Following the successful initial whitepaper by Kearney and LUXASIA, the new research is called “India’s Massive Untapped Growth Opportunity in Luxury Beauty.” The current report warns that the luxury beauty market in India is steadily growing, with key expectations that amount to $1.6 billion by 2028 and $4.0 billion by 2035 at a minimum of 14% CAGR. The luxury beauty market in India is still moderate, but analysts have compared it to the growth path of the Chinese market and, therefore, a good entry point for global brands.
However, the factor that offsets this is that India has a vast geographic area with numerous and diverse customer types that must be addressed. Brands need to go regional while having to overcome regulatory challenges. Success hinges on three strategic pillars: Targeted market positioning and localized campaigns, product customization solutions, and a more efficient omnichannel distribution plan with equalized vital partnerships. The pioneers will also seize the opportunity to build brand loyalty and exploit the channel opportunities to reach this highly growing market.
Karan Dhall, Partner at Kearney’s Consumer Industry and Retail Practice, shares, “India’s luxury beauty market is at a pivotal moment, poised for exponential growth. There has never been a more opportune time to invest in this sector. Brands that strategically navigate its complexities will establish a strong foothold and cultivate lasting relationships with a new generation of luxury consumers.”
Shashank Goel, Principal at Kearney, emphasizes, “As we witness increasing consumer sophistication and a robust economic landscape, it’s evident that the time to invest in India’s luxury beauty market is now. Success will hinge on a nuanced understanding of local preferences and the ability to customize offerings to meet diverse regional demands. Ultimately, brands that understand the pulse of Indian consumers will be the ones to thrive in this dynamic environment.”
Satyaki Banerjee, Group COO of LUXASIA, who is also the overall commercial leader for numerous markets, including India, says, “Despite the complexity and heterogeneity intrinsic to India, it is an extremely vibrant and attractive market for luxury beauty. Growth is expected to come with a sharp inflection point, not gradually over time. Brands need to be present in the market before these sudden spikes. It is imperative that brands play the ‘long game’ and invest in an understanding of Indian consumers, as well as the dynamic omnichannel ecosystem in the market. This effort needs to start today. Given the evolving market structure, complexity, and information asymmetry, gains are most effectively multiplied by collaborating with the right partner on this journey.”
Dr. Wolfgang Baier, Group CEO of LUXASIA, affirms, “The time to enter India is now. However, given the market risks and potentially costly learning curve, brands need expert support to ensure a growing market presence. Having delivered solid growth for numerous brands in India, LUXASIA stands ready to lend our expertise and partner with international luxury beauty brands for long-term success in this promising market.”
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