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The Boom in Indian Skincare and Organic Industry - How has Digitization Helped this Sector to Grow

By Upma Kapoor, Founder, Teal & Terra

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Upma Kapoor, Founder, Teal & Terra

Upma Kapoor is the Founder of Teal & Terra, organic beauty and healthcare brand designed to provide natural and

healthy skin and hair care products. Prior to this, she was the Founder of the Literati. Upma established Teal & Terra in 2017. She has an MBA degree in Finance from ICFAI University.

There is no denying that technology has now pervaded every aspect of our lives. The Indian skincare and organic industry too has been part of this paradigm shift, with digitization becoming the tool of choice for startups and established players in the Indian skincare and organic industry. Given that this industry is driven by the consumption demands of an inspirational, young, media and technology savvy and environmentally conscious population in India, digitization is certainly the future of this growing industry.

As per the research report, the Indian skin care market is poised to reach USD 2.7 billion by 2023 and a large part of this business will come from the digital end of the sector. With players in this industry taking to digitization like fish in water, the prospects for growth appear favorable. Alongside exclusive e-commerce platforms for skincare and organic brands, brick and mortar stores are now making the most of digitization to expand their client base and reach a much larger audience.

"It is worth exploring how digitization is driving the growth of the Indian skincare and organic industry by looking at some existing and upcoming digital trends"

Given this scenario, it is worth exploring how digitization is driving the growth of the Indian skincare and organic industry by looking at some existing and upcoming digital trends.

The Force Awakens: Digitization in the Skincare Industry
Globally, the skincare and organic industry thrives on innovation and trends change at the drop of a hat. However, it must be understood that this innovation in contemporary times is not just about new products but also about giving consumers new experiences that go beyond the product's usage. More and more skincare and organic brands in India are now choosing to take the digital route to gain direct access to consumers who are hooked onto their cell phones or laptops for most part of the day. Attracting and retaining customers with innovative marketing strategies that are primarily run on social media has become the order of the day for any brand which seeks to carve a niche of its own in the segment. This is also preferred as social media marketing makes it much easier to engage with consumers, not just to know about their preferences but also to drop new products.

With digitization at the forefront, customer engagement has received a massive boost. From engaging with consumers directly so they can suggest and start trending beauty hacks to working with influencers to publicize their new launches, skincare companies are doing all they can to keep at the top of the Fast Moving Consumer Goods (FMCG) industry.

 Let's look at some of the digital trends which are driving the sector in India:

Internet Retailing: Online shopping has changed the way the skincare and organic industry in India reached and expanded its client base. Almost every skincare and  organic brands in India now has an e-commerce platform, either of their own or a partner, through which they are making their products available to consumers anywhere and everywhere in the country. Some startups and even established skincare and organic brands are in fact selling their products exclusively through e-tailing platforms.

Apps for Everything: The easiest way to engage with their desired audience base? A mobile application. Every skincare and organic brands in India looking to establish itself in the Indian market is developing an app that puts it in direct reach of consumers. From basic e-commerce apps to more advanced interactive apps that offer personalized experiences to buyers, brands are looking to give their consumers a unique and seamless shopping and product use experience through exclusive apps.

Networking: It needs no telling that perhaps the biggest benefit of digitization for the skincare and organic industry in India has been networking. Skincare and organic brands now have access to a much wider base of clients thanks to the proliferation of social media. This has also enabled brands to interact better with their followers who eventually are sought to be converted to clients. With opportunities for instant replies and engagement with potential and existing consumers, social media networking has given the Indian skincare and organic industry a massive boost.

Improved Customer Service: With digitization in the skincare and organic industry, brands are becoming much more prompt at delivering customer service. Technology has eased the process of receiving reviews, feedback, and grievances from customers with everything now going online. This  has enabled brands to better manage and address customer queries while also ensuring greater satisfaction among clients all for a better social brand image.

Personalization and Customization: The availability of virtual reality apps has also revolutionized the Indian skincare and organic industry with a view to personalization and customization. There are now available a host  of virtual reality apps that allow the consumer to 'try-on' the right cosmetics for their skin type or condition in realtime. These apps, which are being used both instore as well as outside, are personalizing the entire experience for consumers, driving sales upwards to a significant extent.

The Road Ahead
Clearly, digitization has had a massive impact on the Indian skincare and organic industry. It has transformed the way business is conducted as well as the reach to the client base, giving a boost to sales. However, there remains immense scope for innovation in the future which will most certainly change the face and reach of the industry.

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