The Global Online Beauty and Personal Care Industry
Article Written By: Gayatri Mohite
The online purchasing of beauty and personal care products has expanded over the past years. Top online beauty and personal care product selling platforms like Sephora, Ulta, Nykaa, byrdie.com, Purplle, and others are gaining traction due to their unique marketing strategies and schemes like beauty sales, coupon applications, paid promotions, and influencer advertising.
The online beauty and personal care industry is experiencing growth due to factors like growth in e-commerce, rise in convenience due to online shopping, influencer marketing, attractive offers and discount provided by online selling platforms, and growth of D2C brands. The major benefit of the online beauty and personal care industry is that consumers can navigate through the rating and customer reviews of the products and make profitable purchasing decisions.
Furthermore, online retailers have introduced virtual try-on features that enable customers to see how makeup or hair colors will appear on them before buying.
Augmented reality technology improves the online shopping process and minimizes the uncertainty that comes with purchasing beauty products online. Another popular trend in the online beauty and personal care sector is the rising consumer shift towards herbal or natural ingredients-based products. As compared to synthetic/chemical-based products, natural products have fewer side effects and allergic reactions.
According to a recent survey conducted by The Weather Channel, 74% of individuals have made changes to their personal care or beauty routines in recent years. Approximately 30% have opted for simpler routines, while 25% have increased their online purchases of beauty products. Online beauty platforms use data and algorithms to provide customized product suggestions to consumers, considering their preferences and previous online activity. This improves the overall shopping experience and encourages customers to spend more on products.
In recent years, there has been a growing recognition and appreciation for brands that place a high value on variations and comprehensiveness. This trend is particularly evident in the online retail sector, where retailers are increasingly seeking partnerships with brands that not only provide a diverse range of shades to cater to different skin tones but also embrace and celebrate various cultural beauty practices.
AI in D2C Beauty and Personal Care Sector
AI plays a significant role in the direct-to-consumer (D2C) beauty and personal care industry by offering the valuable advantage of delivering customized product suggestions to individual customers. By leveraging artificial intelligence (AI) technology, companies can analyze customers’ purchasing history, browsing behavior, and preferences.
This enables them to provide personalized product recommendations that align with the individual needs and preferences of customers. By incorporating artificial intelligence (AI), organizations can analyze the unique skin types of customers and offer customized skincare routines that cater to their requirements. AI has revolutionized the D2C beauty and personal care sector through the implementation of Virtual try-on technology. This innovative technology enables customers to preview the appearance of a specific product in a specific shade themselves before buying it.
Incorporation of influencer marketing in the online beauty and personal care sector: Influencers have a strong connection with their dedicated followers and offer a genuine experience that appeals to beauty consumers. By collaborating with influencers who share the same brand values and style, beauty brands can successfully reach the influencer’s devoted fan base and establish trust with consumers.
Beauty influencers excel at producing makeup tutorials, evaluating products, and showcasing the impact and adaptability of beauty items through before-and-after makeovers.
By incorporating these products into their videos, brands can assist customers in making well-informed buying choices and allowing them to witness the products in practical scenarios. The use of virtual influencers for promotion is also becoming popular nowadays. Virtual influencers, which are computer-generated characters with substantial social media followings, are frequently employed to endorse beauty and personal care items. Although they are not human, they are designed and maintained by groups of humans who contribute their artistic vision and expertise to the procedure.
Virtual influencers have the advantage of being affordable and not being affected by the same limitations as human influencers. This means they can promote products and interact with followers at any time without scheduling conflicts, illness, or personal issues getting in the way. Reliance Retail has entered the beauty product market with the launch of Tira, an omnichannel platform, to compete with Nykaa: Reliance Retail Limited, the biggest retailer in India, introduced Tira, an omnichannel platform for beauty products on 18th April 2023.
Reliance is set to enter the global beauty products market by introducing its new brand, Tira, thereby competing with renowned industry players. Reliance Retail unveiled its main Tira store at Jio World Drive in Mumbai’s Bandra Kurla complex, along with the introduction of the Tira app and website. Reliance Retail stated that Tira provides a selective range of international and domestic brands.
To sum up, the global online beauty and personal care sector is experiencing growth due to revolutionary technical advancement, consumer shift towards D2C brands, and incorporation of influencer marketing. This will provide ample growth opportunities for the sector in the future.
Author Bio– Gayatri Mohite: Is an emerging author who loves to explore new things. An addiction to reading motivates her to write. She also loves to sing, travel, and cook. A fresher who is constantly upgrading her skills has embarked on a new journey to touch up her expertise even more.
