Rakhi BAHL
Cosmetics and makeup products have been a part of Indian culture and tradition since centuries.
In the past, beauty products were mostly homemade, using herbs and ingredients locally available. Traditional products such as henna (a powdered dye from the henna tree) sandalwood paste, turmeric and kohl (black dye worn around the eyes) hold a special place in Indian culture.
Today, India has a plethora of products both global and Indian that cater to the tastes of the Indian population. Globalization, technology, innovation, and Ecommerce have changed the face of the Indian Beauty and Personal Care industry making it one of the fastest growing sectors in India.
As per a report by Redseer Consulting, India’s cosmetics market will touch $20 billion by 2025, growing at 16.72% over a period of five years. By 2025, India will be among the largest cosmetics consumers, with a 5% market share in the global beauty pie.
Why are Indian consumers interested in global beauty brands?
Rising disposable incomes, increasing brand awareness and along with a cultural shift towards appearances and grooming has attributed to a rising demand for global beauty brands in India.
Sustainability, ethical consumption, cruelty free products are the new norms in the industry.
Quality and chemical free products with a focus on natural ingredients are major factors that attract Indian consumers towards global beauty brands. Hence, many international brands are looking to enter or expand their reach in India, for example in the past one year, brands like Fenty Beauty by Rihanna, Rare Beauty by Selena Gomez, and Nars have entered India. Laura Mercier, a French-American luxury make-up brand has also launched online in the country in 2023.
Factors contributing to the growth of Indian cosmetics Industry in India :
- Rising disposable incomes : India's growing middle class with double income households and rising disposable income are a major factor contributing to the increased focus on personal wellbeing and beauty enhancement.
- Ayurveda and demand for natural and organic products : One of the most prominent trends in the beauty market is the customers demand for natural and organic products that are chemical free and made with natural ingredients.
- Personalized beauty offerings : In a country as diverse as India, customers are looking for products that are tailor-made to their likes and preferences. Customized skin care and make up routines that offer a personalized experience are gaining prominence.
- Growth in Ecommerce and Retail outlets: Increased internet penetration and the burgeoning growth in retail outlets, has led to easy accessibility to health and beauty products. Convenience, competitive pricing and a wide range of products have led to a massive rise in demand for these products.
- Digital Influence : A rise in social media platforms, influencers and beauty bloggers have changed the way that companies are promoting their products. Companies seek to woo their consumers into buying their products by offering more personalized solutions, that are being promoted by bloggers and influencers that the customers can connect with.
- Increase in male grooming : The India Men’s Grooming Market is estimated to grow at a CAGR of around 12.1%., 2024-30₂. As more and more men focus on their appearance, personal well-being and hygiene, the male grooming market is poised to grow in leaps and bounds.
Cosmetics market in India
India’s cosmetic market can be divided into products that cater to the mass market category and those that are in the luxury category. The burgeoning consumer base and growing purchasing power, has led to tremendous growth in both these categories.
The cosmetics sector in India is highly fragmented, with close to a 100 organized players, including multinationals. While international players dominate the luxury market in India, there are many home grown and indigenous brands that have a strong presence in the mass
market category. The most popular brands in the mass market category are M.A.C., Lakme, Maybelline., MyGlamm, Revlon, Sephora, l'Oréal Professional, Sugar Cosmetics, Nykaa and Colorbar. Whereas, in the luxury space, brands such as Lancôme, Kiko Milano, Estee Lauder, Bobbi Brown, Clinique, Dior, Chanel and Clarins have a strong presence in India.
French Brands present in India
- L’Oréal India: : L’Oréal is a French company that entered the Indian market in 1994 and has a very strong presence in India in both the mass market as well and the luxury space. Today they have a total of 15 brands and have strong presence in both the mass market and the luxury space in India: mass market products, (L’Oréal Paris, Garnier, Maybelline New-York and NYX Professional Make up); hair and beauty salons (L’Oréal Professionnel, Matrix, Kérastase, Cheryl’s Cosmeceuticals and Decleor); and selective distribution for high-end brands (Kiehl’s, Yves Saint Laurent, Giorgio Armani, Ralph Lauren, Diesel and Guy Laroche).
- Chanel : Chanel opened its flagship store in Delhi in 2005 and now has 9 retails points across the country and its own e-commerce platform.
- Clarins : The Clarins brand operates in India through a partner distributor. It launched its first standalone store in India in 2018 in Mumbai and also operates two spas, one in Mumbai and the other in Goa.
- L’Occitane en Provence : a well-known French brand also entered this market via distributors and now is widely available across various retail outlets and online platforms in India.
- Sephora : Sephora is present in India through a partnership with Reliance Retail Ventures Limited (RRVL). Sephora currently has 26 stores across 13 cities in India.
- Other French brands that are currently available in India include La Roche-Posay, Avène, Yves Rocher , Bioderma, Rene Furterer, Uriage, Filorga, Caudalie etc.
How Expandys can help you
As the beauty and personal care industry continues to grow at a rapid rate in India, it opens up numerous opportunities for companies looking to enter the Indian market. With rising incomes and an increased focus on personal well-being and self-care, this sector is expected to grow at a tremendous rate over the next few years. Expandys can help companies to smoothly navigate the diverse and complex Indian marketplace with its experienced team and local network.
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