Sector teardown- Beauty and wellness.pdf

Product teardown series

1. A product sector teardown
PRESENTED BY:
Madhuri R
BEAUTY & WELLNESS

2. 03Overview
04Key Businesses andPlayers
05Who are the consumers?
06Consumer behavior trends
07E-commerce
08Key Drivers of Growth
09Challenges and Opportunities
10What does the future look like?
Agenda

3. Overview 03/11
https://static.investindia.gov.in/s3fs-public/2019-07/.pdfWellness-and-Beauty-2019
The beauty and wellness industry in India encompasses a wide range of products and services aimed at enhancing personal care and well-being.
This includes skincare, haircare, makeup, fragrances, personal hygiene products, wellness services like spas and fitness centers, and nutraceuticals.
Technology plays a crucial role by enabling personalized, data-driven solutions through innovations such as AI-powered recommendations, wearable devices, telehealth platforms, and mental health apps.

4. Key businesses and players
04/11
Global Giants:These brands dominate with extensive brand portfolios and distribution. HUL features brands like Lakmé, L'Oréal Paris, and P&G offers Olay and Pantene.
E-commerce and modern beauty:These businesses excel in online beauty retail, with Nykaa offering a wide range and exclusive brands, and Purplle providing competitive prices and extensive product choices.
Natural and Ayurvedic:With a focus on natural ingredients and ethical practices, these brand offerings range from eco-friendly and vegan products to Ayurvedic and sustainable beauty solutions. MamaEarth, Forest Essentials, Plum, Sugar Cosmetics, Biotique, Kama Ayurveda, and The Body Shop fall under this category

5. 05/11
Urban ProfessionalsYoung Adults
•Typically aged 25–40
•these consumers
seek premium and
effective products
•Their main pain points
include time
constraints and the
need for convenient
solutions
•Aged 18–25
•they are trend-driven
and influenced by
social media.
•They look for
affordable yet stylish
products.
Homemakers
•Aged 30–50
•they prioritize natural
and safe products for
their families.
•Their pain points
include product
authenticity and
availability.
Senior Citizens
•Aged 50+
•they focus on
wellness and anti-
aging products.
•They often seek
products that cater
to sensitive skin and
specific health needs.
Who are the consumers?
The customer base for beauty and wellness products in
India is diverse, comprising various demographics

6. Consumer behavior trends
Indian consumers are increasingly leaning towards products that offer a blend of tradition and modernity.
Subscription-based models
Subscription services for beauty products have gained popularity, offering convenience and personalized curation.
Digital-first approach
A significant portion of Indian consumers now prefer online shopping for beauty and wellness products.

06/11
Preference for personalized recommendations
Consumers are seeking tailored product suggestions based on their individual needs and preferences.
Emphasis on clean and natural ingredients
There’s a growing demand for products that are free from harmful chemicals and prioritize natural ingredients.
Innovative and High-Performance Products
There is a demand for products that deliver visible results quickly
Ayurvedic and Herbal Products
The rich heritage of Ayurveda in India makes these products highly popular
https://www.extend.com/post/beauty-industry-trends-overcoming-challenges

7. E-commerce07/11
E-commerce has significantly penetrated the beauty and wellness market
in India. Platforms like Nykaa, Amazon, and Flipkart have made beauty
products more accessible, contributing to the sector’s growth
Nykaa
30%
Amazon
25%
Tira Beauty
5%
Myntra
10%
Purplle
8%
Plum
4%
Others
3%
Flipkart
15%
https://www.mckinsey.com/industries/retail/our-insights/the-beauty-market-in-2023-a-special-state-of-fashion-report#/

8. Key Drivers of growth
08/11
1.RISING DISPOSABLE INCOME•Increased spending power allows consumers to invest in premium products2.WORRIES URBANIZATION•More urban dwellers lead to higher demand for beauty and wellness products3.DIGITAL INFLUENCE•Social media and influencers play a crucial role in shaping consumer preferences4.HEALTH AND WELLNESS AWARENESS
•A growing focus on holistic health and self-care
https://theindustry.beauty/key-tech-and-trends-for-2024-future-proof-your-beauty-business-for-the-next-year-and-beyond-in-partnership-with-bigcommerce/

9. 09/11
https://www.extend.com/post/beauty-industry-trends-overcoming-challenges
Challenges and opportunities
Competition: The market is highly competitive, with numerous
players vying for market share.
Logistics and Supply Chain : Efficiently managing logistics and
supply chains, especially for perishable beauty products, can be
complex
Regulatory compliance : Adhering to regulatory standards related
to product safety and labeling can be complex.
Data Privacy : With the increasing use of AI and data analytics,
protecting consumer data and maintaining privacy is crucial
Product Authenticity : Ensuring the authenticity of products sold
online is a significant challenge. Counterfeit products can damage
brand reputation and consumer trust
Digital Divide : Bridging the gap between urban and rural
consumers in terms of access to technology and e-commerce
platforms
09/11

10. Personalized beauty solutions based on
individual needs and preferences
AI will continue to play a crucial role in product
development, personalization, and customer
experience.
Consumers are increasingly demanding
products that are ethically sourced and
environmentally friendly
Beauty and wellness tech may integrate with
healthcare services to provide holistic solutions
The future seems to favor natural and organic
products, driven by the growing awareness of
health and environmental impacts
What the future looks like.
The future of the beauty and wellness
industry in India looks promising, with
several trends on the horizon.
10/11

11. Thank you
11/11
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