The Beauty Renaissance

According to a report by Vogue Business, the beauty market in India has gone through a Cinderella-esque transformation, going from ₹1230 crores in 2018 to a sparkling ₹1500 crores in 2022, with projections indicating that it will reach ₹1740 crores by 2025, with a compound annual growth rate (CAGR) of 8.8 per cent.

Driving Factors Behind The Beauty Market Evolution

The Indian beauty industry is booming and substantiating itself as a new beauty hotspot. According to Statista, India has secured the fourth position globally in generating the highest revenue from the beauty and personal care market in 2022. The cosmetics market is expected to grow at an annual rate of 3.86%, with a remarkable 143% increase in sales volume year-on-year. Additionally, online sales in this industry are projected to witness a substantial growth of 18.2% by 2025.

This extraordinary growth can be attributed to several key factors. Foremost, there has been a prominent surge in disposable income, propelled by a burgeoning youth demographic and increasing awareness of self-care and beauty products through social media influence, rising affluence, and urbanization. Simultaneously, the growing female workforce has also proven instrumental, as earning women tend to outspend the average consumer by 1.6 per cent, whether their purchases are conducted through digital channels or in physical retail spaces. The Indian salon industry, valued at approximately INR 90,000 crores in 2020, is expected to reach INR 1.75 trillion by 2026, growing at a CAGR of 15% from 2021 to 2026. This expansion has further contributed to the beauty industry’s growth.

This monumental growth can also be attributed to the Indian male grooming market, which is expanding at a CAGR of 45%. Its market size is estimated to range from INR 12,000 crores to INR 30,000 crores, with an anticipated growth rate of 11.2% during the forecast period, 2023 to 2028.

Global beauty brands are seemingly rolling out the red carpet for local beauty brands, and those rooted in ancient Ayurvedic practices are stealing the spotlight. Some well-known brands in India include Plum, Himalaya Herbals, Forest Essentials and Kama, among others. The industry is primed for further growth, with the forthcoming trajectory being moulded by brands that focus on innovation and digital advancements.

Tira: Redefining Beauty Tech 

A budding contender in this beauty landscape is Tira, the latest entrant from the Reliance conglomerate, launched by Isha Ambani. The brand’s campaign, ‘Every Angle Is Your Good Angle‘, aims to challenge a complex rooted in societal beauty standards influenced by harmful cultural norms. What distinguishes Tira from its competitors is the infusion of advanced technology into the shopping experience, which can be found in its retail stores present at three locations, namely, Infinity Mall and Jio World Drive Mall in Mumbai and Phoenix Palladium Mall in Chennai. Tira’s makeup vending machines, for instance, offer complimentary samples upon registration via a one-time password (OTP). Additionally, a sophisticated automatic white light station is available for consumers to assess makeup under various lighting conditions. The tech console, aptly named “The Fragrance Finder”, assists customers in selecting perfumes based on segmented floral notes. The ‘Smart Mirror’ is another cutting-edge feature that identifies one’s skin type and suggests suitable makeup brands. For customers with time constraints, a Dyson-powered hairstyle station facilitates a quick blow-dry. 

Tira, having emerged as a formidable player in this domain, is poised to rival established platforms such as Nykaa, Tata Cliq, Myntra, Sephora, and SS Beauty by Shoppers Stop.

Nykaa, the reigning champion of the beauty industry, launched itself as an online-only retailer and subsequently expanded its footprint to over 150 brick-and-mortar stores nationwide. It has developed a strong presence in the domains of direct-to-consumer and premium brands. Nevertheless, Tira’s strategic foray into offline and online channels, fortified by the abundant coffers of Reliance, presents a significant obstacle. Augmenting this, Tira extends an average 15-20% discount on regular and premium brands, surpassing Nykaa’s 10% discount offering. With the recent inauguration of its stores and a pilot phase for its mobile application in 100 cities, Tira is all geared up for a triumphant ascent. Tira’s vision and mission statements distinctly outline its target audience and its firm commitment to inclusivity, which has the potential to impact consumers seeking both economical and lavish beauty choices profoundly, which could be the edge required to disrupt the established status quo.

Female Pioneers in the Beauty Segment 

As the beauty industry continues to thrive in India, the battle for supremacy in the beauty realm remains a dynamic and ongoing saga, ultimately benefiting astute shoppers seeking the finest. Noteworthy makeup brands, led by women entrepreneurs, include Mamaearth, The Good Glamm Group, Sugar Cosmetics, Ruby’s Organics, Renee Cosmetics, Kiro Clean Beauty, and Daughter Earth.

In the broader context of India’s evolving startup landscape, it is imperative to highlight an 18% increase in women-led startups over the last half-decade, as documented in the “Women in India’s Startup Ecosystem Report” (WISER). This signifies a radical makeover in the gender dynamics within the business terrain. Notably, women lead 17% of Indian unicorn companies, highlighting their growing contribution to the entrepreneurial ecosystem. Some women who founded or co-founded unicorns include Acko, BYJU’s Pristyn Care, MobiKwik and Open. Additionally, a promising pipeline of startups, including WinZo, Doubtnut, Infinity Learn, Locus, Pratilip, Portea and SirionLabs, is poised to achieve unicorn status.

Conclusion

The Indian beauty industry is on the cusp of remarkable growth, serving as a battleground for innovation and inclusivity. With female-led startups like Tira and other brands boldly challenging beauty norms through advanced technology, emerging victorious. As women gradually take over the reins, the Indian economy is expected to embark on an exhilarating journey within an ever-evolving beauty realm. This transformation mirrors the broader economic shift in India, where women-led startups not only flourish but also contribute to economic growth and job creation. The power of diversity and entrepreneurship is shaping the Indian financial future, benefiting the entire nation.

References:

• www.voguebusiness.com

• www.businesstoday.in

• www.financialexpress.com

• www.wionews.com