Indian cosmetic & skincare market is booming like never before. As per the report generated by Confederation of Indian Industries (CII), the total Indian beauty and cosmetic market size currently stands at USD 950 million and showing growth between 15-20 percent per annum. In fact, India is emerging as largest cosmetic consuming country owing to the recent growth drive. More and more international brands are foraying in to India to tap booming cosmetic market. There are various factors which is causing spurt in this segment.
Increasing awareness and growing income
Despite the economic slowdown per capita income has increased drastically in recent times. There is emergence of new wealthy middle class in India, which is quite liberal on cosmetic spending. Addressing the same, Samir Modi, Managing Director – Colorbar Cosmetics Pvt Ltd says, “The willingness to look attractive and crave to enhance personality in a better way is seeding in the Indian consumer. The rising purchasing power and growing fashion consciousness is an ultimate reason that backs it. With the growing education, corporate culture and the eye catching stardom will fuel growth in the industry. The estimated size of the market would be around RS 360-400 billion growing at the CAGR of 19-20 percent.”
Striking a similar note, Sameer Prasad, CEO, FACES Cosmetics India, says, “Color cosmetics are one of the rapidly growing segments of the Indian cosmetics market. Increasing awareness and growing income levels are some of the factors driving the growth in this sector/industry”.
High streets or malls
Undoubtedly, building brand image as important as strong distribution network. One of the dimensions of building trust is through the value that consumers associate with the stores where the product is available. Stores can ideally be located at high streets or high end shopping malls. These two are equally important destinations, brands which have established themselves in high streets aims to foray shopping malls or vice versa. Speaking on the same, Modi shares, “Customers have experienced our products in high street so the time is to strengthen the trust and image through exclusive stores that are enroute to high brand exposure, recall and range of effective products further. The belief in penetration, quality, range and brand exposure has propelled us to choose both the mediums for our presence”.
Big brands are expanding in India
Colorbar contributes the fourth largest market share in India. Sharing the expansion plan, Modi says, “We are looking for more 4-5 prospective places to open up a store.” Currently, Colorbar has presence in Hyderabad, Bangalore, Mumbai, Chandigarh, Pune, and Kolkata and six stores in Delhi/ NCR.
Elucidating the expansion plan, Prasad shares, “This year our focus for expansion will be North India and we are soon planning to explore the markets of Dehradun, Mohali and Chandigarh with our exclusive stores”. He adds further by saying, he added, “This is a key stepping stone in our ambitious expansion plans for Indian market and by the end of the year; we see our color range present in over 55 such exclusive FACES stores PAN India”. Presently, Faces has twenty five exclusive franchisee operated stores and five kiosks, which are successfully operating in India.
Moreover, yet another international brand Seacret has launched its flagship store at Phoenix Market City, Mumbai. Seacret is a prominent Israeli Skin Care brand which is available in more than 600 locations across the world.