With a projected value of $6.27bn+ in 2023, the Indian makeup business is among those with the quickest growth rates in the country. Due to growing consumer awareness of personal grooming and beauty, rising disposable money, and shifting social conventions, the business has experienced a tremendous expansion in recent years. The beauty industry has expanded to include a comprehensive line of skincare, hair care, and makeup goods to better meet the varied demands of consumers after starting off with just a few basic products.
As people become more aware of the substances used in the items they use, the demand for herbal and organic makeup products has increased recently. This trend has been spearheaded by companies like Forest Essentials, Patanjali, and Kama Ayurveda, which make their goods with natural components that are sourced locally. The customised beauty box concept is also becoming more and more popular in India, where businesses like VanityCask, MyGlamm, and Nykaa allow clients to design their own personalised makeup boxes that are catered to their unique skin tone, type, and preferences.
For individuals who are interested in learning about cosmetics and beauty, the makeup industry in India also provides a large choice of tutorials and classes. Everyone may find something in the industry, which offers everything from online classes and tutorials to live training sessions and workshops. As the trend of destination weddings and lavish celebrations has grown in popularity in India, bridal makeup services have also experienced a considerable increase in demand in recent years.
Problems
Lack of standardisation and regulation
Consumers may run the risk of using cosmetics that are unsafe or contain dangerous components if there aren’t adequate rules and standards in place. Without a standardisation process, the quality of cosmetics on the market may vary significantly, which could result in inconsistent product performance. Consumers may become confused in the absence of defined standards, which can make it challenging for them to make wise purchasing selections. Lack of standardisation might discourage investment in the cosmetics sector since companies may be unsure about the legal landscape and the efficacy of the goods they manufacture. The availability of fake goods on the market has the potential to damage trusted names in the sector and destroy consumer confidence.
High import duties
The high cost of importing raw materials and finished products affect the affordability and availability of makeup products for consumers.
Limited distribution channels
The market is highly fragmented and dominated by unorganised players, leading to limited distribution channels and poor reach in rural areas.
Growing competition
The makeup industry in India is highly competitive, with both domestic and international players vying for market share.
Consumer awareness
There is a need to educate consumers on the importance of using safe and high-quality products and the dangers of using counterfeit or low-quality products.
Social stigma
The use of makeup is still stigmatised in some parts of India, leading to low demand for makeup products in these regions.
Potential Solution 1 – Decentralisation
The development of a decentralised marketplace that links cosmetics brands with customers directly might offer a novel approach to addressing the issues of a lack of standards and regulations, restricted distribution routes, and other issues facing the Indian cosmetics industry.
Each product featured on the marketplace would contain comprehensive information about its place of manufacture, ingredients, and date of creation, as well as third-party verification to make sure it complies with legal requirements.
Impact
Customers will be able to rate and review goods, giving brands useful feedback and aiding in the promotion of high-quality goods. Through the marketplace, brands would be able to offer their goods directly to customers, cutting out the middleman and lowering the cost of goods supplied. A community-driven curation mechanism might be implemented in the marketplace, allowing users and a team of professionals to propose and advertise high-quality goods.
To Enhance Efficiency
The marketplace might be developed on a blockchain-based platform, which would offer an unchangeable record of product data and guarantee the product’s validity and traceability.
Potential Solution Solution 2 – Awareness Program
The creation of a mobile app or website that informs consumers about beauty goods could be a novel technological approach to tackling consumer awareness and social stigma in the makeup industry in India.
The app will include a repository of information on cosmetics, including their advantages, components, and hazards. It will also have a function that enables customers to scan the barcode of a cosmetics item and get details on its components, advantages, and potential drawbacks. A community forum where users may discuss and assess various cosmetics according to their efficacy, safety, and composition, a forum where customers can connect and exchange information about cosmetics, stories about their experiences, and inquiries. Apart from that, a collection of articles, videos, and other instructional materials informs customers about safe and healthy makeup techniques.
Impact
The application offers a forum for users to interact, exchange stories, and talk about cosmetics, fostering the growth of a community of knowledgeable and responsible buyers. The app assists in addressing the social stigma associated with cosmetics and fostering a culture of safe and healthy practices by offering a forum for education and discussion. The app encourages people to select makeup products that are safe and healthy for themselves and the environment by encouraging informed and responsible consumption.
Conclusion
To sum up, the Indian cosmetics business has the ability to lead the way in promoting safe and healthy practices. Indian consumers are looking for ways to make informed judgments about the goods they use as they become more aware of the value of utilising safe and healthy cosmetics. The makeup industry in India can aid in promoting a culture of informed and responsible consumption by creating a mobile app or website that gives consumers the knowledge they need to make informed decisions. This will also help to reduce social stigma and increase awareness of safe and healthy practices.
