“Future of the beauty sector will reside in an omnichannel experience”
Over the last few weeks, Trending Now – Adgully’s annual feature that presents the strategies and views of a cross-section of industry leaders – has been bringing insights from industry leaders on how their organisations are geared up to seize the opportunities in 2022, break through the Covid disruptions and find growth and remain resilient.
In conversation with Adgully, Mohit Goyal, Co-Founder, Swiss Beauty, speaks about the emerging trends in the cosmetics and personal care industry in 2022, growth of the D2C business model, the road to recovery, and more.
What are the trends that you expect to dominate in your sector this year?
The Covid pandemic greatly impacted the global cosmetics and personal care industry. This $532 billion sector is witnessing a major buying perception shift, with the consumers preferring natural and safe ingredients rather than synthetic ones. With the change in lifestyle and skincare routines, the industry is focused on offering sustainable, clinically-backed, and affordable wellness-oriented solutions. There is a massive demand for Vitamin C-rich serums, besides products with skin-rejuvenating ingredients like jojoba oil, castor oil, and glycerine.
What challenges and new opportunities do you see emerging in the year ahead?
The spread of COVID-19 aggravated new challenges in the global cosmetic industry, and the Indian beauty market is no exception. The sector experienced a decline in purchases in the last two years, but it is gradually bouncing back. The global outbreak forced businesses to execute new strategies for increasing their customer base and revenue.
Self-care and natural products have recently emerged as new opportunities in the industry. They will likely remain relevant in the coming years as consumers are more inclined towards their overall well-being. Due to the pandemic, the change in consumer behaviour prompted many brands to adopt the D2C business model, leading to the tremendous growth of e-commerce. D2C has proved to be an excellent opportunity for the brands to connect with the consumers and efficiently build trust by providing an excellent user experience, thus, increasing profitability.
The future of the beauty sector will reside in an omnichannel experience with the advent of digital tools. The brands are competing with each other to provide affordable yet high-quality products to the consumers to enhance the consumr experience.
How is this year’s turnout expected in this sector compared to the last two years? How strong will the recovery be?
Despite an 8% decrease in sales in pandemic-hit 2020, the beauty industry has shown signs of recovery, and the skincare market leads the growth. Products like cleansers, toners, face oils, serums, etc., are in great demand. With more focus on clean beauty products, homegrown brands are coming up with big plans, and the global industry is expected to grow at a CAGR of 11% between 2022 and 2027. Online channels like e-commerce and social commerce will be important drivers for distribution in the coming years.
What are the changes in this sector in the last two years? How strong will this sector’s growth be compared to the last two years and the pre-Covid period?
The beauty sector has gone through a massive change since 2020 with enormous changes in consumers’ buying behaviour. With the lowering of COVID-19 cases, people started rediscovering their lives, and social gatherings resumed. Besides the demand for serums, sheet masks, and eye patches, consumers are looking for good quality, but affordable make-up products, including highlighters, full-coverage foundations, lipstick, and primers, to name a few. Even the lip gloss trend is back. Plump-looking lips filled with pigmented lip gloss are the flavour of the season.