Author: Jennifer Dawson | Freelance Writer
India’s cosmetics and cosmeceutical market is set to grow to an impressive USD 20 billion by 2025, rising steadily at a compounded rate of 25%. As noted by India Times, “The Indian cosmeceutical and cosmetics industry has an overall market standing of USD 6.5 billion from a global market of USD 274 billion.” The forces driving this tremendous growth include a far greater awareness of beauty products, a higher purchasing power among women, and the globalization of beauty, with influencers attracting millions of followers from the U.S., Asia, Europe, and the rest of the world. International brands seeking to break into the local market need to take proactive measures to raise awareness about their brands, but they also need to be aware of the current state of the beauty industry in India.
Seeking opportunities for greater awareness
Cosmoprof India, which will run from September 10 to 11, 2018, is an international exhibition devised to give international skincare brands the opportunity to introduce everything from anti-aging creams to makeup, into the Indian market. Already a big hit in Bologna, Las Vegas, and Hong Kong, the show will offer networking opportunities to manufacturers, suppliers, importers, etc. from a wealth of countries. Companies will hail from a plethora of sectors from the beauty industry, including hair and nails, beauty and spa, perfumery and cosmetics, manufacturing and raw materials and the like. The event will feature over 900 companies, with each country having their own pavilion. Last year, a bevy of countries took part, including Australia, France, South Korea, Spain, Germany, Indonesia, and The Netherlands.
Growing demand for advanced skincare products
As noted by Shiseido India’s Managing Director, Benjamin Suzuki, “Overall, there is an immense economic optimism championed by a young Indian population that is aware, well-traveled and more exposed and connected than ever before. This growth can also be attributed to the increased initiatives by both domestic and international beauty players who are ensuring that country is aligned with the global products and services offered.” The international savvy of Indian women means that companies from abroad need to be very much in tune with global trends, offering women the very latest products and technologies. This year, the global industry is being dominated by products such as free radical fighting supplements (e.g. glutathione), cosmeceuticals (such as niacinamide), and probiotic skincare. Nanotechnology, which enables micro-particles in skin products to penetrate more deeply into the skin, is another powerful trend manufacturers should be in tune with.
Making the most of tax cuts
It is vital for companies wishing to appeal to the Indian Skincare Market to be aware of tax rates for different products. As noted by Euromonitor International, “The majority of hair care products in India have been burdened with a higher tax rate, from around 24% to 28%, whereas hair oils (under conditioners), the largest contributor to hair care sales in India, will benefit from a decrease to 18% as it has been classified as a necessity product.” Lower tax rates for natural oils mean that international players could target everyday consumers by offering affordable hair care products containing top rate oils such as argan, jojoba, or almond. The impact of tax rates on final prices means that those in the beauty industry need to be well aware of the impact of national laws on demand.
International brands such as Shiseido, MAC or Bobbi Brown are showing how to take advantage of the growing demand for top-grade beauty and skincare products in India. Knowledge of the law, market research into both local and international trends and demand, and seeking out opportunities for international networking are just a few ways that international brands can reap the rewards of what is touted as a powerful industry that reflects the rising economic power of women in India.
Interested to explore opportunities in the Indian Skincare Market. Maier+Vidorno can help you to choose the appropriate model for your business in India – and to overcome the bureaucratic hurdles. To succeed in India, you need a clear market entry strategy and there are several key factors that you need to analyse before making your investment. Our Consulting team helps companies with all aspects of entering the market while our operational teams bring years of experience dealing with the everyday issues that international companies face. Get in touch with out experts!