What a Beauty! D2C Beauty and Skincare Brands are driving the market

The D2C (direct to consumer) market for the beauty and personal care segment is booming all across the globe and India is no different. Consumers are slowly shifting towards e-commerce to fill their cart and this vast space is helping them discover a slew of new products, get a new experience which has proliferated the brands to foray into the beauty segment. According to a recent research, In FY 2020 there were 25 million online beauty shoppers, which is expected to reach 135 million by FY 2025.

The modern-age brands are overtaking the traditional brands owing to a number of factors. Primarily, customers today want chemical-free natural ingredient rich products. They are keen on taking care of their skin and the environment at the same time. So, the choice they are making is more earth-friendly and that is pushing the growth of a bevy of innovative brands.

The D2C brands, understanding the customers’ perception are offering customized options too.

Product Innovation is the key

D2C brands are offering products that are clean, non-toxic and naturally derived, free from any synthetics.

Sunita Jaju from Rustic Art told us that, In her day-to-day routine, she realized the use of toxins in the personal care products is much higher which will hamper the health and environment gradually. Then, she decided to start a venture which offers modern products that were based on traditional principles. She also added, “Our foremost priority while formulating any product is ingredients. Most of our R&D time is dedicated towards researching the efficacy and source of the ingredient. Once we are satisfied about its origin and quality, we go on to create a product with it.”

Pankaj Chaturvedi, Founder, Aanam Sutras told us about the new product innovation that they are offering to the new-age customers in a specialty line which includes before and after-party cosmetic products. He claims to be the first brand working on this segment.

Vineeta Singh, CEO and Co-founder, SUGAR Cosmetics shared with us that they decided to make keeping products in mind the Indian womens’ skin as most global brands are not paying attention to it. The company launched matte, long-lasting makeup with shades from India and it grew instantly through women talking about it on Instagram and other social media platforms.

Customer-centricity is the new approach
Over the last five year D2C brands in retail have experienced an estimated CAGR of 200% on average. The quick growth in a short span of time clearly shows how customer-centric approach these brands follow. The purchasing power has been shifted to Millennials and Gen Z, which attracts a brand that they find engaging, more fun, transparent and approachable.

Darpan Sanghvi Founder & CEO, MyGlamm told us, that believes in building a brand that listens to customers intently and acts on those insights to create a relationship of trust. The company has built a platform for women in which they can share their beauty stores and wish-lists and then the company gets eager to provide products that match their expectations. They are following a policy of just not reaching the customers but also interacting with them at the same time.

Chaitanya Nallan Co-Founder & CEO, SkinKraft Laboratories told us their journey that how they are following a customer-centric approach that for every new customer, the brand taps Artificial Intelligence (AI)-driven technology to provide dermatologically approved and customized skincare solutions to customer. He also added that, In the last few years, it has also seen an increased interest in customised skincare using AI and ML. He claimed that, “Our model’s accuracy is 75-95% for various categories of product, and that’s improving with time and through regular feedback.”

Paridhi Goel Founder, Love Earth told us that their brand offers a wide range of products – from hand picked tea leaves to organic skincare, haircare, personal care and home care products, as well as face tools and multi-pots. The brand continuously monitors and listens to the customer requests, understands their demands and comes up with the best possible ways to meet them. She also claims that, “Queries from customers are always taken on priority. Sometimes, we get to know about an international product our customer wants to try, so we try to bring it to them in a more reasonable range. Every customer is important. We encourage our customers to create content about the products they have used and ask them to write an honest review and put it on social Media from where we re-post it. This is also an encouragement for them.”

The D2C brands in the beauty segment are rapidly increasing due to product and price white spaces, new business models and growth capital. Moreover these new firms are successful as they have a strong social media presence, agile DNA, and fast supply chain systems.


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