Beauty in the global shifting landscape- Insights from capstone research by Cosmetics and Fragrance Marketing & Management (CFMM)

Over the Eid holidays, I spent much time reading the industry news and attending webinars on the beauty sector, and I stumbled upon a white paper, wherein the capstone research findings were shared on the beauty sector regarding the shifting economics landscape.

My newsletter this week highlights a few of my take-outs from the study.

I have always believed the next beauty unicorn will emerge from India.

I had earlier penned an article in this regard, read here.

India as a New Global Power

India was identified as a new global world power, with significant opportunities for investment, a largely younger generation, and strong economic prospects for increased spending on discretionary goods.?

The study cited the?growth of the?Silver Spenders?(those over 60 years with concentrated spending power) and the big leaps made by artificial intelligence since 2022.?

Citing India as an emerging player, the students analyzed the importance of beauty rooted in traditional culture, supply chain growth, and Indian brand ambassadors.

“India is a new epic player, due to its economy, infrastructure, and culture,” they noted, citing 6.1% growth anticipated by 2027; 65% of people over 65 with increased disposable income; and an $88 billion yoga industry.

The study spoke about a?framework, called EPIC, to evaluate the country and related cultural and socio-economic factors that make it a strategic investment. (Personally, I am in love with this framework as it makes the macro economic so simplified.)

? E – Economic opportunities as India’s GDP growth last year was 7%, and projected to be the third largest economy by 2030.

? P – Population growth is a driving factor, as India surpassed China as the most populous country in the world with 1.42 billion people.

? I – Infrastructure, physical and digital, as India’s investment in transportation and smart cities is significant, as is the rise of digital infrastructure, with 90% of the population having internet access by 2030.

? C – Cultural growth pillars, including yoga, Ayurveda, Bollywood, weddings, and India’s traditional culture of beauty, represent continuing opportunity.

Ayurveda is going global, read here.

The Silver Spender and The Growing Aging Population

The?study pointed out the segment which needs to be focused on by brands. Yes, the age group of 60+

Hence,?growth of wellness and beauty?is forecasted, noting that the Indian beauty market is valued at $14 billion.

So too, does the 60+ age group, which by 2030, will encompass approximately 50% of the world’s population.?

They created a LAB approach model, i.e., L=Listen; A=Adapt, and B=Broaden, to enable brands to address areas of potential growth.

“Brands must engage with silver spenders,”?

Hence the brands catering to?the self-care market,?targeting silver spenders shall thrive. LVMH is leading the game on this front.

Perceptions don’t rule the world.

Too often, silver spenders are portrayed in medical or clinical scenarios that do not reflect their active lives.

But there is a brighter side too of silver spenders.?

They have disposable income to spend on personal experiences which they have been avoiding since their youth due to family focus and priorities.

Hence sectors like beauty grooming at your door, skincare specialists on a call, and video consultation would see a rise.

System Optimization and Marketing in an AI Landscape

In coming times, we may see the rise of?Algorithm-driven platforms, like Spotify, with its music recommendations based on user personalization, and Netflix, among others, changing consumer-brand interaction.?

Recommender System Optimization (RSO) enables brands to align with an algorithm to implement a recommender system and capture consumer interest.

Skincare tools integrated with AI would be able to track skin tone, and skin issues and recommend the brands for either precaution, treatment, or maintenance regimes.

If you are a business owner operating in the beauty/fragrance genre & want to grow his/her business?& need a retail expert to help you realize your vision?then feel free to write to me at [email protected].

I have co-founded a retail accelerator for beauty brands called Adhara Retail which is a one-stop retail accelerator for testing brands in retail, Pop-ups & provides expert consulting in Retail leasing, staff training & retail ops, and franchising to scale your brand.