Beauty & Personal Care Industry

Beauty and personal care

Introduction:

The Beauty and Personal Care Industry are one of India’s fastest-growing consumer service sectors with strong potential for foreign firms. Indian personal care and cosmetics sectors have continuously shown strong growth. With increased shelf space in India’s retail stores and boutiques, storing cosmetics from around the world.

About a fourth of the sector is comprised of 5,000 franchises totaling $1 billion in value; the rest is composed of independent stores and small to mid-sized chains. The beauty care market in India is likely to become the main contributor to the growth of the Indian wellness industry.

It consists of salons, cosmetic products, cosmetics treatment centers, and cosmetic products. Women contribute to over 85% of the Salon industry revenue, while men’s hair is the next wave set to hit the Indian Salon Industry. Indian Cosmetics Industry has seen tremendous growth in the last few years due to rising beauty concerns among both men and women.

Over the last five years the growth figures are:

-Cosmetic Products – 60%

-Salons – 35%;

-Cosmetic Treatments – 5%

According to a research report, the Indian cosmetics industry shows potential growth for both existing and new players. The forecast for the hair and beauty industry is estimated at a per capita annual spend of USD 1.2 which is expected to grow to USD 6.2. In fact, the country’s cosmetic sector has immense growth potential.

The future seems exceptionally bright due to new product launches. The introduction of new beauty technologies that are catering to consumers’ growing requirements and will fuel growth in the industry.

According to the latest research report, the Indian cosmetics market sales, and rising purchasing power and growing fashion consciousness. The industry is estimated to expand at an annual growth rate of about 17%. It is based on an analysis of consumer behavior.

It has been seen that many consumers are increasingly shifting towards ‘natural’ and ‘herbal’ cosmetic products as they are associated with bio-active ingredients that are safe for human skin.

In addition to this, It is noticed that not only women but men are also spending more on cosmetics as they are actively earning and spending money on grooming themselves.

Market analysis also shows that the color cosmetics market is growing at a rapid rate in comparison to other segments. As for the International players already present in India, there has been an uncontrollable movement of beauty products. Makers have lined up to cash in on a business boom in India.

Various luxury brands such as Victoria Secrets, Bodyography, and Labiocos are expected to uproar the Indian consumer wallet and mindshare by 2020. Although a slowing economy and slowdown in consumer spending on non-essential products and services clearly haven’t stopped Indian women or men from adoring and putting up their best face.

Hence, most of the international brands are trying to cash in on the huge appetite for foreign cosmetic brands in India amid growing spending power among the country’s large section of women, thanks to the increasing number of ladies entering the corporate workforce every year. On average, working women intend to spend 35% or more of their income on themselves

Mumbai-based Shahnaz Husain Beauty Parlor is an established Indian provider of herbal beauty care and cosmetics. Its salons specialize in haircutting and styling, facials, waxing, and threading. Its services include waxing, threading, hair coloring, and haircuts. Several other salon chains are driven by Indian hair care celebrity stylists such as Blossom Kochar and Jawed Habib.

Kaya Skin Clinic has locations in Hyderabad and Nagpur and specializes in anti-aging treatments, hair loss treatments, and skin brightening. Monsoon Salon & Spa is located in Delhi and Gurgaon and offers hair, beauty, nails, and makeup services. Enrich Salon is one of the country’s largest unisex salons and has multiple locations in the cities of Pune and Bangalore.

International companies are increasingly prominent because of their appeal to the Indian upper middle class. France’s Dessange International plans to open 20 to 25 mid-segment and luxury salons in Bangalore, Chennai, Hyderabad, and Mumbai by 2018.

Another French company L’Oreal has product presence in over 168,000 independent salons in India providing hair care, coloration, and styling products. L’Oreal’s Matrix products are most popular because of their affordable prices. Germany’s Schwarzkopf, a part of the Henkel Group, is present in about 5,000 salons in India.

Its top hair products include BonacureIgora RoyalGlattStrait TherapyNatural Styling, and Osis. U.K.-based Truefitt and Hill, a barbershop that specializes in shaves, haircuts, manicures, and pedicures, was acquired by Lloyds Luxuries Ltd., a Mumbai-based company. Lloyds Luxuries plans to establish outlets in Delhi, Bangalore, and Pune along with 40 other stores in the country by 2019.

The industry is growing due to the population’s demand for high-quality salon services, increasing disposable income among the middle class, and media exposure to international brands. This results in more attention to personal maintenance. For example, many Indian women spend large sums on salon packages to attend or participate in weddings.

Size and Growth:

The segment of Indian cosmetics and beauty products witnessed a steady growth of late. It is classified mainly into five main categories-body care, face care, hair care, hand care, and cosmetics of color. Indian beauty and personal care (BPC) industry are estimated to be worth USD 8 billion. India’s per capita spend on beauty and personal care is it is growing in line with India’s GDP growth.

Many international brands such as Revlon (the first international cosmetics brand to enter India in the midnineties), Avon, Burberrys, Calvin Klein, Christian Dior, Estee Lauder, L’Oreal, Max Factor, Max Mara, Body Shop, Maybelline New York, MAC, Bobbi Brown and many more have long been present in India.

The top three players on the Indian market, namely Hindustan Unilever, Colgate-Palmolive India, and L’Oréal India, are international players. Gillette India, Johnson & Johnson (India), Reckitt Benckiser (India), and Procter & Gamble Home Products are also prominent foreign players with a significant presence in the Indian industry.

Over the review era, domestic players were catching up with trends toward food, herbal, and ayurvedic products emerging. Prominent domestic players include goods from Godrej Consumer, Dabur India, Marico, Emami and Patanjali Ayurved, Wipro Personal Care & Lighting.

Indian BPC Market Size by percentage

Geographical segmentation:

Imported cosmetics has a major influence on the Indian Market. Imported cosmetics have a major influence on the Indian Market

India: A land of opportunities “future of Indian beauty and salon industry”

The Beauty And Salon Industry is growing rapidly with a huge consumer database entering every year at a rate of 15-20%. In fact, emerging trends, skills, and excellent services helping it to grow at a decent rate and is currently estimated at USD 950 million is pegged at USD 2.68 Billion by 2020.

With the introduction of new technologies coming into the market and everything getting digitized, the consumer’s demand for innovation, unique services, flexibility, etc. is also increasing at a rapid pace.

Salons are continuously upgrading themselves and hence are in tough competition with the mobile-enabled home services business models. But nevertheless, not all salons are focusing on data analytics and knowing their customers deeply to provide them with the best of services.

Women are the ones of the major contributor estimated over 80% to the salon industry revenue while men are still getting a hang on it. There’s an enormous growth in the Indian Cosmetics Industry due to beauty concerns arising among men and women both.

Digital media acts as a big influence on this. They feel the urge of visiting a salon and to try on beauty and cosmetic products. The Indian beauty care market is most likely to become the main contributor to the growth of the Indian wellness industry. It consists of salons, cosmetic products, and cosmetic treatment centers.

There’s a lot of potential in the Indian beauty and salon industry.

Consumers have purchasing power and so they want to look the best. It is mostly because to show their status and class in their society. Hence, they are becoming more and more beauty conscious. This is the reason that the sales in the cosmetic market are increasing swiftly. The industry is not only expanding but it is gradually penetrating into the rural markets too.

Women are always beauty conscious and hence are interested in grooming themselves and care about their hair and skin. But today even men have become keen and are showing interest in beauty products. Lately, people have become very conscious about their skin and refuse to use products that are made with artificial ingredients. They are using products that are natural and herbal and are safe for their skin.

 Soon, we are going to witness a big jump in the beauty and salon industry with more and more people entering it steadily.

Beauty & Wellness business in India has the potential to reach Rs 80,000 croreIBEF:  July 10, 2019

Beauty and wellness businesses in India have a market potential of Rs 80,000 crore (US$ 11.12 billion). It can provide employment opportunities to lakhs of individuals.

“Skilling course is a significant tool of women empowerment as the students after preparing can set up wellness and beauty focuses by availing easy loans like Mudra and can also persuade others for such productive business opportunities,” said skills development minister Mahendra Nath Pandey.

Over 62 percent of India’s population is youthful. As per prime minister’s vision to make India as one of the biggest skilled economies in the world.

The ministry of skill development and entrepreneurship (MSDE) is actualizing a flagship the Pradhan Mantri Kaushal Vikas Yojana (PMKVY 2.0) 2016-2020 on the pan-India basis with a goal to give skilling to one crore people under short term training (STT), acknowledgment recognition of prior learning (RPL) and special projects (SP) across the nation over with a cost of Rs. 12,000 crores (US$ 1.67 billion). As of June 12, 2019, around 52.12 lakh candidates have been prepared under the scheme in the country