Cosmetic firms rediscover magic behind the veil; cashes in on the pandemic with product launches

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March 31, 2021 7:59 AM

Today’s beauty consumers are looking online for advice, ideas and inspiration, with nine out of 10 beauty consumers influenced by digital

Consumers are on the lookout for meaningful connections -- what does a brand stands for and is doing to make lives betterConsumers are on the lookout for meaningful connections -- what does a brand stands for and is doing to make lives better

This is a straight confession from behind the veil — the only difference being here the former has been replaced by the mask to protect ourselves from the on-going pandemic. Interestingly, cosmetic firms which initially posted a decline in sales, have turned the tables by utilising this as an opportunity to launch a range of mask-proof products to natural range. Direct sales beauty and personal care company Avon, for instance, launched a transfer proof makeup range called ‘Powerstay’ for lip, eye and face segment to make it suitable to be worn with masks besides rolling out an anti bacterial range of soap, handwashes and roll on deodorant. “In 2021, skincare became the biggest category more than make up for Avon India with a share of 31% of the overall business, followed by makeup (25%), toiletries (9-10%), fragrances among others,” Snigdha Suman, head of marketing, Avon India, told BrandWagon Online.

According to the Connected Beauty Consumer Report launched by Google, Kantar and WPP, today’s beauty consumers are looking online for advice, ideas and inspiration, with nine out of 10 beauty consumers influenced by digital. The journey of a consumer in terms of awareness is shifting from TV to digital avenues, with 33% beauty consumers engaging digitally every day, 50% every week and 93% every month. “Brands with easy to find information on digital platforms are more likely to make it to consumers’ shortlists,” Samir Modi, founder and managing director, Colorbar, stated. Amidst the pandemic, there has been a shift in buying patterns in the industry, with consumers moving to e-commerce channels. Case in point being SUGAR Cosmetics, which claims that 50% of its business currently comes from e-commerce marketplaces that accounted for 30-40% earlier. Meanwhile, Colorbar Cosmetics too claims that 25% of the business currently comes from online marketplaces.

The report also found that over 50% beauty consumers use social media and online videos, and 40% consumers use online search for research. 56% consumers use YouTube to compare and consider, while 30% reach their final decision through a mix of YouTube, Google Search and e-commerce websites. As a result, beauty brands plan to spend a significant share of their marketing dollars on digital. “In FY22, 70-75% of our budgets will be spent on performance marketing while the remaining for brand building initiatives including influencer collaborations as well as above the line (ATL) marketing such as OOH campaigns, in-store activations, branding in malls, among others,” Vineeta Singh, founder and CEO, SUGAR Cosmetics stated. The company expects to clock a net revenue of Rs 135 crore in FY21 while its marketing spends stood at about Rs 33 crore.

Industry experts opine that consumers today prefer to go with known, natural ingredients, with less chemicals, and an overall healthy regime when it comes to skincare and beauty. As far as communication is concerned, people are on the lookout for meaningful connections — what does a brand stands for and is doing to make lives better. “Brands that start to connect more at a deeper and emotional level on what the consumers care about will be preferred over mere product communications,” Ambika Sharma, founder and managing director, Pulp Strategy, stated.

Read Also: Eicher Motors owned Royal Enfield to ride the digital wave to drive sales this year

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