Fulfillment challenges faced by the growing cosmetics industry

The cosmetics industry in India is headed for a major rise in sales. Nifty social media marketing, rising digitization, and the advent of e-commerce have been the contributing factors to this boom in sales. This growth in sales is no longer restricted to metro and mini-metro urban centers but is also equally powerful in rural areas. The evidence of this boom in rural areas can be seen in how almost every village in India now has a beauty salon: no longer a luxury only reserved for the wealthy townsfolk.

Even in the wake of the Covid-19 pandemic, as several businesses in the country and indeed around the world faced devastating financial losses, beauty products showed quite a lot of resilience despite restrictions and months of lockdown, and have made an impressive comeback in sales as lockdowns eased.

However, as extravagant as this rapid growth is, cosmetic and beauty brands are also faced with many vulnerabilities sensitive to their product delivery lifecycle across the supply chain. Quality control and supply chain management play a fundamental role to meet supply and demand, visibility into logistics and transportation however is a common major obstacle.?

Cosmetic companies that do not pursue innovative solutions in their supply chain to protect their products’ quality, to prevent spoilage, damage or loss, end up facing lower revenues globally and become less profitable than their competitors who ultimately capture more market share in such a dynamic fast-growing industry, let alone the satisfaction of end consumers. This provokes the need for change for cosmetic distributors and logistics operators providing services to this sector.?

Whether a cosmetics company large or small sells to the mass market, globally or domestically, specialty retail, or via e-commerce, taking transportation and logistics considerations into account is critical to easing any perpetual supply and demand challenges and supply chain vulnerabilities.

For the cosmetics industry, an efficient supply chain is crucial for having a competitive advantage and for managing the requirements of retailers correctly, while at the same time facing the many challenges inherent to the supply and demand. In addition, consumers also demand greater transparency and accountability from the brands they buy from. Because consumers expect high-quality raw materials, more natural, organic ingredients, brand owners owe it to their customers to provide transparency and guarantee of high-quality products. To give the right experience to the customers, companies must ensure the quality of their products which involves monitoring the temperature of sensitive products that are stored in a controlled environment throughout the lifecycle of the product until it reaches the end customer. However, for brands to meet these expectations, is not an easy task.?

The requirement for strong and reliable logistics support is evident. Delivery systems are extensively used in cosmetic products. The pace of this delivery is a game-changer. The cosmetics brands that are amateur but have the potential to grow lack these qualities as it becomes difficult for them to manage the fulfillment process internally. This is where warehousing & fulfillment service providers like Edgistify can play an important role. Edgistify is one of India’s most credible dark store operations & fulfillment networks that offers D2C brands, SME's, E-commerce companies a tech-enabled one-stop platform for multiple logistics requirements in a cost-effective manner. We have API integration with 75+ leading marketplaces. We offer integration with every single shipping partner. Edgistify also assures an 8-16% reduction in the logistics cost structure. We make quick-delivery advancements possible with our robust supply chain network.?

To know more about our services, visit us at www.edgistify.com