Singapore, Sept. 30, 2024 /PRNewswire/ -- Kearney, a global management consulting firm, and LUXASIA, a leading omnichannel brand builder in Asia Pacific, are launching their second white paper, "Huge Untapped Growth Opportunities in India's Luxury Beauty Market," building on the insights and industry interest generated by last year's inaugural white paper. This report explores the significant growth potential, complexity and challenges of the luxury beauty market in India, as well as the key business areas for market success.
India's luxury beauty market has reached $1 billion and is expected to reach $1.6 billion by 2028 and $4 billion by 2035. With a CAGR of 14%, India is one of the fastest-growing markets in Asia and globally. India's overall economy, a booming middle class, and an increasingly sophisticated trade-in luxury consumer base are all driving this growth.
While India's luxury beauty market is relatively small compared to its population, it is expected to maintain high growth over the past 15 years, as China has done. Therefore, it is crucial for brands to enter the India market now in order to build their brand image, win the loyalty of Indian consumers, and ride the upcoming wave of growth. This potential has not gone unnoticed, and in recent years, many international brands have entered India to get a head start.
However, market entry is challenging. India is a complex market – a "land of many India". Unlike other Asian countries, India is vast and ethnically diverse, with varying consumer preferences across the country. To be successful, brands must develop a set of strategies that target a specific region (or even a specific city) rather than relying on a one-size-fits-all or singular marketing strategy. In addition, brands need to navigate complex operational and regulatory issues such as product registration and importation, while optimizing supply chain setups.
In India specifically, three strategic pillars must be addressed: customization of product offerings, targeted regional marketing strategies, and optimization of omni-channel distribution through strategic partners. This last point is critical to unlocking value quickly, such as leveraging a nationwide sales team that includes training, deploying, and managing a network of dedicated beauty consultants across a variety of omnichannel environments.
Karan Dhall, Partner of A.T. Kearney's Consumer Industries and Retail practice, said: "The India luxury beauty market is in a pivotal period and is poised for exponential growth. There has never been a better time to invest in the sector. By navigating this complex market strategically, brands can not only gain a foothold, but also build lasting relationships with a new generation of luxury consumers. "
Shashank Goel, Head of Kearney, emphasised: "With consumers becoming more sophisticated and the economy booming, it is clear that the time is ripe to invest in India's luxury beauty market. Success depends on a nuanced understanding of local preferences and the ability to tailor products to meet the needs of different regions. Ultimately, brands that understand the preferences of India consumers will thrive in this dynamic environment. "
Satyaki Banerjee, COO of LUXASIA Group and overall commercial leader for a wide range of markets, including India, said: "Despite its complexity and diversity, India remains a dynamic and attractive luxury beauty market. Growth is expected to usher in a sharp inflection point, rather than a slow and gradual realization. As a result, brands need to get into the market before these sudden peaks arrive. Brands must look at 'long-term investment', gain a deeper understanding of India consumers and invest in the market's vibrant omnichannel ecosystem." The work needs to start today. Given the ever-changing, complex, and information asymmetry of market structures, working with the right partner will be the most effective way to multiply revenues. "
Dr. Wolfgang Baier, CEO of LUXASIA Group, affirms: "There has never been a better time to enter the India market. However, given the market risks and the potentially high cost learning curve, brands need expert support to secure a growing market share. To date, LUXASIA has helped numerous brands achieve solid growth in India, and we stand ready to leverage our expertise to partner with international luxury beauty brands for long-term success in this promising market." "
