As lockdown eases, beauty and cosmetics segment on recovery mode

Meenakshi Verma Ambwani New Delhi | Updated on July 19, 2020

Demand for beauty and personal products will grow from now on, say players   -  Getty Images


The beauty and cosmetics segment is now on a recovery mode, post the disruptions caused by the pandemic.

According to Nielsen, with the majority of people confined to their houses, cosmetics and beauty segments were “de-prioritised” during the lockdown period and categories such as deodorants, hair colour and skincare witnessed significant slowdown in offtake. However, these categories saw a sharp bounce back in June, with the easing of lockdown.

Bouncing back

Kavita Angre, Director, Consumer & Market Insights & Media, L’Oréal India, said consumers’ strong appetite for beauty products remains intact. “We have always maintained that what we are experiencing is more of a supply side crisis than a demand crisis. We anticipate, consumers will come back to the essential beauty categories as the economy opens up. In fact 80 per cent of consumers surveyed by L’Oréal India said they will continue to colour their hair despite reduced out-of-home occasions,” she added.

Prasun Basu, President-South Asia Zone, Nielsen Global Connect, said consumers are getting used to the new normal and want to use their beauty products as they are fed up with the restricted lifestyle. In addition, sales were aided by trade channels opening up in June leading to more stores remaining open for longer hours. Basu said both these factors on the supply and demand side have contributed to the sharp recovery in these categories.

Gaining momentum

Jayant Khosla, Managing Director, VLCC Healthcare Ltd, said facial kits and sunscreen range, besides hand sanitisers and hand washes, have been the lead sellers for the company in the past few weeks. “As lockdown rules gradually eased across the country from June onwards, there has been a corresponding uptick in the sale of our range of personal care products. There has been a gain in momentum in July though pre-Covid numbers are still to be crossed. We are expecting a reasonable growth in numbers this quarter. It is only going to improve from here on,” he added.

Besides opening up of trade channels, e-commerce channel has also been a key sales driver for beauty and cosmetic products.

Direct selling company Amway India said its beauty portfolio, under brands Attitude and Artistry, has shown revival. Ajay Khanna, CMO, Amway India, said, “We have witnessed a surge in the demand for products in our beauty and personal care categories in June. In the initial lockdown phase, consumer purchases were skewed more towards essential items, but now we are expecting demand in other categories, including beauty & personal care, and we expect the demand to gain further momentum in the coming months and are looking to introduce new products.”

Published on July 19, 2020

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