Indian market opens up to beauty

The eyes of fashion and beauty are on India. Just think of the media buzz generated by the wedding between Radhika Merchant and Anant Ambani, the youngest son of Mukesh Ambani, who, with a fortune of $119 billion, is the richest man in India, in all of Asia, and the eleventh richest in the world. Driven by a rising middle-upper class and a young clientele, the luxury market in India, according to Euromonitor International, is set to grow to 82,186 crore rupees by 2027. On the other hand, the global rise of a holistic approach to wellness and an increasing interest in practices like Ayurveda are propelling the beauty market, which, according to Euromonitor International, is expected to reach $18.4 billion by 2026, up more than 11.5% from $16.5 billion in 2023. The sector has experienced unprecedented growth and transformation in recent years, emerging as one of the most dynamic sectors in the country's economy, which for some is destined to become the new El Dorado of beauty.

Major Beauty Players Have Discovered India

Recently, major players like L'Oréal Paris, Puig, Unilever, and Procter & Gamble have invested and established a presence in the country, supporting innovative startups and launching collaborations, especially limited editions, with local stars like actress Aishwarya Rai Bachchan and various designers. Some examples? As BoF recalls, in 2017 designer Gaurav Gupta launched the fragrance Again in collaboration with the American fragrance brand The Perfume Library; while this year, Sabyasachi Mukherjee launched a beauty line with Estée Lauder.

Indian Haute Couture Designers Add Beauty to Their Business

Collaborations with international entities have opened the doors for Indian designers into the beauty market, and now more names are expanding their business into creams, haircare, and makeup. Manish Malhotra did the same when he was approached by The Good Glamm Group and launched a glam and glitter collection in October 2018, featuring multi-textured eyeshadow palettes, high-shine lipsticks, nail lacquers, glosses, and highlighters, priced between 800 and 1500 rupees (about $9-18). Today, the Manish Malhotra Beauty brand sells over 150 products, has found new investors - such as Warburg Pincus, Prosus Ventures, L'Occitane, and Bessemer Venture Partners - and plans further expansion in India and internationally.

A Matter of Consistency

The secret to success for these new ventures is a consistent identity between the fashion line and the beauty line. It is essential that they share values and aesthetics, but also, as Vasudha Rai - author of the beauty and wellness books Glow and Ritual - has emphasized, that designers devote the same attention to detail, focus, and time that they dedicate to their clothing. Sabyasachi Mukherjee also believes this, ensuring that the identity of his fashion brand was reflected in the makeup of his beauty line with Estée Lauder. The perception of luxury was maintained by the selling price, which is 5,400 rupees ($64) for a lipstick, and the packaging, with 24-carat gold-plated tubes adorned with his signature, the Bengal royal tiger. This way, consumers are offered a more accessible entry point into the world of luxury, which also increases the aspirational value of the brand. But a broader market requires designers to take a diversified approach, not stopping at aesthetics but leveraging their celebrity status and cultural connections with their target audience.

A Beauty Based on Geographic and Cultural Uniqueness

Until recently, Indian beauty brands struggled to convince local consumers that they were a viable alternative to global giants or luxury houses. Now, according to a report by Mintel India, 41% of Indian consumers agree on the importance of supporting local brands. In return, they want authentic solutions based on geographic and cultural uniqueness, highlighting the roots of their country. The most important aspect that determines their purchases is that both communication and product offerings meet the needs of potential customers. Designer Masaba Gupta, founder of the wellness and cosmetics brand LoveChild, understood this well. Launched in August 2022, LoveChild achieved an annual revenue of 75 crore rupees ($8.9 million) from lipsticks alone. To meet the needs of her country's customers, LoveChild focused on makeup suitable for Indian skin tones, launching foundations in 18 different shades and involving the Mumbai Indians women's cricket team in their advertising campaign. At the same time, it doesn't forget to look at the international market, always using Hinglish (a blend of Hindi and English) in its communication. The result? LoveChild saw its sales and revenues triple in the second half of 2023.