E-commerce Growth Fuels Surge in Beauty and Grooming Brands in India
Team Finance Saathi
31/Jan/2025

What's covered under the Article:
- The online beauty and grooming market in India has seen rapid growth, with 3,500+ brands now primarily operating online.
- E-commerce offers consumers a broader selection and lower prices for beauty and grooming products, with discounts ranging from 10-30%.
- The growth rate for online grooming device sales is more than double that of offline retail, reaching 22% year-on-year.
India’s e-commerce sector continues to drive significant growth in the beauty and grooming products market. According to recent data, online platforms have enabled an explosion of new brands and offerings, especially in categories like hair stylers, straighteners, dryers, and shavers. The growth of online shopping has led to a dramatic rise in the number of brands entering the market, expanding the choices available to consumers, and making beauty and grooming products more accessible.
The Growth of Online Beauty and Grooming Products
Market research conducted by NielsenIQ reveals that the number of electronic grooming device brands available online in India increased from 399 in 2022 to 571 in 2024, significantly surpassing the 154 brands available in physical retail stores. This surge in online brands reflects the broader shift towards digital shopping that has permeated across various categories, including beauty and personal care.
A report by Redseer Strategy Consultants and Nykaa shows that over 96% of beauty and grooming brands are now primarily operating in the e-commerce sector. This rise in online-only brands has led to greater competition and innovation in the market, as these brands can reach a larger audience without the constraints of physical store space or geographical limitations. The result is an expanded selection of products at a variety of price points, allowing consumers to explore new brands and upgrade their grooming routines.
E-commerce vs. Offline Retail: The Advantage of Online Shopping
Sharang Pant, the head of commercial, tech, and durables at NielsenIQ India, noted that the e-commerce platforms provide a broader selection of beauty and grooming products than traditional brick-and-mortar stores. This variety of products has made it easier for consumers to discover new items and brands that align with their needs and preferences. Furthermore, the price advantage of online platforms cannot be overlooked, as products sold online are generally 10-30% cheaper compared to those found in offline stores.
This price difference is driven by several factors, including lower operational costs for online brands and the ability to scale operations and offer direct-to-consumer pricing models. This has contributed to the increasing preference for online shopping, as consumers not only benefit from a wider selection but also from more affordable options for high-quality grooming devices.
The Rapid Growth of Online Grooming Device Sales
The growth of the online beauty and grooming market is particularly evident in the sales of electronic grooming devices. According to NielsenIQ, the year-on-year growth rate for online grooming devices stands at a staggering 22%, which is more than double the growth rate of offline retail, which saw an increase of just 8.9%. This sharp contrast in growth rates highlights the shift in consumer behavior, as more and more people turn to online shopping for grooming products due to convenience, competitive pricing, and the variety of options available.
Consumers are also increasingly willing to invest in more advanced or premium grooming devices, as online platforms allow for easy comparison of features, reviews, and prices. Whether it's a new hair straightener, beard trimmer, or hair dryer, consumers are exploring grooming technology that they may not have found in traditional stores. This has led to increased sales and demand for electronic grooming devices, further boosting the market for beauty and personal care products.
Expanding Market and New Opportunities
The ongoing digital transformation in India’s beauty and grooming market shows no signs of slowing down. With the rise of e-commerce, consumers are no longer limited to purchasing beauty and grooming products from physical stores in their locality. Instead, they have access to a vast online marketplace filled with a growing number of brands that cater to different budgets, preferences, and needs.
This trend is not only changing consumer shopping habits but also creating new opportunities for both established and emerging brands. For businesses, it presents a chance to tap into a broader audience, reaching consumers across the country and even internationally. As e-commerce continues to break down barriers to entry, the beauty and grooming market is likely to see continued innovation, with brands offering new products and better user experiences to stand out in a crowded online space.
Conclusion
The growth of e-commerce in India has significantly transformed the beauty and grooming market, with a remarkable increase in the number of brands offering products online. With over 3,500 brands now part of the online ecosystem, consumers have access to a diverse range of grooming devices and beauty products that are more affordable and accessible than ever before. As the growth rate of online sales continues to outpace offline retail, businesses in the beauty and grooming sector have a unique opportunity to leverage the power of e-commerce to expand their reach and drive innovation.
The Upcoming IPOs in this week and coming weeks are Chamunda Electricals.
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