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Friday, October 30, 2020

Brands are focusing on skincare as there are fewer takers for cosmetics

During this pandemic, cosmetics and make-up are the segments which are facing a downturn as consumers see no occasion or inclination to spend on them. Colorbar Cosmetics, Nykaa and L’Oréal India are, therefore, looking at other ways to stay relevant. Colorbar Cosmetics has introduced a new range of skincare products and has pushed back the launch of its colour cosmetics products. Nykaa has extended its skincare range by launching products under its private labels Nykaa Beauty and Nykaa Naturals. Beauty and wellness brands are launching clean beauty products to tap the growing consumer consciousness towards hygiene.

According to experts, in India, the beauty and wellness market is valued at Rs 80,000 crore, of which cosmetics commands a 10-15% share. As per Deloitte India report, the demand for in-home skincare is expected to increase, amid the downturn for offline beauty stores & salons due to Covid-19. The report also predicts an increase in the demand for home make-up, mask make-up and contrast make-up categories.

ColorbarCare of  Colorbar Cosmetics introduced a daily-essentials range products which includes body lotion, body mist, body wash, hand cream, hand hygiene gels and handwash. Samir Modi, Founder & MD, Colorbar Cosmetics says a new order is emerging. “We consciously preponed our skincare product launches while postponing colour cosmetics. All our efforts are also directly linked with the fact that the skincare market is approximately five-times the size of the make-up market now.”

Colorbar’s skincare range currently contributes 10% to its overall revenue; the company expects this to increase rapidly going ahead.

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In the meanwhile, Nykaa Beauty has introduced body yogurts under its Wanderlust range, and Nykaa Naturals has added three variants — anti-pollution, superfoods and radiant beauty to its skin potions facial oil category.

“Going ahead, we will continue mapping customer demands and establishing our connection with them through our digital marketing initiatives. We are also in the midst of launching more home and travel care essential products at accessible prices in the coming weeks,” says Reena Chhabra, CEO, Nykaa Brands.

These companies are tying up with influencers on social media to promote the newly launched products. Nykaa has also been offering discounts to customers on its private label products and Colorbar is conducting online training and DIY classes through its academy trainers for the newly launched products.

Beauty and wellness brands are adopting this strategy only for the short term, and may go back to focussing on their core offerings, as the crisis subsides, believes industry experts.

“Wherever there is a possibility to connect with the consumer, companies are re-evaluating their portfolios, taking tactical decisions and launching products,” says Ankur Bisen, senior vice president, retail and consumer products, Technopak. “However, these companies will not change their DNA,” he adds.

Pinakiranjan Mishra, partner and national leader, consumer products and retail, EY India, concurs. He says it is only a matter of time before colour cosmetics make a comeback.

As touch and feel are important factors in this business, and recovery is unlikely until consumers start stepping out, the beauty and wellness market is expected to remain impacted in the long term.

Till then, Abheek Singhi, Senior Partner, BCG says that this strategy works well for brands. “Since most players operating in the segment have significant overlaps between skincare and cosmetics ranges, it makes sense for them to focus on one, while the other takes a beating.”

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