The Indian luxury beauty market is expected to grow to USD 1.6 billion by 2028 and reach USD 4.0 billion by 2035, as highlighted in a report by Kearney and LUXASIA.
Rapid͏͏ Expansion͏͏ Drivers:
India͏͏ is͏͏ poised͏͏ to͏͏ be͏͏ one͏͏ of͏͏ the͏͏ fastest-growing͏͏ markets͏͏ in͏͏ both͏͏ Asia͏͏ and͏͏ the͏͏ world,͏͏ with͏͏ an͏͏ anticipated͏͏ compound͏͏ annual͏͏ growth͏͏ rate͏͏ (CAGR)͏͏ of͏͏ 14͏͏ per͏͏ cent.͏͏ This͏͏ growth͏͏ is͏͏ fueled͏͏ by͏͏ the͏͏ nation’s͏͏ overall͏͏ economic͏͏ development,͏͏ a͏͏ rising͏͏ middle͏͏ class,͏͏ and͏͏ a͏͏ more͏͏ discerning͏͏ group͏͏ of͏͏ luxury-conscious͏͏ consumers͏͏ keen͏͏ to͏͏ upgrade͏͏ their͏͏ purchases,͏͏ according͏͏ to͏͏ the͏͏ report.
The͏͏ luxury͏͏ beauty͏͏ market͏͏ in͏͏ India͏͏ is͏͏ set͏͏ to͏͏ experience͏͏ growth͏͏ similar͏͏ to͏͏ what͏͏ China͏͏ has͏͏ seen͏͏ over͏͏ the͏͏ past͏͏ 15͏͏ years.͏͏ As͏͏ a͏͏ result,͏͏ brands͏͏ need͏͏ to͏͏ enter͏͏ the͏͏ market͏͏ now͏͏ to͏͏ build͏͏ their͏͏ presence͏͏ and͏͏ capitalise͏͏ on͏͏ this͏͏ potential͏͏ growth.͏͏ The͏͏ report͏͏ noted͏͏ that͏͏ many͏͏ international͏͏ brands͏͏ have͏͏ recently͏͏ entered͏͏ India͏͏ to͏͏ seize͏͏ early-mover͏͏ advantages.
Continue͏͏ Exploring:͏͏ India’s͏͏ luxury market͏͏ surges͏͏ as͏͏ affluent͏͏ buyers͏͏ propel͏͏ growth
Navigating͏͏ Market͏͏ Complexities:
The͏͏ report͏͏ further͏͏ emphasises͏͏ that͏͏ India͏͏ is͏͏ a͏͏ complex͏͏ market,͏͏ with͏͏ its͏͏ vast͏͏ geography͏͏ and͏͏ ethnic͏͏ diversity͏͏ leading͏͏ to͏͏ varied͏͏ consumer͏͏ preferences͏͏ across͏͏ the͏͏ country.͏͏ It͏͏ suggests͏͏ that͏͏ brands͏͏ should͏͏ adopt͏͏ a͏͏ range͏͏ of͏͏ region-specific͏͏ (and͏͏ even͏͏ city-specific)͏͏ strategies͏͏ instead͏͏ of͏͏ relying͏͏ on͏͏ a͏͏ generic͏͏ or͏͏ one-size-fits-all͏͏ approach͏͏ to͏͏ achieve͏͏ success.
Wolfgang͏͏ Baier,͏͏ Group͏͏ CEO͏͏ of͏͏ LUXASIA,͏͏ stated,͏͏ “Now͏͏ is͏͏ the͏͏ time͏͏ to͏͏ enter͏͏ the͏͏ Indian͏͏ market.͏͏ However,͏͏ due͏͏ to͏͏ market͏͏ risks͏͏ and͏͏ the͏͏ potentially͏͏ expensive͏͏ learning͏͏ curve,͏͏ brands͏͏ require͏͏ expert͏͏ support͏͏ to͏͏ establish͏͏ a͏͏ successful͏͏ presence.”
Additionally,͏͏ brands͏͏ must͏͏ navigate͏͏ operational͏͏ and͏͏ regulatory͏͏ complexities,͏͏ including͏͏ product͏͏ registration͏͏ and͏͏ importation,͏͏ while͏͏ optimising͏͏ their͏͏ supply͏͏ chain͏͏ configurations.
Satyaki͏͏ Banerjee,͏͏ Group͏͏ COO͏͏ of͏͏ LUXASIA,͏͏ remarked,͏͏ “Despite͏͏ the͏͏ inherent͏͏ complexity͏͏ and͏͏ diversity͏͏ of͏͏ India,͏͏ it͏͏ remains͏͏ a͏͏ vibrant͏͏ and͏͏ appealing͏͏ market͏͏ for͏͏ luxury͏͏ beauty.͏͏ Growth͏͏ is͏͏ anticipated͏͏ to͏͏ occur͏͏ with͏͏ a͏͏ sudden͏͏ inflection͏͏ point͏͏ rather͏͏ than͏͏ gradually͏͏ over͏͏ time.͏͏ Brands͏͏ must͏͏ establish͏͏ their͏͏ presence͏͏ in͏͏ the͏͏ market͏͏ before͏͏ these͏͏ abrupt͏͏ increases.”
The͏͏ report͏͏ also͏͏ emphasised͏͏ three͏͏ strategic͏͏ pillars͏͏ for͏͏ the͏͏ Indian͏͏ market͏͏ that͏͏ must͏͏ be͏͏ addressed:͏͏ product͏͏ offering͏͏ customisation,͏͏ targeted͏͏ regional͏͏ marketing͏͏ strategies,͏͏ and͏͏ optimising͏͏ omnichannel͏͏ distribution͏͏ through͏͏ strategic͏͏ partnerships.
