Decoding the growth of D2C beauty and personal care segment in India
Digital-first approach has taken the world by a storm. D2C beauty & personal care brands have wasted no time in catching up with this wave. Gone are the days, when you had to make that mandatory trip to the beauty store for essentials. D2C beauty brands have completely transformed the way a consumer sees, selects, and shops.카지노사이트
The shift has only helped the Indian personal care & beauty industry reach newer heights. As per Statista reports, the D2C sector in India, which was valued at $33 billion in 2020, is projected to reach $100 billion by 2025. The D2C beauty and personal care segment alone is expected to reach $4.4 billion in India, with a whopping CAGR of 29% by 2025, as per Avendus Capital.
Fueled by robust technology and innovation, D2C brands have been setting new benchmarks, not only in terms of seamless and personalized shopping experiences, but also in scaling and optimizing their business models. The new digital beauty brands have attained unbelievable revenue records, which took decades for veteran international retail brands to reach.
Today, the direct-to-consumer and online-first approach is considered a need of the hour, rather than an option, even for top retail players. As per Avendus Capital, more than 80 D2C brands are operating in India in the beauty and personal care segment. This number is expected to rise sharply in the years ahead.
Deeper And Meaningful Brand Connection
Going beyond just selling a product, D2C models have become an empowering strategy for businesses to share their brand story and build a meaningful connection with consumers at a personal level. This approach has made the online shopping experience more authentic, seamless, and convenient for buyers.
With the exponential growth of beauty bloggers and product reviewers online, today’s consumers are also well aware of harmful ingredients, safer alternatives, and what works for them. With increasing awareness, millennials and GenZ, are inclining themselves towards brands that promote clean, sustainable, and environment-friendly beauty products.
Given this trend, D2C beauty & personal care websites are communicating every detail – from how and where the product was made, to what it contains, its procurement sources, environmental impact, and who is involved in the process. This establishes a deep and more trusted connection with the brand.
Also, some brands are offering personalized products based on digital diagnostics. Chatbots, questionnaires, etc. are used to determine the unique needs of the consumer, according to which customized solutions are delivered to their doorstep. This seamless and personalized consumer experience is helping brands build long-lasting brand loyalty.바카라사이트
Technology Driven Approach Of D2C Brands
The tremendous growth of technology in the past few years has led to the democratization of consumer insights and trends, which were otherwise only available to large retail players in the market.
Technology equips D2C brands to directly gauge their consumer’s needs and expectations. Personal care brands are relying on different technologies and tools that cut down customer acquisition and retention costs.
AI-powered CRM technology such as chatbots and automated conversation channels are enabling D2C brands to establish prompt and relevant interaction with their customers, right from understanding their needs to guiding them to the concerned support team. Also, beauty and personal care brands are investing in new-age technologies such as augmented reality, virtual reality, etc. to create a whole new and personalized online shopping experience for consumers.
With the help of advanced data analytics, beauty and personal care brands can forecast and determine consumer purchase patterns. This helps the brands recognize gaps and opportunities, thereby helping them optimize marketing efforts in order to reach the right audience at the right time with the most relevant message.
Whether setting up micro warehouses in a particular area or establishing a simpler and leaner supply chain and operations, technology integrations and AI-based insights are propelling D2C brands in the beauty and personal care segment to take data-driven decisions.
With growing internet penetration, and a pandemic that shifted customers from brick and mortar stores to online sites, the environment is a conducive one for D2C brands. The D2C phenomenon not just enables customers to choose better, but also empowers the brand to reach out with relevant products. With further emerging technologies, it will surely be fascinating to see the D2C journey that lies ahead for the country.온라인카지노