The retail beauty and cosmetics market in India currently estimated at $950 million is pegged at $2.68 billion by the year 2020. Here is a report on why India is regarded as the safest haven for international beauty brands.
India’s beauty products are broadly divided into cosmetic products and skin care products. It is estimated that over 85 per cent of the market revenue comes from the women population; however, with the inception of male grooming category, men’s product has also seen a sharp rise.
Of the entire wellness industry which is poised to touch Rs 1,00,000 crore by 2015 with a CAGR of 15-17 per cent, from about Rs 70,000 crore in 2012, beauty care would continue to dominate the industry with almost 50 per cent market share.
“Overall, there is an immense economic optimism championed by a young Indian population that is more aware, more well-travelled and more exposed and connected than ever before. This growth can also be attributed to the increased initiatives by both domestic and international beauty players who are ensuring that country is aligned to the global products and services offered. These are exciting times to be in India and Shiseido’s Za has entered the market just when it is about to explode,” said Benjamin Suzuki, Managing Director, Shiseido India.
From sachet to salon professional range, the international brands are leaving no stone unturned to lure Indian consumers
Opportunities in Indian market
Betting high on the phenomenal growth foreseen ahead in the wellness and grooming sector, product quality and durable impact will be the prime differentiating factor for an international brand’s success in the country.
As per the recent FICCI report, the Rs285 -290 billion beauty care market has grown at a rate 15 to 20 per cent.The swift growth of the beauty business has not only encouraged Indian firms to encourage completion in the space, but has also lured numerous international brands to the country.
Elucidating on the same, Lori Leib, Creative Director, Bodyography, a boutique professional make-up line from USA, said, “Today in India, there are very few professional make-up lines that can cater to the wide range of salons and professional make-up artists across the country. With Bodyography cosmetics, the professional makeup artist is empowered to create a variety of looks, even at home.”
Similarly, Spawake, a premium skin care cosmetics brand, developed independently by Japan’s KOSÉ Corporation added their views over the opportunities offered by Indian beauty market.
“The skincare segment in the Indian market is flooded with natural ingredients based products. All Spawake products are formulated with Japan original sea-sourced active ingredients and developed under advance Japanese Technology with key ingredients seaweed extracts and sea salts. These ingredients being exotic are found majorly in premium skincare segment. Therefore, we seek to occupy a large share of the total space in premium mass segment in the future,” said Nomura San, Director& CEO, Spawake.
Changing trends & eCommerce
Capitalising high on the changing global trends and easy online presence, most of the international brands have paved the way to Indian market via leading online retail platforms like Flipkart, Myntra, Snapdeals and others.
“India is a dynamic market and beauty conscious consumers seek convenience and value propositions that meet their exacting requirements. While they are willing to experiment, they tend to stick to a brand that works well for them,” said Daniel Bauer, Lakmé Expert.
India's Lakmé is the current market leader, with a 17.7 per cent market share in cosmetics, according to the research agency Nielsen, and Lakmé has a reputation for aggressive expansion.
Bringing customised international products to suffice demand and skin type of Indian consumers, the international beauty brands have introduced range of products in the market. To name a few, Maybelline New York, Lakmé, L’Oréal Paris, Za, MAC, Bobby Brown are the brands who have entered into Indian beauty market via online and are currently dominating the cosmetics market.
Sharing her views over the products offered by International beauty brands, Puja Taluja, Bollywood Make-up and Beauty Expert said, “I completely rely on the International beauty brands, when it comes to experimenting global trends. HD foundations and Georgio Armani foundations are very good as they have great coverage. Bobby Brown has finally arrived in India with a fantastic range of colours when it comes to eye shadows, blushers or lipsticks. MAC also always introduces good range of products.”
The Indian Beauty and Wellness industry is picking a dynamic position in the globally. The country is seeing unprecedented growth across all categories, benefits and formats. The retail beauty and cosmetics market in India currently estimated at $950 million is pegged at $2.68 billion by the year 2020. The primary drivers for this is indeed the growing economic influence of India, not only in Asia, but worldwide.