Beauty products witness surge of 51.5% YoY in sales this Diwali: Report

Beauty products saw a surge of 51.5% year-on-year in sales in India this Diwali, as per report by Assiduus Global Inc.

The other categories that had high sales were lifestyle and electronics during the recent festive shopping season. Mobile phones, adaptors, and earpods were the top-selling products in the electronics category with brands like Redmi, OnePlus and Boat being at the top.

The report stated that 47% sales of beauty products were contributed bu consumers from the 18 to 24 years age group, followed by 21.27% from 35 to 44 years. When it comes to regional contribution, Kerala topped the list followed by Karnataka, and Maharashtra. Kerala displayed a 118% increase in orders compared to Karnataka on Flipkart, showcasing the potential for skincare brands across regional markets. This year, more people are spending time checking out beauty products compared to last year. There's been a 30.43% increase in the number of shoppers looking closely at product details.

While not in the top 3 categories, the platform witnessed a 86% surge in new shoppers for healthcare and nutrition products in 2023 compared to just 26% in 2022. This is a clear indication of the seismic shift being observed in the healthcare and nutrition segment in the country, with Indian users making more health conscious choices. There is greater awareness and demand for innovative products, with the willingness to spend more on products that can help consumers achieve health goals. The health supplement category which had witnessed a substantial 28% increase in cost per click in 2022, witnessed a 31.40% surge in 2023, underscoring the competition among brands vying for limited space within marketplaces.

Brands listed on Assiduus’ platform saw great discounts averaging up to 40%, further increasing the festive shopping fever as consumers are more likely to participate in shopping activities when presented with discounts, especially during festive seasons. Indian shoppers tend to adjust their shopping habits according to seasonal trends and discounted deals. There was a noticeable decline in interest towards exploring products on marketplaces, with a decrease of 30.26% in marketplace searches. There was also a 18.10% reduction in conversions after the sales event, indicating fewer people made purchases.

Somdutta Singh, Founder and CEO, Assiduus Global Inc., said, "India continues to be absolutely phenomenal when it comes to online shopping and increase in new shoppers. Embracing online shopping as the new norm, the Indian e-commerce sector is poised for remarkable expansion. Projections by Redseer anticipate a significant compound annual growth rate (CAGR) of 27%, propelling the industry to a staggering $163 billion valuation by 2026.  These forecasts closely align with the observed trends on our platform, reflecting the increasing preference for online shopping among Indians. We have witnessed a sharp surge in our sales across healthcare and nutrition products led by Gen Z and Millennials indicating that the digitally savvy generation is dominating the online shopping space in India. We have also seen an exponential rise in sales from Tier 2 and 3 cities in India. The evolving scenario of e-commerce in India, as revealed by these statistics, presents a landscape teeming with promise and expansion. The increased engagement of younger generations and the rising interest from smaller cities are pivotal indicators, showcasing the broadening acceptance and accessibility of online shopping across diverse demographics and geographies."

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