India's luxury beauty market, valued at $1
billion, is forecast to nearly double to $1.6 billion by 2028 and grow to $4
billion by 2035. According to a report from Kearney and Luxasia, this market
will expand at an annual rate of 14%, driven by economic growth, a rising
middle class, and a growing preference for luxury products. The market, though
small compared to India's population, is expected to follow the rapid growth
path seen in China’s luxury beauty sector.
The report emphasizes that now is the ideal
time for brands to establish themselves in India and secure customer loyalty.
However, India’s market is complex due to its vast regional and cultural
diversity, making it essential for brands to adopt region-specific strategies
rather than a single-market approach. Additionally, navigating regulatory and
supply chain complexities will be crucial.
The white paper outlines three strategic
challenges for brands: product customization, region-targeted marketing, and
multi-channel supply chain optimization. Kearney’s Karen Dal notes that India
is at an inflection point for exponential growth, making this the best time to
invest. Luxasia’s COO, Satyaki Banerjee, adds that the market’s growth will
follow a rapid inflection point, urging brands to establish a presence now.
Wolfgang Baier, CEO of Luxasia, stresses that waiting to enter the market could
be too late, as it carries risks and a steep learning curve, requiring local
expertise (Beautynury, October 4, 2024). |
