New Delhi, Jun 21 (KNN) In a significant shift in India's retail landscape, major e-commerce players like Flipkart and Amazon are aggressively expanding their footprint in the beauty and personal care (BPC) sector.

This strategic move aims to capture new customer bases in smaller cities and towns while introducing fresh brands to capitalise on the sector's rapid growth.

Flipkart, one of India's leading e-commerce platforms, has set ambitious targets for its BPC segment. Manjari Singhal, head of business for FMCG and general merchandise at Flipkart, revealed that the company aims to potentially double its gross merchandise value (GMV) in the beauty and personal care category over the next 4-5 years. 

This optimism is backed by impressive growth figures, with the BPC business already showing a 1.3 times increase compared to the previous year.

The e-commerce giant is not alone in recognising the potential of this market. French cosmetics behemoth L'Oréal projects that 100 million new customers in India will begin purchasing beauty products online within the next three to four years. 

Currently, one-fifth of L'Oréal's sales from brands like Maybelline, L'Oréal Paris, and Garnier are generated through online channels.

Industry experts are bullish about the sector's prospects. A recent HSBC global research report forecasts that India's BPC market, which has already quadrupled between 2006 and 2022, is set to expand fivefold over the next 15 years. This growth trajectory is expected to propel the sector's GMV from USD 19 billion in 2022 to a staggering USD 90 billion.

The report cites the growing influence of e-commerce and rising income levels as key drivers of this increased demand. While e-commerce currently accounts for only 17 per cent of the total BPC market, its share is projected to reach 45 per cent by 2037, indicating a significant shift in consumer purchasing habits.

The past decade has seen a surge in competition within India's BPC market, with an influx of beauty brands and retailers. 

More recently, corporate giants like Reliance Retail and the Tata Group have entered both offline and online beauty retail, further intensifying the competition.

As the battle for market share heats up, e-commerce platforms are employing innovative strategies to attract and retain customers. 

Flipkart, for instance, recently organised a major event involving beauty influencers on its platform, aiming to boost online sales of products ranging from serums to anti-wrinkle creams and body washes.

The focus on Tier-II and Tier-III markets is particularly noteworthy, as these regions represent a vast, untapped potential for growth. 

E-commerce companies are betting on increased adoption in these markets, coupled with innovation from direct-to-consumer brands and new product launches, to drive repeat purchases and sustain long-term growth.

As India's beauty and personal care market continues its upward trajectory, the e-commerce sector's role in shaping consumer behaviour and driving market growth cannot be overstated. 

With major players investing heavily in this space, the coming years promise to be transformative for India's beauty retail landscape.

(KNN Bureau)