Luxury players across various industries who performed well in 2015 included Dior and LVMH India and this market analyst reports that despite the ongoing global economic slowdown, women's purchasing power is rising and they are willing to spend on a wider range of products.
According to the market researcher, over 69 per cent of survey respondents prefer to purchase well known luxury brands in the area of cosmetics, perfumes and spa treatments during overseas trips whilst 65 per cent separately indicated they would pay a premium for well-known, popular luxury brands.
Furthermore, with digital platforms providing consumers access to luxury brands around the globe now, more than ever, nearly 85 per cent of potential consumers were found to search for luxury brands on the internet at least once a month.
Major beauty players set up shop to get a piece of India's opps
Global cosmetics giant, L'Oréal is one of the major beauty players to step up its research and innovation division in India to further cater to Southeast Asia's demand in the hair care and male grooming sectors.
To date, it has invested Rs 1,000 crore in India's manufacturing and research facilities which is part of the company's strategy to make it among its top five markets in the next few years along with objectives to bring in revenues of Rs 7,000 crore by 2020.
The international cosmetics giant also has a long way to go in India's male grooming and skin care if it wants to increase its presence and boost the small percentage of the market share it currently has in those categories to get ahead.
“Our R&I centres in Mumbai and Bangalore are working on sustainable innovation to meet our target of reducing carbon emissions by 60 per cent at our plants and distribution centres by 2020,” L’Oreal India managing director Jean-Christophe Letellier told PTI.
"Besides the unit in Pune, we have set up a manufacturing unit in Himachal Pradesh in 2013 for hair colour, which is built to be growth ready," he added.
Incorporating more traditional based formulations
L’Oréal is also looking to bridge a gap between hygienic products and 'treatment' and 'care' ranges as India is deeply rooted in traditional herbal or natural based cosmetics.
What makes India unique is that it is rooted in traditional beauty recipes, particularly in the hair care segment - where oils and treatments are in high demand.
Market research firm Mintel confirms, stating that launches which bridge the gap between value and prestige products are likely to drive the growth in India.
In fact, L’Oréal has already combined this ethos in the hair colourant segment with ‘Garnier Black Naturals’.
According to Vivienne Rudd, Director of Global Insight, Beauty & Personal Care at Mintel; launches like L'Oréal’s seeks to “encourage consumers to trade up from traditional, low cost products to more sophisticated products that use familiar ingredients and claims and add a more cosmetic twist, promising luxuriant, shining colour and professional results at home.”