As consumers around the world place a greater emphasis on self-care and wellness, the cosmetics industry continues to generate revenue and expand. Notwithstanding a minor deceleration in 2020 due to COVID-19, the worldwide cosmetics industry has witnessed virtually uninterrupted expansion since 2004. This is projected to yield revenues nearing 129 billion U.S. dollars by 2028. So, this itself shows a promising route for all those cosmetic business owners. Grab the opportunity to expand your business right now.
For more insights about the cosmetic business and the industry’s growth, continue to read this blog.
Cosmetic Business in India – Growth Trends, Statistics & Facts
The cosmetics and personal care industry in India has been expanding steadily over the past decade. This is taking up more and more space in stores and boutiques around the nation. The dedicated support structure as well as price tactics of several multinational firms have helped them break into the Indian market.
By 2025, the total market share is projected to reach $20 billion, representing a CAGR of 25%. Conversely, by 2025, the worldwide cosmetics market will be worth US$ 450 billion, expanding at a CAGR of 4.3%.
As more foreign corporations join the Indian personal care and cosmetics sector, the rivalry for local names is heating up. Having ayurvedic and herbal cosmetic goods available in the product portfolios of industry giants like Marico and Dabur allows them to maintain their market dominance.
There is no country in the world where the beauty industry is expanding at the rate that India is. With over a billion people and an increasing middle class, India is a prime target for MNCs looking to expand their customer base and revenue.
Regardless of this improvement, Indian enterprises still encounter challenges while trying to access this market. For example, as large multinational corporations have sought to corner the lucrative Indian beauty market, the industry has experienced a great deal of consolidation in the past few years.
As a result, there is now more competition than ever before. This is making it harder for many smaller competitors to build their businesses and remain competitive.
Top Strategies To Implement For Expanding Your Cosmetic Business in India
While expanding a cosmetic business in India, requires proper planning and understanding of the market.
Here are some strategies you can consider while expanding your business successfully in India.
- Popper market research:
- Learn everything you can about the cosmetics industry in India by conducting in-depth market research.
- To make your products and marketing campaigns more relevant, you need to know your target audience’s demographics, cultural norms, and local preferences.
- Adapting your product to local preferences:
- Take into account the wide range of tastes and skin tones found in India when designing your cosmetics.
- Make a selection of items that cater to both modern and classic beauty standards. This is while taking into account current fashions worldwide.
- Ensure Legal and Regulatory Compliance:
- Make sure you are well-versed in the cosmetics regulations in India. Verify that all of your goods meet the Indian market’s unique safety standards, labelling requirements, and other restrictions.
- Prepare criteria for franchisee selection:
- Choose franchisees with extensive knowledge of the local economy and customer habits with care.
- To make sure that franchisees can market your items well, you should give them thorough training programmes.
- Develop a Proper Marketing Strategy and have a marketing plan in place:
- Create an adapted advertising campaign that would appeal to Indian customers. You need to make good use of both traditional advertising channels and social media platforms with influencers.
- Invest in establishing a powerful brand identity to set your wares apart from domestic and foreign rivals.
- Affordability and Value Proposition
- Maintain a competitive pricing strategy for your items, taking into account the purchasing power of the target market.
- Be sure to emphasize the distinctive value proposition that your products offer, whether it be in terms of the quality of the ingredients or the novel features that they include.
Moreover, this is an industry which requires you to have constant innovation. Always be one step ahead of the curve by keeping up with the latest trends and introducing innovative products to suit your customers’ changing needs. To stay relevant in the ever-changing cosmetics sector, it is essential to regularly update and renew your offerings.
Keep an eye on how your franchises are doing and how the Indian market is changing regularly. Always be ready to adjust your plans in response to shifts in customer preferences, industry standards, and the level of competition.
Benefits Of Expanding Your Cosmetic Business in India in 2024
As you decide to expand your business in India, it brings in a lot of benefits for you as the franchisor.
Some of them are.
- Enables you to become a part of the growing cosmetic market in India: This industry sees India as a promising market. This is due to the country’s huge and rapidly expanding population. This sector has great potential for expansion. This is due to factors such as the increasing purchasing power of the middle class, shifting consumer tastes, and rising disposable incomes.
- Diversify your revenue streams: The franchisor can lessen its reliance on any one market. This is possible by diversifying its revenue streams through an expansion. Stability and reduced vulnerability to market volatility can be achieved with this diversification technique.
- Help in Global Brand Recognition: A significant contribution to the recognition of a brand on a worldwide scale is made by establishing a presence in a country as diverse and populous as India. When expansion is successful, it has the potential to improve the reputation of the brand. And alongside, its visibility on a global scale.
- Opens access to emerging trends: The dynamic and diverse market in India provides the franchisor with the opportunity to have exposure to rising beauty and cosmetic trends. When the franchisor maintains a keen awareness of these trends, it can modify its product offers and tactics, so ensuring that the brand remains competitive on a worldwide basis.
- Helps in strategic alliances and partnerships: Establishing strategic alliances and partnerships with local businesses, distributors, and suppliers is possible by expansion. This creates prospects for such formation. Increasing the efficiency of the supply chain and increasing market penetration are both possible outcomes of this cooperation.
- Increase Brand Awareness & Loyalty: The establishment of a robust presence has the potential to cultivate brand loyalty among Indian consumers. The creation of long-term customer relationships can be accomplished through the provision of a positive and consistent brand experience.
- Provides competitive advantage: If you can successfully establish a presence in India, you will have an advantage over competitors. This is especially true for those who may not have yet entered the market. It allows the franchisor to establish itself as a major player in the business with a presence globally.
In a nutshell, establishing a presence in India provides the franchisor with opportunities for important learning experiences. By gaining an understanding of the complexities of a new market, consumer behavior, as well as cultural nuances, one might get insights that may apply to future foreign expansions.
To conclude,
Although there are several advantages, it is essential for franchisors to properly plan as well as carry out their expansion strategy. This is to minimize the impact of any potential difficulties and also make the most of the opportunities presented by entering the Indian market.
Reach out to us at Sparkleminds for more details.
