Decoding Market Segmentation : Utilising Cluster Analysis for Cosmetics Market Expansion

Cosmetics have become a crucial part of everyday life, helping people express themselves and feel confident.People are becoming more beauty-conscious, and the trend is on the rise.Every day sees the arrival of new products and companies, each vying for attention, but only a few endure the test of time, securing their place in the market.Cosmetics market is facing serious challenges to meet the increasing expectations and demands of the consumers.To thrive in the cosmetic industry, the companies have to decode how certain crucial factors influence consumers' buying choices.This study delves deep into understanding the dynamics of consumers' cosmetics buying behaviour, analysing the impact of various influential variables.The research took place in March 2024 across six cities in North-Western Maharashtra.A questionnaire, utilising snowball sampling, was distributed to consumers aged between 16 to 30 years.The sample comprised 222 respondents, with 122 female and 100 male participants.Principal component analysis was first used to identify key variables influencing consumer behaviour and then the consumers were grouped using cluster analysis to uncover distinct consumer segments.