India's e-commerce sector is growing strongly, with beauty and personal care products performing well

According to a report jointly released by Unicommerce and Wazir Advisors , India 's e-commerce sales grew 69.4% in fiscal year 2022 , compared with 44% in fiscal year 2021. The beauty and personal care category was the main driver of e-commerce sales growth , with a year-on-year growth of 143%.

The report said: "In the past two years, many digital brands have emerged in the beauty and personal care field, which has caused some impact on traditional brands . "

Meanwhile, India’s total e-commerce transaction volume (GMV) grew by 73.6%, outpacing the growth in order volume. This suggests that consumers are more confident in spending on non-essential items in FY2022 than in FY2021 , when GMV grew by only 37.2% while order volume grew by 44%.

The report shows that following the beauty and personal care category are footwear, eyewear, fashion and accessories. For many years, footwear, fashion and accessories have contributed the most e-commerce sales .

The report said that the fast-moving consumer goods industry and agriculture, as well as health and pharmaceuticals, which were unknown before the outbreak but have grown significantly in the past two years , have also seen a 61.7% increase in orders for fast-moving consumer goods and agriculture, while orders for the health and pharmaceuticals industry have increased by 62.4%.

The epidemic has accelerated consumers' shift to online shopping, and many traditional brands have also begun to expand online.

According to the report, traditional brands turning to online are mostly concentrated in the fast-moving consumer goods sector. Brands such as HUL, Emami, ITC and Marico have opened online stores one after another. These industry leaders have successfully catered to the online shopping habits of the new generation of consumers.

Brands in other categories are also committed to developing online channels. In fiscal 2022, sales on the official websites of various brands increased by 80% year-on-year, while sales on online platforms such as Amazon increased by nearly 59%.

The report pointed out that all major companies are aware of the importance of establishing brand websites, because this allows them to directly reach consumers. In addition, most brands that focus on consumer shopping experience have built their own brand websites.

Finally, the report concluded that a key reason behind the rise of direct-to-consumer (D2C) brands is the continuous improvement of supply chain and logistics platforms that ensure hassle-free after-sales service.

India

E-commerce

Beauty