With Indian women increasingly leading a hectic lifestyle, skincare and beauty products have become an integral part of their grooming regimen. Fast commerce apps are now fast emerging as their go-to source for quick product fixes.
Quick commerce apps, once needed only for daily use items like groceries, showed a visible rise of frequent consumer spending on beauty products. These apps allow consumers to purchase and swiftly receive their purchases, underscoring their utility for convenience and rapid response. Quick commerce sites recorded an increase in growth and profits under this category, producing an estimated $100 million in monthly gross merchandise value, outperforming other categories, according to the Economic Times news report.
Consumers are turning to instant product delivery rather than walking into retail stores for their purchases, which may be triggered by available product information and shared customer reviews on sites. BPC purchases have increased across both mass and premium segments, with the focus on makeup, skincare, and everyday beauty essentials. In addition, there is a rising interest in high-end skincare and cosmetics on such e-commerce sites, as consumers have greater spending power, value their time, and are willing to pay for results-oriented formulations. To that effect, Redseer Strategy Consultants noted that quick commerce platforms displayed a 160% increase in beauty sales year-on-year in the last quarter, surpassing the 20% growth on traditional e-commerce platforms during the same period.
Global beauty companies are observing these consumer trends, and are starting to see quick commerce as a possible thriving channel to advance their customer reach across India, and abroad. Quick commerce is already playing a significant role in increasing the revenue for many brands including direct-to-consumer and well-known brands, who tapped into its online potential with a variety of offerings. For example, Honasa Consumer, the parent company of Mamaearth and The Derma Co, has disclosed that quick commerce accounted for about 10% of its overall revenue, marking it as its most profitable channel to reach consumers.
