India is shopping online more than ever before, with 280-300 mn online shoppers in 2025 accounting for $120-140 bn in ecommerce spends. With ecommerce reshaping shopper behaviour, the $15- 20 bn beauty and personal care (BPC) market is seeing significant shifts.
The February 2026 BCG report, '$300 Billion Connected Commerce', reveals that digital influence and digital purchase in BPC have both grown 3x since 2021. It also reveals a paradox: 53% of BPC shoppers are digitally influenced, 33% buy online, and 6% qualify as habitual online shoppers. As digital influence and commerce continue to transform shopping habits, beauty brands, platforms and channels need to meet shoppers where they are.
Default discovery engine
Digital influence has jumped from 16% to 53% since 2021, with social media cited as the topmost source by 71% of digitally influenced shoppers. 1 in 3 offline BPC shoppers go online for research before making the final purchase and switch seamlessly between screens and stores. But horizontal marketplaces dominate in rural areas (62%) and among lower- income groups (51%), while vertical marketplaces lead in metros (53%) and among elite shoppers (49%).
Not all buy online
Of 53% digitally influenced shoppers, 33% have purchased online in the past year. This gap widens in rural and lower-income consumers, who may be influenced online, but trust offline channels to make a purchase because of transparency of payments and ability to touch and feel products.
No single digital consumer
The consumer landscape comprises three distinct layers. New digital shoppers (20%) are typically rural or lower-income shoppers who buy online 2-3 out of 10 occasions. Regular shoppers (57%) are aspirants from tier-2 and -3 cities, who buy online 4-6 out of 10 occasions. They prefer convenience, variety and quick delivery. Since no single channel serves the gamut of their needs, they are active across channels.
Digitally savvy shoppers (23%) are typically affluent metro residents who buy online 7-8 out of 10 occasions. They expect the latest products, curated selections and personalised recommendations.
No channel has won yet Channel fragmentation is the defining feature of the market today. Among new shoppers, horizontal marketplaces make up almost 70% of ecommerce spends, due to the price and wide variety of products they offer.
Kiranas, too, win on trust, ease and quality of products. As shoppers mature, vertical platforms (47%) become their top choice for curated shopping experiences and assured quality, while quick commerce (21%) is preferred for its trending products and quick delivery.
Since no channel delivers the full bundle of needs for consumers across the board, the use of multiple shopping channels is common, especially among regular shoppers.
Q-com's the wild card
It accounts for 25% of ecommerce spends among digitally savvy shoppers. With its speed, efficiency and access to trending products, q-com has the potential to disrupt channel hierarchies faster than brands anticipate.
BPC brands and platforms can ride this momentum and unlock value by:
Omnichannel
Focus on building omnichannel journeys that bridge digital influence with conversion. A strong digital presence is needed for discovery. But shoppers must be given the opportunity to complete a purchase through the channel of their choice. Strategies must be tailored to the needs of each segment. Horizontal marketplaces can be leveraged to acquire new shoppers, while vertical platforms can help to retain evolved shoppers.
Focus on non-metros
Platforms and channels must focus on converting digitally influenced consumers from tier-2 and -3 cities and rural areas, into buyers, while driving new and intermediate shoppers to buy more frequently. Most platforms have been unable to build loyalty among digitally savvy customers. Cracking this code will give players the edge to stay ahead.
India's BPC market is at an inflection point. As this dynamic landscape evolves, brands, platforms and channels that close the gap between digital buzz and actual purchase, while building consumer loyalty, will define the next decade of BPC growth.
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Default discovery engine
Digital influence has jumped from 16% to 53% since 2021, with social media cited as the topmost source by 71% of digitally influenced shoppers. 1 in 3 offline BPC shoppers go online for research before making the final purchase and switch seamlessly between screens and stores. But horizontal marketplaces dominate in rural areas (62%) and among lower- income groups (51%), while vertical marketplaces lead in metros (53%) and among elite shoppers (49%).
Not all buy online
Of 53% digitally influenced shoppers, 33% have purchased online in the past year. This gap widens in rural and lower-income consumers, who may be influenced online, but trust offline channels to make a purchase because of transparency of payments and ability to touch and feel products.
No single digital consumer
The consumer landscape comprises three distinct layers. New digital shoppers (20%) are typically rural or lower-income shoppers who buy online 2-3 out of 10 occasions. Regular shoppers (57%) are aspirants from tier-2 and -3 cities, who buy online 4-6 out of 10 occasions. They prefer convenience, variety and quick delivery. Since no single channel serves the gamut of their needs, they are active across channels.
Digitally savvy shoppers (23%) are typically affluent metro residents who buy online 7-8 out of 10 occasions. They expect the latest products, curated selections and personalised recommendations.
No channel has won yet Channel fragmentation is the defining feature of the market today. Among new shoppers, horizontal marketplaces make up almost 70% of ecommerce spends, due to the price and wide variety of products they offer.
Kiranas, too, win on trust, ease and quality of products. As shoppers mature, vertical platforms (47%) become their top choice for curated shopping experiences and assured quality, while quick commerce (21%) is preferred for its trending products and quick delivery.
Since no channel delivers the full bundle of needs for consumers across the board, the use of multiple shopping channels is common, especially among regular shoppers.
Q-com's the wild card
It accounts for 25% of ecommerce spends among digitally savvy shoppers. With its speed, efficiency and access to trending products, q-com has the potential to disrupt channel hierarchies faster than brands anticipate.
BPC brands and platforms can ride this momentum and unlock value by:
Omnichannel
Focus on building omnichannel journeys that bridge digital influence with conversion. A strong digital presence is needed for discovery. But shoppers must be given the opportunity to complete a purchase through the channel of their choice. Strategies must be tailored to the needs of each segment. Horizontal marketplaces can be leveraged to acquire new shoppers, while vertical platforms can help to retain evolved shoppers.
Focus on non-metros
Platforms and channels must focus on converting digitally influenced consumers from tier-2 and -3 cities and rural areas, into buyers, while driving new and intermediate shoppers to buy more frequently. Most platforms have been unable to build loyalty among digitally savvy customers. Cracking this code will give players the edge to stay ahead.
India's BPC market is at an inflection point. As this dynamic landscape evolves, brands, platforms and channels that close the gap between digital buzz and actual purchase, while building consumer loyalty, will define the next decade of BPC growth.
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
Parul Bajaj
The author is India leader, marketing, sales and pricing practice, BCG