How are Flipkart and Amazon Attracting Small-Town Shoppers to Their Beauty Business?

India's beauty and personal care market, which expanded fourfold between 2006 and 2022, is projected to grow fivefold over the next 15 years, reaching a gross merchandise value (GMV) of $90 billion by 2037, up from $19 billion in 2022, as per a report by HSBC global research dated 12 June.

E-commerce giants like Flipkart and Amazon are aggressively expanding their beauty and personal care (BPC) businesses to tap into the burgeoning demand, particularly in smaller cities and towns where disposable incomes are rising.

Image source Business Standard

Flipkart aims to double the GMV of its BPC category within the next four to five years, driven by innovations from direct-to-consumer brands and new product launches. The company sees significant potential for growth, especially in tier-II and tier-III markets, as consumer demand for skincare and coloured cosmetics continues to rise.

L'Oréal, the world's largest beauty products company, anticipates 100 million new online beauty shoppers in India within the next three to four years, with e-commerce expected to contribute significantly to its growth. The report also highlights the increasing influence of influencer-led digital marketing and the shift towards sustainable products as key market expansion drivers.

Amazon India is striving to make quality beauty products accessible even in the remotest parts of the country, emphasizing the strategic importance of the beauty category for customer acquisition and platform growth. Overall, while competition in the beauty and personal care market in India has intensified, industry players remain optimistic about its growth potential, fueled by factors such as low penetration of certain product categories like coloured cosmetics.