By Kritika Arora
Clean beauty, which implies beauty products that are toxin free and are made with natural products, is increasingly becoming popular with Indian customers and banking on the trend, Body Shop’s focus of innovations is also on products that have high naturality index and are sustainably sourced.
“We have around 15 ranges or line extensions being launched across categories like skincare and haircare and they are being sustainably sourced,” said Shriti Malhotra, CEO at Body Shop.
For instance, normally skin care products come with hyaluronic acid as one of the many ingredients whereas Body Shop’s Vitamin E-driven active ingredient products are now coming with bio-hyaluronic acid, which is vegan and hydration active, said Malhotra. Even with old products, the company is making reformulations that are more plant-based, she said.
The trend toward Vegan lifestyles and products has been picking up steadily – as far as beauty in India is concerned, this is the next natural step in this market where there is already an overwhelming preference for vegetarian cosmetics.
According to Statista Market Research, the size of the natural cosmetics segment is about $0.84 billion in India with the market expected to grow annually by 3.41%.
Malhotra said that post-pandemic, while beauty products sales have been increasing, the way customers are purchasing is also different now.
Customer is bringing huge emphasis on what are the products made of, quality of the ingredients and naturality, she said.
Body Shop says that while the vegan beauty market is not niche, a lot of awareness is coming from the consumers recently and the company has seen massive growth, double to triple-digit growth in the vegan category recently.
Leveraging the trend, Shriti said that Body Shop plans to launch an entire new make-up range that will be plant-based or vegan by next year.
“Because colour cosmetics has a large chemical quotient to it, this one area we are working on to create faster and wider ranges given customers’ inclination towards that,” Shriti said.
Body Shop already has some make-up products like our foundation, concealer is already present in the market.
Body Shop is a premium brand but with a significant play in affordability in key categories such as bath and body, haircare, skincare and makeup. In India, the company’s strategy is to recruit new consumers to the brand via entry-level pricing in everyday essentials such as face washes, shampoos, conditioners, lip balms and hand creams.
While the average ticket size of products in Body Shop is about Rs 700-750 with price range starting from Rs 225 to Rs 7,000, from entry-level body care to luxurious skincare, haircare and spa range, Malhotra said.
However, the average basket size of a consumer at Body Shop is around `2,500, she added.
Body Shop is an omnichannel retailer, that has physical stores, and direct-to-customer reach digitally and through a third-party marketplace, but the company’s focus is on retail is predominant. And it will continue to be so, according to Malhotra because this is the place where people can experience the products themselves. “Our focus is on reaching consumers through the retail channel. We are Opening 3-4 stores every month. We are going tier 2,3 cities like Dimapur, Madurai, Vijayawada, Itanagar, Imphal,” Malhotra said.