Beauty & Personal Care Segments 143% Growth and Healthcare & Pharma E-Commerce Growth of 119% in First Eight Months of 2021 | AFN News

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Unicommerce Emerging e-commerce segments 2021 report: 143% growth for Beauty and Personal Care segments and 119% e-commerce growth for Health and Pharma sectors in the first eight months of 2021

Posted on October 6, 2021

  • Growth in healthcare and pharmaceuticals led by Nutraceuticals with a 143% increase in order volume
  • FMCG recorded growth of 73%; sub-segments: Food and beverage order volume grew 72% and organic food grew 74%.
  • Beauty and Personal Care sub-segments: Facial care segment recorded growth of 171%; follow-up of hair care at 92% and body care at 31%

New Delhi: Unicommerce‌‌, India’s largest SaaS‌ technology‌-focused online commerce‌ platform SaaS‌, has unveiled a first-ever industry trends report on emerging categories that are changing the dynamics of the industry. online retailing. The report titled “Emerging Ecommerce Segments 2021” highlights segments that had a negligible online presence before the pandemic, but which have grown rapidly over the past 18 months to increase their overall ecommerce share and become emerging e-commerce segments.

The report further highlights interesting trends in new segments such as FMCG, Beauty and Personal Care, Health and Pharmaceuticals, Home Decor and Furniture, and Sports and Fitness Equipments. It also details the sub-segments of these categories, highlighting how these new segments are developing their presence in e-commerce, as well as the drivers of growth potential in the years to come. The report analyzes e-commerce trends for the period January-August 2021 and January-August-2020 with a sample of over 40 million orders.

Speaking on the launch of the report, Kapil Makhija, CEO of Unicommerce, said “The pandemic has changed the purchasing habits of consumers and accelerated the adoption of technology among brands at a faster rate. The increasing adoption of e-commerce has led to the birth of many new segments in the e-commerce industry which were insignificant until last year. Our aim with this report is to present the evolving trends in these emerging categories as well as detail the growth trends of the sub-segments under each category. An important finding of the report is the phenomenal growth of websites and branded markets and its impact on all of these emerging segments. We have received an overwhelming response to our previous reports and we are confident that this report will also help e-merchants understand emerging segments and adapt well to the changing dynamics of the e-commerce industry. We are committed to helping e-merchants on their e-commerce journey and this report helps advance our mission.

Some of the main findings of the reports are as follows:

FMCG becomes an integral part of e-commerce

FMCG is a segment that started making the news from the start of the lockdown in March 2020. The FMCG e-commerce industry saw a major spike at the start of the lockdown and was seen as a temporary phenomenon given the nature conventional industry, and consumers were expected to revert to the old ways of shopping after a while. Today, even after 18 months, the FMCG segment continues to grow at a rapid rate. Changing consumer behavior supported by the growing adoption of e-commerce across the country resulted in a whopping 74% order volume growth for the FMCG segment for the period January to August 2021, compared to the period correspondent a year ago.

The FMCG segment can be broadly divided into two categories and both segments have experienced almost similar growth as the overall category: The food segment has seen a 74% increase in order volume during the same period.

Beauty and personal care in exponential growth

The beauty and personal care segment was growing rapidly even before the pandemic. The pandemic has further accelerated the growth of the industry and new age digital businesses have been able to respond effectively to growing consumer demand with an automated supply chain and digitizations across different business cycles. As a growing number of consumers are now purchasing beauty and personal care products online, the segment saw order volume growth of 143%, the highest among all emerging segments.

The segment can be broadly divided into three key segments: January-August 2021 compared to the same period last year. The second segment is hair care, which has garnered a lot of consumer attention and recorded strong order volume growth of 91% during the aforementioned period. The third segment is body care, while it is a large segment, it saw slower growth in order volume of 48% in January-August 2021 compared to January-August 2020

Beauty and Personal Care is an interesting category where marketplaces are the real growth engines with order volume growth of 163% for the period January-August 2021 compared to the same period last year. One of the main reasons that markets are accelerating growth compared to branded websites is the growing popularity and strong position of platforms such as Nykaa in the beauty and personal care segment. Myntra has also started to focus largely on the beauty segments over the past year, with sales events and promotions focused on beauty. Interestingly, brand websites are also catching up with 141% growth in order volume. This shows the growing acceptance of new D2C brands among consumers

Health & Pharma: Sector with immense growth potential

It is a category that is growing exponentially, especially at a time when the focus is on building strength and immunity in people. The healthcare and pharmaceutical sector continues to grow and saw order volume growth of 119% in January-August 2021 compared to the same period last year.

nutraceutical is a Healthcare and Pharma sub-segment that has received a lot of attention with its strong growth over the past year. It includes food supplements and herbal powders and medicines containing vitamins, minerals and plants with specific medicinal properties to improve immunity and provide the necessary nutrition to the body. The nutraceutical segment saw order volume growth of 143% from January to August 2021 compared to the same period last year. They have been in high demand as consumers focus on building strong immunity against COVID-19.

Interior decoration and sports and fitness furniture and equipment

E-commerce also helps unorganized categories such as home decor and the sports and fitness industry to become part of organized retail and gain the necessary attention of consumers. The majority of sales in these sectors are still part of unorganized retailing with small traders in the local market.

The growth of the interior design industry saw order volume growth of 51% with significant GMV growth of 108% leading to the highest growth in average order value of 38%. Due to working from home, many consumers ordered office furniture last year and this is one of the key factors for the strong growth of home decor and furniture segment.

Sports articles refer to the equipment and clothing necessary for the practice of a sport. It is a small industry and at an early stage of e-commerce and holds immense growth potential with order volume growth of 66% as well as moderate GMV growth of 18%. This sharp drop in average order volume can be attributed to limited outdoor activity and a growing number of consumers ordering essential items for workout at home.

Tier I cities are the traditional pioneer of emerging categories

It is generally observed that every sector of e-commerce has a ripple effect. Any new sector begins to gain ground in Metropolitan and Tier I cities first, and then Tier II and III cities gain ground. This has been observed in mature categories such as fashion and electronics. Before the pandemic, the emerging categories held a very small part of the overall e-commerce activity, with limited consumers, therefore, the market share split between level I, II and III cities was almost even. In the first eight months of 2020, Tier I cities contributed 39% of the market share, followed by 38% of Tier III cities and 23% of Tier II cities. However, the market shares changed significantly in 2021, with growth of 161% of Tier I cities accounting for 52% of the overall market share of emerging segments. Followed by an 85% growth of level II cities contributing to 19% of the market share and a growth of 75% of level III cities with 29% of the market share.

Unicommerce is uniquely positioned to provide cloud-based e-commerce supply chain technology solutions to help industry players of all sizes run their businesses effectively. Unicommerce has worked with over 15,000 retail brands across all industries and over the past year the company has on-boarded over 15,000 clients in industries such as FMCG, Beauty & Personal Care, Health & Pharmaceuticals, agriculture, interior design, nutraceutical fashion, electronics, among others. Over the past few years, Unicommerce has been able to establish itself as the preferred choice for companies establishing their e-commerce operations and its industry-independent platform can easily be adjusted to meet the specific requirements of each industry. The Unicommerce platform processes over 20% of India’s e-commerce volume, manages over 1,500 stores and over 6,000 warehouses, and processes over 1 million orders per day amounting to 5 billion USD + GMV per year.


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