Whalesbook
Beauty Sales Shift to Smaller Cities
Amazon India is set to significantly expand its premium beauty section, aiming to add more than 100 international brands by the end of 2026. This growth is largely fueled by customers in tier-2 and tier-3 cities, who now account for over 50% of the platform's premium beauty revenue. Siddharth Bhagat, Director of Beauty at Amazon India, highlighted cities like Thrissur and Dehradun as examples of this changing consumer behavior. He stated that "the access problem has gone away," making it easier for consumers in these areas to buy international brands.
The premium beauty market on Amazon India is growing rapidly, with its year-on-year growth rate now 1.5 times faster than before. After growing more than 50% last year with around 200 premium brands, Amazon expects to offer over 300 brands by the end of 2026.
Driving Forces Behind the Premium Beauty Boom
The new brands joining Amazon's platform include well-known names such as Dolce & Gabbana, Laura Mercier, Urban Decay, and La Roche Posay. The selection will also feature a wider range of Middle Eastern fragrances and French skincare products.
Skincare remains the most popular entry point for customers into premium beauty, followed closely by haircare and makeup. Professional haircare products are becoming especially popular in areas outside major cities. Niche beauty segments are also seeing faster growth, with K-beauty and French pharmacy brands nearly doubling their sales compared to last year. Middle Eastern fragrances have become the fastest-growing category, with sales tripling. Additionally, premium men's grooming and direct-to-consumer haircare brands have seen their sales grow more than 2.5 times annually.
Amazon believes this expansion into smaller cities is due to increased consumer awareness, influenced by social media influencers and AI tools that help discover products. The company works with over 1.2 lakh content creators, many outside large cities, to promote new trends. AI tools, including Amazon's shopping assistant Rufus, offer personalized recommendations and ingredient details in various languages. Features like Amazon Lens and Virtual Try-On are also improving customer conversion rates.
New customer acquisition in premium beauty has grown by 22% year-on-year, with one in three new customers making a repeat purchase within a year. Prime members are twice as likely to make repeat purchases compared to non-Prime members. Amazon Now, the company's quick commerce service, speeds up delivery for thousands of beauty products, encouraging more frequent purchases from Prime customers.