A summary of our latest trend report: About Face

The beauty and personal care market is one of the fastest-growing consumer markets, particularly in the cosmetics and skincare categories.

About Face: Emerging Global Trends in the Beauty and Cosmetics Industries is an in-depth, 65-page guide providing insights into key trends shaping the beauty industry in the U.S., U.K., Singapore, Japan, Indonesia, China, Thailand, Vietnam, the Philippines, with examples and case studies from leading global brands. 

The beauty and personal care industry includes makeup, skincare, hair care, fragrance, grooming, beauty services, and cosmetic surgery. 

Beauty and personal care worldwide market size

Revenue in the beauty and personal care market amounts to USD 564.40 billion as of 2022 and is expected to grow annually by 4.76 percent (CAGR 2022-2026). The market’s largest segment is personal care, with a market volume of US$254.00bn in 2022.

At USD 87.99 billion in 2022, the United States generates the most revenue in the beauty and personal care market. China is the second-largest beauty and personal care market in revenue and consumption.

Millennials are often considered the main drivers of the meteoric growth of the beauty segment. Purpose-driven, digitally savvy, clinically-backed, and affordable clean products and brands will most likely thrive in the near future.

Here are the major beauty trends shaping the beauty and personal care industry globally. 

Read the full report for deeper insights into these beauty and cosmetics industry trends, along with detailed case studies. 

1. Facing the online world of e-commerce: The changing face of the beauty market.

While many brands were moving online even before the pandemic, the coronavirus accelerated the shift to online sales as stores worldwide shut down. Many beauty products moved online, and e-commerce sales, shoppable social media links, brand websites, and online marketplaces continued to thrive.

Social media-driven brands have successfully captured market share via social channels and utilised influencers or Key Opinion Leaders, also known as KOLs (Influencers with a more targeted following and parallel careers), to build multimillion-dollar companies. This has also helped brands develop valuable content that continues to grow their market share and profits.

Read the full report to discover how brands build expertise, authority, and trustworthiness through product reviews, beauty expert ratings, videos, and blogs.

2. Beauty with Brains —Technology is giving beauty a facelift both online and offline.

In an online setting, technologies like Artificial Intelligence (A.I.), Augmented Reality (A.R.), and Virtual Reality (V.R.) are necessary to create interactions between brands and consumers. Beauty tech is not only helping with personalization but also has an entertainment factor. Brands are using innovative approaches to engage with consumers.

Discover how brands use A.I. for personalization, V.R., and A.R. for product trials, and smart beauty devices as diagnostic tools providing a wealth of information in the full report. 

3. A new generation of direct-to-consumer(D2C) brands is disrupting the market.

Direct to Consumer (D2C) brands do it all —they build, market, sell, and ship their products directly to their consumers using e-commerce platforms, such as brand websites and shoppable social media links.

With an online-first approach, learn how D2C companies build their brands on social platforms, gain a deeper understanding of the customer, lower costs, and stay competitive.

Also, read the full report to find out how Glossier skyrocketed into a billion-dollar brand from a social media handle.

4. Beauty in a box: The rise of beauty subscription boxes.

With the advent of the beauty subscription box, subscribers can now try curated samples of new products every month and spend less than they would on a full-size product. After testing these samples, they can purchase only the products they love.

Co-founders Katia Beauchamp and Hayley Barna launched Birchbox and positioned it as a personal beauty editor who could help everyone find the best beauty products online.

Read the complete case study to discover how Ipsy scaled its influencer-driven content marketing strategy to become an 800 million dollar company.

5. Diversity and inclusion in the beauty industry.

Consumers, especially younger generations —Millennials and Gen Zers are moving away from conventional beauty standards and expect brands to take note. 

In 2004, American personal care brand Dove created a disruptive photography exhibit titled “Beyond Compare: Women photographers on Real Beauty.” The commercial was based on a three-year creative, strategic research effort, which resulted in a new consumer-centric, inclusive approach.

Most recently, Google announced its Monk Skin Tone (M.S.T.) scale, designed to represent various skin tones and be more inclusive.

And Rihanna’s beauty brand, Fenty, is championing diversity and inclusivity with a “show not tell” approach. Read the complete Fenty case study in the report. 

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6. Moving beyond basic grooming: Men’s beauty products shaking up gender stereotypes.

The global men’s personal care market was valued at USD 30.8 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 9.1 percent from 2022 to 2030. Men demand gender-specific products: shampoos, conditioners, moisturizers, face washes, masks, and peels. E-commerce is further fueling this growth.

7. Beauty for all: The advent of genderless beauty brands.

While not an entirely new trend, genderless beauty took a giant step forward in 2020. Japanese brand Shiseido announced trans model and actor Hunter Schafer as one of its global brand ambassadors. American rapper Pharrell Williams launched his new genderless skincare range, Humanrace.

8. Riding the Korean Beauty skincare wave.

Korean Beauty, or K-beauty, as it is widely known, popularised the concept of investing money, strategy, and time into a ten-step daily skincare routine.

K-Beauty has made bizarre ingredients, like donkey milk, snail slime, bee venom, pig collagen, and even placenta, mainstream.

The extensive 10-step skincare regime might be overwhelming for some Western consumers, but Asian consumers are happy to adapt it to their skincare regime.

9. Cannabis Beauty: A market full of opportunity but fraught with regulatory challenges.

CBD oil-based products have anti-inflammatory, antioxidant, and skin-soothing properties. These remarkable properties in one single blend make CBD oil an effective product in the beauty and personal care segment.

Given the legalization of recreational marijuana in 38 states, the U.S. is at the centre of cannabis beauty and self-care. North America is anticipated to lead the CBD skincare market share during the forecast period. The Asia-Pacific is projected to exhibit exponential growth throughout 2026.

Read the full report to learn more about the opportunities and challenges American CBD brands face for international expansion. 

10. You are what you eat: Ingestible skincare.

While supplements for promoting skin health and hair and nail growth have been around for a long time, ingestible beauty products are more like edible skincare.

11. Beauty with a conscience: The era of sustainable brands.

Today’s environmentally-conscious consumer is looking for brands incorporating eco-friendly and sustainable practices into every step, from production and packaging to distribution and sales. It’s about sustainably sourced ingredients, ethical manufacturing, clean formulations, and eco-friendly and biodegradable packaging. 

Learn how Forests Essentials, from India, created a luxury Ayurvedic beauty brand from the ground up.

12. The eternal quest for youth and the anti-ageing market.

The cosmetics industry is constantly innovating to help customers regain their lost youth and preserve it for as long as possible.

13. Beauty services and cosmetic procedures are becoming commonplace.

Men and women increasingly turn to salons and spas to rejuvenate and destress. Busy lifestyles, urbanization, higher disposable incomes, and an inclination toward self-care drive growth in this sector. North America is projected to lead the global spa and beauty salon market during the forecast period.

14. The hair care market is booming, with headroom to grow further.

In the global hair care products segment, the U.S.A, Canada, Japan, China, and Europe will drive the 4.6 percent CAGR estimated for this segment. China will remain among the fastest-growing in these regional markets.

Second, only to the U.S., China is the second-largest market for hair care products worldwide and holds the largest market share in the Asia-Pacific region. It will further increase the demand for hair care products in the area, making Asia-Pacific one of the largest markets for hair care products over the next five to ten years.

The beauty industry is a beast.

Beauty and personal care are among the fastest-growing consumer markets, driven by the cosmetics and skin care segments. Consumers know retinol from retinoids and are highly knowledgeable and aware of beauty ingredients. Social responsibility and sustainability are essential to purchase considerations. And the younger generations are mainly driving the trends detailed in this report. 

Read the complete, exhaustive guide here.

Consumer behaviour is shifting more rapidly and drastically than ever before. Brands are trying to keep up with massive changes in consumer behaviour and preferences in virtually every sector, from groceries and fitness to banking and finance. Consumers continue to pivot their preferences and priorities with uncertainty, inflation, and an economic downturn. 

In the early days of the pandemic, an uncertain and dismal picture caused anxiety and depression, which led to panic buying globally. Those were short-term behaviours and did not last. However, many massive shifts due to the pandemic have stuck, including online shopping and the need for speed, efficiency, and convenience. 

The pandemic has changed certain habits for the long haul, with many consumers going to stores less frequently than before. Buyers are now more comfortable shopping online, and most consumers prefer a hybrid shopping experience combining the physical and digital worlds as convenience becomes paramount.

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With the growth of online shopping and technological advancements making online shopping as personalised as a store visit, consumers are exploring options beyond traditional brick-and-mortar stores and looking for a complete experience, be it physical, online, or hybrid. Businesses must adapt quickly to these changes and shifts in consumer preferences to remain competitive in a dynamic and ever-changing market. These changes have been taking place for some time, but the pandemic accelerated the rate of change unexpectedly. 

Some of the consumer behaviours that have drastically shifted post-pandemic are food and grocery delivery services. In the U.S., consumers did not regularly use grocery delivery services. According to some reports, about 15 percent of U.S. consumers tried grocery delivery services for the first time due to the pandemic, about 80 percent of those first-timers liked the service, and 40 percent said they would continue using it post-pandemic. 

While convenience and safety were the two reasons delivery services skyrocketed during the pandemic, the price will likely supersede convenience as we enter a time of out-of-control inflation. Consumers will try to make their money stretch further because savvy consumers know the premium they pay for using delivery services like Instacart. 

In this new economy, will they still be comfortable paying a premium and missing out on discounts for fuel when they don’t shop in person? 

Food delivery services also became more popular worldwide, and the takeout and delivery trend was rising. However, as people returned to in-person dining, food delivery apps took a hit. These apps will also follow the same path as grocery delivery services because when consumers buy from DoorDash, the prices are higher, and they cannot use vouchers. 

Many big retailers like Walmart are following shifts in consumer behaviour by offering pick-up and delivery with no markup on prices. Other delivery apps are double-dipping on price, and the consumer pays more than they would in the store. 

Brands need to understand that just as convenience and safety were top priorities during the pandemic, consumers prioritise value and price over everything else, given the current economic environment. 

The fitness market is also seeing massive shifts, and consumers now want an omnichannel approach to fitness, where they use at-home gym equipment and online classes and apps in combination with in-person classes. 

Many e-commerce brands capitalised on creating connections with their consumers by using hand-written-style notes to add to the unboxing experience.

Beauty and fashion brands made it easier for consumers to shop online by using machine learning and artificial intelligence to offer personalised suggestions, experiences, and Virtual try-on sessions using Virtual Reality to mirror an in-store experience. 

Brands need access to high-quality consumer data, insights, and business Intelligence to stay in the game, meet customers’ demands, and outpace the competition.  

In any business environment, enterprises need to clearly understand the psychology behind why consumers behave the way they do. Consumer behaviour is the study of consumers and analyzes how consumers decide what to buy, when, and how to buy. It seeks to understand the psychology behind consumers’ needs, wants, and desires and how they purchase, use and dispose of products and services. 

This study is critical because it helps brands understand the motivations and influences behind their purchases. It allows brands and marketers to develop the right products for the right audiences and market the product with the right messaging to convert prospects into buyers and retain them over time. 

Several factors come into play during the purchase decision stage, and these may include personal (age, culture, values, beliefs), psychological (brand perception), or social (friends, family, influencers, social media).

There are four types of consumer behaviour:

  1. Complex buying behaviour

This type of buying behaviour is associated with big-ticket purchases, like buying a home or a car, where consumers invest a lot of time and energy. 

2. Dissonance-reducing buying behaviour

This type of consumer behaviour is often seen when a consumer is highly involved in the buying process but takes longer than usual because they do not want to regret the decision. This happens when multiple brands are very similar, and choosing one is tricky.

3. Variety-seeking behaviour

This behaviour is exhibited by consumers who opt for a different brand, even if they were happy with their previous purchases because they value variety. 

4. Habitual buying behaviour

Consumers that purchase the same brand because of habit rather than brand loyalty are in this category. 

A grasp of the type of consumers your brand attracts will allow you to segment your market based on consumer characteristics.  

Marketers also need to understand buying roles and who is the decision maker regarding their specific product. In a family, for instance, the parents make major buying decisions; however, in some cases, young children are highly influential in the decision. In fact, unlike in the past, the younger cohorts, Generation Alpha (those born after 2010) and Gen Zs (those born between 1995-2010), make many important buying decisions regarding what they wear, eat, or travel. 

There are six major buying roles brands need to take into consideration:

  1. Influencer(s): Several people may be involved in the purchase decision in many cases, but they may not all be consumers. Influencers are those who can exert influence in the final decision. These could be bloggers in today’s world or friends and family whose advice commands weightage in the purchase decision. 
  2. Gatekeepers are usually family members who control the information flow regarding a product within a household. 
  3. Initiator: This is the person who first initiates the purchase idea. 
  4. Decider: This person has the final say in the purchase decision and decides whether or not to buy the product. He also may determine how and where to buy it. 
  5. Buyer: This is the person who ends up buying the product.
  6. User: This is the person who consumes or uses the product purchased. 

Consumer behaviour helps with market segmentation, as it goes beyond the essential demographic elements like age, gender, and location to explore the behaviour patterns customers exhibit when interacting with a particular product, brand, or website. This concept is instrumental in e-commerce and online shopping environments. 

Here’s how e-commerce brands use consumer behaviour to segment customers and users based on their level of engagement with the website, app, or product page. 

They segment or group their customers by their attitude toward their brand, level of brand recognition, usage, frequency and timing of purchase, and purchasing patterns or tendencies, like special occasion buying behaviour. 

This allows them to tailor their marketing messages and create compelling campaigns to achieve their goals. 

By utilising behavioural segmentation, brands can get a complete picture of their customers and filter them by the highest levels of engagement. For instance, brands can track those who regularly open their emails or visit their product pages. Marketers can also target ads with the most appealing messaging to customers based on their needs. For instance, an online shoe store can show those interested in athletic wear more running shoes and sneaker ads, and at the same time, serve ads with formal shoes for those interested in evening shoes. 

Another significant shift in consumer behaviour is related to a demand for personalised and customised products, especially amongst the younger cohort of Gen Zs. Using behavioural segmentation, brands can provide more refined personalised experiences to win business. Brands can gain deep insights into their consumers’ needs, wants, desires, challenges, preferences, and concerns to gain a competitive advantage. Upselling and showing complementary products and replenishment reminders based on customer history and interests can reduce cart abandonment and boost brand loyalty. 

The use of behaviour segmentation beyond the purchase also helps provide a high level of customer service to cement the relationship with the customer, leading to higher retention rates, more repeat business, referrals, and brand loyalty. 

Using behavioural segmentation, brands can unearth invaluable data and insights that may otherwise never have been discovered.

Understanding consumer behaviour comprehensively helps brands improve performance across channels to diversify their marketing efforts. Brands can use these insights to adjust brand messaging, packaging, design, features, pricing, and more to stay ahead of the competition and boost brand equity. 

Kadence International helps leading brands make game-changing decisions. If you are looking for a research partner to help better understand your customers, we would love to help. Simply fill out our Request for a Proposal here.

Just like reaching an unknown destination without a map is difficult, so is building a business strategy without competitive intelligence. 

Competitive intelligence helps brands shape their product development, distribution channels, pricing, messaging, positioning, brand promotions, and features. It allows brands to identify their challenges and opportunities in the market in relation to their competition, so they can see what their competitors are doing and differentiate themselves from them. 

What is competitive intelligence (CI)?

Competitive intelligence refers to any intentional research where brands collect, analyse, and utilise data and information gathered on their competitors, customers, and other external factors, potentially providing brands with a competitive advantage.

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When brands ethically and legally collect competitive intelligence, it can help boost the organisation’s decision-making capabilities. The goal of any competitive intelligence study is to create a business plan and strategy so organisations can make well-informed decisions based on market considerations.

Competitive intelligence goes beyond knowing the competition; the process is designed to take a deep dive to unravel the finer points of the competitor’s target markets and business strategy. 

Competitive intelligence plays a vital role in all major departments of an organisation and can take on a different meaning for each department or function. For instance, for a product development team, competitive intelligence may mean new features being added to products. For a sales executive, it may be helpful to know how to create a winning proposal. For leadership, it may be understanding the competitor’s marketing strategies so they can craft a plan to gain more foothold in the market.

Competitive Intelligence studies and exercises can be tactical (shorter-term) or strategic (longer-term). The goal of tactical competitive intelligence studies, for instance, can be to obtain insights into increasing revenues or gaining market share. At the same time, strategic or longer-term reporting focuses on significant risks, threats, and opportunities, present or emerging. 

A competitive intelligence study typically includes a wealth of information and insights from various sources, like government records, online mentions, social media, trade shows and journals, customer data and interviews, and traditional news media, to name a few. These sources are easily accessible and form the starting point for the studies. More in-depth information from distributors, suppliers, competitors, and customers is needed to make truly informed decisions. 

What are the key benefits of competitive intelligence?

There is no substitute for Competitive intelligence research when it is undertaken with care and diligence. It is a powerful tool for brands to gain market share, boost revenue, and continue to build the right products at competitive prices.

Here are some key benefits of using competitive intelligence for brands:

#1. Ability to predict patterns and emerging trends

As brands excavate an enormous amount of data and insights related to their competitor’s activities, they begin to identify and foresee emerging trends in the industry. This allows brands to gain deep foresight to make informed decisions and strategic business plans. 

#2. Aids in brand positioning

As brands gather insights and data about the competitive landscape, they also gain clarity on their activities and messaging. It helps them understand what works and doesn’t and cement their marketing. 

#3. Helps make more informed decisions.

When brands unearth information, they gain critical insights into how the customers feel about their brand and the competing brands. This gives brands a better view of their customers’ wants and how their competitors are meeting the needs of the target markets. 

#4. Boosts returns and profits

When you have a good understanding of the strategies and tactics employed by your competition and how they are performing, you will be better able to invest in areas that bring the highest returns, reducing risks and boosting profits.

Going back to the definition of Competitive Intelligence, we can see three necessary steps: “collect, analyse, and use competitor and market information to make informed decisions.”

Collecting data

There are many ways of unearthing relevant competitor data legally and ethically. Searching for information online may seem rudimentary, but it can provide invaluable information about the competitors and their activities. This information is readily available and accessible on the internet and is considered low-hanging fruit. With a few simple web searches, you can find great information on what the competitor is doing and what it has done in the past. You can also learn about product features, pricing, innovations, leadership, and important news and announcements relevant to your competition. There are tools that provide insight into the competitor’s search engine optimisation activities and their online advertising efforts. 

From here, brands often go deeper and beyond the internet to analyse target markets and customer segments. Brands use quantitative and qualitative market research to gain more market insight. 

Brands use data to analyse their competition beyond the simple search process. This entails going through endless data and making sense of it all can become cumbersome. This is where data mining comes into play. Besides gathering data from third-party sources, brands also gather human intelligence by interviewing relevant people, including customers and past suppliers. This is a time-consuming process and must be undertaken by experts in market research to ensure it is done ethically and legally.  

Analyzing data

Analysis of data is a crucial step in the competitive intelligence process. Once brands collect data, it needs to be analysed carefully to provide actionable insights. This allows brands to understand the patterns and separate them from the outliers. 

The analysis aims to uncover strengths, weaknesses, opportunities, and threats as they relate to the competitive landscape. Therefore, collecting and analyzing information from disparate sources is essential in verifying their authenticity and validity. This helps us move away from making assumptions and gaining real insights from more accurate pieces of data. 

Crafting a strategy 

Once a brand has enough verified data and information on its competitors and strategies, it can utilise it to differentiate itself and make informed decisions regarding product, price, messaging, and other essential aspects. It allows brands to weigh the competitor’s strengths, weaknesses, and opportunities in relation to their own to gain a competitive advantage.

For instance, pricing is an important area for differentiation but can only be done right if everything is studied and taken into account to find the right price that is profitable and aligns with the customer’s perceived value of a brand or product offering. Therefore, a successful price is not about pricing your product at the same or lower price than your competitor but positioning your brand as the choice that provides the greatest value. And to make that happen, you need to know the price of competing products and their perceived value in the buyer’s mind. This calls for a thorough study and analysis of the competing products, markets, and consumers. 

Today, e-commerce companies use sophisticated software for competitive pricing due to the market’s highly competitive and dynamic nature. Read more on how e-commerce brands utilise price monitoring software technology to track competitor pricing here.

To get the complete picture, brands may conduct competitive intelligence surveys. They can define their target audience and use various demographic and psychographic questions to identify consumer behaviour. These also include questions about competing products and services. You may also use ranking and rating type questions and identify any unmet needs or gaps in the marketplace or use open-ended questions to get a more in-depth view of the consumer’s mind. Brand recall and recognition surveys are also helpful in gaining consumer perception of various brands. For instance, a sparkling water brand may ask: “When you think of bottled sparkling water, what brand comes to mind first?” This can help brands discover how frequently their brand is mentioned compared to competing brands in the category.

When armed with the powerful insights gained through competitive intelligence, brands can be more strategic in all aspects of business, from product development to pricing and distribution. By differentiating themselves from competitors, they can gain valuable market share, grow brand value, and brand equity, and boost their return on investment (ROI).

Fear is a negative emotional response to the presence of danger or threat. Speculative fear is a negative emotional response to the anticipation of danger or threat, which may or may not occur. Humans are hardwired to look for things to fear, forming a necessary part of our survival instinct from birth. 

The human response to danger or threat is flight, fight, or in extreme cases, immobility. However, people respond in several ways when trouble or threat is perceived only as a looming risk. Avoidance, hunkering down, freezing in place, and acting impulsively are responses to prolonged anxiousness caused by pending fearful situations.

While fear is ingrained in our nervous system, it can also be taught. Technology has dramatically changed the way people get information. Social media has become the primary source of news online, with more than 64 percent of internet users receiving breaking news from social media instead of traditional media.

These statistics may be a sign of modern times. Still, the challenge with most people getting their news on social media sites is concerning when coupled with the fact most people do not read past the headline, and the vast majority of headlines are negative. 

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Negative media coverage reports show that negative words such as “bad,” “worst,” and “never” are 30 percent more effective at catching people’s attention than positive words. Research studies also revealed that negative words improved the average click-through rate. Headlines with negative bias showed a 63 percent higher result when compared to positive ones. Most (59 percent) of all news article links shared on social networks aren’t clicked on, implying that most article shares are not read in their entirety. 

So, you’d be right if you think we live in an increasingly hostile world, and most news is bad news. We are increasingly exposed to negativity and fearful news, affecting our collective anxieties and behaviours.

Panic buying

When the Spanish flu arrived in Britain immediately after the First World War, people panicked and rushed to purchase quinine and other medications, leading to national shortages.

Since then, panic buying and hoarding have been observed during many crises. Panic buying is much more common in developed or industrialised countries where people expect they will always be able to access food and other essential items easily. 

During the COVID-19 pandemic, psychologists observed that panic buying was associated with individuals with higher incomes, the presence of children in households, depression and death anxiety, and mistrust of others or paranoia.

Panic buying results from the perceived threat of the event and the perceived scarcity, fear of the unknown, and as a coping mechanism.

Retail therapy

Retail therapy is shopping primarily to improve the buyer’s mood or disposition. It is often a short-lived habit in people with depression or stress. 

Research has shown that shopping can help reinforce a sense of personal control and ease feelings of sadness.

In 2014 the Journal of Consumer Psychology found that retail therapy makes people happier immediately and can also fight lingering sadness. According to the study, the choices and outcomes inherent in the act of shopping can restore a feeling of personal control and autonomy. 

Another study by the University of Michigan showed that purchasing things you enjoy can be up to 40 times more effective at giving you a sense of control than not shopping. In this study, those who actually purchased items were also three times less sad compared to those who only browsed.

How brands can respond to environments of high fear and low trust

Listen to your customers. 

During times of financial stress, such as high inflation or recession, seek as much information as possible about your audience. 

Take a deep dive with multiple data streams to build a clear picture of behaviour and sentiment. It will likely be vastly different than it was a few months ago and will continue to change. Don’t leave questions out of your research about fear and perceived risk with your customers.

Words matter.

The world is changing faster than ever, with your buyers’ attention and priorities shifting quickly in response to stressful events. 

For brand marketers and product managers, understand that language that sounded good last month can mean something entirely different today.

Take action. 

With insights from your research, determine what your brand should do to address your customers’ wants, needs, and fears. Your target audience has expectations from brands during uncertain times. Discover what they are, and see if you can deliver while remaining authentic to your brand promise. 

Communicate authentically. 

Be bold and authentic when storytelling and communicate practical information to help reassure and educate your customers. Give your customers an added feeling of security and stability by providing in-depth information. Choose to be a voice of comfort, instilling confidence in your consumers and alleviating fears with the right message. 

Fear and anxiety aren’t going away anytime soon. Financial fear and stress can adversely affect buying behaviours, so it is essential to acknowledge these emotions and develop strategies to address them head-on. What was true of your target audience a few short months ago may not be true today. It all starts with an in-depth understanding of the perceived risks and barriers to purchase when it comes to your product or service. Great research is the first step for brands to develop compelling and compassionate messaging that helps customers feel empowered, confident, and comfortable with their purchase decisions during times of financial stress.

Kadence International helps leading brands make game-changing decisions. If you are looking for a research partner to help better understand your customers, we would love to help. Simply fill out our Request for a Proposal here.

India is a diverse country having 29 States and seven Union Territories covering more than 600 districts, roughly 8,000 towns, and more than 0.6 million villages. The villages are spread over 3.2 million square kilometres supporting 65% of India’s total population. There is vast heterogeneity in population characteristics due to socio-cultural factors, caste-based divisions, and religious and linguistic diversity. 

Specifically, in the Indian context, ensuring data capturing, and research methodologies are amenable to different languages, literacy levels, and differentiated access/familiarity with the internet is critical. 

For the above reasons, research and data collection become a challenging task and calls for a robust and representative methodology to mirror India’s diversity.

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Key Challenges in Research & Data Collection

Given India’s cultural and geographical diversity, some of the critical challenges for marketers and researchers in designing a survey for rural India are listed below:

1.   Reach: As per Census 2011, nearly 58 percent of India’s rural population resides in 115,080 villages having a population of 2000+. This effectively means that roughly 80% of the total villages in India are small or very small in size, inhabiting less than 2000 people. Looking at tapping rural markets, last mile connectivity with end consumers is a big challenge for FMCG players. Similarly, reaching the vast network of 33 million retail outlets in rural India is a challenge for companies, given the high distribution cost. Therefore, focused, and targeted reach is a priority in accessing rural markets. The survey design needs to factor in this critical consideration when designing the scope of research and sampling methodology.  

2.   Commercial Viability: It is estimated that 85,000 large villages in India account for 40% of the total population and 60 percent of the total consumption of FMCG categories. The skewness in demographic profile and purchasing power further limits the scope to cover the whole of Rural India for reasons of commercial viability. 

3.   High degree of heterogeneity: “A one size fits all approach” does not work well when designing a survey or methodology for rural India. For example, poor and backward States like Bihar, Uttar Pradesh, West Bengal, and Madhya Pradesh have more than 75-80% of their total population living in rural areas, whereas urbanized States like Tamil Nadu, Maharashtra, and Telangana and more equitable in terms of distribution. Therefore, each State has its unique demographic and socio-cultural profile, which must be kept in mind while designing the sampling methodology in any primary research survey. 

4. Gender Inclusivity: Females are vital consumers and influencers of product categories in Rural India, but men are likely to be key purchasers. Therefore, “whom to interview” becomes a pivotal question to answer while designing a survey. 

5.   Linguistic Diversity: India has 22 official languages besides numerous local languages, dialects, and colloquial words. Therefore, linguistic compatibility becomes essential for survey administration in Rural India. 

 Methodologies for Rural Research 

Some factors merit consideration while designing a methodology representative of the diversity of Rural India and are listed below:

  1. Regional Representation
  2. Adequacy of Sample Size
  3. Defining “Rural” and therefore a selection of villages 
  4. Other Imperatives

1.   Regional Representation 

In a vast and diverse country like India, robustly researching rural consumers requires reflecting heterogeneity and ensuring representativeness. For example, people in the North have attitudes and behaviours that are distinctly different from the population in the South. Similarly, other regions also have socio-cultural nuances that often colour their opinions and attitudes, especially on sensitive issues. 

Therefore, selecting Socio-Cultural Regions or SCR-s is often the starting point to decoding rural consumer behaviour. The regions make it easier to contextualize people and their behaviour for prevalent agrarian practices, social and cultural nuances, and crop-season-driven income and consumption patterns. 

2.   Adequacy of Sample 

The population spread for different States in India varies a lot. For example, the most populous State, Uttar Pradesh, accounts for almost 15% of India’s population. On the other hand, the tiny State of Goa accounts for less than 0.5% of India’s population. Therefore, in a pan-India or multi-State survey, stratification of a sample by State becomes essential. Generally, States are categorized into different population bands such as high population states, medium population states, and low population states. The sample is then fixed for each band in terms of their population size to ensure adequate representativeness. 

The sample size would also depend on other factors such as the granularity of data required within a State, and heterogeneity of population characteristics within a State et al.  

3.   Defining Rural 

The Census of India defines a rural village as a settlement that has the following three characteristics:

  • A population of fewer than 5,000 people
  • <75 percent of the male population employed in non-agricultural activities and 
  • Population density of fewer than 400 people per square kilometre

However, for commercial purposes, this vast and huge area coverage is logistically challenging to cover for any marketing company. Therefore, for practicality and feasibility, different definitions of rural are followed. For most companies, the “hub and spoke model” defines rural coverage as mapped to their distribution channels. They consider villages in the immediate vicinity or within a defined radius of the feeder towns. Last mile connectivity is a challenge for most companies in Rural India. Covering interior or remote parts of rural is not considered to be a viable option. Villages at the periphery of small towns/feeder towns that can be accessed easily become the “immediate” potential for targeting Rural India. This is also called the “Ringing Method” of village selection. 

The above has a profound implication for researchers in terms of designing a suitable methodology and, more importantly, for deciding on an appropriate sampling methodology for the research.  

4.   Other Imperatives: There are a few other imperatives that one must be cognizant of while designing rural research methodologies: 

o  Permissions: Before any fieldwork in villages starts, it is crucial to approach the village head called the “Sarpanch” to apprise them of the survey and its objectives and take approval to conduct fieldwork. This is a formal authorization from the village head that they have been informed about the study and grant their formal permission. 

o   Village Map: You are required to draw a rough map of the village before the start of fieldwork to understand the village’s layout and the critical physical structures —like the hospital, school, panchayat office, temple, or any other place of worship. The team supervisor generally does this exercise with the help of a local person from the village, such as the sarpanch/ schoolteacher or any other elderly person. As the rural dwellings/ households in a village are not structured or follow a pattern (unlike the urban dwellings), the maps also help sample and select clusters/households in that village. 

o   Use of colloquial terms: Given the linguistic diversity of Indian States, specific phrases or words have colloquial interpretations. Therefore, for ease of understanding and comprehension of questions by the respondents, it is generally recommended that local phraseology is inserted into the instrument basis inputs from an informed local person such as the schoolteacher. 

With the focus of multinational companies and marketers now shifting to rural consumers, rural market research in India will likely increase spending in the near future. It augurs well for market research companies to actualize this opportunity to sharpen their research methodologies with rural consumers in mind. At the same time, researchers should be mindful of some of the challenges of rural research, such as low literacy levels, low tech savviness, poor connectivity, and a heterogeneous population, while designing research methodologies for this group. 

Kadence International helps leading brands make game-changing decisions. If you are looking for a research partner to help better understand your customers, we would love to help. Simply fill out our Request for a Proposal here.

At Kadence International, market researchers are at the heart of our team. In this series, we honour some of our colleagues, asking them about their experience working within the market research industry and what the future holds for the industry.

Name: Arpan Jhingran

Position: Project Manager

Kadence Office: New Delhi, India

I joined the Kadence India office in February 2010.

What does a typical day or week look like for you in your current role? Or what are your primary responsibilities/duties?*

Client Servicing is a significant part of what I do for the project life cycle, starting from sharing the cost to the invoice raising and updating the client and senior management on a timely basis. Our responsibilities include solving the field operations query by speaking to the client and finding the best solution.

Tell us a little about your career so far. What was your first job or role? How did you get started with market research? What other roles (in market research) have you had?*

I had worked with ACC Concrete as a management trainee at their Mumbai location, then moved to Delhi. Kadence is my first company in the Market Research industry. I joined as Operations Executive and was promoted to Senior Field Executive. I have been a project manager for the past five years.

Did you always know that you were destined for a career in market research? Why? If not, what did you actually think your career would be, or what did you say you wanted to do “when you grew up” as a child?*

During my MBA, I was fascinated with the Market Research industry because of its involvement in every possible sector. I was also intrigued by the prospect of using different methodologies for deriving results and presenting those as findings and insights to brands.

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What is your favourite quote or the motto you live by?*

Live and let live

What is the best thing about the culture at Kadence?*

I love the open culture at Kadence, which allows you to work freely and use your experience to guide you in the right direction.

What essential skills are required to excel as a Market Researcher?*

Excellent and clear communication is paramount to building trust with the client.

What is unique about the market research field / and or consumers in your country/ region?*

There is much enthusiasm for trying new products or giving their opinions on topics we need data and insights on. 

What is it about the field of market research you wish everyone knew?*

Much hard work goes behind every outcome to improve any product or idea.

What piece of advice would you give someone looking to start a career in market research?*

Clear communication is the key in any service industry to building confidence, and I would like to advise anyone inclined to join market research to hone their communication skills. 

How have you seen consumer behaviour change in the past 2 – 3 years as a result of the pandemic? If so, what are your main observations?*

The expenditure pattern has changed drastically. People are ready to spend on what they want rather than save for the future. 

For one of our projects in the healthcare field, we had to visit government hospitals and understand the conditions and processes by speaking to doctors, medical staff, and patients. Also, we had to talk to doctors without medical degrees and use medication based on their experience. That was great learning of my career.

If you could time travel into the future ten years, how would market research evolve?*

I see market research moving online compared to the current scenario of being an offline-dominated industry.

What do you like to do in your free time when you are not working?  *

I enjoy spending time with my family or sometimes going out with my friends.

What is something you have accomplished in work or life that you are particularly proud of?*

A beautiful family.

What is your all-time favourite food or cuisine?

South Indian Food (particularly Dosas).

What is your all-time favourite travel or vacation spot, and why?

I love hill stations because of the drive up there and the weather. 

How has Kadence’s remote work opportunity allowed you to achieve a work/life balance? We would love an example.

It gives me some more time to spend with my family.

At Kadence International, market researchers are at the heart of our team. In this series, we honour some of our colleagues, asking them about their experience working within the market research industry and what the future holds for the industry.

Name: Shiraz Haider

Position: Associate Project Director

Kadence Office: New Delhi, India

I joined the Kadence India office in April 2021.

What does a typical day or week look like for you in your current role? Or what are your primary responsibilities/duties?

A typical day consists of discussing aspects of briefs, research documents, and reports with clients, coordinating with our field teams, and Internal team discussions.

Critical duties involve:

  • Being a key point of contact for all clients.
  • Troubleshooting their problems.
  • Ensuring quality output and insights are shared with them.

Tell us a little about your career so far. What was your first job or role? How did you get started with market research? What other roles (in market research) have you had?*

Market research was an elective in my MBA program, and Mr. Anirban Chaudhury, VP of FCB ULKA, took the course. The idea of understanding consumers and their issues being core to a brand’s success first registered with me there. Doing well in the class set up the foundation for my interest in Qualitative Research.

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Did you always know that you were destined for a career in market research? Why? If not, what did you actually think your career would be, or what did you say you wanted to do “when you grew up” as a child?*

Marketing and brands were the subjects that I was always excited about. Keeping a tab on recent launches in the field of technology and automobile was also a hobby for me, and after my graduation, I wanted to pursue a career in a marketing-related field, so I joined an MBA course. While market research came into my dictionary quite later, the broad idea of doing something related to brands was always evident.

What is your favourite quote or the motto you live by?*

Life consists of two types of days —one for you and one against you, so when things are going well for you, don’t be reckless, and when things are against you, be patient.

What is the best thing about the culture at Kadence?*

Openness to new ideas and genuine empathy for employees.

What essential skills are required to excel as a Market Researcher?*

Being a good observer and listener are the most important skills because only then can you notice even the most minor behavioural insights.

What is unique about the market research field / and or consumers in your country/ region?*

In a diverse country like India, purchase habits vary a lot, even within one geographical area, and to understand such minute nuances getting to the right target that fits the brand/product is crucial.

What is it about the field of market research you wish everyone knew?*

Multitasking is the keyword in market research. I didn’t know how important that was when I first started. ‘

What piece of advice would you give someone looking to start a career in market research?*

If you are open to new challenges, genuinely like to get in the thick of things while interacting with actual consumers, and enjoy travelling the world, this is the job for you.

How have you seen consumer behaviour change in the past 2 – 3 years due to the pandemic? If so, what are your main observations?*

Consumers are now far more digitally savvy; before every purchase, they want to see reviews and vlogs regarding products to check if they fit into their lifestyle, and therefore, organic marketing is doing wonders for brands as compared to conventional advertising.

Tell us about a project that you worked on (in market research) that you found particularly rewarding, interesting, or enlightening and why?*

The project was about a premier Motorcycle brand that wanted to change its brand perception from being ultra macho to a stylish yet VFM brand. However, after our Pan-India research with actual bikes, we realised its brand identity was non-negotiable with consumers, so the brand decided not to compromise its DNA and perception. I found it interesting that consumers don’t just buy a product; they want the brand to add to their projected selves, and that aspect is the critical factor where premium pricing can come in.

If you could time travel into the future ten years, how would market research evolve?*

In the next ten years, UI/UX research will be a crucial enabler for brands, AI-enabled data capturing will be the order of the day, and connecting with a diverse set of consumers will be far easier than today. Moreover, online research would be a preferred medium of research by clients.

What do you like to do in your free time when you are not working?  

I like to travel, read books, and cook for my family and friends.

What is something you have accomplished in work or life that you are particularly proud of?*

I have become a more well-rounded person due to the nature of the job, as we interact with a diverse set of people every day, from common people to top industry experts/diplomats, and all of them help you to imbibe subtle changes in your life subconsciously.

What is your all-time favourite food or cuisine?

Mughlai and Chinese.

What is your all-time favourite travel or vacation spot, and why?

Turkey. I like the mix of Asia and Europe.

How has Kadence’s remote work opportunity allowed you to achieve a work/life balance? We would love an example.

Immensely: Being a father with a six-month-old, I appreciate that I’m not missing out on the joy of my child growing up while ensuring my work doesn’t suffer either. 

At Kadence International, market researchers are at the heart of our team. In this series, we honour some of our colleagues, asking them about their experience working within the market research industry and what the future holds for the industry.

Name: Mary Ann Tarnate-Lamigo

Position: Senior Project Manager

Kadence Office: Philippines

When did you join Kadence?

I joined Kadence’s Indonesia office in February 2019.

What does a typical day or week look like for you in your current role? 

My primary responsibilities include:

  • Acquiring new business for the company.
  • Establishing good client relationships.
  • Building excellent partnerships with our clients.  

Tell us a little about your career so far. What was your first job or role? 

I started in Market Research as an Administrative Assistant and then joined Field Operations and eventually moved to the Client Service team.

Did you always know that you were destined for a career in market research? Why? If not, what did you actually think your career would be, or what did you say you wanted to do “when you grew up” as a child?

I dreamed of being a stewardess when I was a kid, as travelling to multiple countries fascinated me. But I don’t qualify because of my height.

What is your favourite quote or the motto you live by?

God always has a purpose and plan for you. He will not allow things to happen if they are not suitable for you and others.

What is the best thing about the culture at Kadence?

We work as a TEAM. We grow as a TEAM. No boundaries. No discrimination. Company opportunities are open to everyone.

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Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

What are essential skills required to excel as a Market Researcher?

You need advanced analytical and presentation skills for a career in market research. 

What is unique about the market research field / and or consumers in your country/ region?

You learn so much from market research. This knowledge allows room for innovation from time to time as the market grows and improves.

What is it about the field of market research you wish everyone knew?

I want people to know that being in Market Research is a massive advantage for anyone who wants to understand and know how things work. 

What piece of advice would you give someone looking to start a career in market research?

Market research is not an easy journey. You will have to invest time and effort. You also need patience, which eventually will compensate you and help you to grow as a person.  

How have you seen consumer behaviour change in the past 2 – 3 years due to the pandemic? If so, what are your main observations?

Yes, I have observed a significant shift in consumer behaviour over the past few years. Remote work is one such shift. Pre pandemic, companies were not entirely open to remote work; but now, an increasing number of organizations are embracing the new culture.

Tell us about a project you worked on (in market research) that you found particularly rewarding, exciting, or enlightening and why?

We did a study on launching a new product in the market, a Customer Satisfaction study, and a Consumer Tracking study; all were exciting and rewarding. However, I enjoyed the Consumer Tracking study the most because you continuously discover how and why consumer behaves. 

How would market research evolve if you could time travel ten years?

Market research will probably provide a more stable or reliable profile of the consumers in the Philippines – aligned across all Market Research companies. It will utilise more innovative approaches to market research methodologies, and everything will likely be online.

What do you like to do in your free time when you are not working?

I enjoy pampering myself by going to a spa, grabbing a coffee, and connecting with friends. And, of course, bonding with my parents and family.

What is something you have accomplished in work or life that you are particularly proud of?

My daughter graduated from school. I consider this a significant accomplishment, and I am proud of it.

How has Kadence’s remote work opportunity allowed you to achieve a work/life balance? We would love an example.

Remote work has made me more productive. I do not have to spend time traveling to and from the office. Owing to the boost in productivity, I can now spend my weekends with the family.