FOLLOW ME. Influencers are the new-age marketers of beauty products | Photo Credit: triloks

India’s beauty and personal care (BPC) market, currently valued at nearly $31 billion, is entering an inflection phase. The category enjoys about 10 per cent CAGR, but online penetration remains at about 20 per cent. The bigger shift, however, is in how beauty is discovered, trusted and purchased.

China and Korea offer a preview of how India’s beauty ecosystem may evolve over the next decade. Chinese platforms such as Douyin, Xiaohongshu and Taobao Live transformed beauty consumption through influencers, who were not merely promoters but also “skincare educators” — teaching beauty routines, ingredient science and product efficacy in real time.

Similarly, Korea’s beauty ecosystem scaled up globally through influencers and digital media.

India is entering a similar phase, where consumers increasingly search for ingredients, routines, efficacy and recommendations rather than buying brands blindly. Discovery is becoming the new storefront.

Tier-2 and tier-3 cities hold a huge opportunity, much like in China, which witnessed a sharp acceleration in beauty adoption once lower-tier cities gained access to logistics, digital content and creator-led trust ecosystems.

Platform-loyal

Globally, consumers today are increasingly more platform-loyal than brand-loyal. Industry estimates suggest 90-day brand retention in beauty currently sits at 25-30 per cent, way below global benchmarks of 40-60 per cent.

In China, beauty commerce operates through a multi-platform structure: Tmall and JD drive scale commerce, Douyin and Kuaishou drive impulse and livestream commerce, while Xiaohongshu dominates discovery, reviews and beauty education. In India, platforms such as Nykaa and Tira are becoming discovery engines and trust ecosystems rather than just marketplaces.

Speciality beauty

Specialised beauty platforms remain relevant globally, despite the rise of horizontal e-commerce and quick commerce. Speciality beauty retail retains nearly 20 per cent market share.

In South Korea, one of the world’s most digitally penetrated beauty markets, CJ Olive Young remains dominant through curated discovery, brand relationships, authenticity and experiential retail. Consumers visit not merely to buy products but also discover trends, routines and new launches. Even Sephora struggled to scale up in Korea in the face of Olive Young’s embedded ecosystem.

Similarly, in the US, Ulta Beauty and Sephora remain highly relevant despite the rise of Amazon, as trust, curation and experience continue to matter in the beauty segment.

Trust and authenticity

Beauty consumers remain sensitive to counterfeit products, expiry concerns, ingredient authenticity and product handling standards, especially within skincare, derma-beauty and fragrances.

For platforms such as Nykaa and Tira, beyond discounts or ultra-fast delivery, long-term differentiation may depend on becoming trusted ecosystems built around authenticity, curation and premium consumer experience.

Mass vs premium

Quick commerce is rapidly reshaping beauty consumption behaviour, particularly in replenishment-led mass-market categories such as grooming, body wash, skincare and personal care. Convenience and delivery speed give them an edge.

However, platforms such as Nykaa, which cater to relatively premium consumers, enjoy 2x–3x order value and continue to maintain strong market positioning.

Structural layer

AI-driven commerce may further reshape how beauty products are discovered, recommended and purchased. AI systems could evolve into personalised beauty advisors and recommendation engines, therefore beauty brands may need to optimise for AI discoverability. In the future, brand trust, ingredient transparency, SKU architecture and efficacy could become even more critical because AI systems will likely reward clarity, consistency and consumer trust.

(Karan Taurani is EVP of Elara Capital; Arti Bhatia was a Co-founder of Dr Sheth Skincare)

Published on May 18, 2026