Cosmetics industry to be worth Rs. 20,000 Cr.

by 2014: ASSOCHAM Wednesday, December 07, 2011

The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has projected that the market size of cosmetics industry which is currently estimated at Rs.10,000 crore will double to be worth Rs. 20,000 crore by 2014 due to emergence of a young urban elite population with rising disposable incomes and increase in working women looking for lifestyle-oriented and luxury products.

The industry has mainly been driven by improved purchasing power and rising fashion consciousness among people and industry players spending heavily on the promotional activities to increase consumer awareness.

Releasing the findings of a recent study, ASSOCHAM secretary general, D S Rawat said that the companies have started going for rural expansion and are offering specialized products to generate revenues from all the corners of the country. Improvement and strengthening of the Indian economy in the coming years will also pave the way for the Indian cosmetics market over the forecast period and develop the Cosmetic Industry.

According to a report, women in the age group of 30 and above are getting very selective about the type of products they choose. "As older women have more cash and are more conscious of their appearance, especially skin, they are willing to spend more on separate sets of creams and lotions that target problem areas. These women also are more open to buying higher-priced products.

Products falling under the price range of Rs 50 to Rs 200 are in the mass-market category. The middle market price can range from Rs 200 up to Rs 1,000. In the high-end market, pricing can range from Rs 1,000 to about Rs 10,000. Finally there is the premium range of products where the pricing can touch up to Rs 50,000.

In a country wide survey undertaken by ASSOCHAMS team seeking views of over 6,000 odd consumers in cosmetics, over 65% teenagers said, their branded cosmetic consumption has gone up by about 75% in last ten years. 62% of male youth said that their expenses on cosmetics application have risen by 45% as against 57% upper middle age group, claiming that they spend nearly 42% in buying cosmetics products to maintain their exterior.

On an average in this segment, a good majority of respondents felt that they would spend less than Rs. 1,000 on cosmetic use during year 2000 which have exceeded Rs. 5000 per month now and the main reasons for massive advertisements both in electronics and print have influenced the customers in this segment that these were inspired for increased allocation of their monthly expenses towards theses articles.

The survey also came out with interesting facts, highlighting that males have developed a special craze for cosmetic application as compared to their females counterparts and their monthly expenses rose by about 60%-80% during the period, reveals the survey.

However, the consumption pattern of cosmetics of teenagers went up substantially between 2000 and 2011 because of increasing awareness for up-keep of teenagers exterior as 95% of teenagers wards admitted this.

About 75% male teenagers have increased their expenditure on cosmetics to Rs.3000-4000 per month as against their average expenditure of less than Rs 1,000 in year 2000 increased over 300% due to growing awareness .

Over 75% of women consumers tend to buy cosmetic, apparel items from any shop of their convenience rather than a single shop. They buy all their items from different shops rather than a single shop. Quality is given utmost preference by the women consumers.

It also mentioned that a quarter each of the housewives and executives spent more than Rs. 2500-3500 per month for cosmetics & apparel. 32% of the respondents belonging to the student community had expenditure in the range of Rs.800-1200 per month. Around 35% of the teachers, a quarter of businessmen, 23% of the govt. employees had expenditure in the range of 2500-3000.

The survey also pointed out that quality was considered as the major criterion for brand selection among the students (71 %), teachers (67 %), businessmen (58%), housewives (52 %), professionals (50 %), and executives (43 %). Price was the main concern while purchasing cosmetics, apparel and mobile among government employees (45%). This may be because of the limited source of income available to these people to purchase cosmetics.

Brands such as Lakme , Maybellene, and Color Bar are being pushed as mass market products and focus on younger women and women with lower buying power.

With the beauty service industry growing rapidly in India, the spa segment in India is also attracting a lot of attention. The spa industry over the last five years has shown tremendous growth, not only in the number of spas, but also in the diversity of spas and products available.

The flourishing Indian fashion/film industry is fueling growth into the Cosmetic industry in India by making Indians to realize the importance of having good looks and appearances. The Indian cosmetics Industry is defined as skin care, hair care, color cosmetics, fragrances and oral care segments which is estimated at Rs. 15,000 crore and is expected to grow at over 10% annually, according to the report.

Today herbal cosmetics industry is driving growth in the beauty business in India and is expected to grow at a rate of 12% as more people shun chemical products in favour of organic ones.

The Indian cosmetics industry has a plethora of herbal cosmetic brands like Forest Essentials, Biotique, Himalaya, Blossom Kochhar, VLCC, Dabur and Lotus and many more.

The paper further highlighted that Indias per capita cosmetic and toiletries consumption is 40 times lesser than that of HongKong, 18 of Japan, 15 of Taiwan, 12 of Philippines and Malaysia and half of China, despite high penetration levels for cosmetic products because of its population and size based.

So, the increasing market size is the direct result of the changing socio-economic status of the Indian consumers, especially women. Higher paying jobs and increasing awareness of the Western world and beauty trends there have served to change the tastes and customs of the middle class and higher strata of the society, with the result that a woman from such social strata now is more conscious of her appearance and is willing to spend extra cash on enhancing it further.

This actually has fuelled a growth in certain product categories in the market that hardly were experiencing it earlier. Two such categories are color cosmetics and sun care products that have shown tremendous growth.

Indian Lipstick Market! Surprising! Shocking!

Thursday, September 4, 2008

which i find as a really an odd market to discuss in my blog but when i did my MBA in 2003 i happened to study lipstick market of Bangalore ( bangalooru - guys lets do something better than changing names of cities) after a gap of 5 years i still like to see what is happening with lipstick market of india wait for surprises according to U. K. Modi, Chairman & CEO, Modi Revlon in 2003 ( EVERY CEO is influenced by AC Nielson/ ORG MARG when it comes to numbers) total Indian Lipstick Market size accounts for Rs.116 crore Organised Sector - Rs.78 crore UnOrganised sector - Rs. 38 crore Market Leader Lakme - 40 % Maybelling - 14% Revlon - 19% but a study done on 2004 says Revlon now occupies 28.6% of lipstick market

but a website "http://lifestyle.iloveindia.com/lounge/how-to-buy-lipstick-656.html" says there are this much of brands available what is their share i couldnt find out but just the names will help atleast a student who is looking for this information Avon Bobbi Brown Clinique

 Cover Girl Elle 18 Estee Lauder Lakme MAC Max Factor Maybelline Oriflame Revlon Price The mass market for lipsticks (price range between Rs 30 to Rs 100) forms 43 per cent of the total lipsticks market. The price range below Rs 30 forms roughly 48 per cent of the market. The mass premium segment (price range Rs 100 plus) is just nine per cent of the total lipsticks market, where Revlon has a market share of 80 per cent, according to ORG, with the balance held by Chambor and Lakme's Orchid. Lakmes product range consists of the Elle range (priced at around Rs 30) and the medium-priced Ultra range (at around Rs 60) to the premium Orchid range of colour cosmetics priced in the range of Rs 120 to Rs 187. French multinational L'Oreal India prices range from Rs.300 to Rs 1,500. By the end of 2001, it expects nearly 50 cities to be selling the products. Maybelline has now introduced an Express MakeUp priced at Rs 299. L'Oreal's product of makeup currently available in the market is priced at the premium end at Rs 599. The brand is currently available in 4,000 outlets. Maybelline New York globally has 900 SKUs in colour cosmetics. In competition with L'Oreal's Maybelline range of `transfer-resistant' lipsticks, Revlon has rolled out `ColorStay' lipsticks priced at Rs 239. The lipsticks are thus at a high premium to the Maybelline range priced at Rs 185. amazing information that i came across in a website says this "Did you know that 11% of rural women use lipsticks compared to just 22% of urban Indians? The Rural to Urban ratio? 3:1. Therefore more rural women uses lipsticks than urban. And the biggest selling lipstick brand in India? No, its not Lakme or Revlon. Its Raja Lipsticks." This brand has 79% of the Rural market. International brands would kill to get that kind of a penetration in the 1 billion population!" and to make it more interesting here comes the next BOMB "Apart from this, here are some other aspects of this lipstick market. The application factor of lipsticks by Urban women is 1.1 (that is.. on an average, they apply 1.1 layers on their lips). Rural women on the other hand have an application factor of 2.5 (2.5 layers on their lips). This number directly translates into higher usage of lipsticks."

what that means to me is Real Market is Rural Market, so after sitting in a computer searching for information about indian Lipstick after 5 years also i am confused i think i need to handle an lipstick client and apply what ever i learnt is negligible. Posted by jack danis at 2:31 AM

Size of the Industry

The size of Indian Cosmetics Industry globally is $ 274 billion, while that of the Indian cosmetic industry is $ 4.6 billion. According to analysis and figures given by the Confederation of Indian Industries (CII), the total Indian beauty and cosmetic market size currently stands at US$950 million and showing growth between 15-20% per annum. Industry sources estimate a rapid growth rate of 20% per annum The overall beauty and wellness market that includes beauty services stands at about US$2,680 million, according to CII estimates.

Market Capitalization Output per annum Percentage in World Market

History Bearing a long glowing heritage of cosmetic and beauty, aesthetic makeup products is being used since olden days and nowadays it appear like a booming economy in India which would be the largest cosmetic consuming country in a next few decades. While the demand of beautifying substances are growing day by day, a large number of local as well as international manufacturers gradually extend their ranges and products in different provinces of India.

Since 1991 with the liberalization along with the crowning of many Indian women at international beauty pageants, the cosmetic industry has come into the limelight in a bigger way. Subsequently their has been a change in the cosmetic consumption and this trend is fueling growth in the cosmetic sector. Indian cosmetic Industry had rapid growth in the last couple of years, growing at a CAGR of around 7.5% between 2006 and 2008. While this is due to the improving purchasing power and increasing fashion consciousness, the industry is expected to maintain the growth momentum during the period 2009-2012. In the Indian Cosmetic Industry both electronic as well as print media are playing an important role in spreading awareness about the cosmetic products and developing fashion consciousness among the Indian consumers. Due to the development of satellite television and a number of television channels as well as the Internet in the modern day, the Indian consumers are constantly being updated about new cosmetic products, translating into the desire to purchase them. Additionally, the flourishing Indian fashion/film industry is fueling growth into the Cosmetic industry in India by making Indians to realize the importance of having good looks and appearances. Today most of the cosmetics manufacturers in India cater to the domestic market but they are gradually establishing their footholds in overseas markets. In recent years, cosmetic manufactures in India have received orders from overseas markets; for example - Indian herbal cosmetic products have a tremendous demand in the international market.

Brief introduction The Indian Cosmetics Industry is defined as skin care, hair care, color cosmetics, fragrances and oral care segments which stood at an estimated $2.5 billion in 2008 and is expected to grow at 7%, according to an analysis of the sector.Today herbal cosmetics industry is driving growth in the beauty business in India and is expected to grow at a rate of 7% as more people shun chemical products in favour of organic ones.
The emphasis of the herbal cosmetic has been on the spectacular growth of the herbal and ayurvedic beauty products business as conveyed by beauty expert Shahnaz Husain who was the first to introduce the concept of ayurvedic cosmetics to the world when she launched her products way back in 1970. Today, the Indian cosmetics industry has a plethora of herbal cosmetic brands like Forest Essentials, Biotique, Himalaya, Blossom Kochhar, VLCC, Dabur and Lotus and many more. The Indian cosmetics industry has emerged as one of the unique industries holding huge potential for further growth. In 2009, the cosmetics industry registered sales of INR 356.6 Billion (US$ 7.1 Billion) despite the global economic recession. Indian cosmetics Industry has mainly been driven by improved purchasing power and rising fashion consciousness of the Indian population and industry players spending readily on the promotional activities to increase consumer awareness and develop their products. According to a new research report, the Indian Cosmetics Industry is expected to witness impressive growth rate in the near future owing to rising beauty concern of both men and women. Today the industry holds promising growth prospects for both existing and new players. The baseline is that there has been a rise in variety of products offered by the industry players in the country. The companies have started going for rural expansion and are offering specialized products to generate revenues from all the corners of the country. Improvement and strengthening of the Indian economy in the coming years will also pave the way for the Indian cosmetics market over the forecast period and develop the Cosmetic Industry.

The Indian Cosmetic market which traditionally a stronghold of a few major Indian players like Lakme, and Ponds has seen a lot of foreign entrants to the market within the last decade. India is a very price sensitive market and the cosmetics and personal care product companies, especially the new entrants have had to work out new innovative strategies to suit Indian preferences and budgets to establish a hold on the market and establish a niche market for them.

Market capitalization

According to analysis and figures given by the Confederation of Indian Industries (CII), the total Indian beauty and cosmetic market size currently stands at US$950 million and showing growth between 1520% per annum. The overall beauty and wellness market that includes beauty services stands at about US$2,680 million, according to CII estimates.

Size of the industry

The size of Indian Cosmetics Industry globally is $ 274 billion, while that of the Indian cosmetic industry is $ 4.6 billion. The current size of the Indian Cosmetic Industry is approx US$ 600 million. Among these fastest growing segment is color cosmetics, accounting for around US$ 60 million of the market. Industry sources estimate a rapid growth rate of 20% per annum across different segments of the cosmetics industry reflecting with an increasing demand for all kinds of beauty and personal care product. Growth in the Indian Cosmetic Industry has come mainly from the low and medium-priced categories that account for 90 % of the cosmetics market in terms of volume.

Domestic and Export Share

Costs for importing other products are much higher than producing it in the country. India usually allows the entry of imported cosmetics without any restrictions but the average import tariff on cosmetics products is currently very high at 39.2%.

Top leading Companies

Lakm is the Indian brand of cosmetics, owned by Unilever. It started as a 100% subsidiary of Tata Oil Mills (Tomco), part of the Tata Group; it is named after the French opera Lakm, which itself is the French form of Lakshmi, the goddess of wealth who has is also renowned for her beauty. Revlon is an American cosmetic for skin care, fragrance, and Personal Care Company founded in 1932. Oriflame Cosmetics S.A. (Luxembourg) is a cosmetics group, founded in 1967 in Sweden by the brothers Jonas AF Jochnick and Robert AF Jochnick. The LOral Group is the worlds largest cosmetics and Beauty Company. It concentrates on hair colour, skin care, sun protection, make-up, perfumes and hair care. Chambor cosmetic line is a blend of the finest traditions in terms of radiant color, soft texture and skin accentuator. Maybelline is a makeup brand sold worldwide and owned by LOral. Avon Products, Inc. is a US cosmetics, perfume and toy seller with markets in over 140 countries across the world. Make-up Art Cosmetics or MAC Cosmetics, is a manufacturer of cosmetics which was founded in Toronto, Canada by Frank Toskan and Frank Angelo in 1984 ColorBar cosmetics are one of the leading brands of color cosmetics in India. Street Wear is a young, funky and hip brand which globally is positioned at the young and trendy shopper and the range consists of about 30 SKUs covering categories like nail enamel, lipsticks, lip gloss, face make-up kits and eye shadows.

Latest developments
According to Indian Cosmetic Sector Analysis (2009-2012), the Indian cosmetics industry is expected to witness fast growth rate in the coming years on the back of an increase in the consumption of beauty products. Owing to growing disposable income of the middle class households and changing lifestyle, it is expected that the cosmetics industry will grow at a CAGR of around 17% during 2010-2013. A study even shows that affordability and rising consumer base were the main drivers behind the high cosmetic sales of around INR 356.6 Billion (US$ 7.1 Billion) in 2009. Market players are getting lucrative and good opportunities as people have become more beauty conscious due to changing lifestyle and spreading consumer awareness. According to ASSOCHAM the size of India's cosmetics market will rise by almost a half to 1.4 billion dollars in the next two-three years as people get fashion conscious and more brands are launched. With increased awakening about cosmetics brands, which is evident even in rural India, the industry size will grow to around 1.4 billion dollars from current level of 950 million. It is projected to grow at a CAGR of around 7% during the forecast period. Indian Cosmetics Industry is set for a significant growth depending on the capability of the manufacturers to market their products. Products that claim to renew cells, minimize pores, and restore hydration have created an $83 billion worldwide market. Due to the optimistic assessment the domestic cosmetic and toiletries industry show that with increased awakening which is growing even in rural India, its size will grow in next 2-3 years to around US$ 1400 million from current level of US$ 950 million. Till then Indias per capita consumption of cosmetic and toiletries products could be on par with that of China which currently is US$ 1.5, says ASSOCHAM analysis. Updated: Jan 2011

Cosmetic Companies in India (Revlon,Estee Lauder,Avon) List Middle Class Turbo Boosting Beauty Cosmetics Industry
8 Jul, 2011 India has faced a revolution literally in all wakes. With the rise in dispensable income, there is high consumerism in the country. With opening up of the emerging markets, the cosmetic companies are broadening in response to the vast diversity of populations. The Indian face wants to look good. The Indian Women are no longer limited to their homes, but have come out & are walking with the same pace as the men. Hence they are more conscious of their looks & are widely opting for the cosmetics that is available in the market. It is not only the female section of the society, who use beauty & cosmetic range but the Indian men too are worried about their looks. There are lot of products specially designed for men too. The cosmetic companies not only produce the traditional makeup items like compact, mascara or lipsticks, but are rapidly adapting themselves to the changing demands of its customers. Today the markets offer a wide range of cosmetic products to choose from. There are smart products like anti-aging solutions, concealers which has taken a ladys beauty to a new level. Fragrances, body lotions, hair products, hand & foot care products, you name it & you have it. There are products to suit each age group & each requirement.Most of the top FMCG Companies in India are present in the Beauty Cosmetics Industry.

Here is a list of some popular Cosmetic Companies in India:

EMAMI a leading player in the personal and healthcare consumer products industry in India. The company is a Rs 1100 crore business entity, engaged in manufacturing and marketing of health, beauty and personal care products that are based entirely on ayurvedic formulation. Emami Limited has over 30 brands under its portfolio. By repeatedly outperforming the industry standard, Emami Ltd has maintained a CAGR of 27% over the last few years. The company is in the field of manufacturing of health, beauty and personal care products for over 35 years. Their main product categories consist of the following: Hair Care Skin Creams , soaps and lotions Talcum Powder Ayurvedic Health Care Products.

Under the brand Boroplus, the company manufactures antiseptic creams, body lotion & prickly heat powder. It also started fairness creams for men under the brand name of Fair and Handsome. The hair care products are sold under Navratna brand name.

AYUR is in Herbal Cosmetics business since 1984. Ayur provides a wide range of beauty cosmetics strictly prepared with herbal components. The products are made from herbals which are very safe for ones skin, hence it offers dual advantage, first it provides excellent products which makes one look good & second it does not have any ill-effects on ones skin and hair. The Ayur Academy of Natural Beauty, affiliated with beauty schools In Italy & U.S.A., is renowned Institute in India. The cosmetic products range from hair oil, shampoo, natural henna & conditioner to sunscreen, face pack & cleansing milk. The popular products are Tulsi neem soap, rose water, fairness bleach, wax, body lotion, cold cream, face pack & scrub, moisturizer, skin toner, hand care & foot care products.Note the Indian Hair Oil Market is growing at a double digit clip as well.

SHAHNAZ HUSSAIN The Shahnaz Husain Group is Indias leading company in the field of natural beauty and anti-aging treatments. It started in the 1970s by Shahnaz Husain in New Delhi. Shahnaz Husain has taken Indias Ayurvedic tradition to every corner of the globe. It has a chain of over 400 beauty centers worldwide. The group has activities as diverse as beauty training institutes, herb plantations, retail stores & products. The company is very popular for its specialized clinical treatments and therapeutic products for specific problems like acne, pigmentation, scars and blemishes, skin-sensitivity, dandruff, hair loss and alopecia. The product range has over 350 products in 20 different categories for skin, hair & body care. All the products are sold under the brand name of Shahnaz Hussain.

AVON with over Rs. 48,000 crores in annual revenue globally, it was ranked as one of Americas most admired companies for more than a decade. Avon ranks one as Beauty Direct Seller in the World. Avon Foundation has

raised and awarded more than Rs. 3200 crores worldwide towards vital issues- breast cancer, domestic violence and emergency relief affecting lives of women and their families worldwide. As the worlds largest direct seller, Avon markets its products in more than 100 countries through approximately 6.5 million independent Avon Sales Representatives. In India too there are many such agents selling Avon products. These agents have their customer base to whom they sell the products directly, without any intervention of retail stores & in return get commission/ reward from the company. Its wide product range includes makeup for lips, eyes, nails, face; skincare cleansers, toners, eyecare products, moisturisers & body treatment products; bath & body body lotion, deodorants, depilatories, body wash, foot care; fragrances, hair care, jewellery, products for children, men & home.

HINDUSTAN UNILEVER LTD. HUL is Indias largest Fast Moving Consumer Goods Company with categorised business like soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers. With a market capitalization of Rs. 61,000 crores, the Company is a part of the everyday life of millions of consumers across India. The company earned revenues of Rs. 5,000 crores with a net profit margin 12%. Its parent company is Unilever, which holds about 52 % of the equity. Its portfolio can be categorised into Personal care, Home care & Food. Some important names are Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Pepsodent, Closeup, Brooke Bond, Bru, Knorr, Kissan, Kwality Walls and Pureit. The umbrella personal/ cosmetic brands include Aviance, Axe, Lakme, Fair & Lovely, Clinic Plus, Dove, Hammam, Ayush, Lux, Sunsilk, Rexona, Ponds.

Fair & Lovely is HULs biggest skin-brand & worlds largest fairness cream. Lakme is the complete beauty brand spanning colour cosmetics, skin care & hair styling products and extending to beauty services through the network of Lakme Beauty Salons. It is the expert on Indian Beauty for over 50 years. Ponds has been at the forefront of skincare technology and usage, and possess decades of global expertise and research on advanced skin care solutions like age miracle & White beauty.

VLCC is Indias largest health and beauty brand. Today VLCC is the single largest player in the organized sector with a pan-India presence of nearly 225 outlets across 90 cities. Its other brands are VLCC Health Care Ltd., VLCC Personal Care Ltd. and VLCC Institute of Beauty, Health and Management, VLCC Day Spa & VLCC Nutri-Diet Clinic. Its products can be broadly categorised into skin care, body shaping, foot care, hair care, lip care & products for men.

ESTEE LAUDER the company was founded by Estee Lauder in1946. The product range includes Make-up from blush, concealers, compacts, foundations to eyeshadows, mascara, lipsticks & glosses, Skin Care cleanser, toner, moisturiser, eye, hand & body care products, anti wrinkles, anti ageing & Fragrances. The company has been increase its Indian presence by targeting the countrys biggest cities, like Mumbai, Delhi and Bangalore. It has about 25 brands in more than 150 countries. Some of its brand names are American Beauty, Aveda, Clinique, MAC, Tomy Hilfiger, Sean John.

REVLON is a global color cosmetics, hair color, beauty tools, fragrances, skincare, deodorants and beauty care products company. Its products are sold in over 100 countries across six continents. Revlon is one of the strongest consumer brand franchises in the world. The cosmetic & personal care products include eye & facial make-up products, hair care- hair dye & colouring products, nail products; oral care, personal cleanliness, skin care & shaving products. Revlons global brand portfolio includes Revlon color cosmetics, Almay color cosmetics, Revlon Colorsilk hair color, Revlon beauty tools, Charlie fragrances, Mitchum anti-perspirant / deodorants, and Ultima II and Gatineau skincare.

LOREAL It has a global presence & it offers the best of cosmetics in terms of quality, efficacy and safety. It provides beauty products that is in harmony with customers needs, culture and expectations. . The company lays emphasis on the cultural diversity that is present universally & has trained its personnel in a way to design products in a way to reflect the cultural oneness. It has a portfolio of international brands present in the different distribution channels. Knowledge of different cultures and rituals worldwide enables the laboratories to anticipate and invent the products of the future. The various popular brands associated with the company are: Cosmetics Vichy, La Roche Pose. Consumer products Loreal Paris, Garnier, Maybelline New York.

Maybelline is the number one cosmetic company in America. It has many outlets throughout the world. Its cosmetic range includes products or eyes, face, lips, nails & accessories. There are foundation, concealer, compacts, bronzers, blush, eye shadow, mascara, smudge free kajal, lipsticks, lip gloss. The company has also launched anti aging concealer which conceals dark circles & puffiness under the eyes.

Luxury products Lancome, Giorgio Armani, Ralph Lauren , Diesel, Kiehls. Professional products Loreal Profesional, Kerastase, Matrix.