Sales of beauty and personal care products through internet retailing are projected to grow further in India over the next five years.

Euromonitor Digest, the online publication of the Export Management Bureau of the Department of Trade and Industry (DTI), noted that domestic and international manufacturers, online grocery stores, e-commerce players, as well as online beauty specialist stores, are using such channel to provide beauty and personal care products.

“This is allowing penetration of beauty and personal care products in far-flung rural areas as well, which earlier had a lot of unmet potential,” it said.

The report pointed out that many new domestic and international players thus are expected to continue leveraging the distribution channel and capitalize on the market opportunity, as they do not have to invest in physical outlets.

Likewise, consumers are forecast to leverage such channel as they gain access to year-round discounts, online consumer reviews, home delivery options and the like, and thus further create demand, it added.

Following the implementation of the goods and services tax (GST) during the second half of 2017, India’s beauty and personal care was on the path to recovery last year as business continued to resume manufacturing and supply of products.

Bath and shower and hair care remained the largest categories in 2018 while fragrances, depilatories, baby and child-specific products, and color cosmetics, witnessed the most dynamic growth during the same year.

Across all categories, major focus for companies was on expanding their online presence, deepening product penetration, leveraging innovative technology, adding value, and increasing consumer connection through social media initiatives.

“With changing consumer preferences towards ethical living and holistic wellbeing, consumers are demanding more transparency and experiences, which provides opportunities for companies in the future,” the report further said.