Internet to influence $11 bn of total beauty sales by 2020

MUMBAI: Internet would influence $11 billion of the total sales in the FMCG sector for beauty and hygiene products by 2020, according to a joint report released by Google and Bain & Co. This, said a statement, represents 2/3rd of beauty and hygiene sales of $17 billion in 2020.
The report estimated 130 million Indians to shop online by 2020. This will transform internet into a prominent sales channel forming 20% of total sales estimated to be $3 billion.
Vikas Agnihotri, industry director, Google India said, "By studying the behaviour of the lead consumers from an FMCG standpoint, it is clear that FMCG companies in India need to start thinking of digital as a more strategic medium and chart out a digital growth path for their products. Adoption of highly consumed product categories in beauty and hygiene category is 2x higher in digital households compared to non-digital households and even the penetration of emerging product categories is 2 to 3x higher in digital households making the digital audience an extremely important audience for the industry.''
Beauty & hygiene related searches on Google, said Agnihotri, makes it the 3rd largest vertical for shopping related searches after apparels and accessories and mobile phones.
Nikhil Prasad Ojha, partner, Bain & Co., said, Most FMCG companies in India have underestimated the impact of internet and are struggling to ascertain a clear digital roadmap for their products. In terms of key target audience from FMCG perspective over 200 million digital natives will be online, 30% of women population in India will be online by 2020 reaching 200 million.
Internet will reach over 250 million users in rural India, whose disposable income will continue to grow. With these three key consumer segments moving to digital and spending more time online, FMCG companies will need to prepare themselves for this digital future. This report will serve as a useful reference point to start thinking and engaging consumers.''