As India’s beauty and personal care (BPC) market undergoes rapid transformation, driven by e-commerce growth and digital innovation, brands must adopt a comprehensive omnichannel strategy to fully capitalise on emerging opportunities. With the market projected to reach USD 34 billion by 2028, businesses need to move beyond traditional online sales models and create seamless, multi-channel experiences. According to the Nykaa Beauty Trends Report, developed in partnership with Redseer Strategy Consultants, the digital revolution is reshaping consumer behaviour, premiumization, and the retail landscape. To excel in this dynamic environment, brands must leverage data-driven insights and integrate omnichannel approaches that deliver a cohesive customer experience across all touchpoints.
1. E-commerce as a Business Model Driver
E-commerce, expanding at a remarkable CAGR of 25%, has evolved from being an additional sales channel to the cornerstone of modern growth strategies. In this digital era, businesses must view digital platforms as powerful, data-rich ecosystems rather than mere sales outlets. These platforms offer invaluable insights into consumer preferences, purchasing behaviours, and engagement metrics. By harnessing this data, brands can optimise inventory management, personalise their offerings, and accurately forecast market trends, enabling rapid adaptation to evolving consumer demands.
At Redseer, we specialise in guiding businesses through the critical transition from traditional to digital models. Our research emphasises the need for a holistic strategic approach to e-commerce and direct-to-consumer (D2C) models. Platforms like Nykaa are setting new standards for scaling in a competitive market by making premium beauty products more accessible.
2. Strategic Use of Data: Turning Insights into Action
In today’s beauty market, brands must transcend traditional data points and adopt a holistic view of consumer behaviour. Every interaction, from social media engagement to purchasing decisions, offers valuable insights that can shape product development, marketing, and sales strategies. The Nykaa Beauty Trends Report, supported by Redseer, underscores the importance of leveraging data to decode trends and consumer preferences in India’s diverse market. Businesses that embrace data-driven decision-making can better predict consumer needs, resulting in a stronger product-market fit and enhanced profitability.
3. A Strategic Approach for Sustainable Growth
Our earlier report on decoding omnichannel strategies highlights that India’s online retail market is projected to achieve substantial growth, reaching USD 150-200 billion by 2030. However, this figure represents only about 10% of the total retail market spend, indicating that the majority of consumer expenditure still occurs offline. Despite this, evolving consumer behaviour requires a strategic response from brands. For instance, while consumers may research products online, they might prefer to make purchases in-store, or start with offline purchases and transition to online buying once trust is established. Given the variability in consumer touchpoints by product category and consumer maturity, it is crucial for brands and platforms (referred to as “players” henceforth) to adopt a comprehensive omnichannel or multi-channel strategy. This approach should align with consumer behaviour throughout their journey to effectively engage and meet their needs.
As e-commerce continues to redefine India’s beauty market, businesses must embrace a data-driven strategy to remain competitive. Redseer Strategy Consultants is your pivotal partner in navigating this digital evolution. Our unparalleled insights and strategic advisory services empower companies to not only adapt but to lead in an increasingly blurred line between traditional and digital markets. With expertise spanning new-age consumer tech, financial services, and media & entertainment, Redseer delivers tailored solutions that drive growth, innovation, and market leadership.
In a landscape where digital and traditional markets converge, our comprehensive approach—from market landscaping to growth narratives and IPO advisory—ensures that businesses can seize emerging opportunities and enhance their market reach. Redseer is dedicated to transforming data into actionable strategies, whether through optimising operations, personalising offerings, or leveraging advanced analytics. To fully capitalise on the $34 billion potential of the beauty market, align your digital strategy with Redseer’s forward-thinking expertise. Partner with us to discover how our bespoke growth roadmaps can elevate your brand and navigate the complexities of this dynamic market.
Download the full report to explore key insights and data on the rapidly evolving market.
