Storyboard18 | Following Nykaa’s IPO blockbuster, the Indian beauty industry looks at the huge growth in 2022.

Storyboard18 | Following Nykaa’s IPO blockbuster, the Indian beauty industry looks at the huge growth in 2022.

Nykaa’s debut on the market is only the start of India’s beauty and skincare industry explosion. With an emphasis on natural cosmetics, individualisation and a robust expansion plan, local companies have big plans.

According to a report, the Indian beauty and personal care industry was valued at Rs 54,558 crore in 2020.

Anyone who thought masks would hinder the rise of cosmetics is in for a big surprise. In the last month, Google trending saw an unprecedented query for “What lipstick colour does Taylor Swift wear’. As per reports, this result was up by an astounding 800 per cent.

Beauty is on the rise. Nykaa was the first to lead the way by launching a stock on the market in November 2021. A host of other cosmetics and skincare brands from India are preparing for the next step for their brand. While some companies are planning to be listed on the stock market, others are considering overseas expansion and offline. The market is expanding like never before.

According to a report from the market research and business information company EMR According to a report by EMR, the Indian health and beauty sector was valued at 54,558 crores in the year 2020. The market is also predicted to grow by 11 per cent over the 2022-2027 forecast timeframe.

What brands are they up to in the beauty world?

International brands that are which are coming into India contribute to an important portion of sales in this segment. However, domestic brands such as health and glow, Kaya, Plum, MyGlamm, WOW Skin Science, Colorbar, Sugar Cosmetics and many others are also expanding their product offerings and focusing on communication with customers to increase profits and support rapid expansion plans.

Colorbar Cosmetics, for instance, has spent 50 crores over the last six months on various marketing initiatives. The company plans to increase the amount to 200 crores by 2022. Colorbar Cosmetics plans to go public within three years. The brand recently worked in a partnership with Sony Music Entertainment, where they enlisted 1,000 influencers from across pin codes to help promote their new range of lip colours, Sinful Matte. The amount of traffic they received on their social media profiles immediately increased by 3-4 per cent within the space of a single day.

“Our goal as a brand is to make sure that every customer wears Colorbar regardless of the place of residence and gender. We are keen to advertise our range of skincare products, which has grown from 10 per cent of our revenue to 30 per cent of it. We are looking to expand our reach to the world marketplace,” says Samir Modi, the Founding Director and Director of Colorbar Cosmetics. Colorbar Cosmetics.

Colorbar is present in countries such as Sri Lanka, Maldives, Malaysia, Bangladesh, and Canada as well as the next markets to target are those of the UK, Europe and the Middle East.

Like Colorbar and other brands, other brands had record growth during the past year and a half.

Chaitanya Nallan, co-founder and CEO of SkinKraft Labs, says they have seen a 100 per cent increase in the past year, with revenue of Rs 155 million in FY21. They expect this to double over the next 3 years thanks to markets, categories and new types and SKUs, the increased use of voice, and new delivery methods.

Millennials, as well as Gen Z in the metro, the tier 2 markets that are driving growth

Nykaa has proven how to other players in the industry, and the growth of the Indian beauty and personal care industry is expected to continue, According to Jai Lala, CEO at Zenith.

“The necessity for grooming has seen a massive increase across India and not just in the metro markets, but in the market of Tier II and Tier III markets. The demand comes from Generation Y and Gen Z, which drive growth in this sector. The market is looking for experts in this field to provide their favourite products and services, and the Nykaa and Nykaa serve this purpose,” Lala says.

Globally, too, according to a Goldstein Market Intelligence report, the market for cosmetics is predicted to grow to $412.10 billion by 2024. This is up from the estimated $299.12 billion last year, increasing at a rate of 4.09 per cent between 2016 and 2024 due to the increasing demand from the millennial generation.

Eye on rapid expansion outside and offline India

Returning towards back to the indian market, aggressive expansion is something that homegrown brands in this segment are looking into.

“While India itself is a 10-fold opportunity, we’re currently working on expanding globally as well. While we are continuing to grow our market share on marketplaces online, we are planning to expand our reach on the offline side too. This expansion offline will include the creation of at least 50 exclusive brand stores being planned for a total investment of around Rs 15-20 crore in the next two years,” says Shankar Prasad, the CEO and Founder of Plum.

Expanding for Plum will also occur by tapping into the best chemist shops, makeup boutiques and small retail stores.

Personalisation power

Personalisation is another aspect that brands are working on.

Multi-brand retailer health and glow, For instance, employs a curation method for personalisation. The managing director of the company as well as CEO K. Venkataramani, tells us, “While express delivery apps and self-checkout transactions at our stores is something we have worked on for some time now, we are now focusing on curating a product range for individual customers and not bombarding them with options.”

The experience should be seamless and effortless, and he says, “A selfie is what we’d need from the customer, and we’d run a skin test to help them understand what they need and what they should use.”

Similarly, Kaya is also working on an AI-certified tool to offer specific solutions to customers. Samyukta Ganesh Iyer, Vice director of marketing and president, Kaya, says, “We intend to keep ahead of the trend. However, we would like to leave the decision-making part to the client. They must be able to decide what they would like for themselves. We should be able to create or design solutions that people want.” Kaya is also working with dermatologists to develop relevant content for social media.

Play Curated Content

Curating content and the influencer market is a different strategy Indian cosmetics and beauty brands are investigating to increase reach and scale.

Based in Bangalore, WOW Skin Science, for instance, has been big in enlisting endorsers to promote their brand. The company has already enlisted Bhumi Pednekar, Disha Patani and Kareena Kapoor Khan to endorse their line of products.

WOW is also planning to be listed in the future. “We are still consolidating the brand and our product range in the market,” says Manish Chowdhary, the Co-CEO of WOW Skin Science.

Chowdhary explains to Storyboard18 it is a company that intends to increase consumer trust and brand recognition over the next few months by introducing new and exciting merchandise, competitive pricing, and an overall positive experience for consumers with the brand and the products.

He continues, “Once that is established, we will look at an IPO.”