Shiseido Co. is launching its first makeup brand in India in almost a decade, bringing the popular NARS Cosmetics line to local beauty shops as it seeks to carve out a share of the booming consumer market.
The largest cosmetic company in Japan has joined forces with Indian retailer Shoppers Stop Ltd.’s Global SS Beauty Brands, announcing plans to establish 14 stores in New Delhi and Mumbai during the current year, according to Nicole Tan, head of Asia Pacific at Shiseido. Additionally, NARS will be promoted through Sephora shops, owned by LVMH Moet Hennessy Louis Vuitton SE, as per Tan.
Indian consumers are “immensely” interested in color cosmetics, Tan said in an interview, referring to the industry term for products like eyeshadow, lipstick and blush. “We are also entering into a segment that speaks to the consumer who’s looking for individuality, particularly in the higher-end, premium prestige segments.”
International brands are increasingly attracted to the world’s most populous nation, optimistic that its youthful consumer base and growing affluence will drive long-term expansion. A report by research firm Mordor Intelligence predicts that India’s cosmetics market will experience a yearly growth of 4.2% over the next five years, propelled by the burgeoning popularity of the color cosmetics sector.
The recent launch could also serve as a means for Shiseido to broaden its revenue streams. In the first half, the company derived approximately 25% of its ¥494 billion ($3.3 billion) in sales from Japan, with a similar percentage coming from China. The remaining 6.2% was attributed to the Asia-Pacific region.
Shiseido’s recent entry into the Indian market marks a new beginning, in contrast to a prior withdrawal. In 2015, the company closed down its subsidiary, which was responsible for selling Za cosmetics, just a little over a year and a half after initially venturing into the Indian market, citing underwhelming business performance.
The performance of NARS in the market could also impact Shiseido’s future product offerings in India. Tan mentioned that Shiseido intends to introduce additional brands to cater to the growing demand from tech-savvy consumers with a strong online and social media presence, who are increasingly aware of international brands. However, she did not provide specific details regarding these upcoming introductions.
“India is a market that’s high potential” but it’s also a market that is not a fast play, she said. “India is known as a market that you have to invest, nurture, and grow.”
