India’s Luxury Beauty Market Set for Big Leap

Already a billion-dollar market, the Indian luxury beauty market is expected to quadruple by 2035, concludes a new study by consultant Kearney and Asia-Pacific omnichannel brand-builder LuxAsia. That translates into an annual growth rate of 14% for that period.

“This growth is [being] driven by the country’s overall economic development, a burgeoning middle-class and increasingly sophisticated luxury-conscious consumers eager to trade-up,” the report notes.

For all that potential, the report notes, market entry into India is fraught with challenges.

“India is a complex market – a ‘land of many Indias.’ Unlike other Asian countries, India’s vast geography and ethnic diversity create divergent consumer preferences across the country,” the report notes. “To succeed, brands must develop a range of region-specific (even city-specific) strategies rather than relying on a generic or single-market strategy.”

Brands also need to navigate operational and regulatory complexities such as product registration and importation while optimizing their supply chain setups.

Over, the report notes, beauty companies looking to make their presence must address three strategic pillars, the report says:  product-offering customization, targeted regional marketing strategies and omnichannel distribution optimization via strategic partnerships.

“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,” says Kearney Principal Shashank Goel. “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.”

Click here for more from the study.