Luxury continues to become democratic in the Indian economy: Aakash Anand

The first half of the year 2023 has been a rollercoaster ride, with an accelerated adoption of generative AI, AI chatbots, and digital innovations. This is bringing in new operational efficiencies, stronger strategies, a far greater emphasis on building deep bonds with various stakeholders and consumers. In keeping with the current market ecosystem, technology and a human approach are seen as going hand in hand.

Adgully’s TRENDING NOW series has been presenting important insights from key industry leaders, who highlight the major trends and developments that they see dominating the industry in the current times.

In conversation with Adgully, Aakash Anand, Founder & CEO, BELLAVITA®ï¸, speaks about the “less gives more” concept dominating the industry this year, the resurgence of offline experiences, personalisation at scale, reducing inefficiencies across the value chain, and more.

Key trends dominating the industry in 2023

In 2023, one key trend dominating the industry is the concept of “less gives more”. With profitability pressures mounting, businesses are compelled to make clear choices and to focus on what consumers truly value and cut down on what they perceive as waste. This trend will impact the industry by fostering a more focused approach, where companies streamline their offerings to deliver maximum value. while eliminating unnecessary features or services. By understanding and catering to consumer preferences more effectively, businesses can optimise their resources and enhance profitability.

Another significant trend is the resurgence of offline experiences. As consumers return to offices, malls, and travel, it presents a real challenge for direct-to-consumer (D2C) brands to develop a seamless omnichannel experience. To succeed, businesses must establish a robust business model that integrates both online and offline channels, creating a cohesive customer journey. A seamless customer experience will be at the core of who will succeed. Unlocking scale and profitability requires D2C brands to adapt and deliver a consistent brand experience across various touchpoints.

Luxury continues to become democratic in the Indian economy. The desire for premium products and experiences has grown at an unprecedented scale. This trend particularly impacts the skincare and fragrance industries. The brands that will thrive in this market are those capable of delivering on the proposition of mass premiumness or luxury for a broader audience. By offering high-quality products that resonate with consumers’ aspirations, these brands can tap into the growing premiumisation trend and capture a significant market share.

The success of businesses will be defined by the consistency and clarity in their proposition. It is crucial for companies to comprehend their target audiences’ needs and build relevance through the right content. This trend emphasises the importance of a clear and compelling brand proposition that sets a company apart from its competitors. By effectively communicating their unique value proposition and aligning it with consumer expectations, businesses can differentiate themselves in a crowded marketplace and reduce price elasticity for long-term success.

Personalisation at scale will be a key trend encompassing both content and product offerings. Advertising costs are high, and budgets are limited, making relevance building crucial for building consideration among consumers. Businesses will need to leverage data and technology to create personalised content and product recommendations that resonate with their target audience. By tailoring their messaging and offerings to individual preferences, companies can enhance customer engagement, drive conversions, and maximize their return on investment.

Major expectations from 2023

The year holds significant expectations for our sector, and we anticipate various key developments and challenges. Here are our major expectations:

Increased Competitive Intensity: We foresee a surge in competition within our sector, with numerous new entrants and me-too products. This scenario will push companies to differentiate themselves and prove their mettle. It’s an opportunity to separate the leaders from the followers, as well as the innovative brands from the imitators.

Traditional CPG companies adapt to eat into D2C: We expect traditional brands and organisations to embrace change and adapt to the evolving market dynamics. They will leverage their established reputation and resources to eat into the Direct-to-Consumer (D2C) space, posing a challenge to existing D2C brands. This adaptation will lead to the consumer winning with better innovations and improved value.

Accelerated Perfume Adoption in India: The year ahead is likely to witness a significant uptick in the adoption of perfumes in India. As consumers’ preferences shift towards luxury and personal grooming, the demand for high-quality fragrances will surge. This presents a lucrative opportunity for companies to capture drive penetration and upgrade the existing deodorant consumer to perfumes.

Growing Deodorant Market in Bharat: We anticipate a rapid growth in the deodorant market specifically in Bharat. As disposable incomes increase and awareness about personal hygiene rises, more consumers in Bharat will embrace deodorants as an essential grooming product. Companies that focus on penetrating this untapped market and catering to the specific needs of Bharat consumers will witness significant growth and expansion.

Companies that proactively address these expectations and embrace innovation and customer-centric strategies will be well-positioned for success in the evolving landscape of our sector.

Key focus areas for Bellavita in 2024

In 2024, our company has identified several key focus areas to drive growth and success. These strategic priorities have been carefully crafted to align with our strengths and market opportunities. Here are the major areas we will be focusing on:

Sharpening our focus to segments where we have the ability to win:

To ensure sustainable growth, we will concentrate our efforts on market segments where we possess a competitive advantage. By leveraging our strengths, expertise and resources, we aim to maximise our impact and achieve market leadership in these specific segments. This focused approach will allow us to invest better, deliver tailored solutions and differentiate ourselves from competitors.

Reducing inefficiencies across the value chain:

Efficiency plays a vital role in our company’s success. In 2023, we will intensify our efforts to identify and address inefficiencies across the entire value chain. By streamlining processes, optimizing resource allocation, and embracing innovative technologies, we aim to enhance productivity and reduce costs. This optimisation will enable us to deliver greater value to our customers while maintaining a competitive edge in the market.

Premiumisation of our portfolio:

Elevating the quality and value of our products and services is another key focus area for 2024. We recognise the importance of offering premium offerings that cater to the evolving needs and preferences of our customers. Through extensive research and development, we will invest in enhancing the features, performance, and overall experience of our portfolio.

By diligently pursuing these strategic priorities, we are confident that by prioritising these areas, we will continue to thrive in the face of intense competition and delight our consumers.