It seems like all is well with Indian cosmetics industry. According to a latest research report by ASSOCHAM, the growing population of working women in the country is becoming the base for the boom of cosmetics industry in India. ASSOCHAM says that the Indian cosmetic industry would grow to Rs 20,000 crore by 2014 from the current Rs 10,000 crore.
The growing population of working women population, increasing demand in small cities and towns, low prices and pushing promotional offers is driving the Indian cosmetic industry even if the consumption rate per capita is 40 times less when compared to that of Hong Kong and Japan!!!.
The increasing number of women rushing for colored cosmetics to color lips, nails, eyelashes is earning huge profit for cosmetics majors like L’Oreal Paris, HUL and Revlon. Within four months of its launch of nail color brand for Rs 225, L’Oreal distributors were shocked to accept the fact that they were running out of stock !!! This is the demand for cosmetics in India.
According to the statistics released by Euromonitor, the Indian cosmetic industry is growing at a compounded annual growth rate of 20%. The huge growth potential of the market is attracting the existing players to firm the position as well as new players to enter the market.
L’Oreal and Maybelline are planning to adopt sachet strategies to boost the sales further, while competitors Lakme from HUL and home grown brand Lotus are leaving no space to tap the market.
In the opinion of market researcher, Nielsen, Indian women in age group of 30 are becoming more selective on the cosmetic brand they use. They are ever ready as before to experiment with colors and varied products that make them feel unique among the crowd. Nielsen also forecasts a growing demand for natural cosmetics brands among the consumers in small town and rural areas.
As long as woman have the inner desire to be accepted as the most beautiful among others, cosmetic industry can flourish and the fact is that inner desire is never going to die!!!