Beauty and personal care companies are betting on the upcoming festival season with expectations of garnering strong double digit growth. This comes after two years marred by the pandemic where consumer mobility was hindered impacting the segment’s overall growth even as brands saw acceleration of online buying.
A senior industry executive said that while there had been acceleration in adoption of e-commerce channel for buying beauty products during the past two years of the pandemic, categories such as make-up witnessed challenges as consumers were not stepping out as much. The cosmetics and make-up category is now back to the growth trajectory, the executive added.
“We expect this festive season to be a record season for beauty and personal care with significantly higher sales than any previous year,” said Sukhleen Aneja, CEO, Beauty & FMCG Brands, The Good Glamm Group
Expect strong growth
Rahul Dash, Co-Founder and COO, Purplle too said that the company expects to see strong growth across skin-care, make-up, hair-care and new emerging beauty categories as after a gap of two years there will be an uninterrupted festive period extending into the wedding seasons.
Vineeta Singh, Co-Founder and CEO, SUGAR Cosmetics in an earlier conversation told b usinessline, “ The peak season, especially for colour cosmetics has now started. The consumer sentiment is expected to be very positive over the next six months. During the festival season, there is very high demand for categories such as colour cosmetics and we are gearing up for a strong growth .“ She added that the omni-channel D2C brand has largely been absorbing the inflationary costs and has revised prices of only certain SKUs.
As per some industry estimates, the personal care and beauty segment garners nearly 50-60 per cent of the annual revenues in the second half of the fiscal year, thanks to the festival season and winter season.
“With some cooling-off visible in terms of raw material prices and the positive sentiment around the festival season, we expect to see strong traction for even higher priced and larger SKUs. The festival season contributes nearly 56 per cent to our total annual revenues. We are targeting over 30 per cent growth this festival season compared to last year,” said Sunil Agarwal, Chairman, RSH Global.
Nitin Passi, Chairman and Managing Director, Lotus Herbals said the company is anticipating double-digit growth during the festival season.
The personal care segment has witnessed strong traction post the pandemic. “The onset of the festival and celebratory season in India should boost demand and we are anticipating double-digit growth during the next two months. Big ticket gifting purchases, including demand in the B2B segment, should also see a significant hike as the pandemic scare has ebbed to a large extent. Physical retail is also back with a bang,” he added.