According to a report by Kearney and Luxasia, a global management consultng firm, the Indian luxury beauty market is poised to touch USD 1.6 billion by 2028 and USD 4 billion by 2035.
India has an expected CAGR of 14% and is one of the fastest expanding markets globally. The reason for this exponential growth is due to the overall economic development, the middle-class spending power, and increase in luxury-conscious consumers. Thus, many global brands have forayed into the Indian beauty market to get the early-mover advantage. However, there are many challenges that the Indian market faces. Due to its vast geography and different ethnicities, the consumer preferences are quite varied. Thus, a brand needs to create a products specific to regions than have a generic market strategy. Also, there are many regulatory and operational issues like product registration and imports at the time of setting up supply chains.
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Kearney and Luxasia states that for any brand to do well in in the Indian setup, they must have product customisation, multichannel distribution through strategic collaborations, and region-specific marketing strategies. According to Karan Dhall, Partner at Kearney’s Consumer Industry and Retail Practice, the Indian luxury beauty market is expected to see huge growth and it is the right time to invest here. If brands can manuever their way through its complexities, they will be able to cement their position in India and develop a good association with the new generation of consumers.
Satyaki Banerjee, Group COO, Luxasia adds that the Indian luxury beauty market will see a sudden sharp rise and brands should enter the market prior to this hike. They should be in it for the long haul and invest in the omnichannel system of the market.
