Flipkart aims to double its beauty and personal care (BPC) sales over the next four to five years, according to a senior official from the company. Manjari Singhal, head of business for FMCG and general merchandise at Flipkart, stated that there is a huge opportunity for growth in this sector.
“We expect the value of our beauty sales to potentially double in the next 4-5 years,” Singhal said. This growth will be driven by new products from direct-to-consumer brands and higher adoption in smaller towns. Currently, Flipkart’s beauty sales have increased by 1.3 times compared to last year.
Beauty Among Flipkart’s Top Sellers
Beauty and personal care is already one of the top ten categories for Flipkart in terms of volume. To boost sales of items like serums, anti-wrinkle creams, and body washes, Flipkart recently held a major event to engage with beauty influencers.
Innovation Fuels Demand
Singhal noted that consumer interest is growing due to innovations in beauty products, particularly from new brands online. Traditional brands are also adapting by introducing new products each quarter.
Market Expansion Predicted
Beauty brands are launching more products and increasing their online advertising, anticipating a doubling of e-commerce shoppers for beauty in the next four to five years. L’Oréal, the world’s largest beauty company, expects 100 million new online beauty shoppers in India within the next three to four years.
Aseem Kaushik, managing director of L’Oréal India, mentioned that, “The number of online beauty shoppers will grow from 50 million in 2023 to at least 150 million in the next three-to-four years. We expect 50% of our growth in the next 4-5 years to come from e-commerce.”
Long-Term Growth Forecast
India’s beauty and personal care market, valued at $19 billion in 2022, is set to reach $90 billion by 2037, according to HSBC global research. This growth is driven by the spread of e-commerce and rising income levels. Currently, e-commerce accounts for 17% of beauty sales but is projected to reach 45% by 2037.
Influencers Drive Change
Influencer-led digital marketing is playing a significant role in India, leading to more new brands and a growing preference for sustainable products.
Amazon’s Ambitious Plans
Amazon India is also expanding its beauty business, aiming to reach even the most remote areas of the country. Zeba Khan, director of beauty, luxury beauty, and personal care at Amazon India, said, “Beauty is a key category for attracting and retaining customers. We expect it to drive significant growth.”
Amazon is focusing on faster deliveries and adding both local and international brands to its platform, while also collaborating with more content creators.
“Our goal is to make high-quality beauty products available everywhere in India, providing fast access to both local and international brands,” Khan added.
Growing Competition in Beauty Retail
The competition in India’s beauty and personal care market has become intense over the last decade. Retailers such as Reliance Retail and Tata have entered both online and offline beauty retail. Meanwhile, established players like Nykaa and Purplle continue to attract many young shoppers.
Nykaa’s parent company reported a 24% increase in revenue for FY24, reaching ₹6,385.6 crore, with a profit of ₹39.7 crore.
Despite the increased competition, industry executives believe the market will continue to grow, especially given the low penetration of products like coloured cosmetics.
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