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THE INDIAN INSTITUTE OF PLANNING AND MANAGEMENT
NEW DELHI
THESIS ON
COSMETIC INDUSTRY OF INDIA- ENTRY STRATEGIES FOR AFOREIGN BRAND
SUBMITTED TO:PROF. SUMANTA SHARMA
PROF. VIJAY KUMAR BODDU
UNDER THE GUIDANCE OF:
SUBMITTED BY:
SHWETA GAUTAMALUMNI ID NUMBER:
BATCH: FW/06-08
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ABSTRACT
This is a thesis based on the market research on the cosmetic industry of
India. The size of India's cosmetics market is USD 1 billion. Out of this, size of
skin care segment is USD !! million, color cosmetics is USD "# million,
fragrances is USD $# million, men%s care is USD 1&# million and hair care is
USD $!! million. hile li(sticks account for nearly a third of the color
cosmetics market at USD $# million, the market for nail enamels is estimated
at around USD )illion. The remainder, i.e. USD 1" million consists of
(roducts such as mascara, eye*liners etc.
+osmetics can be broadly diided into $ categories - +hemical +osmetics
and erbal +osmetics. /akme, /%Oreal and 0elon are maor (layers in the
chemical cosmetic market 2hereas Shahnaz ussain, 3ioti4ue and /otus are
(rominent in the herbal segment.
The market share of chemical cosmetics is 5!6 2hereas for herbal
cosmetics, it is 1!6. 7en though herbal cosmetics segment has ery lo2
market share, this segment is gaining (o(ularity ery fast, and consumers%
demand for herbal cosmetics is on a stee( rise.
)arket (enetration leels of international cosmetics brands in India are lo2.
8oreign brands currently constitute only $! (ercent of the market, due largely
to the higher (ricing these brands carry.
This is a thesis based on the market research on the cosmetic industry of
India. India, 2ith a (o(ulation of 1.19 billion (eo(le is a country of contrast.
ith an u((er and middle class (o(ulation of nearly 9!! million (eo(le, 2hich
is more than that of US: and 7uro(ean +ountries, India has become a huge
base of (otential customers. ence 8oreign +om(anies find India as an
attractie location to setu( their o(erations and e;(and their business.
India's urban (o(ulation is the main engine that fuels the demand for arious
cosmetic (roducts. :lthough Indians are strongly attached and committed to
their traditions, and culture, the adent of teleision and the a2areness of the
2estern 2orld are changing the tastes and customs of India. The <mor(hing%of India is subtle and the changes are not isible for the first time isitor.
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3rand image and high degree of consumer acce(tability need to be
established in the (ersonal (roducts sector, and call for heay (romotional
inestments in a2areness building, besides tie*u(s 2ith good 8)+A
com(anies to leerage their distribution strengths. The gro2th of direct
marketing as an alternatie channel 2ithout incurring high (romotional and
deelo(mental costs needs to be ealuated by ne2 entrants in the sector, in
order to formulate the most a((ro(riate market deelo(ment strategy for their
(roducts.
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SIGNATORY PAGE
TO WHOMESOEVER IT MAY CONCERN
This is to confirm that Sh2eta Aautam, student of II=), B7 D7/I, is doing a lie
(roectCThesis on the to(ic C!"#$%&' I()*"%+, ! I()& E(%+, S%+%$&$" !+
F!+$&( B+()1 under my guidance and that the 2ork being done by the candidate
is original and is of the standard e;(ected by an )3: student.
)ay god bless her 2ith all success in her career.
arm regards
23333333333333333334
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TOPIC APPROVAL LETTER
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CONTENT
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APPROVED THESIS SYNOPSIS
THESIS SYNOPSIS
CANDIDATURE DETAILS FOR THESIS
DESIRED AREA FOR RESEARCH – COSMETIC INDUSTRY
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T&%5$ ! %$ %$"&" : -
+osmetic Industry of India* 7ntry Strategies for a 8oreign 3rand
R$"$+' O7$'%&9$ : -
1. To carry out a com(rehensie research on the current scenario of
cosmetic industry in India.
$. To reie2 the (osition of the e;isting cosmetic brands in India.
. To understand the marketing mi; of e;isting brands.
9. To formulate strategies of a ne2 com(any to enter the Indian cosmetic
market.
I(%+!)*'%&!( %! %$ A+$ ! +$"$+' : -
This is a thesis based on the market research on the cosmetic industry of
India. The size of India's cosmetics market is USD 1 billion. Out of this, size
of skin care segment is USD !! million, color cosmetics is USD "# million,
fragrances is USD $# million, men%s care is USD 1&# million and hair care
is USD $!! million. hile li(sticks account for nearly a third of the color
cosmetics market at USD $# million, the market for nail enamels is
estimated at around USD )illion. The remainder, i.e. USD 1" million
consists of (roducts such as mascara, eye*liners etc.
+osmetics can be broadly diided into $ categories - +hemical +osmetics
and erbal +osmetics. /akme, /%Oreal and 0elon are maor (layers in the
chemical cosmetic market 2hereas Shahnaz ussain, 3ioti4ue and /otus
are (rominent in the herbal segment.
The market share of chemical cosmetics is 5!6 2hereas for herbal
cosmetics, it is 1!6. 7en though herbal cosmetics segment has ery lo2
market share, this segment is gaining (o(ularity ery fast, and consumers%
demand for herbal cosmetics is on a stee( rise.
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)arket (enetration leels of international cosmetics brands in India are lo2.
8oreign brands currently constitute only $! (ercent of the market, due
largely to the higher (ricing these brands carry.
S'!$ ! ,!*+ %$"&" ;!+<
In the (ast fe2 years, the cosmetic industry in India has seen a maor
boost. )any foreign com(anies see this as a maor o((ortunity to enter the
Indian market. India's urban (o(ulation is the main engine that fuels the
demand for arious cosmetic (roducts. :lthough Indians are strongly
attached and committed to their traditions, and culture, the adent of
teleision and the a2areness of the 2estern 2orld are changing the tastes
and customs of India. The <mor(hing% of India is subtle and the changes are
not isible for the first time isitor. o2eer, the market liberalization
(rocess that began in 1551, along 2ith the cro2ning of three Indians as
)iss orld and )iss Unierse, hae made Indian 2omen conscious of
their a((earance. +onse4uently, the cosmetic consum(tion (atterns of
Indian 2omen hae changed, and this trend is fuelling gro2th in the
cosmetic sector. )y research 2ill thro2 light on the current scenario of the
cosmetic industry in India. It 2ill also suggest arious strategies of a ne2
foreign cosmetic brand to enter the Indian market and to com(ete 2ith
other establish (layer.
R$"$+' M$%!)!5!,
• =rimary 0esearch
• Secondary 0esearch
J*"%&&'%&!( !+ '!!"&( +%&'*5+ +$"$+' +!!"5
I hae taken this to(ic because I hae dee( interest in the field of marketing
and es(ecially in those areas 2hich are coered under the (ersonal care
(roduct segment. I also find this to(ic as a ery challenging to(ic and I find
it (ractical too 2hich 2ill definitely hel( me in my career do2n the line. I am
doing this research for my client =alladio, 2hich is an :merican basedcosmetic com(any. I beliee that this research 2ill gie me ery useful
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kno2ledge about a segment of the industry that is booming in India and it
2ill take ahead in my career.
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INTRODUCTION
O9$+9&$;
India, 2ith a (o(ulation of 1.19 billion (eo(le is a country of contrast. ith anu((er and middle class (o(ulation of nearly 9!! million (eo(le, 2hich is more
than that of US: and 7uro(ean +ountries, India has become a huge base of
(otential customers. ence 8oreign +om(anies find India as an attractie
location to setu( their o(erations and e;(and their business.
India's urban (o(ulation is the main engine that fuels the demand for arious
cosmetic (roducts. :lthough Indians are strongly attached and committed to
their traditions, and culture, the adent of teleision and the a2areness of the
2estern 2orld are changing the tastes and customs of India. The <mor(hing%
of India is subtle and the changes are not isible for the first time isitor.
o2eer, the market liberalization (rocess that began in 1551, along 2ith the
cro2ning of three Indians as )iss orld and )iss Unierse, hae made
Indian 2omen conscious of their a((earance. +onse4uently, the cosmetic
consum(tion (atterns of Indian 2omen hae changed, and this trend is
fuelling gro2th in the cosmetic sector.
M+<$% C!#!"&%&!(
The size of India's cosmetics market is USD 1 billion. Out of this, size of skin
care segment is USD !! million, color cosmetics is USD "# million,
fragrances is USD $# million, men%s care is USD 1&# million and hair care is
USD $!! million. hile li(sticks account for nearly a third of the color
cosmetics market at USD $# million, the market for nail enamels is estimatedat around USD ! )illion. The remainder, i.e. USD $! million consists of
(roducts such as mascara, eye*liners etc.
The t2o figures belo2 sho2 the +om(osition of the =ersonal care market and
the +om(osition of the +olor +osmetic )arket res(ectiely.
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M+<$% T+$()"
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The market for cosmetics in India is characterized by high olume sales of
lo2*end (roducts, 2hile at the same time the legendary emerging middle*
class has generally been fuelling demand for cosmetics and u((er*mass
toiletries.
=roducts that are too s(ecialized hae yet to be successful on the Indian
market. 7;am(les include toners, hand care and other alue*added skin care
(roducts, bath ? sho2er (roducts and aftershae balm. Only the richest
consumers can afford these@ indeed, the aerage consumer may be una2are
of their (ur(ose or een e;istence. This also e;(lains the relatiely (oor
sho2ing of (erfumes, es(ecially the (remium ariety.
)ost maor cosmetic com(anies (rofess the need to ta( the u((er market
segment and create e;clusie (roducts, but market studies reeal that most
cosmetic users are un2illing to cough u( more to buy these e;clusie
(roducts. Indeed a more recent feature across all sectors, 2hether basic
toiletries or more lu;ury (roducts, such as color cosmetics, has been for
manufacturers to concentrate on the mass market. 8or toiletries, this is aresult of many consumers trading do2n, forcing manufacturers to res(ond. In
skin care and colour cosmetics, it is more a result of trying to increase
demand in the gro2ing market for mass (roducts, es(ecially among
teenagers.
3rand image and high degree of consumer acce(tability need to be
established in the (ersonal (roducts sector, and call for heay (romotional
inestments in a2areness building, besides tie*u(s 2ith good 8)+A
com(anies to leerage their distribution strengths. The gro2th of direct
marketing as an alternatie channel 2ithout incurring high (romotional and
deelo(mental costs needs to be ealuated by ne2 entrants in the sector, in
order to formulate the most a((ro(riate market deelo(ment strategy for their
(roducts.
I#!+% M+<$%
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+osts for im(orting (roducts are much higher than (roducing it in the country.
India allo2s entry of im(orted cosmetics 2ithout any restrictions but the
aerage im(ort tariff on cosmetics (roducts is ery high. This makes im(orted
(roducts ery e;(ensie for most consumers. )ost foreign cosmetics
com(anies selling (remium brands hae had a difficult time deelo(ing the
lo2 olume (remium market in India. )any had to re*2ork (rice strategies
to2ards the mass segment. =rice is not the only reason res(onsible for their
(roblems. =oor assessment of the size of the u((er middle and high*income
grou(s, and (rice sensitiity een 2ithin these grou(s, had added to their
(roblems.
:ccording to industry e;(erts and trade (ublications, India's annual im(ort ofcosmetics and toiletries and intermediate are from countries like US, 7uro(e,
mainly 8rance, Aermany, Italy, Betherlands, and S(ain account for the maor
share@ and :ustralia, +hina, and Ha(an account for rest of the share.
So(histicated (roducts such as fragrances, non*transfer long*stay li(sticks,
li4uid li( color, eye make*u(s, anti ageingLanti 2rinkle creams, (rofessional
hair*care (roducts, (re(arations for shaing creams, are some of the maor
items of im(ort.
MARKET COMPETITION
Since market liberalization, seeral multinational com(anies, such as 0elon,
+oty, Oriflame, +hambor, :on, Fardley, Bina 0icci, Aarnier /aboratories,
and /%Oreal, hae entered the Indian market. These com(anies initially
cashed in on their international brand image@ ho2eer, re(eat (urchases 2ere
not forthcoming because the (roducts 2ere not (riced com(etitiely.
+onse4uently, these com(anies became (rice*sensitie and most of the
international brands are no2 (riced com(etitiely in the Indian market.
In the color cosmetic, Indian brands like /akme, Ti(s and Toes, Shahnaz
ussain, and multinational com(anies like 0elon, /%Oreal, and :on offer the
highest com(etition. Domestic (layers like /akme, Ti(s and Toes, Shahnaz
ussain mainly dominate the market. o2eer brands such as /%Oreal,
0elon are 4uickly catching the (ace of the domestic (layers. /akme is the
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oerall market leader in the color cosmetics segment, (roiding a 2ide ariety
of (roducts and (rices. /akme is closely follo2ed by 0elon.
In the last fe2 years, there has been a ne2 craze for herbal cosmetic and
(ersonal care (roducts, es(ecially in the skin care segment 2ith the gro2ing
belief that chemical*based cosmetics are harmful. /eading domestic
com(anies, including Shahnaz, /otus erbals, and the 3ioti4ue brands
dominate the (remium herbal cosmetics segment in India, estimated at USD
1!! million. )any com(anies hae e;(anded their (roduct range into herbal
ariants, including com(anies 2ith a (rimary focus on health care (roducts.
)any of the International brands feel that their Indian counter(arts hae not
yet identified the changing needs of the Indian men and 2omen. It is
therefore, that foreign com(anies like +hambor, Oriframe, :on, FS/,
7scada, etc are ambitiously fishing in the Indian 2aters. This feeling is not
com(letely untrue. Indians are becoming more and more a2are of the
2estern 2orld. They are becoming more and more conscious of their
a((earance. ere lies the o((ortunity of cosmetic brands to cash in and take
adantage of the changing mindset of the Indian mass. Secondly, Indian men
are also becoming conscious about arious as(ects of their looks and
com(le;ion. Some com(anies like /%Oreal, +hambor, and Biea hae
(roducts s(ecially targeting men. o2eer, this segment is still largely
unta((ed. Thirdly, there is an increasing (reference for herbal (roducts
among the Indian consumer, but there is a lack of (roducts in this segment.
+om(anies hae realized this o((ortunity and are no2 coming u( 2ith
(roducts 2hich are herbal in nature.
The table belo2 sho2s the arious color cosmetic (roducts that maors
brands hae launched in India> * C1 im(lies the (roduct is aailable, ! im(lies
the (roduct is not aailable
B+() L&"%&'<L&G5!""
L&P$('&5
F!*()%&!( C!('$5$+ B+!(=$+
7lizabeth :rden 1 1 1 1 1 1
/%Oreal 1 1 1 1 1 1
)aybelline 1 1 1 1 ! 1
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0elon 1 1 1 1 1 1
/akme 1 1 1 1 ! 1
+hambor 1 1 1 1 1 1
Shahnazussain
1 1 1 1 1 !
3ioti4ue 1 1 ! 1 1 !
/otus 1 1 1 1 1 !
3rand7ye
Shado2
/iner ?
3ro2sGaal 3rushes 3lushers )ascara +om(act
7lizabeth
:rden1 1 1 ! 1 1 1
/%Oreal 1 1 1 1 1 1 1
)aybelline 1 1 1 ! 1 1 1
0elon 1 1 1 ! 1 1 1
/akme 1 1 1 ! 1 1 1
+hambor 1 1 1 ! 1 1 1
Shahnaz
ussain ! 1 1 ! ! 1 !
3ioti4ue 1 1 1 ! 1 1 1
/otus 1 1 1 ! 1 1 1
MARKETING STRATEGY
. P+&'&(
+osmetic com(anies in India hae ado(ted arious (ricing strategies to
attract the Indian consumers. =rice range aries from com(any to com(any,
(roduct to (roduct to suit the target customers.
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/akme%s (roduct range consists of the 7lle range C(riced at around 0s #!
and the medium*(riced Ultra range Cat around 0s ! to the (remium Orchid
range of colour cosmetics (riced in the range of 0s 1&# to 0s 5#.
0elon has (riced its (roducts, a little higher than /akme. Its (rices range
from 0s $1! to 0s &$#.
/%Oreal has managed to (osition its image as a glamour (roduct in the minds
of the consumer. Its (roducts are (riced higher than 0elon and /akme,
2hich is, 0s 5! to 0s !!.
To target the more (rice sensitie customers, /%Oreal introduced a ne2
cosmetic brand, )aybelline. The (rice of )aybelline%s (roducts ranges from0s 55 to 0s !.
erbal cosmetic (roducts are generally (riced lesser than the chemical
cosmetics. The herbal cosmetic com(anies carry out their (rice 2ars,
generally at this lo2er (rice leel.
Shahnaz ussain, the market leader in herbal cosmetics has a (rice range of
0s 1# to 0s 99#. o2eer, most of its (roducts are (riced at 0s $1! - 0s$$!.
3ioti4ue has a standard (ricing system of 0s $$5 for most of its (roducts
barring /i( Aloss and Gaal 2hich is (riced at 0s $"5 and 0s 55 res(ectiely.
3rands is*M*is its (roduct (rices
3rand /i(stick /i( Aloss /i( =encil 8oundation +oncealer 3ronzer
7lizabeth
:rden
!!*
1!#!"#! "!! ?
"!1&!* 1$! &9! 11&!
/%Oreal #&!* "!! #&!* &9! 9&!* #!! &&!* 5#! &$! !!
)aybelline 155* ! 195* $5 1"5* $#! $#!* 9! B: 1"#
0elon !* &$# $1!* ##! $!#* ! 1&#* &$# 99! ? #$# ##!* #!
/akme 1&#* 5# 1#* 5# 1!* 15# 5#* 5# B: 15#* $5#
+hambor 9#*#1# 5#* 95# 15#* $5# #5#* 5# 95# &5#
Shahnaz
ussain $1! $1! $$! 1"#* 99# 1# B:
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3ioti4ue $$5 $"5 B: $$5 B: B:
/otus $95* $5 155 115 15 ? $!5 $95 B:
3rand7ye
Shado2
/iner ?
3ro2sGaal 3rushes 3lushers )ascara +om(act
7lizabeth
:rden5#! "! "! B: 1!1! ! 19!!
/%Oreal9#! ?
#!!9"# 5! !! &$!
#!!*
&#!"!!
)aybelline 55* $55 155 1#5 B: 155$$#*
$!1$5
0elon91!*
#$#$1#* 9$#
$!#*
!B: 9!!* "#!
!*
95#1!* &$#
/akme1&#*
$#!&!* 15#
9!*
$#!B: 1#!
1"#*
$#1#* 5#
+hambor 9$#
1!*
!C(encil
$#*
"#Cli4uid
1!*
!B: 9$#
$!*
5#&$#
Shahnaz
ussain B: $$!Cli4uid 1$# B: B: $$! B:
3ioti4ue $$5 $$5Cli4uid 55 B: $$5 $$5 $$5
/otus $511!C(encil
1&#Cli4uid11# B: $5 155 95
7. D&"%+&7*%&!(
There are three broad categories of distribution channel that are generally
used by cosmetic com(anies.
1. Distributor or Dealer net2ork.
$. 8ranchisee.
. Stand alone stores.
: diagrammatic re(resentation of the distribution channel is as sho2n belo2> *
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Dealer or distributor net2ork channel is the most 2idely used distribution
channel used by the cosmetic com(anies. In this distribution channel, the
manufacturer a((oints a distributor 2ho is gien a certain area in 2hich he 2ill
o(erate. The distributor (urchases goods from the manufacturer. e then
dis(atches his salesmen to arious retail outlets like malls, de(artmental
stores, groceries, etc to take order and su((ly the goods to the outlets.
+om(anies like /akme, 0elon, /%Oreal, Shahnaz ussain, /otus, and
3ioti4ue use this distribution channel.
The common trends used in the industry regarding the setu( of a distribution
channel are as follo2s> *
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T+$()" ! %$ &()*"%+,
Standalone stores are another ty(e of distribution channel that is used by
arious organizations. In this ty(e, com(anies o(en u( a retail s(ace 2herethe entire store is dedicated to their o2n (roducts. /akme, 0elon, Shahnaz
ussain, 3ioti4ue and The 3ody Sho( hae standalone stores.
PROMOTION STRATEGY
. P!"&%&!(&(
The maor challenge faced by the arious color cosmetic brands is to make its
(roducts uni4ue and to differentiate itself from its com(etitors. +osmetic
(roducts generally hae similar features and 4ualities. So, to establish
themseles in the market, com(anies need to hae a strong US= to sell their
(roducts. US= of a cosmetic (roduct could be brand image, lo2est (rice,
attractie (ackaging, catchy ingles or (unch*lines, (roduct features Csuch as
herbal (roducts, etc.
The second challenge faced by com(anies is to dis(el the fears that colour
cosmetics are harmful for the skin.
:dertising is the main medium used by com(anies in this industry to carry
out their (ositioning cam(aign. /akme has al2ays adertised in the arious
mass media aailable. To (osition them strongly amongst the youth section
/akme came u( 2ith 7lle1 in early 155&. It 2as adertised for the NFoung girl
2ho breaks the rules and loes to hae funN. These ads sho2ed young,
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+hemical +osmetics erbal +osmetics
Distributor )argin &6 6
0etailer )argin 1#6 $!6
+ash Discount 1*$6 BO
+redit =eriod 1# Days 1# Days
8ranchisee Status =erformance based =erformance based0e(lacement 1!!6 re(lacement is done 1!!6 re(lacement is done
1!
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college and high school going girls 2ho (roected the image of trying to be
different and NcoolN.
:nother strategy that is 2idely used for (ositioning is dis(atching beauty
adisors in arious stores and retail outlets. Their ob is to (romote their
res(ectie brands and also to make their customers conscious of their looks.
+om(anies also use dis(lays, banners, cabinets and other =O= material to
(osition their brands
7. C!##*(&'%&!( M$)&*#
The medium of communication can be classified and sub*classified into the
follo2ing> *
7lectronic )edia>*
o TE :ds
=rint )edia>*
o )agazines o Be2s(a(ers o 3annerso =osters o =am(hlets
S(onsorshi(s>*
o 8ashion Sho2s
o +elebrity =arties
o +lub 7ents
Others
o Dis(lay Eans
o Internet :ds
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o S)S
7lectronic and (rint media are the most (o(ular medium used for
communication to customers. TE ads are ery costly but hae the ma;imum
reach. :ds in magazines and ne2s(a(ers are relatiely chea(er, but they
hae lesser reach com(ared to TE ads. S(onsoring eents like 8ashion
Sho2s and +lub (arties are also ery costly e;ercises but they hel( in
increasing the (restige and image of the brands. Other form of communication
like dis(lay ans and internet ads are less (o(ular modes of communication
but can be ery effectie sometimes if it is used in the (ro(er manner.
FUTURE PROSPECTS
The gro2ing Indian cosmetics market offers (romising o((ortunities for
international brands. The gro2th rate in the cosmetics market reflects an
increasing demand for beauty care (roducts in India. The most (romising
segments for international com(anies to (ursue are (erfumes and fragrances,
and s(ecializedL(rofessional skin care and hair care (roducts. The fastest
gro2ing market is ho2eer color cosmetics, 2hich account for US &! million
of the total market.
The rural market in India for cosmetics and toiletries remains is largely
unta((ed. )aor domestic (layers hae also not been able to (enetrate this
market. The urban market itself, for s(ecialized cosmetic (roducts remains to
be fully e;(loited. The Indian skin*care market is not yet fully ta((ed and
offers (romising (ros(ects as a gro2th area. =enetration of color cosmetics is
lo2er than the (enetration (ros(ects of the skin*care segment.
To (romote the gro2th of their (roducts, a dominant (layer like /akme has
embarked u(on a business (lan to establish their e;clusie franchised beauty
salons across maor metros in the country.
Im(orted cosmetics hae had a maor im(act on the Indian market. 8oreign
(roducts hae enhanced gro2th of the Indian market by attracting as(iration
consumers and increasing acce(tance of color cosmetics, (reiously
(erceied by many as harmful to skin. Indians generally (erceie foreignbrands as being of su(erior 4uality.
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Other key issues regarding sales (ros(ects are (roduct ariety and retailing
strategies as 2ell. There is a marked shift among consumers from functional
common*fits*all (roducts to more s(ecialized formulations. This is one of the
reasons 2hy an increasing number of cosmetic com(anies are dealing 2ith
consumers directly through s(ecial e;clusie counters in maor de(artmental
stores and malls featuring their o2n beauty consultants. /'Oreal India has
established a consumer adisory unit and =onds, as mentioned earlier offers
skin care adice through touch*screen kiosks, and tele(hone hel(*lines.
3eauti4ue * an e;clusie one*sto( sho( for only im(orted cosmetic brands set
u( recently in Be2 Delhi has 4ualified beauty consultants to (roide free
adice and makeoers to consumers.
The Indian cosmetics and toiletries market 2ill continue to gro2 due to the
increasing incomes and (urchasing (o2er of the gro2ing Indian middle*class
and urban consumers. Demand from the rural areas and smaller to2ns are
also fast increasing. Industry sources e;(ect significant gro2th in both the
mass and (remium segments of the Indian cosmetics market. The market
base ho2eer in the (remium segment is ery small. It is a niche market and
the sco(e for rising olumes is slo2er. The gro2th in the (remium segment is
usually seen to be because of (eo(le u(grading from the mass to the
(remium rather than an increase in consum(tion as such by itself. =ros(ects
for increasing olumes on the other hand is higher in the mass segment
mainly because the market base for this segment is higher, and because of
the lo2er (ricing, it is easier to (ersuade end*users to try out the (roducts.
BRAND RECALL
In any industry, com(anies look for brand recall in their customers. 3rand
recall indicates customer loyalty. It is a kno2n fact that it is less costly for an
organization to maintain the loyalty of old customers than to gain ne2
customers.
In an industry such as the cosmetic industry in India, 2here customers are
generally reluctant to s2itch brands, it is im(eratie to a com(any that they
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gain the trust and loyalty of the customers because it is unlikely that the
customers are going to s2itch brands.
+ustomers% (reference to2ards a (articular brand aries due to arious
factors. These factors can be classified as> *
a. =rice of the (roduct
b. 3rand name or brand image
c. Ty(e of cosmetic (roduct, i.e. chemical or herbal
d. :ailability and isibility
e. :2areness due to TE commercials and other (romotional actiities.
f. ord of mouth
1!! 2omen of arious age grou(s 2ere interie2ed in arious malls of B+0
and the follo2ing results 2ere recorded.
1. The first table sho2s the (ercentage of 2omen the (referred a (articular
brand.
3rand 6 of 2omen (referring the brand
/%Oreal 1$6
)aybelline 1&6
0elon $!6
/akme $96
Shahnaz ussain 1$6
/otus erbals #63ioti4ue "6
Others 96
$. The ne;t chart sho2s the 6 of 2omen 2ho use chemical cosmetics is*M*
is the 6 of 2omen 2ho use color cosmetics.
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. The ne;t table sho2s the (ercentage of 2omen that (refer de(ending
u(on the aboe mentioned factors.
8actors 6 of 2omen
=rice 
3rand nameL 3rand Image &!6
Ty(e of (roduct $#6
:ailability or Eisibility $!6
)edia 9!6
ord of mouth #6
Note: - Women are influenced by more than one factor while the buy a
cosmetic product .
:s 2e can see from the aboe table that (rice is the most influencing factor
that 2omen consider 2hile buying a cosmetic (roduct. The ne;t mostinfluencing factor to be considered is the brand name or the brand image.
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Then comes media influence, follo2ed by 2ord of mouth, ty(e of (roduct and
lastly, aailability or isibility of the (roduct.
9. :ge of a 2oman also determines the brand of cosmetic (roducts she
(refers. The follo2ing table sho2s the (reference of a cosmetic brand is*
M*is age of a 2oman.
:gegrou(CinFrs
/%Oreal
)aybelline
0elon
/akme
Shahnazussain
/otuserbals
3ioti4ue
Others
1!*$# 6 1!6 #6 #6 $6 * $6 *
$&*9! 96 96 6 1$6 #6 $6 $6 16
91*## #6 $6 "6 "6 #6 6 6 *
So 2e can see a (attern from the aboe table 2hich suggests that )aybelline
is the most (o(ular brand among the youth. omen in this age grou( are
generally, school or college students and so (rice of (roduct (lays a huge
factor in their decision to buy a (articular cosmetic brand. )iddle aged 2omen
(refer (roducts like /akme and 0elon because the go by the 2ord of mouth.
=rice also (lays an im(ortant factor in their decision to buy a (roduct. omen
in their 9!s and #!s hae the same (reference as the middle age 2oman
grou(. This is because they are reluctant to s2itch brands and tend to
continue 2ith the brand of cosmetics that they 2ere using before. erbal
cosmetics are generally (o(ular 2ith 2omen aboe $& years of age.
M+<$% S$#$(%
)any of the 2orld%s (o(ular cosmetics brands entered the Indian market in
the 155!s as the Indian market o(ened u( to foreign com(anies. The
cosmetics and (ersonal care industry has been gro2ing at an aerage rate of
1#*$! (ercent for the last fe2 years. Aro2th has come mainly from the lo2
and medium*(riced categories, 2hich account for 5! (ercent of the cosmetics
market in terms of olume. 7en though mass*market (roducts still constitute
the maor (ortion of the India cosmetics and toiletries market, increased
dis(osable income has led to gro2th in demand for (remium (roducts. The
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urban (o(ulation in (articular, 2ith its rising (urchasing (o2er, is the main
force that dries the demand for arious cosmetic (roducts in India.
The reasons for the gro2ing demand for cosmetic (roducts in India are threefold>
first, a greater access to teleision, 2hich has created a gro2ing a2areness ofthe 2estern 2orld. Second is, increased adertising in general and third, greater
(roduct choice and aailability. The success of contestants from India in seeral
international beauty (ageants in the last fe2 years has also contributed to making
Indian 2omen more conscious of their a((earance and more a2are of 2estern
cosmetic (roducts and brands. :lso, a boom in the Indian fashion 2orld has
contributed to the rise in demand for (rofessional beauty care (roducts.
7en 2ith double*digit gro2th rates, the market (enetration of cosmetics and
toiletries (roducts in India is ery lo2. +urrent (er ca(ita e;(enditure on
cosmetics is a((ro;imately 1.!!, as com(ared to &.&# in other :sian
countries. This lo2 market (enetration for cosmetics and (ersonal care
(roducts in India can be ie2ed as an o((ortunity for more significant gro2th
do2n the road in this country of 1 billion (eo(le.
The current size of India%s cosmetic and toiletries market is about 5#!
million. The fastest gro2ing segment is color cosmetics, accounting for
around &! million of the total market. Bail enamels and li(stick account for
about round &# (ercent of the color cosmetic segment. 0elon and /%Oreal
dominate the small (remium li(sticks and nail enamels niches. /i(stick sales
account for nearly a third of the market at $1 million, 2hile the market for nail
enamels is about $ million. /akme, a brand originally introduced by the
Tata Arou( of India, but no2 o2ned by industan /eer C// of the Unileer
grou(, Ti(s ? Toes, and 0elon dominate the color cosmetics market. The
color cosmetics segment is ery com(etitie and has a high (enetration leel,
com(ared to other market segments.
)arket (enetration leels of international cosmetics brands in India are lo2.
8oreign brands currently constitute only $! (ercent of the market, due largely
to the higher (ricing these brands carry. 8oreign brands initially garnered
sales in the market based on their international brand image, but re(eat
(urchases 2ere not forthcoming. To hit their sales gro2th targets, seeral
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foreign com(anies hae had to reformulate their (ricing strategies to ta( the
most (romising market segment**urban 2omen in the middle and u((er
income grou(s in the age range of $*#!.
India%s annual im(ort of cosmetics and toiletries and intermediate ra2materials is around 1$1 million, of 2hich the U.S. has a share of
a((ro;imately 1! (ercent. 8rance, Aermany, Italy, Betherlands, and S(ain
account for the lion%s share of im(orts, 2ith :ustralia, +hina, and Ha(an
accounting for the rest.
Skin care - The skin care market in India is about 1! million. The market
for s(ecialized skin care (roducts such as sunscreens, toners, cleansers,
astringents, dark circle remoing creams, anti*2rinkle creams and day and
night creams has gro2n steadily in recent years. )ost consumers, ho2eer,
are still are using only facial cream and moisturizers, 2ith moisturizing lotions,
fairness creams and facial cleansers being the most (o(ular (roducts. These
(roducts account for a((ro;imately &! (ercent of the skin*care segment. The
maor (layers in this segment are /akme, =onds, 8air ? /oely, H./. )orison
and 0elon.
Hair Care - The size of the hair care market in India is about $!! million.
International com(anies, including Unileer, through its subsidiary, //, and
=rocter ? Aamble dominate the sham(oo market in India. The hair coloring
and stylingLgel market segment is at a nascent stage and there are not many
local brands aailable. 8oreign brands such as /%Oreal and ella hae
started to make inroads into this segment by (ositioning hair colors as a
fashion accessory. The market (enetration of these (roducts is ery lo2,
ho2eer, and limited to a small section of the urban market. The market for
hair creams, mainly used for hair grooming by men, is also ery small. air
oiling, an age*old Indian tradition mainly used as a (re*2ash nourishment
treatment, is a maor niche in this sector.
Herbal Trend - In the last fe2 years, there has been a rene2ed craze for
herbal cosmetic and (ersonal care (roducts, es(ecially in the skin care
segment 2ith the gro2ing belief that chemical*based cosmetics are harmful.
/eading domestic com(anies, including Shahnaz, /otus erbals, and the
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im(ortance of beauty (ageants, there hae been significant changes and use
of cosmetics is on the rise. :lso, 2ith the boom in the Indian fashion 2orld
and the gro2th in the teleision industry, there has been a rise in demand for
(rofessional beauty care (roducts.
The reasons for the gro2ing demand for cosmetic (roducts in India also
include> greater access to teleision, 2hich has created a gro2ing a2areness
of the 2estern 2orld@ increased adertising in general@ and greater (roduct
choice and aailability.
:lso, a boom in the Indian fashion 2orld has contributed to the rise in demand
for (rofessional beauty care (roducts The urban (o(ulation in the maor cities
2ith increasing (urchasing (o2er is the main force that dries demand for
arious cosmetic (roducts in India. The adent of satellite teleision and
a2areness of the 2estern beauty and fashion 2orld, adertisements and
(romotions, increasing number of 2omen oining the 2ork force is changing
(references, customs and cultures in India. The success of contestants from
India at arious 2ell kno2n international beauty (ageants in the last fe2 years
hae also contributed to2ards making the Indian 2omen more conscious
about looks, beauty, grooming and a2are of 2estern cosmetic(roductsLbrands. :ll this changed the needs and consum(tion (attern of the
Indian 2omen, thus leading to increased gro2th in the cosmetic sector. )ore
Indian consumers started using cosmetics and a small segment are also seen
2illing to (ay a little more to look good. Increasing dis(osable income and
(urchasing (o2er hae led to a constant u(*gradation from mass to (remium
(roducts een though mass*market (roducts still constitute the maor (ortion
of the India cosmetics and toiletries market.
The cosmetics and (ersonal care industry has been gro2ing at an aerage
rate of 1#*$! (ercent for the last fe2 years. 7en 2ith double*digit gro2th
rates, the market (enetration of cosmetics and toiletries (roducts in India is
ery lo2. +urrent (er ca(ita e;(enditure on cosmetics is a((ro;imately !.&
cents, as com(ared to &.&# in other :sian countries. This lo2 market
(enetration for cosmetics and (ersonal care (roducts in India can be ie2ed
as an o((ortunity for more significant gro2th do2n the road in this country of1 billion (eo(le.
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This cosmetics and (ersonal care industry has been gro2ing at an aerage
rate of $! (er cent for the last fe2 years. The gro2ing Indian cosmetics
market offers (romising (ros(ects for international brands. The gro2th rate in
the cosmetics market reflects an increasing demand for beauty care (roducts
in India. =erfumes and fragrances, skin care, and hair care (roducts are some
of the maor segments 2ith (romising (ros(ects for U.S. com(anies.
Industry sources estimate a ra(id gro2th rate of $! (ercent (er annum across
different segments of the cosmetics industry reflecting an increasing demand
for all kinds of beauty and (ersonal care (roduct. Aro2th has come mainly
from the lo2 and medium*(riced categories that account for 5! (ercent of the
cosmetics market in terms of olume.
C*++$(% S&=$ ! I()&( M+<$%
+urrent size of India%s cosmetic and toiletries market is about 5#! million.
C!5!+ C!"#$%&'"
The fastest gro2ing segment is color cosmetics, accounting for around &!
million of the total market. Bail enamels and li(stick account for about round
&# (ercent of the color cosmetic segment. 0elon and /%Oreal dominate the
small (remium li(sticks and nail enamels niches. /i(stick sales account for
nearly a third of the market at $1 million, 2hile the market for nail enamels is
about $ million. /akme, a brand originally introduced by the Tata Arou( of
India, but no2 o2ned by industan /eer C// of the Unileer grou(, Ti(s ?
Toes, and 0elon dominate the color cosmetics market. The color cosmetics
segment is ery com(etitie and has a high (enetration leel, com(ared toother market segments.
S<&( C+$ P+!)*'%"
The skin care market in India is about 1! million. The market for
s(ecialized skin care (roducts such as sunscreens, toners, cleansers,
astringents, dark circle remoing creams, anti*2rinkle creams and day and
night creams has gro2n steadily in recent years. )ost consumers, ho2eer,
are still are using only facial cream and moisturizers, 2ith moisturizing lotions,
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fairness creams and facial cleansers being the most (o(ular (roducts. These
(roducts account for a((ro;imately &! (ercent of the skin*care segment. The
maor (layers in this segment are /akme, =onds, 8air ? /oely, H./. )orison
and 0elon.
H&+ C+$ P+!)*'%"
The size of the hair care market in India is about $!! million. International
com(anies, including Unileer, through its subsidiary, //, and =rocter ?
Aamble dominate the sham(oo market in India. The hair coloring and
stylingLgel market segment is at a nascent stage and there are not many local
brands aailable. 8oreign brands such as /%Oreal and ella hae started to
make inroads into this segment by (ositioning hair colors as a fashion
accessory. The market (enetration of these (roducts is ery lo2, ho2eer,
and limited to a small section of the urban market. The market for hair
creams, mainly used for hair grooming by men, is also ery small. air oiling,
an age*old Indian tradition mainly used as a (re*2ash nourishment treatment,
is a maor niche in this sector.
8ragrances and color cosmetics constitute the high gro2th segments. Bail
enamels and li(sticks account for around &# (ercent of total color cosmetic
sales in India. /akme, a brand originally introduced by the Tata grou( of India,
no2 bought oer by industan /eer C// of the Unileer grou(, Ti(s ?
Toes, another domestic (layer, and 0elon dominate the US &! million color
cosmetics market. )ultinationals, 0elon of the U.S. and /'Oreal's )aybelline
has a dominant share of the small (remium li(sticks and nail enamels market.
)ass*market (roducts account for a maor share, 2hile the (remium segment
accounts only for a mere 5 (er cent in li(sticks and # (er cent in nail enamels.
/i(sticks account for nearly a third of the market at US $1 million, 2hile the
market for nail enamels is estimated at around US $ million. The color
cosmetics segment is ery com(etitie and has a high (enetration leel of !
(ercent. )ost other cosmetic (roducts are estimated to be used by less than
9! (ercent of the consumers.
The (restige fragrance market, 2hich has seen a steady influ; of foreign
brands, is currently estimated at US $! million and is mainly bought by the
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affluent sections. :n aerage annual gro2th rate of 1# (ercent has been
estimated for this segment for the ne;t fe2 years. The body s(ray category is
the fastest gro2ing segment 2ithin the fragrance category. The body s(ray
market is estimated at a((ro;imately $! million cans (er annum and it is
estimated to increase to 1!! million cans by $!!".
The skin care market in India is estimated at US 1! million. ithin the last
decade, this segment has seen many consumers slo2ly shift from the mass to
the (remium end of the market. The (enetration rate is high in the skin*care
segment as com(ared to color cosmetics. In the skin*care segment, (rice and
olume (layed an e4ual role in alue gro2th. 8rom a ery basic leel of most
consumers using only face cream and moisturizers, the market for mores(ecialized skin care (roducts such as sun screens, toners, cleansers, and
astringents, dark circle remoing creams, anti*2rinkle creams and day and
night creams seems to hae gro2n steadily in recent years. )oisturizing
lotions, fairness creams and face cleansers are the (o(ular categories in the
skin*care segment and account for a((ro;imately &! (ercent of the skin*care
segment. The maor (layers in this segment are /akme, =onds, and 8air ?
/oely of the // grou( 2ith a #! (ercent market share, follo2ed by (layers
such as H./. )orison that markets the Biea range of (roducts in India, Aodre
and 0elon. The size of the hair care market in India is estimated at more
than US $!! million, #! (ercent of 2hich interestingly comes from sales of
sham(oo. International com(anies like Unileer through its subsidiary,
industan /eer CSunsilk, Organics, +linic, and /u;@ and =rocter ? Aamble
C2ith brands such as =antene, ead ? Shoulders dominate the sham(oo
market in India 2ith a((ro;imately # and $! (ercent market share
res(ectiely. The hair coloring and stylingLgel market segment is at a nascent
stage in India. There are not many local brands aailable in this segment but
in recent months, many foreign brands such as /'Oreal and ella hae
started making inroads into this segment by (ositioning hair colors as a
fashion accessory. =enetration of these (roducts is ery lo2 and limited to
certain sections of the urban market. The market for hair creams, mainly used
for hair grooming by men is also ery small. air oiling, an age old tradition of
Indians and mainly used as a (re*2ash nourishment is a maor segment in
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this sector and has giants like // and local Dabur and )arico Industries
fighting for market share in the hair oil segment.
8ragrances and color cosmetics constitute the high gro2th segments. Bail
enamels and li(sticks account for around &# (ercent of total color cosmeticsales in India. /akme, a brand originally introduced by the Tata grou( of India,
no2 bought oer by industan /eer C// of the Unileer grou(, Ti(s ?
Toes, another domestic (layer, and 0elon dominate the US &! million color
cosmetics market. )ultinationals, 0elon of the U.S. and /'Oreal's )aybelline
has a dominant share of the small (remium li(sticks and nail enamels market.
)ass*market (roducts account for a maor share, 2hile the (remium segment
accounts only for a mere 5 (er cent in li(sticks and # (er cent in nail enamels./i(sticks account for nearly a third of the market at US $1 million, 2hile the
market for nail enamels is estimated at around US $ million. The color
cosmetics segment is ery com(etitie and has a high (enetration leel of !
(ercent. )ost other cosmetic (roducts are estimated to be used by less than
9! (ercent of the consumers.
The (restige fragrance market, 2hich has seen a steady influ; of foreign
brands, is currently estimated at US $! million and is mainly bought by theaffluent sections. :n aerage annual gro2th rate of 1# (ercent has been
estimated for this segment for the ne;t fe2 years. The body s(ray category is
the fastest gro2ing segment 2ithin the fragrance category. The body s(ray
market is estimated at a((ro;imately $! million cans (er annum and it is
estimated to increase to 1!! million cans by $!!".
The skin care market in India is estimated at US 1! million. ithin the last
decade, this segment has seen many consumers slo2ly shift from the mass to
the (remium end of the market. The (enetration rate is high in the skin*care
segment as com(ared to color cosmetics. In the skin*care segment, (rice and
olume (layed an e4ual role in alue gro2th. 8rom a ery basic leel of most
consumers using only face cream and moisturizers, the market for more
s(ecialized skin care (roducts such as sun screens, toners, cleansers,
astringents, dark circle remoing creams, anti*2rinkle creams and day and
night creams seems to hae gro2n steadily in recent years. )oisturizinglotions, fairness creams and face cleansers are the (o(ular categories in the
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skin*care segment and account for a((ro;imately &! (ercent of the skin*care
segment. The maor (layers in this segments are /akme, =onds, 8air ?
/oely of the // grou( 2ith a #! (ercent market share, follo2ed by (layers
such as H./. )orison that markets the Biea range of (roducts in India, Aodre
and 0elon. The size of the hair care market in India is estimated at more
than US $!! million, #! (ercent of 2hich interestingly comes from sales of
sham(oo. International com(anies like Unileer through its subsidiary,
industan /eer CSunsilk, Organics, +linic, and /u;@ and =rocter ? Aamble
C2ith brands such as =antene, ead ? Shoulders dominate the sham(oo
market in India 2ith a((ro;imately # and $! (ercent market share
res(ectiely. The hair coloring and stylingLgel market segment is at a nascent
stage in India. There are not many local brands aailable in this segment but
in recent months, many foreign brands such as /'Oreal and ella hae
started making inroads into this segment by (ositioning hair colors as a
fashion accessory. =enetration of these (roducts is ery lo2 and limited to
certain sections of the urban market. The market for hair creams, mainly used
for hair grooming by men is also ery small. air oiling, an age old tradition of
Indians and mainly used as a (re*2ash nourishment is a maor segment in
this sector and has giants like // and local Dabur and )arico Industries
fighting for market share in the hair oil segment.
C*++$(% P!"&%&!( ! I(%$+(%&!(5 C!"#$%&' B+()" &( I()&
hile other (arts of the 2orld are taking to the traditional Indian herbal 2ay of
beauty, Indian consumers are increasingly looking to international brands as
life style enhancement (roducts. )ore and more sheles in sho(s and
bouti4ues are stocked 2ith cosmetics from around the 2orld. Sinceliberalization, many international brands like :on, 3urberrys, +alin Glein,
+artier, +hristian Dior, 7stee /auder, 7lizabeth :rden, /ancome, +hambor,
+oty, /'Oreal, Oriflame, 0elon, /'Oreal, Fardley, ella, Sch2arzko(f,
7scada, Bina 0icci, 0ochas, Fes St. /aurent and Ha(anese cosmetics
com(any, Shiseido hae entered the Indian market. The (rices of most
foreign brands hae been fairly high, 2hich has deterred aerage Indian
consumers. International brands cater to a segment that can broadly be
classified as the urban higher income grou(.
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)arket (enetration leels of international cosmetics brands in India are lo2.
8oreign brands currently constitute only $! (ercent of the market, due largely
to the higher (ricing these brands carry. 8oreign brands initially garnered
sales in the market based on their international brand image, but re(eat
(urchases 2ere not forthcoming. To hit their sales gro2th targets, seeral
foreign com(anies hae had to reformulate their (ricing strategies to ta( the
most (romising market segment**urban 2omen in the middle and u((er
income grou(s in the age range of $*#!.
+osts for im(orting (roducts are much higher than (roducing it in the country.
India allo2s entry of im(orted cosmetics 2ithout any restrictions but the
aerage im(ort tariff on cosmetics (roducts is currently ery high at 5.$(ercent. This makes im(orted (roducts ery e;(ensie for most consumers.
)ost foreign cosmetics com(anies selling (remium brands hae had a difficult
time deelo(ing the lo2 olume (remium market in India. )any had to re*
2ork (rice strategies to2ards the mass segment. =rice is not the only reason
res(onsible for their (roblems. =oor assessment of the size of the u((er
middle and high*income grou(s, and (rice sensitiity een 2ithin these
grou(s, had added to their (roblems.
:ccording to estimates of industry e;(erts and trade (ublications, India's
annual im(orts of cosmetics and toiletries and intermediate ra2 materials are
a((ro;imately US 1$! million. +ountries like US, 7uro(e, mainly 8rance,
Aermany, Italy, Betherlands, and S(ain account for the maor share@ and
:ustralia, +hina, and Ha(an account for rest of the share.
So(histicated (roducts such as fragrances, non*transfer long*stay li(sticks,
li4uid li( color, eye make*u(s, anti ageingLanti 2rinkle creams, (rofessional
hair*care (roducts, (re(arations for shaing creams, are some of the maor
items of im(ort.
=enetration leels of international cosmetics brands in India are still lo2.
8oreign brands currently constitute only $! (ercent of the market. : maor
reason for lo2 (enetration of international brands can be attributed to high
(ricing. These com(anies initially gained sales on their international brand
image, ho2eer, re(eat (urchases 2ere not forthcoming and to retain their
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sales gro2th, seeral foreign com(anies reformulated (rice strategies to ta(
the large Indian middle class. Urban 2omen in the middle and u((er income
grou(s in the age range of $*#! is the target grou( for international brands,
as this grou( looks for better (roducts and is 2illing to (ay a (remium for
international 4uality (roducts. Industry estimates suggest that there are close
to 1! million such 2omen in India.
India%s annual im(ort of cosmetics and toiletries and intermediate ra2
materials is around 1$! million, of 2hich the U.S. has a share of
a((ro;imately 1! (ercent. 8rance, Aermany, Italy, Betherlands, and S(ain
account for the lion%s share of im(orts, 2ith :ustralia, +hina, and Ha(an
accounting for the rest.
T!&5$%+&$" M+<$% &( I()&
The toiletries market segment in India is 2ell deelo(ed and dominated by
multinational com(anies and a fe2 large Indian com(anies. This segment is
also characterized by high entry barriers, a high rate of ne2 (roduct launches,and high adertising e;(enditures. 3ath and sho2er (roducts account for the
largest share of the toiletries market segment. The toiletries segment can be
diided into t2o categories> the less (rice sensitie niche and highly brand
conscious, (remium niche. The (rice sensitie niche caters to the middle and
lo2er middle class and the (remium niche caters to the urban and higher
class.
The toiletries market in India is 2ell deelo(ed and dominated by multinationalcom(anies and a fe2 large Indian com(anies. : fe2 maor (layers, high entry
barriers, fairly high rate of ne2 (roduct launches, and high adertisement
s(endings characterize this segment. )aor (layers in this market are //,
=rocter ? Aamble C=?A, +olgate =almolie, 0eckitt 3enckiser, Aodre
+onsumer =roducts and Birma. // is the market leader in maority of the
toiletries and (ersonal care segment such as soa(sL(ersonal 2ash, oral care,
fabric 2ash and talcum (o2der. In oral care, +olgate =almolie is a
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household name and until a fe2 years back 2as almost a generic name for
tooth(aste in India.
3ath and sho2er (roducts account for the largest share of the market. The
market size of soa(s alone is more than US #! million. Use of li4uid soa(sis also gaining (o(ularity in India. Oral, and hair care (roducts tailored
s(ecially for Indians such as hair oils also hae a maor share. The toiletries
segment is clearly diided into t2o categories * the less (rice sensitie and
highly brand conscious (remium segment catering to the urban higher middle
class and the general segment that caters to the middle and lo2er middle
class. In terms of olume, the Indian toilet soa(s market has been estimated
to be gro2ing at a((ro;imately # (ercent and currently stand at oer #,#!,!!!tones.
G+!;&( D$#() ! C!"#$%&'" !+ M$(
Bo2adays, cosmetics and toiletries are not ust of interest to 2omen
consumers. Indian men are increasingly using body s(rays, colognes andother cosmetics and toiletries. ith a rising demand from men, many (layers
are coming out 2ith men%s cosmetic (roducts, es(ecially in the skin care
niche. Oerall, the market size of the men's (ersonal care segment is about
1&# million, 2ith Aillette haing 2on the largest market share to date. Other
maor (layers in this segment include Aodre, H./. )orison and //.
+osmetics and toiletries are not ust the domain of 2omen any longer and
Indian men too are increasingly taking to the use of more and more bodys(rays, (erfumes and other cosmetics and toiletries. ith rising demand from
men, the Indian market is getting enlarged and many (layers are coming out
2ith cosmetic (roducts es(ecially skin care (roducts for men. The market size
of men's (ersonal care segment is estimated at a((ro;imately US
1&#million, 2ith Aillette haing the largest market share. Other maor (layers
in this segment include Aodre, H./. )orison and //. The gro2ing demand
for men's cosmetics hae made many direct selling com(anies such as)odicare and :m2ay to launch ne2 (roducts for men.
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/o2 )arket =enetration * :n O((ortunity for tremendous gro2th
7en 2ith double*digit gro2th rates, the market (enetration of cosmetics and
toiletries (roducts in India is ery lo2. +urrent (er ca(ita e;(enditure on
cosmetics is a((ro;imately !.& cents, as com(ared to &.&# in other :siancountries. This lo2 market (enetration for cosmetics and (ersonal care
(roducts in India can be ie2ed as an o((ortunity for more significant gro2th
do2n the road in this country of 1 billion (eo(le.
=enetration of most cosmetic and toiletries is ery lo2 in India. +urrent
consum(tion of many (roducts is 2ell belo2 that of many countries in :sia.
The lo2 market (enetration of many cosmetics and (ersonal care (roducts
offers room for gro2th. The Indian toiletries market is 2ell deelo(ed and
dominated by maor multinational com(anies and a fe2 large Indian (layers.
erbal =roducts
In the last fe2 years, there has been a rene2ed craze for herbal cosmetic and
(ersonal care (roducts, es(ecially in the skin care segment 2ith the gro2ing
belief that chemical*based cosmetics are harmful. /ocal maors, includingShahnaz, /otus erbals, and the 3ioti4ue brands dominate the (remium
herbal cosmetics segment in India, estimated at 1!! million. )any
com(anies hae e;(anded their (roduct range into herbal ariants, including
com(anies 2ith a (rimary focus on health care (roducts.
In the last fieLsi; years, there has been a rene2ed craze for herbal cosmetic
and (ersonal care (roducts, es(ecially in the skin care segment 2ith the
gro2ing belief that chemical*based cosmetics are harmful. Shahnaz ussain,3ioti4ue, and /otus erbals are the maor (layers in this segment. )any
com(anies also e;(anded their range to include herbal ariants. The gro2ing
(o(ularity for natural (roducts also attracted many (rimarily health*care
com(anies such as imalaya Drugs C2ith its :yuredic +once(ts range, and
Dabur to launch natural*based cosmetic (roducts.
D&"%+&7*%&!( '(($5"
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:n increasing number of cosmetics com(anies are no2 dealing 2ith
consumers directly through s(ecial e;clusie counters in maor de(artmental
stores and malls featuring their o2n beauty consultants. Serice marketing
strategies, such as (oint*of*sale adice and beauty counseling, hae (roen
to be effectie methods to increase sales of cosmetics and (ersonal care
(roducts. 3eauty counselors or adisors at retails outlets hae been ery
successful in gaining attention, creating (roduct a2areness and oercoming
consumers fears about many cosmetics and (ersonal care (roducts such as
home hair (ermanents and color cosmetics.
/%Oreal India has established a consumer adisory unit and =onds offers skin
care adise through touch*screen kiosks and tele(hone hel( lines for skincare. /%Oreal also markets its range of s(ecialized hair care (roducts
e;clusiely through salons and beauty (arlors and is currently is the only
com(any in the market that has a hair color range tailored e;clusiely for
(arlors. To (romote the gro2th of their (roducts, a number of Indian
com(anies hae established e;clusie franchised beauty salons in maor
metros that offer s(ecialized training courses to customers. 3eauti4ue, an
e;clusie one*sto( sho( for im(orted cosmetic brands set u( recently in Be2
Delhi, offers 4ualified beauty consultants to (roide free adice and
makeoers to consumers. +om(anies also continue to innoate their selling
methods. 8or e;am(le, 3accarose, o2ners of the +hambor brand, organizes
tea (arty make*u( sessions at maor Indian cities.
R$*5%!+, R$&#$
=rior to )arch 1, 1555, cosmetics and toiletries 2ere on India%s im(ort
Prestricted listQ. This meant that a s(ecial im(ort license 2as re4uired to
im(ort cosmetics and toiletries into the country. Today, India (ermits the
im(ortation of cosmetics and toiletries 2ithout any restrictions. :lthough the
im(ortation (rocess has been made easier and India has been reducing
im(ort tariffs substantially, the current 9!. (ercent total im(ort tariff on
cosmetics (roducts is still on the high side. o2eer, the ne2 rate is a huge
im(roement oer last year%s rate of #" (ercent im(ort tariff aerage on
cosmetics (roducts.
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3eginning in Hanuary, $!!1, the Indian goernment made it mandatory for all
(re*(ackaged goods Cintended for direct retail sale im(orted into India to bear
the follo2ing labeling declarations> i name and address of the im(orter@ ii
generic or common name of the commodity (acked@ iii net 4uantity in terms
of standard unit of 2eights and measures@ i month and year of (acking in
2hich the commodity is manufactured or (acked or im(orted@ and
ma;imum retail sales (rice C)0= at 2hich the commodity in (ackaged form
may be sold to the end consumer. The )0= includes all ta;es, freight
trans(ort charges, commission (ayable to dealers, and all charges to2ards
adertising, deliery, (acking, for2arding and the like. +om(liance of the
aboe*stated re4uirements has to be ensured before the im(ort consignments
are cleared by customs in India. The im(ort of (re*(ackaged commodities
such as ra2 materials, bulk im(orts, etc., that need to undergo further
(rocessing before they are sold to end consumers are not included under this
labeling re4uirement.
The term NcosmeceuticalsN is not recognized in India. Doctors in India are not
allo2ed to sell (roducts and 2ould not (rescribe anything im(orted that does
not hae 8D: a((roal. If a cosmeceutical (roduct cannot be sold as an
oer*the*counter item and is classified as a (harmaceutical item, the (roduct
2ould re4uire a((roal from the office of the Drug +ontroller of India in the
)inistry of ealth. The im(ort of such (roducts 2ill only be allo2ed if the
generic (roduct category is registered 2ith the Drug +ontroller's Office.
P+&'$ S$("&%&9$ M+<$%
In general, India is a ery (rice sensitie market. +osmetics and (ersonal
care (roduct com(anies, es(ecially the ne2 entrants, hae had to 2ork out
innoatie strategies to satisfy Indian (references and budgets in order to
establish a hold in the market. 8or e;am(le, gien the (rice*sensitiity of
Indian consumers, many cosmetic and toiletries com(anies launched their
(roducts in smaller (ack sizes to make them more affordable. Small (ack
sizes hae (roed to be ery (o(ular in the Indian market as the conce(t
offers consumers lo2er (urchase costs and the o((ortunity to try ne2
(roducts.
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: strong brand (romotional cam(aign, good distribution net2ork, constant
(roduct innoation and 4uality im(roement, and the ability to (roide a
ariety of 4uality (roducts are some of the maor reasons for the success in
the market. Understanding the attitudes, (references and as(irations of the
different segments of India's consumers is crucial to achieing success in the
Indian market.
C!#$%&%&!(
Indian cosmetic market, 2hich has been traditionally a stronghold of a fe2
maor Indian (layers like /akme, and =onds has seen a lot of foreign entrants
to the market 2ithin the last decade. India is a ery (rice sensitie market and
the cosmetics and (ersonal care (roduct com(anies, es(ecially the ne2
entrants hae had to 2ork out ne2 innoatie strategies to suit Indian
(references and budgets to establish a hold on the market and establish a
niche market for themseles.
Aien the (rice*sensitiity of the Indian consumer 2ho do not normally (refer
to fork out a large sum at one time, many cosmetic and toiletries com(anies
launched their (roducts in smaller (ack sizes to make them more affordable.
// and 0elon 2ere the first to introduce small (ack sizes. 0elon
introduced its small*range of ml nail (olishes and li(sticks, and 2as soon
follo2ed it its strategy by maor Indian com(anies as 2ell. Small (ack sizes
hae (roed to be ery (o(ular in the Indian market as it offers a consumer
lo2er (urchase cost and the o((ortunity to try ne2 (roducts.
Stiff com(etition in the cosmetics and toiletries market also sa2 an increase in
the range of ne2 (roducts being introduced for ne2er a((lication conce(ts in
the last fe2 years. In the skin*care segment, from ust creams and
moisturizers, there has been a u(grade to alue*added (roducts such as
under*eye 2rinkle remoing creams, dark circle remoing creams toners,
sunscreen lotions, fairness creams, and many more. The color cosmetics
market sa2 ne2 (roducts such as smudge*(roof li(sticks and mascaras,
li4uid li( color, and long*stay li(sticks being introduced. These s(ecialized
a((lications led to gro2th in olumes and also enabled com(anies to (rice the
(roducts at a (remium, driing u( alue gro2th.
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Serice marketing strategies, such as (oint*of*sale adice and beauty
counseling hae sho2n to boosts sales of cosmetics and (ersonal care
(roducts and drien gro2th in the Indian market. 3eauty counselors or
adisors at retails outlets hae been ery successful in gaining attention,
creating (roduct a2areness and oercoming consumers lack of familiarity
2ith, and fears about many cosmetics and (ersonal care (roducts such as
home hair (ermanents and color cosmetics. Some com(anies such as /akme
hae een set u( e;clusie /akme beauty (arlors at maor cities in India
through the franchisee route. )aor herbal cosmetics brands such as
Shahnaz ussain and 3ioti4ue also o(erates chains of salons through
franchisees and offer s(ecialized training courses to customers.
+om(anies continue to innoate on selling methods. =o(ular Indian brand,
=onds established consumer adisory cells and through touch screen
counters and tele(hone hel(*lines offers adice on skin care. :nother
com(any, 3accarose, o2ners of the +hambor brand organizes tea (arty
make*u( sessions at maor Indian cities.
/'Oreal markets its range of s(ecialized hair care (roducts e;clusiely
through salons and beauty (arlors. /'Oreal currently is the only com(any inthe market that has a hair color range tailored e;clusiely for (arlors. The
com(any 2as also the first to introduce modern hair color and sham(oos for
colored hair in the Indian market.
: strong brand (romotional cam(aign, good distribution net2ork, constant
(roduct innoation and 4uality im(roement, and the ability to (roide a
ariety of 4uality (roducts are some of the maor reasons for the success of
most com(anies.
//, is currently India's largest cosmetics and (ersonal care (roducts
(roducer and its brands has the dominant share Cmore than #! (ercent in
segments such as (ersonal 2ash, skin care, sham(oos, li(sticks and nail
(olish.
M+<$% A''$""
=rior to )arch 1, 1555, India had cosmetics and toiletries on its restricted listof im(orts and a s(ecial im(ort license 2as re4uired for im(ort of cosmetics
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and toiletries into the country. This regulation has no2 been done a2ay 2ith
and, India today, (ermits im(ort of cosmetics and toiletries 2ithout any
restrictions. This has made the Indian market more attractie to foreign
cosmetic com(anies. Im(orts hae been made easier, but not necessarily
chea(er.
The total im(ort duty rate on cosmetics and toiletries classified under S
+ode .! to .!" is 5.$! (ercent, 2hich een though has been scaled
do2n oer the (ast fe2 years is still ery much on the higher side. The high
duties cause im(orts to be (rice uncom(etitie. +ertain high * end (roducts
ust do not sell in India because the final (rice to bring it into India is too high
for consumers to (ay.
The com(onents of the total im(ort duty include a basic duty of $! (ercent
Ca((lied on the cost insurance freight C+I8 alue of goods, an additional duty
C(o(ularly called counterailing duty of 1& (ercent, and a s(ecial additional
customs duty of 9 (ercent introduced in the 155*55 Indian budget leied on
the aggregate of the basic, counterailing and additional duties. This im(ort
tariff com(onent is leied to (roide local manufacturers some (rotection
against im(orts.
The s(ecial additional customs duty of 9 (ercent is intended to re(resent the
incidence of sales ta; and similar leies a((licable on domestic goods. The
counterailing duty is e4uialent to the local e;cise ta; on similar articles
manufactured 2ithin the country.
Since Hanuary, $!!1, the Indian goernment made it mandatory for all (re*
(ackaged goods Cintended for direct retail sale im(orted into India to bear the
follo2ing labeling declarations> i name and address of the im(orter, ii generic
or common name of the commodity (acked, iii net 4uantity in terms of
standard unit of 2eights and measures, i month and year of (acking in
2hich the commodity is manufactured or (acked or im(orted, and
ma;imum retail sales (rice C)0= at 2hich the commodity in (ackaged form
may be sold to the end consumer. The )0= includes all ta;es, freight
trans(ort charges, commission (ayable to dealers, and all charges to2ards
adertising, deliery, (acking, for2arding and the like.
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+om(liance of the aboe*stated re4uirements has to be ensured before the
im(ort consignments are cleared by customs in India. Im(ort of (re*(ackaged
commodities such as ra2 materials, com(onents, bulk im(ort etc., that need
to undergo further (rocessing before they are sold to end consumers are not
included under this labeling re4uirement.
S5$" P+!"$'%"
The gro2ing Indian cosmetics market offers (romising o((ortunities for
international brands. The gro2th rate in the cosmetics market reflects an
increasing demand for beauty care (roducts in India. The most (romising
segments for international com(anies to (ursue are (erfumes and fragrances,
and s(ecializedL(rofessional skin care and hair care (roducts. The fastest
gro2ing market is ho2eer color cosmetics, 2hich account for US &! million
of the total market.
The rural market in India for cosmetics and toiletries remains is largely
unta((ed. )aor domestic (layers hae also not been able to (enetrate this
market. The urban market itself for s(ecialized cosmetic (roducts remains to
be fully e;(loited. The Indian skin*care market is not yet fully ta((ed and
offers (romising (ros(ects as a gro2th area. =enetration of color cosmetics is
lo2er than the (enetration (ros(ects of the skin*care segment.
To (romote the gro2th of their (roducts, a dominant (layer like /akme hae
embarked u(on a business (lan to establish their e;clusie franchised beauty
salons across maor metros in the country.
Im(orted cosmetics hae had a maor im(act on the Indian market. 8oreign
(roducts hae enhanced gro2th of the Indian market by attracting as(irational
consumers and increasing acce(tance of color cosmetics, (reiously
(erceied by many as harmful to skin. Indians generally (erceie foreign
brands as being of su(erior 4uality.
Other key issues regarding sales (ros(ects are (roduct ariety and retailing
strategies as 2ell. There is a marked shift among consumers from functional
common*fits*all (roducts to more s(ecialized formulations. This is one of the
reasons 2hy an increasing number of cosmetic com(anies are dealing 2ithconsumers directly through s(ecial e;clusie counters in maor de(artmental
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stores and malls featuring their o2n beauty consultants. /'Oreal India has
established a consumer adisory unit and =onds, as mentioned earlier offers
skin care adise through touch*screen kiosks, and tele(hone hel(*lines.
3eauti4ue * an e;clusie one*sto( sho( for only im(orted cosmetic brands set
u( recently in Be2 Delhi has 4ualified beauty consultants to (roide free
adice and make oers to consumers.
The Indian cosmetics and toiletries market 2ill continue to gro2 due to the
increasing incomes and (urchasing (o2er of the gro2ing Indian middle*class
and urban consumers. Demand from the rural areas and smaller to2ns are
also fast increasing.
Industry sources e;(ect significant gro2th in both the mass and (remium
segments of the Indian cosmetics market. The market base ho2eer in the
(remium segment is ery small. It is a niche market and the sco(e for rising
olumes is slo2er. The gro2th in the (remium segment is usually seen to be
because of (eo(le u(grading from the mass to the (remium rather than an
increase in consum(tion as such by itself. =ros(ects for increasing olumes
on the other hand is higher in the mass segment mainly because the market
base for this segment is higher, and because of the lo2er (ricing, it is easierto (ersuade end*users to try out the (roducts.
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LITERATURE REVIEW
S("!% ! %$ C!"#$%&' I()*"%+, &( I()&
India, 2ith a (o(ulation of 1.19 billion (eo(le is a country of contrast. ith an
u((er and middle class (o(ulation of nearly 9!! million (eo(le, 2hich is more
than that of US: and 7uro(ean +ountries, India has become a huge base of
(otential customers. ence 8oreign +om(anies find India as an attractie
location to setu( their o(erations and e;(and their business.
India's urban (o(ulation is the main engine that fuels the demand for arious
cosmetic (roducts. :lthough Indians are strongly attached and committed totheir traditions, and culture, the adent of teleision and the a2areness of the
2estern 2orld are changing the tastes and customs of India. The <mor(hing%
of India is subtle and the changes are not isible for the first time isitor.
o2eer, the market liberalization (rocess that began in 1551, along 2ith the
cro2ning of three Indians as )iss orld and )iss Unierse, hae made
Indian 2omen conscious of their a((earance. +onse4uently, the cosmetic
consum(tion (atterns of Indian 2omen hae changed, and this trend is
fuelling gro2th in the cosmetic sector.
M+<$% C!#!"&%&!(
The size of India's cosmetics market is USD 1 billion. Out of this, size of skin
care segment is USD !! million, color cosmetics is USD "# million,
fragrances is USD $# million, men%s care is USD 1&# million and hair care is
USD $!! million. hile li(sticks account for nearly a third of the color
cosmetics market at USD $# million, the market for nail enamels is estimatedat around USD ! )illion. The remainder, i.e. USD $! million consists of
(roducts such as mascara, eye*liners etc.
The t2o figures belo2 sho2 the +om(osition of the =ersonal care market and
the +om(osition of the +olor +osmetic )arket res(ectiely.
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BCG MATRI>
Stars> 8or cosmetic industry /i(stick and eye color 2ould be the star category.
+ash +o2s> 8or )en cosmetic 2ould be the +ash co2s.
Kuestion marks> air color 2ould be 4uestion mark for the cosmetic industry
due to (eo(le hae some other source to (ermanent color of the hair.
Dogs> )ascara (roduct 2hich used only in marriage or once in a long (eriod
2ould be the dog for the cosmetic com(any.
+ash co2s are units 2ith high market share in a slo2*gro2ing industry. These
units ty(ically generate cash in e;cess of the amount of cash needed to
maintain the business. They are regarded as staid and boring, in a NmatureN
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market, and eery +osmetic com(any 2ould be thrilled to o2n as many as
(ossible. They are to be NmilkedN continuously 2ith as little inestment as
(ossible, since such inestment 2ould be 2asted in an industry 2ith lo2
gro2th.
Dogs, or more charitably called (ets, are units 2ith lo2 market share in a
mature, slo2*gro2ing industry. These units ty(ically Nbreak eenN, generating
barely enough cash to maintain the business's market share. Though o2ning
a break*een unit (roides the social benefit of (roiding obs and (ossible
synergies that assist other business units, from an accounting (oint of ie2
such a unit is 2orthless, not generating cash for the +osmetic com(any. They
de(ress a (rofitable +osmetic com(any's return on assets ratio, used bymany inestors to udge ho2 2ell a +osmetic com(any is being managed.
Dogs, it is thought, should be sold off.
Kuestion marks Calso kno2n as (roblem child are gro2ing ra(idly and thus
consume large amounts of cash, but because they hae lo2 market shares
they do not generate much cash. The result is a large net cash consum(tion.
: 4uestion mark has the (otential to gain market share and become a star,
and eentually a cash co2 2hen the market gro2th slo2s. If the 4uestionmark does not succeed in becoming the market leader, then after (erha(s
years of cash consum(tion it 2ill degenerate into a dog 2hen the market
gro2th declines. Kuestion marks must be analyzed carefully in order to
determine 2hether they are 2orth the inestment re4uired to gro2 market
share.
Stars are units 2ith a high market share in a fast*gro2ing industry. The ho(e
is that stars become the ne;t cash co2s. Sustaining the business unit's
market leadershi( may re4uire e;tra cash, but this is 2orth2hile if that's 2hat
it takes for the unit to remain a leader. hen gro2th slo2s, stars become
cash co2s if they hae been able to maintain their category leadershi(, or
they moe from brief stardom to dog dom.
:s a (articular industry matures and its gro2th slo2s, all business units
become either cash co2s or dogs. The natural cycle for most business units is
that they start as 4uestion marks, then turn into stars. 7entually the market
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sto(s gro2ing thus the business unit becomes a cash co2. :t the end of the
cycle the cash co2 turns into a dog.
The oerall goal of this ranking 2as to hel( cor(orate analysts decide 2hich of
their business units to fund, and ho2 much@ and 2hich units to sell. )anagers2ere su((osed to gain (ers(ectie from this analysis that allo2ed them to
(lan 2ith confidence to use money generated by the cash co2s to fund the
stars and, (ossibly, the 4uestion marks. :s the 3+A stated in 15"!>
Only a diersified +osmetic com(any 2ith a balanced (ortfolio can use its
strengths to truly ca(italize on its gro2th o((ortunities. The balanced (ortfolio
has>
stars 2hose high share and high gro2th assure the future@
cash co2s that su((ly cosmetic (roduct for that future gro2th@ and
4uestion marks to be conerted into stars 2ith the added Be2 (roduct
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PRODUCT LIFE CYCLE OF COSMETIC INDUSTRY
=rofit
Introduction Aro2th )aturity Decline
0etail marketing has eoled, the consumer has become more
kno2ledgeable and demanding, and cosmetics themseles hae become
more so(histicated and innoatie. :bout the only thing that has remained
constant in the cosmetics industry oer the years is 2omen%s loe of
cosmetics. In the U.S., most 2omen begin 2earing cosmetics before age 1$
and, by age 1, almost 5! (ercent are using them.
Technological adances hae allo2ed for the creation of multifunctional
(roducts R (roducts that (erform more than their basic role. 8or e;am(le,
cosmetics that contain ceramides and itamins, as 2ell as UE (rotection are
(o(ular. Today, foundations (rotect from ultraiolet rays, li(sticks moisturize
and mascaras thicken and condition. )ultifunctional (roducts hae enoyed
much success, thanks to more discerning consumers 2ho are demanding
alue for money in their colour cosmetics (urchases.
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The biggest (erformance deelo(ment in colour cosmetics has been the
creation of Pstay*onQ (roducts.
+onsumers hae also been attracted by (roducts that are easier to a((ly
and conenient to use, such as (en li(sticks and fast*drying nail (olishes
omen buy the maority of their cosmetics from mass, drug or food stores
2here selecting (roducts yourself is the norm.
7stee /auder%s research in the U.S. market sho2ed that sales doubled 2hen
self*serice 2as offered. Aiing (eo(le the choice attracted ne2 customers.
Innoatie technologies hae allo2ed manufacturers to create dramatically
im(roed cosmetic sam(les and to distribute sam(les beyond the (oint*of*
sale, een into the home. Sam(ling e;(erts agree that the most effectie
sam(ling ehicles are those designed to reach consumers at home.
Areater (roduct (enetration in suburban and rural areas, fre4uent (roduct
launches and greater interest in (ersonal grooming, es(ecially among the
younger (o(ulation, droe gro2th. igher leels of dis(osable income and
lo2er (roduct (rices through smaller (ackaging sizes made cosmetic and
toiletries affordable to more consumers.
SGUs - Selling Git Unit sizes and (ackaging can be effectiely used to
generate trial and initiate demand for a (roduct, 2ithout com(romising on
(rice. )aybelline Be2 Fork, for instance, globally has 5!! SGUs in colour
cosmetics.
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RESEARCH METHODOLOGY
R$"$+' O7$'%&9$
1. To carry out a com(rehensie research on the current scenario of
cosmetic industry in India.
$. To reie2 the (osition of the e;isting cosmetic brands in India.
. To understand the marketing mi; of e;isting brands.
To formulate strategies of a ne2 com(any to enter the Indian cosmetic market
R$"$+' M$%!)!5!,
• =rimary 0esearch
• Secondary 0esearch
The first and second obectie of this research 2ill be attained through
conducting secondary research on the orld ide eb, magazines,
ne2s(a(ers, articles, etc. There are arious articles, re(orts and ne2sletter
on the internet about the current scenario and the com(osition of the Indian
cosmetic market.
The third obectie 2as achieed by conducting (rimary research. Earious
retail outlets like Sho((er%s Sto(, =antaloons, etc 2ere isited. Stand*alone
stores of arious brands like 0elon, Shahnaz ussain, 3ioti4ue, etc 2erealso isited. :n a((ro(riate 4uestionnaire 2as designed and 4uestions 2ere
asked to the on*floor e;ecuties and information about the (roducts and
(rices of arious brands 2ere e;tracted. Earious distributors and marketing
(ersonnel of maor cosmetic brands 2ere also interie2ed for the (lacement
and (romotion strategies of these brands.
The fourth obectie 2as achieed by analyzing the information gathered from
the (rimary and secondary data source and formulating an a((ro(riatemarketing strategy for a ne2 international brand to enter into the Indian
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market. Earious (lus (oints in the marketing strategies of the e;isting brands
2ere ke(t in consideration and loo( holes in their strategy 2ere aoided to
formulate the marketing strategy for the ne2 brand.
FINDING AND ANALYSIS
PRIMARY DATA ANALYSIS
1. hat kind of store do you deal in
0etail Outlet $&
Stand :lone Store $&
3outi4ue &
Others !
To understand the marketing mi; of e;isting brand in the current scenario I
took a 4uestionnaire based method to gather (rimary data for this I isited
arious retail outlets like Sho((er%s Sto(, =antaloons, etc 2ere isited. Stand*
alone stores of arious brands like 0elon, Shahnaz ussain, 3outi4ue, etc
2ere also isited. :n a((ro(riate 4uestionnaire 2as designed and 4uestions
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2ere asked to the on*floor e;ecuties and information about the (roducts and
(rices of arious brands 2ere e;tracted.
Earious distributors and marketing (ersonnel of maor cosmetic brands 2ere
also interie2ed for the (lacement and (romotion strategies of these brands.
:s =ie chart also de(icted I chosen 1#! as a sam(le size 2hich is random
basis and in my surey 9&6 store is targeted as bouti4ue because 2here
most of female are come for their beauty needs. :lso retail outlet and stand
alone outlet is 1"6 contributed in my surey result, this segment gie us 2ide
e;(erience to analyze the marketing mi; of the cosmetic markets in India.
Others is contributed $!6 out of my sam(le size of 1#! (eo(le that is
contributed arious distributors and marketing (ersonnel of maor cosmetic
brands 2ere also interie2ed for the (lacement and (romotion strategies of
these brands.
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$. hat brand (eo(le (refer to buy for cosmetic uses in your store, =lease
chose only one o(tion out of these
/'Oreal 19
0elon 1$
+hambor $
/akme 1
+hanel
+alin Glein 5
Daidoff "
)aybelline 9
/ancome !
FS/ !
7lizabeth :rden "
Shisheido 1
0al(h /auren 1
)arks and S(encer 9
The 3ody Sho( 1
Biea 1
Aarnier 1$
Setet $
IT+ 1!
Sunsilk 9
Doe &
7eryouth 1
Easeline 1Eatika
imalaya
=onds $
=antene 1
=arachute 1
=ark :enue $
3rylcream Aodre 1
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/ion 1
7mami 1
Through this 4uestion I try to analyze the endor (reference for selling the
cosmetic (roduct in their res(ectie store. This 2ill hel( me to find out
different marketing mi; for the brand that has a (resence in the Indian market.
:ccording to our surey result /%oreal has more market share than others out
of 1#! retailers I chosen for surey and 19 retailers suggest that /oreal has a
number one brand in their res(ectie store category of cosmetic brand.
Bo2 for /oreal the com(etition get increased in coming days because 2e can
easily look at 0elon , /akme and Aarnier also coming 2ith the same 2ay
2here they also contributed significant amount of (roduct (ortfolio in cosmetic
market of India.
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. o2 many different brands contributed this follo2ing segment of cosmetic
Industry
Different +osmetic Segment Bo of 3rands
air +are 1&
Skin +are 15
+olor +osmetics 11
8ragrances 19
)en's +are "
Toiletries $
These data I gathered from the different distributors and marketing (ersonnel
of maor cosmetic brands 2ere also interie2ed for the (lacement and
(romotion strategies of these brands.
:s =ie chart de(icted that 16 com(any contributed to the air care segment
2here start from /oreal , to godre eery com(any target this segment
aggressiely. )oe to the other cosmetic segment 2here $16 com(any
targeted to the skin care one of the lucratie business area for the any 8)+A
com(any no2 a days you found also. The most cro2ded are of the cosmetic
segment is Toiletries 2here as $&6 com(any targeted this area due of huge
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(otential of gro2th. In our surey I chosen 5! brands from the different
com(anies 2hich is targeting Indian cosmetic industry in big 2ay.
9. hich com(any brand is most faorable in /i(stick C/i( Aloss, /i( =encil
Segment
B+() L&"%&'<
7lizabeth :rden 1"
/oreal 1
)aybelline 1
0elon $
/akme $$
+hambor #Shahnaz ussain 1"
3ioti4ue 9
/otus 5
/i(stick is the one segment 2here eery cosmetic com(any try to find one of
the biggest s(ace to indulge 2ith it.
Out of 1#! retailers as a sam(le size /oreal has $16 market share same 2ith
0elon 2hich is 4uite com(etitie can easily find out . also /akme has a 1#6
market share follo2ed by /oreal and 0elon. Some other /i(stick brand like
Shahnaz ussain has a 116 market share 2hich contributed herbal and nice
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kind of segment here. 8or making sim(ler to data analysis /i(stick segment
coered /i( Aloss, /i( =encil.
#. hich of the follo2ing brand is most faorable to the customer for 7ye
segment C7ye Shodo2, /iner ? 3ro2s , Gaal ,3lushers, )ascara,+om(act
B+() E,$ '!5!+
7lizabeth :rden 5
/oreal 9
)aybelline 19
0elon !
/akme 1
+hambor Shahnaz ussain 19
3ioti4ue 9
/otus 11
/i(stick and 7ye +olor is the one segment 2here eery cosmetic com(any try
to find one of the biggest s(ace to indulge 2ith it.
Out of 1#! retailers as a sam(le size /oreal has $6 market share same and
0elon contributed $!6 to the market also /akme has s also aluable
(resence in this segment 2here this com(any has $16 market share 2hich is
4uite com(etitie can easily find out. some other eye color brand like Shahnaz
ussain has a 56 market share 2hich contributed herbal and nice kind of
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segment here. 8or making sim(ler to data analysis /i(stick segment coered
7ye Shodo2, /iner ? 3ro2s , Gaal ,3lushers, )ascara,+om(act.
&. hat is the (rice range for /i(stick segment for the arious brands in the
market
B+()P+&'$ R($ !+ L&S%&'S$#$(% A''$%7&5&%,
7lizabeth :rden !!* 1!#! 1
/oreal #&!* "!! $$
)aybelline 155* ! $#
0elon !* &$# 1"
/akme 1&#* 5# 1
+hambor 9#*#1# 15
Shahnazussain $1! 19
3ioti4ue $$5 1$
/otus $95* $5 1!
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=rice range for /i(stick segment for the arious brands in the market sho2s
the (rice and aailability of the (roduct and the brand that caters to Indian
cosmetic market.
e chosen 1#! retailers for the surey and 2ould get the result aboe sho2nin gra(h and the /ist.
)aybelline is the brand for 2hich is leader in this segment 2here got $#
retailers choice due to of (rice range 155*!. hereas /oreal is 4uite
e;(ensie there (rice range is #&!*"!! but due to margin is ery good on this
(roduct retailers are loe to sell $$ retailers chosen /oreal is a (referred
brand to sell through their outlet.
0elon 2hich is again (rice range of !*&$# 2ould hae 1" retailers choice
in their basket. Bo2 moe to some less (rice segment 2here as /akme has
1 retailers choice out of 1#! retailers as our sam(le size.
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". hat margin you aail in the follo2ing brand
+om(anyBame
0elon /%Oreal /akme /otus 3ioti4ueShahnazussain
Distributor)argin
&6 &6 &6 6 6 6
0etailer)argin
1#6 1#6 1#6 $!6 $!6 $!6
+ashDiscount
$6 BO BOde(ends onState
BO BO
+redit =eriod 1# days BO 1# days 1# days BO BO
8ranchiseeStatus
)in.sales of0s#!,!!!L*for months
)in. salesof 0s1,#!,!!!L*(.m.
3ased on(erformance
(otentialsales of 0s9#,!!!L* to#!,!!!L*(.m.
3ased on(erformance
3ased on(erformance
0e(lacement1.#6 ofinoicealue
1!!6re(lacement is done
1!!6re(lacementis done
1!!6re(lacement is done
1!!6re(lacementis done
1!!6re(lacementis done
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This gra(h de(ict the 0etailers margin and the Distributor margin they 2ill get
2hen they sell one (roduct in there outlet. This section 2ill gie us insight of
the 0etailers choice for selling one (roduct. hich is e4ually aluable then the
marketing and other marketing mi; because some time buying behaior
influenced by the retailers to the great e;tent.
3ut sur(risingly 0eelon , /oreal and /akme these are three to( brand in the
cosmetic market 2hich gie &6 margin to the distributor and 1#6 flat margin
to the retailers no2 the discussion (oint is 2hen one brand established in the
market com(any also use the com(etitie adantage on that front.
+oming to the second o(tion 2here three brand 2hich is less kno2 in
com(arison to the 0eelon , /oreal and /akme 2hich is /outus, 3ioti4ue,
Shahnaz hussain they gae 6 margin 2hich is more than $6 from the
established brand and 0etailer 2ould got $!6 margin 2hich is more than #6
of the established brand.
+learly for the ne2 com(any 2ho try to established there o(eration in India
take care of these (oint because it is 2ell kno2n fact Indian consumers are
ery (rice sensitie either distributor or retailers or end consumers.
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. 0ate your satisfaction leel to selling cosmetic brand
e try to gauge 2ith this 4uestion about the customer satisfaction leel in this
follo2ing four ertical form our surey sam(le size of 1#!.
$6 res(ondent out of 1#! (eo(le is giing us good signal that there
satisfaction leel is lo2er than e;cellent and ery good 2hile $$6 res(ondent
think there satisfaction leel 2ere e;cellent for to sell the cosmetic brand
through outlets also 16 res(ondent are chooses ery good to sell cosmetic
(roduct through the com(any. /o2 area is 16 2here (eo(le are not satisfied
2ith the cosmetic (roduct because they think they don%t hae any re4uirement
of that, com(any need to 2ork to2ards this filling u( this ga( also try to turn
196 res(ondent are saying aerage leel satisfaction leel to2ards selling the
cosmetic brand.
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5. Do you satisfy 2ith the kind of marketing (romotion (lan cosmetic com(any
is doing in current market scenario
Out of 1#! (eo(le from our surey suggested that #16 (eo(le are suggested
that this outdoor marketing actiity or direct marketing and other 2ay of
marketing actiity doing by the cosmetic com(any like /oreal, or 0elon is
(erfectly fine.
Bo2 also along 2ith #16 ery com(etitie ans2er 2e receied that 956
(eo(le are actually not liked the current marketing and (romotion scheme
o(ted by the com(any no2 from the ne;t 4uestion 2e 2ould ask to the
retailers 2hat are the (ossible 2ay to do adertisement to reach out more
masses.
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1!. 8rom 2here you get to kno2 about cosmetic (roduct most.
Through this 4uestion 2e try to analyze the a2areness about the cosmetic
(roduct com(any and ho2 2ell they communicate to the customer or retailer
and ho2 they 2ill communicate.
8rom our finding it is comes that 6 (eo(le out of 1#! as a sam(le size is
res(onded that they are got to kno2 about the cosmetic (roduct through
:dertisement so the adertisement is the best 2ay to communicate their
(roduct to the end users. $16 res(ondent said they got to kno2 about
cosmetic (roduct through cam(aigned by the res(ectie com(any. :lso 1#6
retailers got to kno2 about these (roduct through sales re(resentatie. :nd
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Through +am(aigned 1#
Through Sales re(resentatie 19
:dertisement $!
ord of mouth (ublicity 19
Internet 1$
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1" 6 res(ondent out of 1#! (eo(le said they got to kno2 if the customer
demanded same (roduct form the res(ectie com(any
0ecommendation about the any cosmetic (roduct com(any for the (romotion
best medium is adertisement in that (rint media, electronic media alsocam(aigned and 2ord of mouth (ublicity is e4ually im(ortant in the medical
deices com(any
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This is a thesis based on the market research on the cosmetic industry of
India. The size of India's cosmetics market is USD 1 billion. Out of this, size of
skin care segment is USD !! million, color cosmetics is USD "# million,
fragrances is USD $# million, men%s care is USD 1&# million and hair care is
USD $!! million. hile li(sticks account for nearly a third of the color
cosmetics market at USD $# million, the market for nail enamels is estimated
at around USD )illion. The remainder, i.e. USD 1" million consists of
(roducts such as mascara, eye*liners etc.
+osmetics can be broadly diided into $ categories - +hemical +osmetics
and erbal +osmetics. /akme, /%Oreal and 0elon are maor (layers in the
chemical cosmetic market 2hereas Shahnaz ussain, 3ioti4ue and /otus are(rominent in the herbal segment.
The market share of chemical cosmetics is 5!6 2hereas for herbal
cosmetics, it is 1!6. 7en though herbal cosmetics segment has ery lo2
market share, this segment is gaining (o(ularity ery fast, and consumers%
demand for herbal cosmetics is on a stee( rise.
)arket (enetration leels of international cosmetics brands in India are lo2.
8oreign brands currently constitute only $! (ercent of the market, due largely
to the higher (ricing these brands carry.
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RECOMMENDATION
The size of India's colour cosmetics market is 0s $#! crore. That offragrances is 0s # crore 2hile the skincare market size is larger at 0s 9!!
crore. hile li(sticks account for nearly a third of the colour cosmetics market
at 0s 5!*1!! crore, the market for nail enamels is estimated at around 0s 11!
crore. The remainder consists of (roducts such as mascara, eye*liners etc.
The market for cosmetics and toiletries in India is characterized by high
olume sales of lo2*end toiletry (roducts, 2hile at the same time the
legendary emerging middle*class has generally been fuelling demand forcosmetics and u((er*mass toiletries.
=roducts that are too s(ecialized hae yet to be successful on the Indian
market. 7;am(les include toners, hand care and other alue*added skin care
(roducts, bath ? sho2er (roducts and aftershae balm. Only the richest
consumers can afford these@ indeed, the aerage consumer may be una2are
of their (ur(ose or een e;istence. This also e;(lains the relatiely (oor
sho2ing of (erfumes, es(ecially the (remium ariety.
)ost maor cosmetic com(anies (rofess the need to ta( the u((er market
segment and create e;clusie (roducts, but market studies reeal that most
cosmetic users are un2illing to cough u( more to buy these e;clusie
(roducts. Only 9! (er cent of /akme's customers e;(ressed their 2illingness
to (ay more in antici(ation of su(erior 4uality.
hen the domestic (layers hae looked at the (remium segment they hae
ado(ted a ery cautious a((roach. 8or instance /akme has no2 introduced
its e;(ort range ild Orchid' into the domestic market and also recently
launched ultra (remium' range. 3ut these are limited (roduct ranges mainly
in the (erfumes and colour cosmetics segment.
Indeed a more recent feature across all sectors, 2hether basic toiletries or
more lu;ury (roducts, such as colour cosmetics, has been for manufacturers
to concentrate on the mass market. 8or toiletries, this is a result of many
consumers trading do2n, forcing manufacturers to res(ond. In skin care and
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colour cosmetics, it is more a result of trying to increase demand in the
gro2ing market for mass (roducts, es(ecially among teenagers.
The first challenge that the colour cosmetics industry had to face 2as to undo
the negatie connotations attached 2ith N3eing fashionableN. 8urther they alsohad to dis(el the fears that colour cosmetics are harmful for the skin. They
had to hel( the (eo(le to learn to ado(t cosmetics as an essential (art of daily
grooming.
In this industry (ositioning is carried out mainly by adertisements. /akme has
al2ays adertised in the arious mass media aailable. It also has a ery
good distribution net2ork. 8or instance, its (remium brand Orchids has
follo2ed the (ath of +hambor, and is (laced only in large and re(uted retail
stores
To (osition them strongly amongst the & million youth section /akme came u(
2ith 7lle1 in early 155&. It 2as adertised for the NFoung girl 2ho breaks the
rules and loes to hae funN. These ads sho2ed young, college and high
school going girls 2ho (roected the image of trying to be different and NcoolN.
In the (remium segment /akme has introduced another (layer, :iance,
2hich has been (osition as Ncustomized beauty solutionsN. The distribution is
handled by net2ork marketing, 2hich consists of a number of beauty
consultants, mainly belonging to the u((er*middle class, 2ho hae been 2ell
trained and are 2ell groomed to s(read the :iance beauty gos(el
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BIBLIOGRAPHY
0eed, Sandra I. US De(artment of ealth and uman Serices. N+osmeticsand Four ealth.N $!!9. )ay 19, $!!". V1W
/e2is, +arol. 8D:. N+learing u( +osmetic +onfusion.N $!!!. )ay 19, $!!".
=allingston, H C155. /i(stick> : +elebration of the orld's 8aorite +osmetic.
St. )artin's =ress. IS3B !1$15519".
:gner T C1551. NSusce(tibility of ato(ic dermatitis (atients to irritant
dermatitis caused by sodium lauryl sul(hateN. :cta Derm. Eenereol. "1 C9>
$5&-!!. =)ID 1&1&99.
Bassif :, +han S+, Storrs 8H, anifin H) CBo 1559. N:bnormal skin irritancy
in ato(ic dermatitis and in ato(y 2ithout dermatitisN. :rch Dermatol 1! C11>
19!$-". =)ID "5"5991.
)arrakchi S, )aibach I C$!!&. NSodium lauryl sulfate*induced irritation in
the human face> regional and age*related differencesN. Skin =harmacol
=hysiol 15 C> 1""-!. doi>1!.11#5L!!!!511$. =)ID 1&&"515.
+I0 (ublication. 8inal 0e(ort on the Safety :ssessment of Sodium /auryl
Sulfate and :mmonium /auryl Sulfate. Hournal of the :merican +ollege of
To;icology. 15 Eol. $ CBo. " (ages 1$"*11.
/Xffler , 7ffendy I C)ay 1555. NSkin susce(tibility of ato(ic indiidualsN.
+ontact Derm. 9! C#> $5-9$. =)ID 1!999"".
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ANNE>URES
. A(($?*+$ @ : -
/ist of Indian cities 2ith their (o(ulation
R(< C&%, S%%$ P!*5%&!(
1 )umbai C3ombay )aharashtra $!,"!,"&9
$ Delhi Delhi 1,&$,&$#
Golkata C+alcutta est 3engal 1#,1#,&"!
9 +hennai C)adras Tamil Badu ",15&,###
# 3engaluru C3angalore Garnataka &,"!,1!
& yderabad :ndhra=radesh
&,15&,55
" :hmedabad Auarat #,$##,!!
=une )aharashtra #,!&5,!&1
5 Gan(ur Uttar =radesh ,9!,59#
1! Surat Auarat ,195,$&5
11 Hai(ur 0aasthan $,55",119
1$ /uckno2 Uttar =radesh $,51#,"#&
1 Bag(ur )aharashtra $,#1,#&"
19 =atna 3ihar $,#1&,9&
1# Indore)adhya=radesh
1,559,5!5
1& )eerut Uttar =radesh 1,1,!"
1" 3ho(al)adhya=radesh
1,"1,
1 Eadodara C3aroda Auarat 1,&"1,"1
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15 /udhiana =unab 1,&&$,$#
$! Bashik )aharashtra 1,&#&,#5
$1 3hubanesh2ar Orissa 1,&&,$1&
$$ :gra Uttar =radesh 1,&!,#!!
$ +oimbatore Tamil Badu 1,&15,""
$9 Gochi C+ochin Gerala 1,#1,$&1
$# Eisakha(atnam CEizag :ndhra=radesh
1,95,$11
$& Earanasi C3enares Uttar =radesh 1,9",##&
$" 0akot Auarat 1,9$,1!
$ )adurai Tamil Badu 1,,$!&
$5 :sansol est 3engal 1,$",51
! Habal(ur )adhya=radesh
1,$#1,99
1 :llahabad Uttar =radesh 1,$9,&95
$ Hamshed(ur Hharkhand 1,$9,1
Dhanbad Hharkhand 1,15$,$9$
9 :mritsar =unab 1,11,"5!
# )ysore Garnataka 1,1&9,$
& :urangabad )aharashtra 1,1#,$#
" Eiaya2ada :ndhra
=radesh
1,1$,&99
Sola(ur )aharashtra 1,!59,##
5 Srinagar Hammu andGashmir
1,!,!&"
9! 3hilai +hhattisgarh 1,!,"$
91 0anchi Hharkhand 1,!5,&5$
9$Thiruanantha(uramCTriandrum Gerala 1,!$",9!
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9 Au2ahati :ssam 1,!1$,11
99 +handigarh +handigarh 1,!!,!1
9# Gozhikode C+alicut Gerala 5#,5$$
9& A2alior )adhya=radesh
5"$,#"
9" Hodh(ur 0aasthan 5"1,9!"
9 Tiruchira(alli CTrichy Tamil Badu 59,51#
95 Halandhar =unab 59,#11
#! 3areli Uttar =radesh ,!9#
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7. A(($?*+$ : -
India%s to( 1! cities> *
Ten ealthiest, ighest +onsuming To2ns
R(< T!;(" S%%$"
F&*+$" +$ &()$? ! #+<$%"&=$ ! %!;(" '5'*5%$) +!#@8 &()&'%!+" ! &('!#$'!("*#%&!( ;+$($"" ()#+<$% &(+"%+*'%*+$
1Areater
)umbai)aharashtra 1,!!!
$ Delhi Delhi "5!
Golkata est 3engal &1
9 +hennai Tamil Badu &
# yderabad :ndhra=radesh
$#
& 3angalore Garnataka $##
" :hmedabad Auarat $$1
=une )aharashtra $!"
5 Surat Auarat 1$9
1! Bag(ur )aharashtra 1!#
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T! T$( W$5%&$"% T!;(" &( I()&
R(< T!;(" S%%$"P$+-C&% A((*5 I('!#$ &(
R".
1 +handigarh +handigarh CUT $&, "1!
$ =anai Aoa $&,!"#
Delhi Delhi $9, 191
9 Eal(arai Tamil Badu $, ""$
# Areater)umbai
)aharashtra $, 1!5
& =une )aharashtra $$, 1"
" /udhiana =unab $$, 1"
+hennai Tamil Badu $1, #
5 Shimla imachal=radesh
$1, 9
1! Halandhar =unab $1, $#9
T$( T!;(" ;&% H&$"% F#&5, I('!#$ &( I()&
R(< T!;(" S%%$" !*"$!5)" ;&% #!(%5,&('!#$ #!+$ %( R". @0000
1 =anai Aoa ""
$ /udhiana =unab &
Delhi Delhi &$
9 :mritsar =unab &!
# Halandhar =unab &!
& +handigarh +handigarh #"
" =une )aharashtra #&
Areater )umbai )aharashtra #&
5 Eal(arai Tamil Badu #
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1! 8aridabad aryana #1
T!;(" ;&% H&$"% S$()&( !( FMCG P+!)*'%"
R(< T!;(" S%%$"A9$+$ M!(%5, S$()&( !(
FMCG P+!)*'%" &( R".
1 +handigarh +handigarh ,91
$ Areater )umbai )aharashtra $,5##
+hennai Tamil Badu $,&
9 :hmedabad Auarat $,&5
# Eadodara Auarat $,1&
& =une )aharashtra $,!9
" +oimbatore Tamil Badu $,&9
/udhiana =unab $,&"9
5 8aridabad aryana $,#5&
1! yderabad :ndhra
=radesh$,#
YSoa(, Sham(oo, Bail =olish, ashing =o2der, 8oot2ear, Tea, +offee,
+igarettes, 7lectric 3ulbs
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'. A(($?*+$ : -
UESTIONNAIRE
1. hat kind of store do you deal inCa 0etail Cb Stand alone storeCc 3outi4ue Cd Others C=lease mention,ZZZZZZZZZZZ
$. hat brand (eo(le (refer to buy for cosmetic uses in your store,=lease chose only one o(tion out of theseCa /'Oreal Cb 0elon Cc +hambor Cd /akme Ce +hanel Cf +alin GleinCg Daidoff Ch )aybelline Ci /ancomeC FS/ Ck 7lizabeth :rden Cl Shisheido
Cm 0al(h /auren Cn )arks and S(encer Co The 3ody Sho(C( Biea C4 Aarnier Cr SetetCs IT+ Ct Sunsilk Cu DoeC 7eryouth C2 Easeline C; EatikaCy imalaya Cz =onds Caa =anteneCbb =arachute Ccc =ark :enue Cdd 3rylcreamCee Aodre Cff /ion Cgg 7mami
. o2 many different brands contributed this follo2ing segment ofcosmetic IndustryCa air +are Cb Skin +are Cc +olor +osmetics
Cd 8ragrances Ce )en's +are Cf Toiletries
9. hich com(any brand is most faorable in /i(stick C/i( Aloss, /i(=encil Segment Ca 7lizabeth :rden Cb /oreal Cc )aybellineCd 0elon Ce /akme Cf +hambor Cg Shahnaz ussain Ch 3ioti4ue Ci /otus
#. hich of the follo2ing brand is most faorable to the customer for 7yesegment C7ye Shodo2, /iner ? 3ro2s , Gaal ,3lushers,)ascara,+om(act
Ca 7lizabeth :rden Cb /oreal Cc )aybellineCd 0elon Ce /akme Cf +hambor Cg Shahnaz ussain Ch 3ioti4ue Ci /otus
&. hat is the (rice range for /i(stick segment for the arious brands inthe marketCa 7lizabeth :rden Cb /oreal Cc )aybellineCd 0elon Ce /akme Cf +hambor Cg Shahnaz ussain Ch 3ioti4ue Ci /otus
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". hat margin you aail in the follo2ing brand
+om(anyBame
0elon /%Oreal /akme /otus 3ioti4ueShahnazussain
Distributor)argin
0etailer)argin
+ashDiscount
+redit =eriod
8ranchisee
Status
0e(lacement
. 0ate your satisfaction leel to selling cosmetic brand 7;cellent Eery good. Aood. :erage. /o2
5. Do you satisfy 2ith the kind of marketing (romotion (lan cosmeticcom(any is doing in current market scenario
• Fes
• BO
1!. 8rom 2here you get to kno2 about cosmetic (roduct most. Through +am(aigned organized by the com(any.th Through res(ectie sales re(resentatie. Through adertisement.
ord of mouth (ublicity. Internet.
"