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Diwali 2023 Sparks 51.5% Surge In Beauty Product Sales, Reports Assiduus Global Inc.

Electronics, lifestyle, and beauty products category emerged as the top favorite among younger customers with 47 per cent of sales from the 18 to 24 years age group, followed by 21.27 per cent from 35 to 44 years

Diwali 2023 Sparks 51.5% Surge In Beauty Product Sales, Reports Assiduus Global Inc.

Outlook Start-Up Desk

POSTED ON November 28, 2023 11:49 AM

Electronics, lifestyle, and beauty products emerged as the most sought-after segments during the recent festive shopping trends, reported Assiduus Global Inc., an AI-powered cross-border e-commerce accelerator for D2C brands. 

As per the shopping data available with the platform, mobile phones, adaptors, and earpods were the top-selling products in the electronics category with brands like Redmi, OnePlus, and Boat taking the lead. In the lifestyle and beauty segment, face and body creams emerged as top sellers with brands like L'oreal, Nivea, and Himalaya gaining prominence.  

The company reported that the beauty products witnessed a remarkable growth of 51.51 per cent as compared to last year. The category also emerged as the top favorite among the younger demographic with a significant 47 per cent sales contribution from the 18 to 24 years age group, followed by 21.27 per cent from 35 to 44 years. When it comes to regional contribution, Kerala topped the list followed by Karnataka and Maharashtra.  

Kerala displayed a 118 per cent increase in orders compared to Karnataka on Flipkart, showcasing the potential for skincare brands across regional markets. This year, more people are spending time checking out beauty products compared to last year. There's been a 30.43 per cent increase in the number of shoppers looking closely at product details, it reported. 

While not in the top 3 categories, the platform witnessed an 86 per cent surge in new shoppers for healthcare and nutrition products in 2023 compared to just 26 per cent in 2022. This is a clear indication of the seismic shift being observed in the healthcare and nutrition segment in the country, with Indian users making more health-conscious choices. There is greater awareness and demand for innovative products, with the willingness to spend more on products that can help consumers achieve health goals. The health supplement category which had witnessed a substantial 28 per cent increase in cost per click in 2022, witnessed a 31.40 per cent surge in 2023, underscoring the competition among brands vying for limited space within marketplaces. 

Brands listed on Assiduus’ platform saw great discounts averaging up to 40 per cent, further increasing the festive shopping fever as consumers are more likely to participate in shopping activities when presented with discounts, especially during festive seasons. Indian shoppers tend to adjust their shopping habits according to seasonal trends and discounted deals. There was a noticeable decline in interest in exploring products on marketplaces, with a decrease of 30.26% in marketplace searches. There was also an 18.10 per cent reduction in conversions after the sales event, indicating fewer people made purchases. 

During the festive rush, higher sales highlighted an ongoing challenge related to delivery times, which significantly contributed to product returns.   

Dr Somdutta Singh, founder and CEO of Assiduus Global Inc., said, "We have witnessed a sharp surge in our sales across healthcare and nutrition products led by Gen Z and Millennials indicating that the digitally savvy generation is dominating the online shopping space in India. We have also seen an exponential rise in sales from Tier 2 and 3 cities in India." 

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