Majority of Indian adults shop beauty and personal care products in-store, with grocery stores being their top channel of preference. While the in-store shoppers prioritise immediate price benefits, they also value the ability to try products firsthand and receive assistance from customer service. To enhance these experiences, brands can transform mass retail stores into immersive destinations.
Out of the total BPC shopper base, only two in 10 adults shop beauty and personal care products online. Interestingly, most online shoppers shop equally in physical stores. They are also highly strategic in their purchasing behaviour, blending both online and offline channels to maximise value. Brands can enhance online and offline shopping by providing immersive experiences that combine physical and digital elements effortlessly.
Lastly, Gen Z shoppers prioritise quick delivery and are moving to quick commerce for their beauty purchases. Therefore, it is essential to be present on these platforms and provide a seamless shopping journey to appeal to this growing consumer base.
This report looks at the following areas:
- The impact of macroeconomic factors on the BPC category
- Purchase channels for BPC products
- Purchase drivers and considerations
- Factors that would encourage BPC purchase on online channels
- Identifying how to appeal to budget-conscious in-store shoppers
- Importance of omnichannel shopping in the beauty sector
- Rise of quick commerce among Gen Z beauty shoppers
This report explores the evolving landscape of beauty retail in India, including the blend of online and offline shopping to meet modern shopper expectations and the rising trend of quick commerce.
Sainethra Hariharan, Client Success Manager – South APAC
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Executive summary
- Mintel's perspective
- Key issues covered in this Report
- Overview
- The outlook for beauty purchase channels in India
- Provide value beyond price discounts to attract budget-conscious in-store loyalists
- Graph 1: top five purchase channels, by total vs in-store loyalists, 2024
- Offer seamless omnichannel experiences to savvy online beauty shoppers
- Graph 2: BPC purchase behaviour, by total vs online shoppers, 2024
- Cater to Gen Z's need for speed with efficient quick commerce
- Graph 3: factors encouraging online BPC purchase, by generation, 2024
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Key Trends and market factors
- What you need to know
- Connected lives pave way for 'omni-experience'
- Digital channels are pivotal in shaping modern shopping habits
- Reels are influencing beauty purchases among the digitally savvy
- There is a place for both online and offline shopping
- Beauty brands rise up to provide the omnichannel experience
- Quick commerce is the new kid on the block
- Quick commerce takes off in India
- Busy lives demand quicker services
- Beauty sales on quick commerce are growing
- eCommerce platforms strengthen their same day delivery capabilities
- Financial optimism drives value-based buying
- Indians remain optimistic, despite financial setbacks
- Graph 4: consumers' future financial sentiment*, 2020-23
- Indian consumers seek value beyond just low price
- As consumers rethink what value means to them, emphasise quality and convenience
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What consumers want and why
- What you need to know?
- In-store shopping needs a makeover
- Indian BPC shoppers remain budget-sensitive
- TURF Analysis – features influencing BPC purchase
- Get creative with discounting to infuse excitement in beauty purchases
- Reward budget shoppers with sustainability initiatives
- The majority of Indians shop beauty in-store; two in 10 also buy online
- Graph 5: BPC purchase channels, 2024
- Physical stores trump online channels
- Graph 6: types of purchase channels, 2024
- Shoppers in Tier 1 and 2 cities are exploring online channels
- Graph 7: BPC purchase channels, by city tier, 2024
- Who are the in-store loyalists?
- Grocery: an important channel amongst in-store loyalists
- Graph 8: top five BPC purchase channels, by total vs in-store loyalists, 2024
- Budget-driven in-store shoppers remain disenchanted with retail innovations
- Graph 9: features influencing BPC purchase, by total vs in-store loyalists, 2024
- Prioritise mass-market portfolio to cater to budget shoppers
- Convey value through values to drive brand loyalty
- Product demos, expert help and instant price comparison makes in-store shopping a natural choice
- Graph 10: top four BPC purchase behaviours, by in-store loyalists, 2024
- Unlock the potential of in-store expertise
- Shoppers are omnichannel; experiences are (still) not
- Who are the online shoppers?
- Online BPC Shoppers are equally dependent on offline stores
- Graph 11: BPC purchase channel preference, by online shoppers, 2024
- Tailored guidance and convenience are pivotal considerations influencing their selection of purchase channels
- Graph 12: BPC purchase channels, by total vs online shoppers. 2024
- Harness the advantages of beauty centres
- Online shoppers blend online and offline tactics for maximum value
- Graph 13: BPC purchase behaviours, by total vs online shoppers, 2024
- Online loyalists seek assistance in their online purchases
- Graph 14: BPC purchase behaviour, by total vs online shoppers, 2024
- Enhance the consultation experience with AR
- Bring phygital to make in-store shopping more immersive
- Graph 15: features influencing BPC purchase, by total vs online shoppers, 2024
- Make the in-store experience more interactive through tech
- Case study: Tata CliQ enriches its in-store experience using technology
- Replicate the tactile interaction at home
- Graph 16: BPC purchase behaviour, by total vs online shoppers, 2024
- Sample at home, buy online
- Blend social interaction and retail convenience to amp up online shopping
- Graph 17: factors encouraging online BPC purchase, by online shoppers, 2024
- Leverage social media to drive product discovery and sales
- Convert browsers into buyers through social media
- Make it easier to shop via social media
- Use social media to build beauty communities
- Tata CliQ, an Indian ecommerce retailer, launches #YourBeautyMatchmaker campaign to introduce Beauty ID
- Leverage online to house exclusive benefits
- Graph 18: features influencing BPC purchase, by total vs online shoppers, 2024
- Provide personal and unique treatment via reward programs to retain customers
- Gamify the reward programme to boost engagement
- Speed matters: Gen Z wants everything now
- Faster delivery is becoming table stakes for Gen Z
- Graph 19: factors encouraging online BPC purchase, by generation, 2024
- Gen Z opts for quick commerce over ecommerce
- Graph 20: BPC purchase channels, by generation, 2024
- Be present on quick commerce
- Explore cross-selling opportunities to promote beauty purchases
- Effortless returns are expected
- Graph 21: factors encouraging online BPC purchase, by generation, 2024
- Grow the beauty category in quick commerce through personalisation
- Graph 22: factors influencing BPC purchase, by generation, 2024
- Secure the Gen Z shopper with a focus on personalisation via AI
- Provide sustainable alternatives to reduce environmental impact
- Graph 23: features influencing BPC purchase, by generation, 2024
- Adapt sustainability initiatives early on to align with Gen Z values
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appendix
- Abbreviations
- Consumer survey methodology
- TURF analysis
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