How beauty brands are shoring up their logistics in the wake of the COVID outbreak

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Market behaviour against beauty brands has shifted significantly in this pandemic phase, as it has in many other categories. So many stores closing, online shopping has become the trend. Several companies/brands have set up independent online shopping sites to bring their goods to customers’ doorsteps, in addition to e-commerce portals.

Consumers’ shopping lists are mostly dominated by household essentials, groceries, immune boosters, healthcare, and fitness items, but beauty and personal grooming products are still on the rise. As people were restricted to their homes and little socializing occurred during the early days of the pandemic epidemic in India last year, cosmetic products and other disposable spending saw a downward pattern. However, when workers were required to appear presentable due to work at home and video conferencing, self-care and personal hygiene were eventually restored.

The global cosmetics and personal care industry are projected to reach $725 billion by 2025, according to Traxcn, while the Indian beauty market is expected to reach $28 billion by 2025.

The first half of 2021 is looking grim, thanks to a catastrophic second round of COVID-19 infections. Although sentiments were strong until the middle of March when COVID-19 cases were decreasing and normalcy was returning to the region, the situation has deteriorated from mid-March onwards, especially in April and so far in May, with almost all states re-instituting strict COVID-19 laws, Curfews and lockdowns, as well as restricting people’s travel, have been implemented, except malls and convenience shops offering groceries and essentials.

Despite the current market dynamics, beauty companies remain optimistic and even optimistic that momentum will return to the industry. RSH Global recently forecasted a nearly 25%-30% increase in Q1 FY2022, relative to the expectation they set during the pre-COVID-19 timeframe of Q1 FY2021 when all was natural. As a consequence of our shutdown, we’ve been storing more goods at warehouses to make sure a gradual supply,” says the corporate. The positive trend seen in the first half of 2021 is projected to continue throughout the year, and we anticipate a much stronger year.” RSH Global Chairman Sunil Agarwal commented.

With the retail environment becoming more volatile, brands have started to focus their attention on the digital front.

“We’re now attempting to bring an omnichannel market, but the pandemic is expected to continue for a while too. Early on in the pandemic, there were few hiccups in the demand chain, but with brands and vendors running around the clock, things have been relatively smooth since then. Reduced reliance on a single provider and a more coherent solution have become crucial strategies for minimizing demand chain pressure, reducing any problems that occurred initially,” said Naina Ruhail, Co-founder, Vanity Wagon.

While demand for e-commerce services is growing, businesses are also experiencing supply issues; the need for logistics has also grown rapidly. In the last three years, India’s logistics sector has advanced significantly, and it now serves as the foundation for all e-commerce platforms.

“We have our in-house firm, which takes care of our end-to-end logistics. During the lockdown last year, returns and exchanges were a pain. Retailers have faced significant logistical challenges as a result of the pandemic, with supplies and exports being kept up for days. Making the commodity affordable to customers was a huge challenge,” The Beauty Co’s Founder and CEO, Suraj Vazirani, said.

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