An Indian makeup influencer posts a makeup tutorial for a Christmas party look on Instagram for her 500k followers. During this video tutorial of 15 minutes, the influencer talks about all the products she uses including makeup brushes as well as hair products. She holds up product after product close to the camera so viewers can get a good look at each brand name. Because, after all, she isn’t merely sharing beauty tips. She’s also selling beauty products. Welcome to the digital world of beauty!

2020 was a year that nobody saw coming. The pandemic and the ensuing lockdown of lives have changed the consumer forever. Not only has it pushed the consumer to digital like never before but also shifted the thought process of self-care. When the entire world is suffering from a pandemic it’s vital to move towards feel-good and mood-boosting products. While self-care may be different for everyone, but the rise in sales of luxury goods like Diptyque candles at London’s Liberty store (up 536 percent according to a McKinsey Global Consumer Sentiment Survey conducted in May 2020) speaks volumes of what consumer terms as self-care!

The global beauty industry is currently valued at US$145.3 billion and India takes US$ 15 billion+ of that beauty pie. 

The Role Of Social Media And Digital Marketing That Boosted The Beauty Industry

With over 1.38 billion people sitting at home during the nation-wide lockdown, every brand forayed into digital. From creating websites from scratch to building up their social media network, the beauty industry was in overdrive to capture the minds of people whose average screen time spiked by a humongous 25% in the pandemic. 

The introduction of more shop-oriented features on social media platforms allowed the consumers to browse and make a purchase of a beauty product they saw on a post, directly from the platform itself. Thanks to features like Instagram Shopping and Pinterest's shoppable Pins, if consumers see an item they like, they can click on it to learn more and subsequently make a purchase. Social media is where the brand-consumer connection is at the forefront. Social media platforms have also been instrumental in bringing awareness to issues of diversity and inclusivity — including race, body positivity, sexuality and gender. L’Oreal India is one of the beauty giants that strives to market beauty for all, regardless of your gender or any other factors. It has worked on social media campaigns that help create awareness about these issues. 

The Advent and Growth Of Influencer Marketing In The Beauty Space

In the last few years, brands in the skincare and haircare world, along with direct-to-consumer beauty brands have started eschewing traditional advertising altogether, in favour of tapping into the power of influencer marketing and brand ambassadors. From when I started Filter Coffee Co. in 2015, to today in 2020, there has been a rapid transformation as influencer types thrived. Various categories of influencers like micro, nano-influencers and virtual (artificial intelligence) influencers have come up and brands can now tap into multiple audience segments through influencer marketing. 

Being pioneers in the luxury beauty and skincare segment, and worked with global brands like Loreal India, Forest Essentials, L'Occitane India, Estee Lauder - Clinique India and more, we have seen that beauty buyers are way ahead of other consumers as they question more and look for real recommendations. They watch and read online reviews, before purchasing, thus allowing the brands to boost this organic engagement through influencer partnerships. 

Trends That Shaped the Beauty Industry In 2020

Traditional Retailers forayed into Beauty – 2020 saw Zara opening its doors to its beauty section. Small yet quite comprehensive, this move saw a lot of big names enter the beauty space!

Increase in Transparency – Everyone wants to know what they are putting on to their skin and this is where transparency plays a pivotal role. Accessibility to ingredient information is one of the major trends that was spotted in 2020. 

Sustainable Beauty - The clean beauty movement continues to gain traction, as more shoppers seek out products free from toxins and other harmful ingredients. They want products to be sustainable and cruelty-free without giving away the luxe factor. Given India’s huge background and history of Ayurveda, luxurious Indian brands like Forest Essentials are creating a global footprint for themselves! 

First Time Online Shoppers – The pandemic also saw a surge in the number of first time online shoppers, due to the in-store restrictions. This will set a huge change in the shopping habits of beauty consumers. 

Going forward in 2021

In the coming year, there will be new and innovative ways coming up within the influencer marketing segment. Social media ads with features like AR, VR and filters have so much offer beyond standards ads, and a large area is still untapped. It will be interesting to see how it evolves.