How often have you stumbled upon a reel on Instagram or a video on YouTube showcasing a new product that is a ‘must try’? Or a new viral trend that uses a beauty product from a specific brand? The beauty industry has reportedly been at the forefront of innovation by constantly adapting to trends and shifts in consumer behaviour. India is a price-sensitive market, add to that a plethora of brands and a developing country at that, the penetration level for adoption of beauty products is rather slow, the greater question to ask here is are beauty brands able to sell through social commerce? “A lot of the early momentum around social commerce started with beauty brands. Mamaearth, for instance, is a great example of a brand that leveraged social commerce in its early stages to get the word out, have people try the products, and build traction,” Anand Chakravarthy, chief growth officer, Omnicom Media Group India, told BrandWagon Online. Meesho, too, before evolving into more of an e-commerce marketplace, was originally designed to drive social commerce. It created a platform for creators to produce content and monetise their following, with social commerce being one of its key drivers, he added.
Social commerce is set to reach a 25% penetration rate in 2024, indicating that one in four potential customers use social media to shop, according to a report by Hostinger Tutorials. The report added that social commerce generated $571 billion in 2023, and is projected to exceed $1 trillion by 2028. In recent years, social commerce has seemingly emerged as a game-changer for beauty brands, allowing them to sell products directly through social media platforms. With Gen-Z and millennials increasingly turning to these platforms for shopping, beauty brands are exploring new strategies to capture this market. But are they succeeding?
The rise of social commerce
Social commerce is defined as the use of social media platforms to facilitate the buying and selling of products. The social commerce market in the US generated an estimated $75.6 billion in revenue with forecast showcasing double of this in next five years, according to Statista, a market research firm. This growth reflects a broader trend: consumers are not only engaging with brands on social media but also purchasing products directly through these platforms. “Social commerce has profoundly transformed how we connect with our audience by integrating shopping directly into social media platforms. This evolution allows us to reach consumers more effectively by aligning with their interests and behaviours through targeted advertising,” Mihir Jain, sales and marketing director, Insight Cosmetics, said.
Furthermore, research by Shopify highlights that a typical social media user spends about 15% of their walking life on social platforms, with an average user spending two hours and 26 minutes daily across an average of six social media apps. Beauty brands have been quick to adapt to this trend, utilising features like shoppable posts and live streaming to showcase their products in engaging and interactive ways. “Social commerce engages consumers in a more interactive and exploratory manner,” Dheeraj Bansal, co-founder, Recode Studios, cited.
The power of influencer marketing
Experts opine that a significant driver of social commerce in the beauty industry is influencer marketing. There can be seen a shift from celebrity endorsements as brands have started collaborating with influencers who have a strong presence on social media to promote their product. “Well, it stems from a shift in how brands communicate. Traditional advertising often feels one-sided and can struggle to establish the trust consumers desire, particularly in categories like beauty, where promises don’t always align with experiences,” Chakravarthy added. Many consumers have become sceptical of brands, as they’ve seen countless ads that don’t reflect their lived experiences.
This is where content creators step in. “Most influencers started as ‘everyday’ individuals, someone you can see yourself in, making them more trustworthy,” he highlighted. From what is understood, the influencer content isn’t just about selling products but also about educating consumers and helping them understand how to use products or what to choose that’s right for them. As brands expand into smaller towns in India, content creators will be crucial in guiding women through these decisions. “However, we must remember that India still has a long way to go in terms of e-commerce penetration, and not everyone is ready to shop online”, he noted
Authenticity remains paramount; if a content creator loses it, they risk alienating their audience, experts cite. Unlike celebrities, who sometimes face believability challenges when endorsing beauty products, content creators seemingly bridge that gap by presenting brand propositions in a relatable manner, making beauty ideals feel attainable for consumers. Moreover, now there are even brands that have been built primarily through the influence of content creators before transitioning to traditional advertising.
Brands collaborate with influencers who have a strong presence on social media to promote their products. The influencer marketing industry is set to grow to approximately $24 billion by the end of 2024, a report by Influencer Marketing Hub revealed. Furthermore, 85% also believe that influencer marketing can be an effective form of marketing, the report added. “Influencers are crucial in driving social commerce for our brand, playing a significant role in amplifying our reach and enhancing consumer engagement. This authenticity is crucial in the beauty industry, where consumers often seek relatable and trustworthy voices,” Rishabh Sethia, director and business administrator, MARS Cosmetics, said.
To measure their impact, brands track engagement metrics such as likes, shares, comments, and reach. “We monitor engagement indicators and direct sales made through their links or referral codes. This data allows us to assess how successful they are in generating conversions,” Bansal added.
Content bucket = The new rizz game
Experts pave way for several type of content that resonates well with the audience. For years, tutorials on how to use products have been effective, especially in India, where beauty product penetration is still growing. “Tinted lip balms became popular because young women in smaller towns as a subtle alternative to lipstick, allowing them to enjoy colour and explore beauty products without societal perceptions attached to traditional makeup,” Chakravarthy added.
India is diverse, with varying levels of beauty product familiarity across regions, be it metros, smaller urban markets, or rural areas. As women are exposed to more products through advertising and influencers, they often turn to tutorials to learn how to use them, especially when their friends may not have tried those products yet.
In addition to tutorials, unboxing videos have gained traction. These showcase new brands and their product bundles, explaining how to use items in the set. Another significant type of content amplifies brand messaging by showcasing benefits in a relatable way. For instance, a light moisturising cream for summer can be promoted through creator content that highlights its benefits – while similar to advertising, it provides a personal touch that resonates more deeply.
Challenges in social commerce
Despite the promising growth of social commerce, beauty brands too are at forefront of several turbulances down the road. One major concern is the competition in a saturated market. “While a high-quality product is fundamental for driving growth, frequent changes in algorithms can impact the visibility and distribution of content,” Jain noted.
Ad fatigue also poses a challenge. With users becoming overwhelmed by the volume of ads, engagement rates can decline. “Users can become overwhelmed by the volume of ads and promotional content, leading to ad fatigue,” Sethia added.
Moreover, the constantly changing algorithms of social media platforms can impact visibility. Brands must ensure their content is engaging and relevant to stand out in a crowded marketplace. For beauty brands to succeed in social commerce, they must create a seamless shopping experience. This means integrating the shopping process directly into the social media platform. “By enabling direct purchases within social media apps, we’ve made the buying process smoother and more intuitive, reducing friction and boosting conversion rates,” Jain explained.
The challenge lies in finding a commercial model that benefits both brands and creators. Beauty brands recognise the importance of content creators, and there are ongoing efforts to experiment with different partnership models. While India is yet to reach the scale seen in other Southest Asian markets, it is only a matter of time before social commerce takes off at a greater pace and scale here. “We’re not new to influencers, but social commerce is relatively new to us. Content creators remain hesitant that if they start acting as sales platforms and focus more on selling to earn their pay, they may lose followers – concerned that they could alienate their followers who appreciate their valuable content rather than promoting products,” Chakravarthy stated.
The road ahead
One of the exciting aspects of social commerce is the integration of tech into the content that creators are making. Think about it: using AR and VR, or even Generative AI, can ramp up how engaging the content is. Imagine a content creator showing off a new lipstick and letting viewers try it on virtually through a simulator! That’s a game-changer because it allows consumers to interact with the product while they’re watching, making them more likely to buy.
Now users are bound to think that the same is already happening in e-commerce landscape, what makes the experience of AR on social commerce different? E-commerce platforms, despite providing the users with the top tier technology, the entire experience might feel static and one sided. “What if a familiar influencer popped up on a brand’s product page? That could turn a simple product view into a more dynamic experience, almost like having a conversation with a friend,” Chakravarthy noted.
Furthermore, as technology evolves , it’s vital for creators to step up their content game, too. The goal is to create a two-way interaction that feels genuine, helping drive sales without compromising authenticity. “Right now we often see influencers sharing discount codes, but it has a likelihood to dilute their personal brand. The beauty of using technology is that it opens up so many possibilities for creators to connect with their audience in meaningful ways, making sales feel less like selling and more like helping a friend discover their perfect product,” he added.
As social commerce is continuingly becoming the platform for everything, it also is reshaping how brands, especially beauty brands, are connecting with their consumers. The blend of influencer marketing and emerging technologies is further creating a dynamic shopping experience, that might make e-commerce lag. However, with challenges like ad fatigue, influencer reliability and algorithm shifts, brands need to tackle the important obstacle of maintaining authenticity while driving sales through social commerce. The bigger question in this landscape is on the consumers. Will consumers embrace this evolving strategy or push back against an increasingly commercialised social media space?