Amazon has seen 40% YoY growth in business from clean beauty brands within the premium beauty segment: Zeba Khan

In an exclusive interaction with Adgully, Zeba Khan, Director - fashion and beauty, Amazon India, shares her insights on the evolving consumer preferences in the beauty sector across metros, Tier 1, and Tier 2 cities. She discusses Amazon’s innovative use of AI and machine learning to enhance consumer behaviour analysis, the strategic launch of dedicated storefronts like the ‘Global Beauty Store’ and ‘Derma Store’, and the growing demand for clean beauty products. Khan also delves into the penetration of international premium beauty brands in India, the influence of Gen Z customers on the beauty market, and the rising trends in men’s skincare and makeup products. Through this comprehensive conversation, Khan highlights Amazon Beauty’s commitment to meeting the diverse and dynamic needs of its customers.

How have consumer preferences in beauty products evolved across the metros, Tier 1 and Tier 2 cities?

Consumer preferences in beauty products are influenced by factors such as exposure to global trends, cultural influences, economic freedom and a lot more. However, with the industry becoming more inclusive day by day, we see stereotypes being broken all around us. Beauty standards are being redefined, giving consumers the refreshing opportunity to just be themselves. Aided by the democratization of beauty via social media and increased connectivity via platforms like Amazon, consumer preferences now are as dynamic as they can get – be it setting trends with new looks, always being on top of new launches, or guilt-free self-indulgence! This is proven by the fact that at Amazon Beauty, we’ve observed a significant trend towards premiumization across metros, Tier 1, and Tier 2 cities in the past one year. This year, we attracted as many new customers from Tier 2 and 3 markets as from metro and Tier 1 cities, with the number of transacting customers equally split between these regions. Nationwide, popular products include professional and luxury skin and hair care, premium fragrances, face-shaping makeup, bold lip colours, and gift sets.

How is Amazon utilizing AI and machine learning to enhance consumer behaviour analysis in the beauty and personal care segment?

At Amazon Beauty, we are committed to innovation and are continuously investing in cutting-edge technologies to elevate the shopping experience for our customers. This includes leveraging artificial intelligence and machine learning to improve product recommendations and virtual try-ons where customers can experiment with color cosmetics like lipstick, eye shadow, and hair color to find the perfect shade for themselves. Our focus is to meet the customer with relevant information designed specifically for each interaction point.

We realize that the customers’ needs are constantly evolving. And shopping for skincare online can be challenging, with customers often seeking personalized advice before purchasing. This has led us to introduce the all-new SkinCare Advisor feature to provide tailored product recommendations based on each customer’s unique skin concerns and preferences. It is an innovative tool that is seamlessly integrated into search where customers can take a short survey about their skin type and goals. The tool then surfaces a personalized set of product recommendations spanning the full routinefrom cleansers to treatments, moisturizers, sunscreens and eye care. This allows customers to conveniently discover products perfectly suited to their unique skincare needs through Amazon’s intuitive guided experience.

And not only that, with Amazon being such a strong search-based platform driven by quality and diverse selection, we are constantly working towards enhancing navigation through our search bar via the addition of new filters that help with product discoverability. To simplify the experience for customers searching for specific brands or product categories, we are upgrading how these products appear on the search and category pages and levelling up how our category pages look. We are committed and well-known for offering the best prices to customers and as we continue to do so, we are also working towards improving the discoverability of offers on product pages to help customers make informed choices.

What was the strategy behind launching dedicated storefronts like the ‘Global Beauty Store’ and ‘Derma Store’ on Amazon?

At Amazon Beauty, we are constantly elevating the online beauty shopping experience for our customers by providing them with a curated selection of top brands, trending skincare ingredients, new product launches, and unique finds, all at great value with the convenience of Amazon’s fast delivery and trusted shopping experience. We deliver to India’s 100% serviceable pincodes, with more than 97% pin codes now being able to receive their deliveries within 2 days of placing an order. Amazon Prime now delivers more than 10 lakh items same-day and more than 40 lakh items next-day.

In June last year, we launched the Global Beauty Store, an exciting new storefront that brought together a curated selection of 60+ international beauty brands with over 5,000 products. Some of the popular names include Anastasia Beverly Hills, NUDESTIX, Beauty of Joseon, AXIS-Y, FIRST AID BEAUTY, Rom&nd, MAX FACTOR and more. This launch was indeed a significant milestone for Amazon Beauty, marking a pivotal moment in the category’s growth and evolution. It enabled us to meet the changing demands of our customers who seek niche international beauty brands that can conveniently reach their doorstep at fast speed, ultimately transforming their beauty shopping experience. The store received nearly 2.5X more visits than our main page. It served as a valuable lesson, highlighting the curiosity and eagerness of customers to explore international brands. Over time, the store’s contribution to our business has consistently grown.

With Derma Store, the strategy was to provide specialized one-stop skincare solutions. Skincare is our largest category, so launching the Derma Store was a natural next step. The Derma Store curates a wide assortment of products formulated with trending skincare ingredients, sourced from both trusted brands and exciting new labels. Offering everything from daily moisturizers and cleansers to targeted serums and sunscreens, the store enables customers to build complete skincare routines at great value. Featuring top derma brands like CeraVe, Cetaphil, BIODERMA, Sebamed, ISDIN, Avène, Episoft, LACTO CALAMINE, La Shield, and more, the Derma Store ensures a comprehensive selection for all skincare needs.

How has the demand for clean beauty products evolved in recent years?

We have seen a remarkable 40% YoY growth in business from clean beauty brands, both global players and homegrown favorites within the luxury beauty segment. This trend is echoed globally, with the clean beauty market projected to reach $22 billion by 2024, growing at a CAGR of 9.5%. Customers are aware of the ingredients and formulations of their skincare and haircare products and are willing to spend more or rather invest in such products. Clean beauty brands are dominating the marketplace, offering products that are not only clean, vegan, and cruelty-free but also prioritizing recyclable packaging.

The demand for Clean Beauty remains strong especially in the premium beauty category on Amazon Beauty, with customers expanding their baskets and increasing the number of products per order. Brands like Forest Essentials, Kama Ayurveda, and Just Herbs have been particularly successful on Amazon Beauty, resonating with consumers seeking sustainable alternatives.

How has the penetration of international premium beauty brands in India changed recently?

The Indian beauty industry is seen as a strategic market for growth and innovation, and that’s why there has been an influx of global beauty brands coming to India in the last couple of years. The e-commerce boom in India has facilitated greater access to international brands for Indian consumers. With the proliferation of smartphones and affordable internet, e-commerce platforms like Amazon have become key drivers of beauty brands. This connectivity has also resulted in consumers becoming increasingly aware of global trends, new launches, benefits of ingredients sourced from across the world, tracking beauty regimes of celebrities and are generally keeping themselves up to date with the myriads of exciting developments taking place in this dynamic industry.

As a result, we are now dealing with an informed, educated and aware beauty customer base in this country, one that is constantly challenging brands and retailers like us to cater to their evolving and diverse beauty needs. In fact, according to a report by RedSeer Consulting, the Indian e-commerce market is projected to reach $111 billion by 2024, with beauty and personal care being one of the fastest-growing segments.

How are Gen Z customers influencing the beauty product market on Amazon? What types of beauty products are particularly popular among Gen Z consumers?

Gen Z is enthusiastic about exploring a wide range of beauty trends, experimenting with bold looks, and using beauty products as a means of self-expression. Brands, in turn, are increasingly attuned to these specific demands of Gen Z, including preferences for multifunctional products, personalization, value for money, and clean beauty. There’s also a significant focus on meeting Gen Z’s expectations for colour cosmetics. Given that Gen Z is highly influenced by global trends, brands are becoming more agile in replicating popular products based on these trends within the Indian market.

Over 48% of beauty customers on our platform belong to the 18-24 age bracket – the Gen Zs. Brands like Rom&nd and Etude for K-beauty and K-pop-inspired tinted lips, Sugar Pop for quirky formats and pops of colour, and Gush for its range of playful and multi-purpose offerings resonate strongly with Gen Z consumers. They place great value on authenticity, inclusivity, and sustainability, actively seeking out brands that align with their values.

To meet the needs and preferences of this dynamic generation, Amazon Beauty strives to offer a diverse selection of options. Our goal is to cater to their evolving consumer preferences and provide a platform that fulfills their expectations for high-quality, authentic, and convenient beauty products at competitive pricing. We were the first to launch ‘Next Gen Store’ on Amazon in April 2023, a store dedicated to Gen Z consumer needs. It further underscores our commitment to providing a curated experience tailored to the ever-changing demands of this generation. The store is designed to indulge Gen Z consumers in the latest fashion and beauty selections from over 200+ domestic and global brands and 1M+ products under one roof with various personality-based themes like Barbie Babe, Y2K fashion, and 90’s Grunge, and more.

What trends are you observing in men’s skincare and makeup products? How has the demand for men’s beauty products grown over the past year?

Men’s Grooming has been one of the fastest-growing segments for us. During the Great Indian Festival 2023, we witnessed a spike of over 12X for some of our top product categories vis-a-vis the 2022 sale instance. Men are not only becoming more conscious about skincare and grooming, but are also starting to understand the ingredients, usage and other finer nuances. Even brands are expanding beyond the traditional charcoal-based products for men to offer a broader range of products across multiple regimen steps – like serums, face and beard oils, face masks, moisturizers and more.

Interestingly, brands are also increasingly emphasizing on skin type over gender in their marketing communications. Increasingly, the lines between male and female products are blurring as both consumers and brands are starting to understand the need to prioritize skin types and skin concerns over gender-based bifurcation. The rising usage of makeup among men is a clear indicator of the same – men are not only democratizing the usage of makeup across genders, but are also innovating and having fun with makeup, which has been a delight to watch!