Cosmetic market across the globe is an interesting model to know. The cosmetics or beauty products industry in the world is one sector which remains resistant to the ups and downs of markets.
Coming to the Indian cosmetic market it is flooded with valiant international players who initially did not offer much scope for the domestic manufacturers as far as the high end or luxury products were concerned. However it is the middle segment, the affordable range that is protected with domestic manufacturers who do not offer much scope for imports of other nation’s products. Some of these brands include MATTLOOK, ADS, Wet & Wild, Miss Claire and Glam 21.
Also as the economy is growing, concurrently the income is rising too which is accelerating the living standards. There is a penchant for anything related to fashion which is becoming imperative to possess to be a part of the social circles and hangouts. It’s not just the celebrities, A- listers or the page 3; even the middle class women want to be in the same boat and want to replicate the trend. They do not want to get spotted wearing the same clothes, shoes, bags or watches and make-up is no exception!
Although there is an increase in income but the disposable income is not increasing at the same rate making expensive, high end and trending brands aspirational.
Growth in ageing population, usage of cosmetics by the youngsters is attracting domestic manufacturers to offer affordable price range but without compromising on quality.
Moreover students, housewives, young employees are increasingly looking for value for money products which provide a range of combined benefits of high priced premium products at a lower than premium cost. Domestic manufactures such as MATTLOOK, Miss Claire, Glam 21 and ADS are carving a niche by offering products with breakthrough technologies and radical effects. Besides the rapid change in market segmentation, cosmetic manufacturers have turned to product innovations and lower packaging styles for more placements in convenient stores and specialty stores to add more customers to their brand products.
The home-grown cosmetic brands are constantly innovating, keeping up with the trend and finding ways to bring down costs.
The market is driven by product innovations through new products or incremental benefits to existing products. Along with typical skin, lips and eye makeup, the newest trend is the blending of multiple benefits less than one beautifying product. And this too is available in the affordable segment.
The revolution of technology and internet advertisement is also facilitating to cut the other media expenditure for the domestic brand manufacturers, thus helping the cost saving.
So, advancement of technology and developed internet facilities has also made the customers more adapted for browsing their required products on line. Brand owners have taken the route of internet of mobile digital ads to be more nearer to their customers all times. This is helping the customers to gain the information of new domestic products, brand variants, SKU launches and outlet locations.
Apart from this customer can also compare the prices for different company’s products and reviews on the products which help the purchasing decision of the customer.
So, the domestic players have a better understanding of the Indian market which is helping them expand rapidly. They know what to imbibe from the international domain. They are putting up a good show with a slew of market trends and striking a perfect product and price balance!
The article has been penned down by Mr Yashu Jain, Managing Director MATTLOOK Cosmetics