The rapidly evolving e-commerce and retail sectors in India are presenting unprecedented opportunities for beauty brands, with Korean beauty emerging as a significant frontrunner in this burgeoning market.
During the “Rise of Korean Beauty in India” seminar, organized by KindLife in collaboration with Datum Intelligence, Satish Meena, co-founder of Datum, articulated that the brands demonstrating the most remarkable success typically focus on a limited array of established SKUs known for their quality. This strategic approach fosters customer loyalty and repeat business. Alternatively, some brands adopt a mass-market strategy, leveraging existing distribution networks.
Meena highlighted Zudio, a fast-fashion label, as a case study for effective expansion into beauty retail. “Their distribution is secure, customer traffic is robust, and they have established competitive pricing, allowing them to continually increase sales,” he noted.
Acceleration Through Quick Commerce
Quick commerce has emerged as a pivotal channel for burgeoning beauty brands. It expedites consumer purchasing decisions, as buyers are now inclined to receive products within mere minutes, contrasting sharply with the day-long waits associated with platforms like Amazon.
“This model facilitates a closer alignment between brands and customers,” Meena explained. “Some brands even leverage it to segment their service codes, tailoring their approaches to specific customer demographics.”
This surge in retail mechanisms is synchronously aligned with a significant upsurge in the Korean beauty segment within India.
Radhika Ghai, co-founder of KindLife, observed that the enthusiasm for Korean beauty transcends the metropolises. “We are witnessing remarkable interest from tier-2 and tier-3 towns,” she remarked, attributing this widespread fascination to the impact of social media and YouTube since KindLife’s inception following the Covid pandemic.
The Influence of K-Culture on Indian Consumption
Research presented at the event indicated a projection that the K-beauty market will skyrocket from $400 million in 2024 to $1.5 billion by 2030, signifying a remarkable compound annual growth rate of 25.9%. The buyer base is anticipated to more than double, increasing from 11.9 million to 27.2 million within that timeframe.
This growth mirrors broader transformations in India’s $45 billion beauty and personal care industry. The ascent of K-beauty is intricately linked to the proliferation of South Korean culture, encompassing music and television.
Netflix reported an astounding 370% surge in Korean drama viewership in India during 2020, while K-pop streams reached an impressive 6.2 billion in 2023, positioning India among the top five global markets. Additionally, imports of Korean instant noodles experienced a 162% increase in 2020, highlighting the extensive allure of Korean products.
More than half of Indian consumers express active engagement with K-beauty, with one-third claiming to have tried at least one product. Digital discovery, primarily driven by platforms like YouTube and Instagram, remains the primary avenue for exploration, whereas influencers and user reviews play a crucial role in influencing purchase decisions.
With expansive retail outreach, rapid delivery options, and an ever-strong cultural allure, K-beauty’s trajectory illustrates the evolving dynamics of India’s e-commerce-driven beauty renaissance.
Source link: Financialexpress.com.
