Rise of D2C Brands in the Beauty Industry- Is Omnichannel Strategy the Key?

Currently the fourth largest in the world and estimated to reach the mark of 30$ billion by 2027, India's Beauty and Personal Care industry is on the rise faster than ever before. This rise has been particularly influenced by India's digital revolution and post-covid adoption of omnichannel strategy across the D2C industry. With the convergence of online and offline channels, businesses in the beauty sector are redefining their approach to customer engagement and commerce.

With the rise of D2C beauty brands, it seems the omnichannel strategy is spearheading the growth of the beauty industry in India and transforming the future of retail. More and more D2C brands are combining online channels with physical stores to provide access, recall, and talk ability for customers.

Catering to Shifting Consumer Dynamics
The current era is marked by a shift in consumer demographics where the largest portion is represented by Millennials, who not only make up the biggest chunk of the global workforce but are also the largest consumer group with significant purchasing power. Currently, India’s 34% population comprises Millennials with a collective spending power of a whopping $330 billion. Millennials are a hyper-connected and tech-savvy generation whose buying journeys include multiple touchpoints, such as gathering reviews and information across online platforms, trying out the product in-store, and purchasing in-store or online. Omnichannel allows brands to have a presence at these offline and online touchpoints and curate holistic experiences based on the preferences and value systems of this generation.

Seamless Integration of Physical and Digital Spaces
India's beauty industry is defined by a consumer base with varying preferences for offline and online modes of purchasing. Omnichannel strategy is the next evolutionary step for D2C brands, allowing them to create a seamless blend between physical and digital spaces to offer a cohesive and immersive customer experience. Having a unified presence across these verticals allows brands to adapt to these preferences. Another key aspect of this integration is interactive in-store tools such as Augmented reality (AR), which allow consumers to virtually try on products before making a purchase, bridging the gap between online browsing and in-store trial. Often referred to as 'Phygital', these spaces are a pivotal key to mastering the art of omnichannel strategy.

Enhancing Customer Support Experience in Real-Time
D2C brands are adopting the omnichannel strategy not only to sell, but to create a connected customer support journey, that starts with real-time customer assistance through tools such as chatbots and continues through servicing, resolution, feedback, and more. This synergetic approach curates hassle-free conflict resolution and consistent brand experience, fostering a complete and connected customer relationship.

Precision Marketing Via Data-Driven Personalization
The omnichannel strategy can also leverage data analytics to provide personalized recommendations, enhancing the overall consumer experience. By tracking consumer preferences and behavior, beauty brands can tailor their offerings, creating a more bespoke shopping journey. Through a cohesive approach that spans online and offline touchpoints, brands can gather valuable data on customer behavior, preferences, and interactions. This not only enhances customer satisfaction but also builds long-term loyalty.

Traction from Regional Pockets
Omnichannel strategies have democratized beauty by reaching beyond urban landscapes. With the integration of e-commerce, rural consumers now have access to a diverse range of beauty products. This inclusivity has not only expanded market reach but has also fostered economic growth in the often-overlooked landscapes of tier 2 and 3 cities. This approach resonates particularly well in regional pockets, where the convergence of online and offline channels bridges the geographical gap, offering consumers a diverse range of beauty solutions.

The omnichannel strategy has emerged as a transformative force, reshaping the contours of India's beauty industry. By embracing the digital landscape, seamlessly integrating physical and online spaces, and harnessing the power of data-driven personalization, beauty brands are not just selling products but curating holistic experiences. This evolution is not only propelling growth but is also democratizing beauty, making it more accessible and diverse than ever before.

The author is the Chief Business Officer, Honasa Consumer Limited