The heart of the booming and palpitating beauty industry in India are the incredible e-commerce beauty platforms that have reshaped the way consumers explore, select, and experience products. According to industry reports, the online beauty and personal care (BPC) market in India is projected to be worth $6-7 billion by 2025, a significant slice of the overall $25-26 billion BPC market. This meteoric rise is fueled by technology-enabled tools, a diverse range of products, and the influx of global beauty brands through these Indian platforms.

The Rise

E-commerce beauty platforms in India have experienced an astonishing ascent in a relatively short timeframe. Anmol Sikka, Director – Beauty and Personal Care, Myntra, provides a glimpse into Myntra's journey and the industry's transformation. Over the last three years, Myntra has been actively cultivating its beauty platform, achieving remarkable growth and scale, driven by the technology capabilities they have developed and the addition of a diverse range of homegrown and international brands.

Sikka emphasizes, "Our vision has always been to democratize fashion through technology and make customers look and feel good, and beauty is a natural extension of that vision." Myntra's platform now boasts an impressive array of 1450+ brands, offering over 75,000 products, including 200+ international brands and 200+ direct-to-consumer (D2C) brands.

What's particularly striking is the platform's ability to tap into the burgeoning demand for new-age consumer brands such as Minimalist, WOW Skin Science, and MyGlamm. These brands have seen significant success on Myntra's platform, contributing to a growth rate of 2-3X of online market growth this year, and a CAGR of 1.5X of the market from 2020-2022.

Tech-Talk

One of the most striking aspects of this growth story is the role played by technology in shaping consumer behavior. Sikka explains, "As we build this category from strength to strength, we have introduced technology-enabled tools that define and address the needs of beauty consumers."

These tools include the AISkin Analyzer, which has now expanded to include hair analysis, and virtual try-ons. These features empower customers to make more informed choices by allowing them to virtually try on different beauty products, matching their skin tone and preferred look. Myntra started with brands like Maybelline and L'Oreal, and has since extended this functionality to include brands like Lakme and MAC, with plans for further additions in the near future.

Indian consumers' beauty preferences are evolving rapidly, with technology playing a pivotal role in shaping these changes. Gopal Asthana, CEO, Tata CLiQ, underscores the significance of technology in enhancing user experiences.

Asthana states, "With the help of technology, beauty platforms will be able to elevate the kind of experience they offer to consumers." Tata CLiQ Palette, a prominent beauty platform, leverages technology to provide a personalized experience. Through Beauty ID technology, the app customizes each customer's experience to match their unique beauty needs, offering tailored product recommendations based on specific hair and skin types, beauty goals, and more.

Asthana believes that luxury beauty is a significant trend in India's evolving beauty landscape. Tata CLiQ Palette actively curates a selection of global luxury brands to cater to the changing tastes and preferences of discerning users. He emphasizes, "The holistic shopping experience offered to consumers is key to building loyalty."

Global Appeal

International beauty brands have been welcomed with open arms by the Indian e-commerce beauty platforms. Ritika Sharma, founder, and CEO of House of Beauty/Boddess, provides insights into this integration. Boddess Beauty has successfully introduced renowned global brands like Ecotools, Juice Beauty, and Anastasia Beverly Hills to Indian consumers.

Sharma states, "Customers are willing to increase their spending on global premium brands that are effective and high quality." She also highlights the blurring lines between beauty and wellness, with skincare and makeup increasingly intersecting. This trend is expected to become even more prominent in the coming years.

On a similar note, Asthana asserts, "Our commitment to offering authentic products from renowned global beauty brands aligns perfectly with the evolving tastes of Indian consumers. We believe in bringing the world's best to our users, and this has significantly enhanced our platform's visibility and appeal."

Maintaining a balance between showcasing local and global beauty brands while ensuring a cohesive user experience is crucial. Sharma explains, "Customers prefer an omnichannel experience to discover, try shades, and get personalized feedback from sales experts based on their needs."

With Myntra’s mission being to democratize fashion and beauty through technology, the company takes pride in offering an array of global beauty brands to its customers. “We are equally passionate about showcasing the incredible talent and innovation of local brands. Balancing the best of both worlds is what sets Myntra apart, providing a cohesive and enriching user experience," adds Sikka.

Power of Bespoke

One of the most significant trends shaping the beauty industry is personalization. Beauty platforms are increasingly using data and technology to tailor their offerings to individual customers. This approach goes beyond recommending products based on generic preferences; it delves into the specific needs and characteristics of each customer.

For instance, Tata CLiQ Palette's Beauty ID technology customizes recommendations based on a customer's unique hair and skin types, beauty goals, and more. This level of personalization not only enhances the shopping experience but also increases customer loyalty.

Similarly, Myntra's introduction of Virtual Try-ons allow customers to virtually experiment with different makeup products and choose those that best suit their skin tone and desired look. This level of interactivity and personalization was previously unheard of in the traditional brick-and-mortar beauty shopping experience.

The future of beauty tech promises even more innovative solutions, such as advanced AR and AI applications. The demand for clean and sustainable beauty is expected to grow, reflecting consumers' increasing awareness of environmental responsibility. The said industry's transformation in India is a testament to its adaptability and resilience. It is a reflection of changing consumer behaviors, preferences, and a growing appetite for digital experiences.