Amazon India bets on premium beauty boom in tier-2 cities with 100 new global brands

/3 min read

ADVERTISEMENT

Amazon India’s premium beauty segment is currently growing 1.5x year-on-year.
Amazon India bets on premium beauty boom in tier-2 cities with 100 new global brands
Siddharth Bhagat, Director – Beauty, Amazon India Credits: Amazon

Amazon India is doubling down on premium beauty as demand from tier-2 and smaller cities accelerates, prompting the ecommerce company to bring more than 100 new global beauty brands to its marketplace this year.

The expansion comes at a time when more than 50% of Amazon India’s premium beauty demand is now coming from tier-2 and tier-3 cities, according to Siddharth Bhagat, director, Beauty, Amazon India. Cities such as Thrissur, Dehradun, Patiala, Guwahati and Kolhapur are emerging as key growth markets for the category.

“What has happened is that the entire access problem has gone away,” Bhagat told Fortune India. “Consumers in smaller cities always wanted great products and international brands.”

Amazon India’s premium beauty segment is currently growing 1.5x year-on-year. Bhagat said the business had grown over 50% year-on-year last year with around 200 premium brands housed on the platform, and the company expects momentum to continue as it expands the portfolio to more than 300 brands with 100-plus new additions in 2026.

The incoming lineup includes global names such as Dolce & Gabbana, Laura Mercier, Elemis, Urban Decay, Aveda, La Roche Posay, Biodance, Eucerin, Paula’s Choice, Riifs and Anessa, along with a wider selection of Japanese, Australian, French pharmacy and Middle Eastern fragrance brands.

Bhagat said skincare continues to be the largest gateway category for premium beauty shoppers, followed by haircare and makeup. Professional haircare, in particular, is emerging as an entry point for premium adoption outside metros.

The company is also seeing sharp growth across niche segments. K-beauty and French pharmacy brands have nearly doubled year-on-year, while Middle Eastern fragrances have emerged as the fastest-growing segment with nearly 3x growth. Premium men’s grooming and D2C haircare brands have each grown more than 2.5x year-on-year.

Men’s grooming, in particular, is beginning to scale rapidly, with consumers increasingly experimenting with beard oils, body groomers and multi-grooming devices. Bhagat said the category is still at an early stage but witnessing significant momentum.

AI-led discovery and repeat purchases

Amazon believes growing awareness through influencers, combined with faster delivery and AI-led discovery, is helping premium beauty scale beyond metros.

Amazon works with over 1.2 lakh content creators, many of them based outside large cities, helping consumers discover trends and products early. “Consumers are very aware now. They know formulations, ingredients and what specific brands stand for,” he said.

The company is also leaning heavily on AI-powered tools such as Rufus, Amazon’s generative AI shopping assistant, which helps users compare ingredients, get personalised recommendations and discover products in English and Hindi. Other features include Amazon Lens for visual discovery, Virtual Try-On and SkinCare Advisor.

“We do see a definite increase in conversion when consumers engage with these experiences,” Bhagat said.

Amazon said new customer acquisition in premium beauty is growing at 22% year-on-year, while one in three premium beauty customers makes a repeat purchase within a year. Prime members repeat purchases twice as often as non-Prime users.

The company is also betting on quick commerce through Amazon Now, which offers ultra-fast delivery for thousands of beauty products across cities including Delhi-NCR, Mumbai, Bengaluru, Hyderabad, Chennai, Kolkata, Jaipur, Lucknow and Chandigarh.

Top-selling categories on Amazon Now include skincare, haircare and bath and body products, while trending subcategories include face washes, serums, shampoos, hair serums and sunscreens. Luxury beauty brands available on the service include Forest Essentials, Wella, L’Oréal Professional, The Ordinary, Kama Ayurveda and Kérastase.

Bhagat said repeat buying behaviour is particularly strong on quick commerce. “Prime customers who are leveraging Amazon Now are shopping three times more frequently than before,” he said.