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<ul><li>Consumers are looking for toxin-free beauty products, and those that suit their specific skin colour.</li><li>They also choose brands based on ingredients, with prominence of genderless beauty and more.</li><li>Pure play beauty and personal care companies are capturing these trends better than their FMCG peers. </li></ul>Gone are the days when every second home housed the same popular shampoo, face cream and soap brands. The new-age consumers, driven by the rising incomes of the middle class, seek beauty products that offer personalization – instead of buying off the rack. A report by <keyword id="3359665" type="General" weightage="80" keywordseo="redseer" source="Orion">Redseer</keyword> and Peak XV says that consumers are looking for toxin-free products, products that suit their specific skin colour (as opposed to fair &amp; lovely preferences); with an increasing prominence for genderless beauty. There is also a trend wherein consumers are making ingredient-specific purchases, the report adds. Moreso, they are also exposed to tech that allows for customization into products like serums which can make the ‘best fit’. "From acne management to anti-ageing solutions, specialized use cases are where we're seeing a lot of the action. Brands are spending a significant portion of their resources and organisation bandwidth on new product development, R&amp;D, and customer insights to drive more efficacious products to a targeted audience," says Sakshi Chopra, MD, Peak XV. The market share of such specific use case products is expected to be around 60% by 2027, Redseer predicts. “Globally, there's a growing need among consumers for products 'made for them', tailored to individual skin or body types. They are increasingly willing to pay premiums for effective and safe solutions, leading to rapid growth in the masstige and premium categories,” said Rohan Agarwal, Partner, Redseer Strategy Consultants. Skin in the game So, who is winning the game that’s rapidly changing? Undoubtedly, pure-play beauty companies have more skin in this game — like L'oreal, Honasa (Mamaearth) and <keyword id="6376684" type="General" weightage="20" keywordseo="nykaa" source="Orion">Nykaa</keyword> as opposed to HUL. The average revenue growth that pure-play BPC companies saw between 2022-2027 is at 10% – that’s five times what FMCG companies in the business see, at 2%. They already have 33% of the market – which is expected to rise to 42% by 2027. The reasons for their ability to disrupt the market are many. For one, pure play companies are able to capture the trend of moving to masstige and premium products better with faster R&amp;D and product development. Some of them have been able to shorten time to market by 50%, the report says. This way, they are able to target a greater number of specific use cases — helping them curb a larger share of the rapidly fragmenting market. As the market breaks off from being ‘mass’, the channels to approach them are just as important as the product itself. Fortunately, a large chunk of these new-age customers are already online. The Indian BPC market is at $30 billion and a third of it — $10 billion is purchased online. There are over 150 million online BPC customers in India. A lot of successful beauty brands are not content on just ‘being online’ and offline – they’re meeting their customers via live commerce, VR/AR stores on metaverse and more. German company <keyword id="244393" type="General" weightage="80" keywordseo="beiersdorf" source="Orion">Beiersdorf</keyword> launched a personalized AI powered D2C brand using data from multiple customer surveys. Pure-play brands also spend a lot more on marketing as they build brands by educating and creating awareness — clinching the secret to make people feel good as well as looking good.

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Beauty is in the detail: How tailor-made products are taking over the market

Katya Naidu

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