A beautiful growth formula

The cosmetics and beauty industry has a new growth formula, and they are increasingly expanding their sales in tier-II and-III towns with products priced 20-30 per cent lower vis-à-vis the existing range offered in metros, along with smaller product sizes.  In addition, with organised retail expanding in smaller towns on a pan India basis, these players are increasingly relying on cosmetics to ensure steady footfall throughout the week, pointed out marketing consultants.

It’s no surprise that leading MNC players and domestic brands are wooing consumers with an array of cosmetic products. For instance,L’Oreal India has recently launched
hair colour, which is priced at Rs 39 for 40 gm, and it is part of this MNC’s strategy to increase its target audience by nearly four-fold to 150 million consumers by ’20.

Satyaki Ghosh, Director – Consumer Products Division at L’Oreal India, said, “Growth lies in the interiors of the country and we have developed products, especially for this segment.”

Similarly, Maybelline India had earlier launched Maybelline Color Show nail polishes priced at Rs75, less than half of the price of its existing range. It does not end there, and Modi Revlon, a leading player, has announced that it will shortly launch a brand of colour cosmetics priced at about 60 per cent lower than the existing range as well as  aggressively expand its reach in smaller towns.

U K Modi, Chairman and Chief Executive at Modi Revlon, said,“Girls in smaller towns are ‘experimenting’ with different brands and it has created large opportunities for us.”

In the premium segment, too, Paris-based Sephora is attempting to widen its product repertoire below Rs 1,500 and also ensure greater relevance of its products amongst local consumers. Sepohra operates in the country via its partnership with DLF Brands.

Biju Anthony, GM, Baccarose India, said, “The cosmetics and beauty segment has evolved considerably over the last five years, and international brands are paying greater attention to pricing, and products relevant for Indian consumers.”

Baccarose is a leading distributor of international cosmetic brands including Guerlain, Clarins and Sisley. The expansion of cosmetic majors in smaller towns is expected to play a key role in the doubling of sales in this industry to $ 2.7 billion by ’20, according to a recent report by CII.

Clearly, the growth opportunities in the cosmetics and beauty industry just can’t
be ignored by marketing managers.