women’s cosmetics products in India was aimed to grow at a CAGR of 16% during 2015-20. But with the widespread of coronavirus, the graph has drastically changed.
How has COVID 19 affected the retail beauty industry?
The amid growing concern of coronavirus has rapidly changed the dynamics of the beauty industry and the skincare and hair care service industry. The beauty news and reports state that both beauty industry retailers and beauty service workers are facing unprecedented challenges to keep up their businesses. Under the government guidelines, salons were shut down even before the lockdown which has further left the makeup artists and hairstylists without work. Closing down of beauty stores like Sephora have made clear that the outbreak will likely leave a lasting impact on the billion-dollar industry.
- Haircare– Under the government guidelines all the salons have been shut down due to the widespread of the virus, before the closure, there was an increase in the appointments. Large scale productions like haircare product factories or beauty factories that put hundreds of people in close contact daily have largely been shut down. Which has further disrupted the supply chain and decreased sales.
- Skincare– India imports cosmetics, beauty products and raw materials such as essential oils of worth $400 million. Germany, U.K., and The United States are the traditional suppliers with imports gradually increasing from China, Hong Kong, Malaysia, Thailand, and Israel in recent years. But with the spread of the virus in China, France, and Germany the supply chain has been highly disrupted further effectuating the skincare and beauty industry.
- Spa– Spa is the industry that comes in direct close contact with the public, no matter how good they make you feel, today due to pandemic, the spa can be the riskiest place to be around. This is the reason the government has decided to shut all the spa, salons, and gyms across the country to further stop the chain of spread.
How Much Of Loss Has The Industry Borne In The Situation?
The government has set limitations and guidelines on traveling to keep everyone safe. The ingredient manufacturers of the beauty industry such as L’Oreal have made news with travel restrictions.
The countries from Italy to Spain, France to India have limited international travel to combat the spread of COVID-19, beauty tourism has been impacted majorly.
The cosmetics and personal care manufactures are reporting high supply chain disruptions, and this is estimated to continue as the virus-infected cases are increasing globally. Some of the beauty brands stated that as many as 17,600 products including skincare ranges, hair care products and cosmetics could be affected by the spread of the virus. As for the retailers, salons, and spa, the COVID-19 pandemic is going to cause very serious disruption. Retailers like Glossier closed their doors much before lockdowns.
Across the globe, there have been postponements of major beauty shows like as Cosmoprof Worldwide Bologna, that showcases perfumery, cosmetics and packaging, and Esxence, Milan’s artistic perfumery show.
Some jobs just can’t go online, and one such sector is clinical and consumer testing of beauty products, labs are shut down and so is the production of beauty products.
As the factories are shut down, retails of skin care, hair care and cosmetic products are suffering, sellers on an online marketplace like Amazon are struggling to bring goods into the country. But when the lockdown is over, online sales are expected to bloom because of the reason that people would still prefer not leaving homes that easily and this will further enhance the future of online fashion and beauty.
What Innovative Methods Are Being Used To Promote Products And Services Right Now?
The outbreak of COVID-19 has changed the dynamic of imports and exports of the beauty industry, but here are some of the ways how the beauty industry is dealing with the pandemic.
- DIY’s and Home Remedies Online- The beauty industry understands the need of the hour and the fear in the minds of the people, hence in order to keep alive their name in the market and stay connected with their consumers many brands and services are spreading knowledge and awareness about skin care and hair care easy home hacks. Aashmeen Munjaal , the celebrity makeup expert and owner at Star Salon n Academy has been actively engaging audience by giving glowing skin tips, hair care tips and DIY’s on beauty through online mediums.
- Sanitizer is the real necessity- A commendable and bold move by many in the beauty industry is switching to making sanitizers. LVMH has taken the initiative to manufacture sanitizers instead of perfumes
- Online events- Online shopping websites like Nykaa have come up with a unique way of connecting with their shoppers. The brand is taking pre-paid orders for essentials like personal hygiene products, hand sanitizers, sanitary napkins, and more, albeit with longer delivery timelines than usual. Nykaa has even raised INR 100 crore from existing investor Steadview Capital, this clearly states how ready the brand is for the future of online fashion and beauty once the lockdown is over.
When Is It Speculated For The Industry To Grow And Recover?
After this pandemic situation is over, there will be a speculated 7%-15% increase in online sales in the year 2020.
Some reports state that until March 16, the consumer sales did not see many dips compared to last year, March 2020. The consumer retail in the country speculated a huge drop in sales by 46% and a 55% fall in the number of buyers per store from March 17-25, and it is expected to drop further in the coming weeks due to the lockdown.
Looking at the severity of the pandemic, it is speculated that it will take 5 or 6 months for the world to completely recover from the virus’s impact. The retail sales recovery period of the country is said to kickstart from the first week of May.
Skincare Hacks To Use In Absence Of Beauty Products
All the salons and spas have been shut down due to the outspread of the coronavirus, but your skin and hair still needs to be taken care of. Even if the market has been shut down, you can do proper skincare using some simple beauty hacks made at your own houses. You can easily make these beauty products by using some common ingredients that are present in almost every kitchen. From utilizing these everyday ingredients, you can make hair conditioners, face masks, scrubs, and even lip plumper. Some of the hacks to try during this lockdown at your houses are listed below.
- Baking Soda Scrub- Baking soda is not only good in the kitchen but is also good for skin care. Making a paste of baking soda with water and gently rubbing it on your skin can act as a face cleanser. This scrub also works for sensitive skin.
- Sweet & Salty- To exfoliate your skin make a scrub using sugar, salt, honey, and coconut oil and use it once or twice a week.
- Lip Scrub- Make a scrub using sugar, olive oil and lemon juice for softer lips.
- Honey Face Mask- As honey is a natural antibacterial you can use it as a mask to get rid of acne and scars by simply applying a layer of it.
- Baking Soda and Apple Cider For Hair- Simply scrub your hair gently with a solution of baking soda and then rinse with Apple cider. This restores moisture and gives you silky and shiny hair.
- Green Tea- Green tea is an excellent hair care ingredient as it is rich in Vitamin E and C. Simply rinse your hair with cooled and brewed green tea for hair growth.
IKF Desk (Conclusion)
Once the lockdown is over, beauty products which are organic will see a sharp rise in demand. Along with that online beauty brands will also flourish, COVID-19 will bring a revolution in the beauty market with brands facing more pressure to convey safety and longevity. Do you want to know anything else about the Indian beauty industry?
If so, do let us know in the comment section, and stay tuned with I Knock Fashion, we promise to bring the latest fashion and beauty news along with blogs to your screens, further spreading positivity during this quarantine.