SINGAPORE, Sept. 30,
2024 /PRNewswire/ -- Building on insights and
industry interest arising from their inaugural whitepaper last
year, global management consulting firm Kearney and LUXASIA, the
leading omnichannel brand-builder in Asia
Pacific, have released a second whitepaper titled
"India's massive untapped
growth opportunity in luxury beauty". This report explores the
immense growth potential, complexities, and challenges of the
luxury beauty market in India,
along with key commercial areas for market success.
Already a billion-dollar market, the Indian luxury beauty market
is expected to reach USD 1.6 billion
by 2028 and quadruple to USD 4.0
billion by 2035. With an expected CAGR of 14%, India is one of the fastest-growing markets in
both Asia and the world. This
growth is driven by the country's overall economic development, a
burgeoning middle-class, and increasingly sophisticated
luxury-conscious consumers eager to trade-up.
While relatively small compared to its population, the luxury
beauty market in India is poised
to follow the high-growth trajectory that China enjoyed over the past 15 years.
Therefore, it is crucial for brands to enter now to establish their
name, win the loyalty of Indian consumers, and ride the impending
growth wave. This potential has not gone unnoticed, as numerous
international brands have entered India in recent years to capture early-mover
advantages.
However, market entry is fraught with challenges. India is a complex market – a "land of many
Indias". Unlike other Asian countries, India's vast geography and ethnic diversity
create divergent consumer preferences across the country. To
succeed, brands must develop a range of region-specific (even
city-specific) strategies rather than relying on a generic or
single-market strategy. Additionally, brands need to navigate
operational and regulatory complexities such as product
registration and importation while optimizing their supply chain
setups.
For India specifically, the
three strategic pillars must be addressed: product-offering
customisation, targeted regional marketing strategies, and
omnichannel distribution optimisation through strategic
partnerships. The last point is crucial for unlocking value
quickly, such as leveraging a nationwide sales team, including
training, deploying, and managing a dedicated network of beauty
consultants across various omnichannel environments.
Karan Dhall, Partner at Kearney's
Consumer Industry and Retail Practice, shares, "India's luxury beauty market is at a pivotal
moment, poised for exponential growth. There has never been a more
opportune time to invest in this sector. Brands that strategically
navigate its complexities will not only establish a strong foothold
but also cultivate lasting relationships with a new generation of
luxury consumers."
Shashank Goel, Principal at
Kearney, emphasizes, "As we witness increasing consumer
sophistication and a robust economic landscape, it's evident that
the time to invest in India's
luxury beauty market is now. Success will hinge on a nuanced
understanding of local preferences and the ability to customize
offerings to meet diverse regional demands. Ultimately, brands that
understand the pulse of Indian consumers will be the ones to thrive
in this dynamic environment."
Satyaki Banerjee, Group COO,
LUXASIA, who is also the overall commercial leader for numerous
markets including India says,
"Despite the complexity and heterogeneity intrinsic to India, it is an extremely vibrant and
attractive market for luxury beauty. Growth is expected to come
with a sharp inflection point and not gradually over time. Brands
need to be present in-market prior to these sudden spikes. It is
imperative that brands play the 'long game' and invest into an
understanding of Indian consumers, as well as the dynamic
omnichannel ecosystem in the market. This effort needs to start
today. Given the evolving market structure, complexity and
information asymmetry, gains are most effectively multiplied by
collaborating with the right partner on this journey."
Dr Wolfgang Baier, Group CEO,
LUXASIA affirms, "The time to enter in India is now. However, given the market risks
and potentially costly learning curve, brands need expert support
to ensure a growing market presence. Having delivered solid growth
for numerous brands in India so
far, LUXASIA stands ready to lend our expertise and partner with
international luxury beauty brands for long-term success in this
promising market."
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SOURCE LUXASIA