Before we were hit by the Coronavirus pandemic, the beauty business in India was booming. Over the last two years, the beauty industry not only continued to thrive, but the demand grew. Indians were spending much more on beauty than they did before. According to estimates, this was expected to double within the next 5 years. The beauty industry in India was growing at 18.6% in pre-Covid times, higher than the international CAGR of 15%
However, now there is a setback in figures due to Covid-19 and the lockdown.
Earlier, the beauty industry was among the few industries that survived recessionary trends and proved to be resilient. But, lockdown and Covid-19 have certainly impacted the beauty industry negatively. The negative effects are more pronounced where the beauty salon business is concerned. According to reports, the Indian beauty salon industry was estimated to be around Rs.10,000 crores. It is also estimated that the salon and spa business together account for 31% of the total size of the beauty and wellness market. Due to the lockdown, beauty salons were closed and have only just opened. The industry made a representation to the Ministry of Home Affairs to permit the reopening of salons stating that the jobs of nearly one crore professionals, two-thirds of which are women, were at stake.
Where retail of beauty products are concerned, online trends have picked up, but the negative impact of the pandemic has been felt in the retail of high-end skin and hair products, make-up items, and fragrances. It seems that globally, for prestige brands, there was a 55% percent decline in cosmetic sales. The changes are also reflected in the fact that supply chains of several make-up items were disrupted. Lipstick sales are showing a downward trend. With half the face covered by a mask, the use of lipstick and even foundations has decreased. Consumers are also spending less on make-up and beauty products, due to anxiety over job losses and salary cuts. The export of beauty products was at a standstill. However, we all know that the demand for beauty products and make-up is bound to pick up. A transparent mask is said to be coming soon, which would make lipstick visible and thus pick up lipstick sales.
Another aspect that has seen a surge in growth in e-commerce and the online beauty business, as compared to brick and mortar retail shops. Globally, online sales, post-Covid, are said to be twice as much as the pre-Covid sales. Experts feel that there should be an increase of 20% to 30% in e-commerce sales. During the lockdown, we kept in touch with customers through content marketing, on our website, on social media, and our online regular columns.
The beauty salon business has started in a controlled environment, with rigid protocols. New methods of working and interacting with customers have been put in place. In salon treatments, touch is inevitable, for treatments like facials, massage, threading, waxing, and so on. Therefore, we knew that business would have to re-open in a safe and very controlled environment to instill confidence in customers. Now salons are open and following strict protocols. The business is picking up slowly, as customers are still wary of going to salons. The footfalls are down by 40% to 50%, as few customers are being allowed at a time, to maintain social distancing. Costs are higher and salons will have to think of means to recover costs. Services will have to be priced higher than before.
Now hygiene is paramount in beauty salons. The premises are being fumigated and sanitized two or three times in the day. Methods are being strictly followed, like washing hands and the use of hand sanitizers before and after all services. The beauty therapists, hairstylists, and all salon staff are wearing PPE kits, masks, shields, and gloves. Disposable items are used, like cotton wool and tissues, instead of towels. Instruments and tools are being sterilized. We were already following a clinical system, where we use disposable items and sterilize instruments and tools. A system of appointments for treatments and the time is being observed strictly so that social distancing is maintained and there is no crowding due to people awaiting their turn. Temperature screening is being done. Customers have to wear masks, use hand sanitizers, and carry the Aarogya Setu App on their phones so that their safety status can be confirmed.
Beauty brands have responded quite positively by predicting future demand for products and have started paying more attention to the manufacture of hand sanitizers, hand washes, and related products. For instance, we have launched a new Germicidal range of herbal products, from hand sanitizers and hand washes, to hand creams, gadget sprays, surface sprays, floor and toilet cleaners, and so on. Consumers also prefer products that are reputed to be organic, ethical, and hygienic. In fact, during the pandemic, our focus was on our Skin and Hair Care Kits and different facial kits, which are ideal for beauty care at home, because they come with step-by-step procedures.
The beauty salon industry has many women employees, who are trained and skilled. Now, with salons open, salon jobs will not take a hit and salon revenues should also pick up slowly. The beauty industry has proved to be resilient in the past and will do so again. Beauty care will never go out of fashion.
The writer is a well-known beauty expert.