The digital-first approach has taken the world by storm. The D2C beauty and personal care brand wasted no time catching up with this wave. Gone are the days when you had to go to the beauty store for your essentials. D2C beauty brands have completely changed the way consumers perceive, choose and shop.
This shift has only helped India’s personal care and beauty industry reach new heights.According to a report by Statista, India’s D2C sector, valued at $33 billion in 2020, will grow by 2025. projected to reach $100 billion in 29% by 2025, according to Avendus Capital.
Backed by robust technology and innovation, D2C brands are setting new benchmarks not only in seamless and personalized shopping experiences, but also in scaling and optimizing business models. The new digital beauty brand has achieved an incredible revenue record that has taken veteran international retail brands decades to achieve.
Today, direct-to-consumer sales and an online-first approach are seen as a necessity, not an option, even by top retailers. According to Avendus Capital, more than 80 of his D2C brands operate in the beauty and personal care sector in India. This number is expected to grow exponentially over the next few years.
Deeper and more meaningful brand connections
Beyond selling products, the D2C model has become a powerful strategy for companies to share their brand stories and build meaningful connections with consumers on a personal level. This approach has made the online shopping experience more authentic, seamless, and convenient for shoppers.
With an explosion of beauty bloggers and product reviewers online, today’s consumers are well aware of harmful ingredients, safer alternatives, and what works for them. and Gen Z lean towards brands that promote clean, sustainable and eco-friendly beauty products.
In response to this trend, D2C’s beauty and personal care websites will explore where and how products are made, what they contain, where they come from, their environmental impact, who is involved in the process, and more. , telling every detail. This establishes a deep and trusted connection with your brand.
There are also brands offering personalized products based on digital diagnostics. We use chatbots, surveys, and more to determine a consumer’s unique needs and deliver accordingly customized solutions to their doorstep. This seamless, personalized consumer experience helps brands build long-term brand loyalty.
Technology-driven approach for D2C brands
The tremendous growth of technology over the last few years has led to the democratization of consumer insights and trends. This was otherwise only available to the larger retailers in the market.
Technology enables D2C brands to directly measure consumer needs and expectations. Personal care brands rely on a variety of technologies and tools that reduce the cost of customer acquisition and retention.
AI-powered CRM technologies such as chatbots and automated conversational channels enable D2C brands to establish fast and relevant interactions with their customers, from understanding their needs to directing them to the relevant support team. Beauty and personal care brands are also investing in new age technologies such as augmented reality and virtual reality to give consumers a completely new and personalized online shopping experience.
With the help of advanced data analytics, beauty and personal care brands can predict and determine consumer buying patterns. This allows brands to recognize gaps and opportunities and optimize their marketing efforts to reach the right audience with the most relevant messages at the right time.
Whether it’s setting up small warehouses in specific areas or establishing simpler, leaner supply chains and operations, technology integration and AI-based insights have enabled D2C brands in the beauty and personal care segment to leverage data. You will be making led decisions.
The pandemic has made the environment conducive to D2C brands as internet penetration has increased and customers have shifted from brick-and-mortar stores to online sites. The D2C phenomenon not only helps customers make better choices, but also allows brands to reach out to relevant products. With further technological emergence, it will certainly be fascinating to watch his D2C journey beyond this country.
The above views are those of the author.
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