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Executive Summary – Key Takeaways
Top 5 Customer Experience Insights From Consumer Analysis of Online Cosmetics
Online Cosmetic Industry – Overview
- Domestic demand in India is one of the fastest-growing in the world with 60% growth over the past 5 years.
- Indian Cosmetics market is valued at $11.16 billion in 2017, anticipated to grow at a CAGR of 5.91% during 2017-to 2025.
- Annual retail sale of cosmetics growing in the range of 15-20
Online Cosmetic Industry Growth Drivers
1. Rising beauty concern of men and women in India
Research from Mintel says that about 65% of Indian men are concerned about their appearance. This rise in beauty concerns of men has opened up opportunities for online cosmetic companies. India is also seeing an increase in the working women segment leading to an increased demand for online cosmetics.
2. Rural expansion
The penetration of cosmetic products is increasing in Indian rural areas. With the availability of cosmetic products in lower price range and smaller packets, they have become highly affordable for rural areas. This has opened up huge market for cosmetics in rural areas.
3. Increase in disposable income
Indian online cosmetic industry is set to witness rapid growth in the coming years due to the increase in consumption of beauty products. The consumption will increase mainly due to the reason that Indian middle class consumers now have higher disposable income than ever before. Due to the increase in disposable income, India has witnessed a change in lifestyle that has led to an increase in interest in beauty products.
4. Explosion of Internet
Smartphones and affordable internet will change the scenes of the online cosmetic business in India. According to the Euromonitor International Lifestyles Survey 2019 – Easy internet connectivity has shifted consumers’ buying patterns. Customer reviews, feedback on social media, recommendations from family and friends have taken over the mass marketing channels like newspapers, TV ads, in-store advertising, etc.
Top 5 Customer Experience Insights From Consumer Analysis of Online Cosmetics
“Your purpose is to make your audience see what you saw, hear what you heard, feel what you felt. Relevant detail, couched in concrete, colorful language, is the best way to recreate the incident as it happened and to picture it for the audience.” – Dale Carnegie.
Brand managers and marketers should look through the eyes of the customers to see how they experience brands in the real world. Marketers are no more limited to just nice words and advertising; it has evolved into knowing what drives a great customer experience.
We, at Clootrack capture every experience that customers have with their brands. We analyzed thousands of customer experiences to capture what people feel about a brand.
Top 5 Customer Experience Insights
The online cosmetic customer experience is a powerful combination of technology and beauty. When consumers want to find their favorite cosmetic products from a vast array of products, all under one roof, online cosmetic websites emerge as the best solution.
Online websites should carefully watch out for customer satisfaction so that they can design their customer experience based on the most important drivers.
Through a detailed analysis of 13,489 online consumer conversations, Clootrack has listed down the top 5 customer experience insights for the online cosmetic websites.
1. Range
Choosing the right brand and the right product is a big decision for customers. But when there is not enough range of products to choose from, customers will not enjoy online shopping. Hence the online cosmetic companies have to come up with a broad range of products to make the decision easier for the customers.
Online cosmetics companies should cater to a variety of people by offering numerous cosmetic brands that are reasonably priced, and also high-quality expensive brands that cater to different set of people. The goal of customers is to find all their cosmetics online rather than going to malls to find one thing that they could not find online. Hence it is important for online cosmetic companies to list versatile brands that has products to suit customer needs.
2. Exclusives
Most of the e-commerce websites set up products by designing their own exclusive product range. They also offer designer brands with exclusive capsule collections. It is important to understand that the exclusive nature of products attracts customers as they feel special to be shopping from a wide range of exclusive colors and shades. This uniqueness becomes a prime factor of attraction for customers who wish to set themselves apart from people who use similar products.
3. Pricing
An effective pricing strategy is a key driver in attracting customers to an online cosmetics website. Good pricing, affordable pricing, cheapest price, and exclusive pricing are the factors that customers look out for before ordering products online. Customers constantly are looking out for buy one get one offer, free deals, flat discounts, and other deals. Online websites should offer such attractive deals to keep shoppers intrigued and coming back for more.
4. Delivery
Fulfilling the orders of the customers is a critical part of online stores. Consumers prefer to shop at the convenience of their homes with the help of a device instead of buying from a store. Hence it becomes very important to deliver the right products to their homes. Always ensure to deliver the right product, on time with proper packing and free of damage. The delivery needs to be quick and with high speed so that no customer ends up waiting too long. A lot of success of an online business depends on sourcing from a reputable shipping company who can manage all the deliveries on time every time.
5. Returns
Almost 80% of people in the U.S. and the UK check the returns policy on a retailer’s website before making a purchase. This proves the importance of an easy returns policy for e-commerce websites.
Return policies are one of the most essential features of any e-commerce website. A return policy should be well written and clearly visible for customers making them comfortable to go ahead and shop without worrying about losing money if there a94dre no returns. Returns policy should include No questions return, return in 30 days, purchase return, not matching return, damage return and much such other returns which allows customers to return the products easily if they are not happy with the product.
Conclusion
Online cosmetics will thrive when customers feel comfortable with the features that enable them to have a smooth shopping experience. Cosmetics online shopping can improve their sales by offering and embedding these features into their websites.
Brand Equity
Brand equity is an indicator of the company’s strength and performance, specifically in the public markets. In simple terms, brand equity describes brand value. Brand value is determined by consumer perception, which is a combination of knowledge and experience, towards a brand and its products. The perception that a consumer segment holds towards a brand directly results in either positive or negative effects.
Download the detailed report for free to get to know the brand names in the below chart. The detailed report also covers list of features that delight users and several other interesting insights.
Brand Equity of 5 Major Online Cosmetic Stores Based On Consumer Behavior
Detailed Report
With the consistent and rapid growth of online shopping, it is becoming more evident that the online websites need to offer excellent features that can attract customers to shop on their website. Customers are looking into various features that will make their shopping a pleasant experience.
For further information on pleasant features, competitor analysis, indifferent factors, and much more, you can download the pdf version of the complete report for free.
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