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Beauty care companies face many challenges in today's market: intense competition, rapidly changing consumer preferences, the need to keep pace with technological advancements, maintaining consumer trust and the list goes on.

In order to succeed in the face of all those challenges, a company has to step outside the box: go big or go home. Beauty companies have to be willing to prioritize innovation, agility, and a consumer-centric approach while demonstrating authenticity, sustainability, and resilience in their operations and brand strategies. The beauty sector is saturated, and to build a strong competitive edge, brands must innovate by integrating technology that enhances customer experiences rather than relying solely on the physical attributes of their products.

Beauty and Personal care brands collectively spend $48 billion on performance marketing or social media ads, resulting in only 1–2% of conversions due to poor quality traffic, keyword-focused competition, or lack of personalisation. On top of that, to attract the same consumers, brands, and retailers, they are spending ~40% on customer acquisition per transaction without giving consumers what they are screaming for, an exclusive experience or personalisation.

One company, Orbo AI, has a solution beauty companies in India and across the globe are in dire need of and are looking for with their approach to visual intelligence. Orbo offers cutting-edge solutions like virtual makeup and skin analysis which helps beauty brands boost ROAS, stickiness and conversions with AI try-on and personalization tools.

"The beauty sector is overcrowded, and companies must stand out, but physical attributes alone won't provide a competitive edge," explains Orbo AI Founder and CEO Manoj Shinde. "Brands need to adapt to consumer-facing technology to create engaging experiences." Orbo aims to capture 10% of marketing spend by helping companies create customer-centric, hyper-personalized solutions, making personalized beauty the norm.

India's Demographic Advantage and Shifting Consumer Behavior

Shinde shares, "India's population has surpassed that of China, but more importantly, 67% of them are 16 to 34 years old. They are Gen Z'ers. These Gen Z's are driving the next stage of growth for India." Manoj notes that it took nearly 30 years for the country to build a $1 trillion economy, and then in just 10 years, another trillion was added to the economy. While a third trillion was added to the economy in just two years.

Manoj says it is the Gen Z'ers that are one of the drivers for growth. "They have a lot of disposable income. Also, our society is changing." He adds, "Previously, it was much more conservative, focused on savings, having money in the bank account, or buying a lot of gold. Now, people are spending more money on food, lifestyle products, beauty, skincare, everything." Also, the expansion of online transactions, facilitated by improved payment infrastructures and a growing fintech sector, has helped grow e-commerce and retail by providing consumers with greater convenience, accessibility, and security in their shopping experiences.

Consumers are also shifting from being solely price-conscious to being more value-conscious. While they still appreciate offers and discounts, they increasingly prioritize factors such as brand loyalty, emotional attachment, and the overall value offered by a product or service. This shift towards valuing quality and brand connection is a significant driver of growth in online purchasing. "Presentation is everything," Manoj asserts. "They value authenticity and gravitate towards brands that resonate with their values and emotions. They are looking for experiences. They are looking for personalization."

The Advantages of Being an Indian Startup

Taking advantage of India's vast incentive opportunities for startups has been instrumental in Manoj and the Orbo team's continuing development of their AI solution. With ten years of startup subsidies, including tax holidays and significant benefits for patent filing, they have received some of the support they need to ensure success. "We get 80% of the money back for doing work on research and filing patents from the state government as well."

Manoj notes that accelerators and incubators are also prevalent in India as well to encourage continued innovation. "The incubation centers provide office spaces for six months to a year, free of cost. So that takes away our initial burden of driving the cost and has helped us get our startup going and ready."

He adds that companies like Amazon, Microsoft, and Google are also driving innovation from the perspective of cloud credits. "They're providing credits from $25,000 to about $100,000 until a startup becomes sustainable and able to become profitable."

Orbo AI and Indian Brands Penetrate Global Markets

Moreover, India's emergence as a global innovation hub has further bolstered Orbo AI's strategic advantage. The global success stories in the beauty and personal care market highlight the immense opportunities. Manoj explains, "India's Good Glam Group teamed up with Serena Williams to launch Win Beauty in the United States. There is a broad shift in the industry, with Indian brands venturing into international markets such as Southeast Asia, the GCC region, the United States and Europe. Brands, companies and startups have to cater to global audiences. In the beauty, personal care and skincare space, this trend is particularly evident."

Manoj explains that in the past six years, India's industry has experienced phenomenal growth. In 2018, approximately 73 brands, retailers, and direct-to-consumer (DTC) companies were operating, with foreign brands dominating the market at 60%. However, today, "80% of companies are homegrown Indian brands. This remarkable growth trajectory positions India's beauty and personal care market to reach an estimated $40 billion within the next five years, and we have the solution to help them do that and to cater to their consumers."

Orbo AI has arrived at the perfect time. By leveraging India's growing Gen Z population, evolving consumer behavior, and supportive government and private initiatives, Orbo AI is poised to be a key driver of growth and prosperity in the beauty industry.

Looking ahead, Orbo AI plans to expand its product offerings and forge strategic partnerships to solidify its position as the leading provider of AI-powered solutions for the global beauty market. The company aspires to play a transformative role in shaping the future of personalized beauty experiences.