Here are Four Disruptors of Indian Modern Beauty Retail Scene

The exponential growth of organised retail, rising number of working women, changing lifestyles along with high disposable incomes are few factors which are driving growth in this segment
cosmetic

India has the rich heritage of heritage of personal care products, beauty products and cosmetics, as well as aesthetic makeup products. Over the years, due to the heavily influence of western trends, Indian beauty and retail market is witnessing newer products being introduced, coupled with an increasing number of domestic and international manufacturers gradually extending their presence in India.

 

The exponential growth of organised retail, rising number of working women, changing lifestyles along with high disposable incomes are few factors which are driving growth in this segment.

AnAssocham report titled “Indian Cosmeceutical, Cosmetics & Personal Care Market 2022” highlights that the domestic market for personal care products is projected to grow at a CAGR of around 22% during the period 2017-2020. As per the report, the market size of India's beauty, cosmetic and grooming market is expected to touch $ 20 billion by 2025.

The report also indicated that demand for premium products is growing in India as Indian consumers are moving from functional products to more advanced and specialised cosmetic products. Due to this, many international brands like Revlon, Avon, Burberry, Calvin Klein, Cartier, Christian Dior,Estee Lauder, Yves St. Laurent, Tommy Hilfiger, Max factor, Max Mara, Shiseido, The Body Shop, Maybelline New York, MAC amongst other like these have been present in India for quite some time now.

Here are few potential disruptors transforming beauty retail:

The Great Indian Mall Story

 

The great Indian mall story began in early 2000 when there were hardly three or four malls existed. Since then, there has been no looking back. As per the retail real estate consultancy, JLL Indian retail will see 10 million square feet added by the end of 2019. Shopping malls are the biggest drivers of beauty retail. As per the latest market buzz, Delhi’s Select Citiwalk mall alone is expected to bring at least 10 beauty and fashion brands to the mall by the next financial year including international brands Tom Ford Beauty and Aveda Hair Care. Moreover, large format retailers such as Shoppers’ Stop, Central amongst others, which might constitute a small chunk of the total retail spending due to massive fragmentation of the Indian retail channel, is largely present via malls. For example, French multi-brand retailer Sephora has opened its 19th store in Hyderabad at Sujana Forum Mall.

 

Future Group’s Beauty Push

 

Future group owned Big Bazaar, which operates more than 500+ hypermarkets pan India, has signed a joint venture with Mibelle Group to launch the entire range of Swiss Tempelle. As per the latest market reports, Future group is all set to acquire personal care products brand Iraya hair from Athena Life Sciences. If this acquisition happens then it will certainly provide give an edge to Future Group over Baba Ramdev’sPatanjali, which dominates the ayurvedic personal care market in India.

 

E-commerce Push

 

The online beauty eco-system has become extremely favorable for retailers like Nykaa, Purplle, and NewU to capture the imagination of shoppers looking for access to global brands in the category. Though these players are hardly five to six year old, they have managed to get traction successfully in this short period of time. Moreover, according to a join study by Google and Bain & Company report, beauty and hygiene-related shopping searches on Google are the third highest after the apparel and mobile phones.

 

Nykaa has emerged has as undisputed leader in this segment with global  hefty brand presense including MAC, Estee Lauder, Clinique, NYX, Bare Essentials, Bobbi Brown etc. As per the latest market report, this five-year-old firm is expected to raise Rs 100 crore from the Singapore-based investment firm at a valuation of Rs 5,027 crore.

 

Disruption by Small Packaging

 

Small packs are becoming a hot trend in beauty and cosmetic industry in India. Many big MNCs and domestic players such as Nykaa are riding high by embracing the sachet concept. This downsizing helps the brand in increasing sales by reaching a wider audience. In fact, luxury retailer MAC Cosmetics offers mini-versions of its best-selling shades in lipstick, lip gloss and pigments. 

 

No doubt, India is a fast changing market where challenges are there for sure, but with high growth  assured, this is the right time when one should thinking of pushing the India agenda up.

 

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