5 Factors that will Facilitate the Growth of Indian Beauty and Wellness Industry in 2020
Rising middle-class and its increased disposable income, urbanization, and its impact on the vast young population base, digital disruption, and its contribution to improving consumer convenience, plus many more drivers have expedited the growth of the Indian beauty and wellness industry over the years. As a result, the industry is growing tremendously among masses and classes alike.
In the year 2019, better corporatization, penetration of global brands, increased innovation, and incorporation of the latest trends paved the way for the growth of this industry. With 2020, we’re stepping into the new decade to witness further growth and developments in the industry.
If you are keen on knowing more about this thriving industry, planning to start your brand, or willing to buy a franchise, you should be aware of the factors and trends for the upcoming season. Here we share five elements that are all set to change the face of the beauty and wellness industry in 2020.
After toying with the idea to make their products inclusive for all, the brands have finally started to take notice. In the year 2020, the concept and its planned execution could play a vital role in deciding the fate of beauty as well as wellness brands.
The diverse and unpredictable nature of the Indian consumer market has haunted the brands for long, but they are all set to experiment to reach a wider audience. The brands that are dedicated to offering products meant everyone, regardless of gender, age, and appearance, are going to experience better sales than those who are still focusing on a small group. Hence, the players in the Indian beauty and wellness industry must buckle up to experience the rise of inclusive beauty as a part of product development.
This rise also signifies how brands can experiment, create social changes, and fight against prejudices while delivering empowering products. Here is a long-overdue list of segments that the brands are expected to tap:
- Grooming and beauty products for men
- Gender-neutral cosmetics
- Colour cosmetics and complexion care products for all skin tones
Specially formulated products for teens, tweens, children, and even boomers
Growth of green and clean beauty
Indian beauty and wellness lovers have always been obsessed with natural, sustainable ingredients that pose minimal to no side-effects. Since more brands have understood the infatuation of Indians with clean and green beauty ingredients, they are creating products keeping the same values into perspective.
Turmeric, moringa, coconut oil, lavender are some of the natural ingredients that are highly popular among Indian consumers, and brands must capitalize on this obsession in 2020. Even though skincare will remain the main contender for ‘green’ growth, the brands won’t shy away from launching more hair care and makeup products either.
The quest for achieving the best clean beauty products is global. The brands are deriving inspiration from Ayurveda and naturopathy to create products that not only enhance the beauty of consumers but are eco-friendly too.
The demand for such sustainable beauty products (and their packaging) that do not promote the use of more chemicals or create plastic waste is not a passing trend. As the consciousness of the consumers is growing, they are ditching even cult-favorite products to shift towards a more holistic approach towards beauty as well as wellness.
Alternative retailers bet on beauty
Almost every industry is experiencing a massive shift due to the popularity of online shopping websites, but the same cannot necessarily be said for the beauty industry. The simple logic behind it is that consumers still like to experience their beauty products first hand before actually making the purchase.
Apart from that, there are beauty retailers, including international players, that know how to implement AI and AR technologies correctly to lure more customers into the stores. Also, the line between prestige and ‘masstige’ products is vanishing, and the brands are paying heed to consumer patterns to serve the widest audience base possible.
Apart from these luxury stores, the consumers are now buying, and aggressively so, through various local as well as international online shopping channels too. Due to this shift in pricing and distribution of products, there has been an unexpected rise in sales. Here are some alternate buying channels that have made beauty products more accessible to Indian consumers:
- Apparel retailers
- Online shopping sites
- Makeup booths
- Makeup vending machines
- Partnerships with influencers & celebrities
The rendezvous of beauty and wellness
Earlier, beauty and wellness used to be two separate entities. But, with the rise of the young generation and growing awareness about overall well-being, both of these sectors have united, creating a unique industry that’s expanding by the minute.
Factors such as the rise of independent brands, availability of on-demand services, and innovation have facilitated everyone to access these services. The link between both the sectors is still quite at its nascent stage but it’s led to the creation of many unique products.
Since more and more attention is now being paid to experience instead of just shopping and application of products, the opportunities for businesses have also increased. Through correct marketing and merchandising strategies, the brands could create a shift in the industry and awareness among consumers of all age groups.
Here are four ways through which brands are mixing beauty and wellness to keep up with the current demands of consumers:
- Beauty vitamins and supplements
- Travel & hospitality
Unbundling of the spa & salon continues
Increased number of salons and spas draw a picture of the growth of the industry. As these rejuvenating products and services are unbundling, there are leaving customers with an enhanced experience. The services being offered are not restricted to any one gender, age group or economic background anymore. With strategies such as rewards programs, retailers are creating a need to buy more products in the market.
Again, we’d like to iterate the value of experience among consumers who desire to touch and feel the product while getting pampered by an expert. Beyond salons and spas, medical aesthetic procedures and wellness services are also being unbundled. Apart from this, Indian consumers have developed a knack for at-home services that offer them more flexibility and privacy.
Both spa and salon brands are using various strategies to create a fan-following online and satisfy their customers offline. Along with creating strong social media presence, these brands are also implementing the right technology, serving niche clients and focussing on mental and spiritual well-being too.
Beauty and wellness, for consumers, has become more than just applying lipstick or using a hair serum or taking a yoga class. Prominent players, as well as new brands, are using various tactics, especially through customization and social media strategies, to leverage more consumers.
In tandem with the usual factors, the policies of brands to create more eco-friendly, sustainable and safe beauty products have also spiked their sales. The next decade is expected to see unprecedented growth owing to the significant cultural shifts that are taking place in the market. Changes in regulations and increased transparency also will contribute to making the industry more structured and reliable. It goes without saying; technology too will be on the rise, especially AI, to lure more customers into trying out products. To know about business opportunities in the beauty and wellness franchise industry, get in touch by filling out this form.