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Vasudha Rai profile imageVasudha Rai
Indie beauty brands are giving the OGs a run for their money

Small is the new in big in the beauty industry with niche brands growing stealthily in the last decade

Red lipstick the exact shade of a geisha's scarlet lips (Tatcha). Eye drops that temporarily lift eyelids (Upneeq). Fragrance made with 'flower recycling' from waste that would have otherwise gone to a landfill (Sana Jardin). Magnetic eyelashes (Enn's Closet). Cosmetics for menopausal women (Womaness). In less than a decade, the beauty industry has transformed from being dominated by the big beauty cartel to today's indie beauty boom. Gluten-free skincare, cosmetics for people of colour, formulations based on a single active ingredient, influencer-led brands—all niche categories that point towards individualisation as pivotal to success in today's dynamic beauty market.

Smaller brands have grown stealthily in the last decade, propelled by our new ecologically-focussed needs. While at one end, the aim is to go back to plant-based products, at the other end, scientists are creating synthetics that mimic nature to preserve natural resources. Biossance, a green beauty brand founded by biotech company Amyris (not exactly a small brand but not big either), created a synthetic equivalent to squalene using fermented sugarcane, otherwise made out of shark livers. This has led to the more prominent players following suit. Last year, Swiss multinational fragrance developers Givaudan made a synthetic version of ambergris (a musky-smelling ingredient in perfume that helps it last longer), usually made from intestinal waste of whales.

Brands like The Inkey List are putting ingredients at the forefront.

Brands like The Inkey List are putting ingredients at the forefront.

Other brands like Biossance are creating synthetics that mimic nature to preserve natural resources.

Other brands like Biossance are creating synthetics that mimic nature to preserve natural resources.

In 2017 a Deloitte study predicted that 'small is the new big'. Today, just the natural and organic category is projected to reach $32.3 billion by 2027 at a 9.76 per cent CAGR (compound annual growth rate). The rise of social media has shrunk the world, increasing accessibility of both knowledge and products, with online sales projected to make 43 per cent of beauty sales by 2023. But while the Internet may have levelled the playing field, it also has sky-rocketed expectations of customers. So while the current tide may favour small businesses, only consistent quality, accountability, transparency—the exact qualities responsible for the rise of niche brands will ensure its durability.

The New Landscape

"The beauty customer is woke. They do their research, aren't afraid to ask questions or call out on misrepresentation," says Dr Pooja Shah Talera, founder, Kosa Wellbeing, Pune, a platform that retails niche and luxurious products and services. The 2021 Edelman Trust Barometer found that 68 per cent of consumers believe they can force corporations to change, while 86 per cent expect CEOs to speak out on issues. Additionally, according to a report by Yardeni Research, Gen Z is most likely to be the most self-educated generation. With information quite literally at their fingertips, these young consumers are hypereducated about formulations and often run a quick check on apps such as CosDNA to understand how ingredients function, the potential for irritation, and clean/ green creds. This means that high percentages of active ingredients, greener formulations, sustainable yet attractive packaging, and a solid CSR plan aren't a marketable novelty but mere hygiene.

As far as the product is concerned, it isn't about cookie-cutter appearances anymore. A pretty bottle must have a potent formulation. Customers don't want cosmetics packed with fillers that offer generalised solutions such as 'rejuvenation' or 'restoration'. An individualised and targeted approach is required, whether it's to satisfy a current need, create a new want, or focus on a single ingredient, such as Vintner's Daughter, who offered just a single face serum or Pahadi Local closer home with their Gutti ka Tel. "Our strategy for Pahadi Local has always been one of patience. To grow the brand and business slowly and steadily," says founder Jessica Jayne. "This allowed us to take the required amount of time to identify our product portfolio, strengthen the supply chain, maintain strict quality markers and understand mountain logistics which was initially quite challenging."

As far as the product is concerned, it isn't about cookie-cutter appearances anymore. A pretty bottle must have a potent formulation. Image: Getty 

As far as the product is concerned, it isn't about cookie-cutter appearances anymore. A pretty bottle must have a potent formulation.

Image: Getty 

Whether it's India or around the globe, brands have been called out regularly for malpractices, for instance, the Reddit expose of Sunday Riley employees posting fake reviews of their products, or Herbivore's Pink Cloud Moisture Cream that Sephora recalled due to mould. Green/ organic brands, in particular, have also been accused of greenwashing, which has led to the current trend of going back to science-based skincare. But while the subcategories and trends may change, it hasn't stopped new, artisanal brands from flooding the market.

Forest Essential's online sales have grown exponentially in the last year with an approximate 300 per cent jump from May 2020 till date. 

Forest Essential's online sales have grown exponentially in the last year with an approximate 300 per cent jump from May 2020 till date. 

Minimalist faced a backlash for their range that seemed uncannily similar to Deciem's The Ordinary.

Minimalist faced a backlash for their range that seemed uncannily similar to Deciem's The Ordinary.

The Challenges

Niche brands have had their fair share of controversies, be it Purito with less SPF than was claimed on the label or Minimalist in India who faced a backlash for their range that seemed uncannily similar to Deciem's The Ordinary. We spoke to Komal Basith, a former beauty editor who regularly reviews products and has been particularly vocal about the shortcomings of small beauty brands in India. "Where do I begin—lack of transparency, getting away with the bare minimum, blatant disregard for intellectual property, and worst of all, assuming the Indian customer doesn't know any better," she says.


"People have their opinions, and we respect that," says Rahul Yadav, co-founder, Minimalist. "Fact is, all the actives we offer have been used in topical products for several years, and some even for a few decades. They are all well-researched, and the data is available in the public domain so that no single brand can claim ownership over these," he explains. The brand itself has grown phenomenally since its launch in 2020, raising Rs 110 crore via multiple investors and "serving closer to one million customers that come from every part of the country, every day.

"THE BEAUTY CUSTOMER IS WOKE. THEY DO THEIR RESEARCH, AREN'T AFRAID TO ASK QUESTIONS OR CALL OUT ON MISREPRESENTATION."

Dr Pooja Shah Talera

Another brand that faced the internet ire was Dr Sheth's after a customer found a strange growth in their niacinamide serum in July this year. "I don't know if we handled everything correctly, but the big learning was to invest in a good customer service team because this issue wouldn't have escalated if we had one in place," says founder Dr Aneesh Sheth. After the backlash on Reddit and Instagram, the brand called back the entire batch, sent it to the lab for testing and replaced/ refunded products. "We even refunded customers who'd placed big orders with us, even though it didn't contain the serum in question, but were uncomfortable about using the products." With the controversy behind them, Sheth is taking his time to reformulate the serum, which will be launched in March next year. "I'm glad this happened because it has helped us understand the customer and our loopholes better," he says.

The Growth

Small, niche and artisanal brands offer more vibrant products by harnessing newer ingredients, in trendy packaging, with modern formulations. "There is a constant feedback loop between the actual customers and the founders/formulators, which results in very interesting products," says Lavanya Krishnan, founder of The Boxwalla, A US-based green beauty box service and retail website housing niche, artisanal products. "With them, you often get the feeling that you are paying for the actual product/high-quality ingredients, rather than for a marketing infrastructure, which can often be the case with legacy brands," says Krishnan.

The smaller beauty players have made us aware of both natural ingredients and lab-made actives, whether it's sea buckthorn, blue tansy, Centella, astaxanthin, and CBD in plant-based formulas or demystifying actives including alpha-arbutin, squalene, Argireline and niacinamide, with brands such The Ordinary or The Inkey List. With a fresh look, researched ingredients and a strategy to connect with younger customers, it's no surprise that small brands rarely stay small for long, as many are snapped up by more giant corporations who see significant potential for growth. Take the case of the Tatcha takeover by Unilever estimated close to $500 million, Drunk Elephant acquisition by Shiseido for $845 million and Deciem by Estee Lauder for $1 billion.

Dr Sheth's was met with ire when a customer found a strange growth in their niacinamide serum. The brand recalled the whole batch and is now reformulating.

Dr Sheth's was met with ire when a customer found a strange growth in their niacinamide serum. The brand recalled the whole batch and is now reformulating.

Last month, Forest Essentials (one of India's first niche beauty brands) launched exclusively through Look Fantastic in the UK. "Since being discovered by Leonard Lauder, whilst in India for Liz Hurley's wedding, Forest Essentials has worked in conjunction with Estée Lauder Companies as its strategic partner to drive commercial success and expansion globally," says Samarth Bedi, executive director, Forest Essentials. "Our online sales have grown exponentially in the last year with an approximate 300 per cent jump from May 2020 till date; 52 per cent of our customers are repeat consumers; 70 per cent of our website visitors are new visitors who contribute to 48 per cent of the business."

Dr Sheth's uses Indian ingredients in modern formulations.

Dr Sheth's uses Indian ingredients in modern formulations.

Pahadi Local focused on just one hero ingredient when they launched their Gutti Ka Tel.

Pahadi Local focused on just one hero ingredient when they launched their Gutti Ka Tel.

Investment by the bigger players increases the accessibility of smaller brands along with the necessary backing for research and innovation. Indeed takeover by legacy brands helps the smaller players by elevating packaging brands presence and innovation. However, loyalists of smaller brands often feel cheated with buyouts as corporate control is expected to reduce quality in the product and cause a shift in the brand ethos. For instance, Nars (initially a niche brand) was taken over by Shiseido. They entered the Chinese market even though the brand was committed to cruelty-free cosmetics, which led many loyalists to boycott it. "Many customers find that the quality of niche beauty reduces when the brand gets acquired or receives outside investment. I don't know if that will always turn out to be the case," says Krishnan.

The challenge for big corporations is to stay close to the small-brand ethos while fuelling expansion. And with fresh niche brands flooding the market every day, there's no preventing the customer from changing loyalties to a new brand that gives them great quality and personalisation beyond just beauty to shared value systems.

Also Read: Why are celebrities launching their own beauty brands?

Also Read: Greenwashing is the marketing trick that's making you shop more

Also Read: This is the most hated skincare ingredient out there


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